Ceva Inc (CEVA)
NASDAQ:CEVA
Top Page
Ceva
(NASDAQ:CEVA)
Select Model
Select Model
Rating:52Neutral
Price Target:
$17.50
▼(-9.42% Downside)
Action:ReiteratedDate:02/28/26
The score is anchored by weak financial performance (ongoing GAAP losses and limited free-cash-flow generation) despite a low-debt balance sheet and strong gross margins. The earnings call was constructive with growth guidance and licensing/AI momentum, but technicals remain weak (below major moving averages with negative MACD) and valuation support is limited due to negative earnings.
Positive Factors
Recurring licensing and royalty business model
CEVA's licensing-plus-royalty model creates a long-duration revenue stream: upfront license fees plus royalties that scale with customer volumes. The cited $125M lifetime potential from 2025 deals and multi-IP OEM engagements signal a durable revenue tail if customers ship at scale.
Negative Factors
Persistent GAAP operating and net losses
Despite strong product-level economics, CEVA has reported negative operating and net margins in recent years. Continued GAAP losses constrain retained earnings, limit organic reinvestment capacity, and mean the company must demonstrate sustained operating improvement to convert high gross margins into durable GAAP profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring licensing and royalty business model
CEVA's licensing-plus-royalty model creates a long-duration revenue stream: upfront license fees plus royalties that scale with customer volumes. The cited $125M lifetime potential from 2025 deals and multi-IP OEM engagements signal a durable revenue tail if customers ship at scale.
Read all positive factors
Ceva (CEVA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$536.21M
Dividend YieldN/A
Average Volume (3M)406.55K
Price to Earnings (P/E)―
Beta (1Y)2.23
Revenue Growth5.55%
EPS Growth-239.94%
CountryUS
Employees406
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.18
Shares Outstanding27,754,135
10 Day Avg. Volume422,762
30 Day Avg. Volume406,551
Financial Highlights & Ratios
PEG Ratio-2.60
Price to Book (P/B)1.55
Price to Sales (P/S)4.77
P/FCF Ratio1.01K
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue4.80
Enterprise Value/Gross Profit5.51
Enterprise Value/Ebitda-116.58
Forecast
1Y Price Target
$28.80Price Target Upside49.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.5
Revenue Forecast (FY)$120.63M
Ceva Business Overview & Revenue Model
Company Description
CEVA, Inc. operates as a licensor of wireless connectivity and smart sensing technologies to semiconductor and original equipment manufacturer (OEM) companies worldwide. It designs and licenses various digital signal processors, AI processors, wir...
How the Company Makes Money
CEVA primarily makes money by licensing its semiconductor IP to customers who integrate that IP into their chips and products. Its revenue model is typically a combination of (1) upfront license fees and (2) recurring royalties. Upfront license re...
Ceva Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call emphasized strong momentum across licensing, connectivity, and emerging AI/NPU opportunities with record quarterly revenue, record annual device shipments (2.1B), robust licensing deal flow and an estimated $125M lifetime royalty potential from 2025 deals. Profitability improved on a non‑GAAP basis and the balance sheet was strengthened with ~$63M net from a follow-on offering and ~$222M total liquidity. Offsetting these positives are continued smartphone and modem softness that pressured annual royalties (down 2%), notable declines in industrial and some Bluetooth shipments, meaningful FX-driven expense pressure (~$5M), and near-term seasonality (Q1 guidance below Q4). Overall, the positives around record revenue, AI/NPU traction, connectivity strength, and improving non‑GAAP profitability outweigh the operational and macro headwinds, supporting a constructive outlook into 2026.Positive Updates
Record Quarterly Revenue
Q4 2025 delivered the highest quarterly revenue in company history, up 7% year-over-year (excluding the divested Intrinsix business) and 10% sequentially.
Negative Updates
Annual Royalties Decline and Smartphone/Memory Headwinds
Royalty revenue for the full year was down 2% YoY, primarily driven by smartphone softness and memory supply/price issues that impacted unit shipments and timing of royalty recognition.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Quarterly Revenue
Q4 2025 delivered the highest quarterly revenue in company history, up 7% year-over-year (excluding the divested Intrinsix business) and 10% sequentially.
Read all positive updates
Company Guidance
CEVA guided 2026 revenue growth of 8–12% versus 2025, with Q1 revenue of $24.0–$28.0M (seasonally lower than Q4 but above 2025 at the midpoint) and expect H1 growth to be lower than H2; full‑year non‑GAAP gross margin ~88% (Q1 GAAP ~86% / Q1 non‑GAAP ~87%). They forecast total 2026 non‑GAAP expenses of $104.4–$108.4M (non‑GAAP COGS up ≈$0.5M; non‑GAAP operating expenses up ≈$6.1M), with organic non‑GAAP expense growth of 1–3% excluding FX and a ~10% increase in non‑USD R&D costs (~$5.0M FX headwind). Q1 GAAP OpEx is $27.6–$28.6M; Q1 non‑GAAP OpEx $22.2–$23.2M. Equity‑based comp is forecast at $22.0–$23.5M (up ~35–40% YoY); amortization and acquisition costs each ~$400–$500K.Ceva Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
73
Positive
Cash Flow
40
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 109.60M | 106.94M | 97.42M | 120.58M | 113.83M |
| Gross Profit | 95.44M | 94.17M | 85.77M | 105.45M | 103.45M |
| EBITDA | -554.00K | -3.41M | -8.58M | 12.15M | 16.63M |
| Net Income | -10.64M | -8.79M | -11.88M | -23.18M | 396.00K |
Balance Sheet | |||||
| Total Assets | 388.26M | 308.95M | 304.08M | 308.44M | 331.77M |
| Cash, Cash Equivalents and Short-Term Investments | 221.98M | 163.64M | 166.54M | 138.31M | 154.86M |
| Total Debt | 30.52M | 5.56M | 6.46M | 7.89M | 8.40M |
| Total Liabilities | 51.80M | 42.39M | 39.74M | 49.57M | 55.04M |
| Stockholders Equity | 336.46M | 266.56M | 264.34M | 258.87M | 276.73M |
Cash Flow | |||||
| Free Cash Flow | 516.00K | 516.00K | -9.21M | 3.42M | 23.61M |
| Operating Cash Flow | 3.47M | 3.47M | -6.33M | 6.92M | 25.80M |
| Investing Cash Flow | -2.45M | -2.45M | 10.84M | -15.12M | -16.71M |
| Financing Cash Flow | -5.57M | -5.57M | -2.77M | -3.31M | 3.24M |
Ceva Technical Analysis
Negative
19.32
Price Trends
20.34
Negative
21.31
Negative
22.87
Negative
Market Momentum
-0.33
Negative
51.68
Neutral
91.13
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CEVA, the sentiment is Negative. The current price of 19.32 is above the 20-day moving average (MA) of 18.92, below the 50-day MA of 20.34, and below the 200-day MA of 22.87, indicating a neutral trend. The MACD of -0.33 indicates Negative momentum. The RSI at 51.68 is Neutral, neither overbought nor oversold. The STOCH value of 91.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CEVA.
Ceva Risk Analysis
Ceva disclosed 34 risk factors in its most recent earnings report. Ceva reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ceva Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $1.35B | 7.47 | 99.25% | ― | 0.19% | ― | |
62 Neutral | $1.69B | -12.29 | -7.72% | ― | 16.86% | -26.89% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $1.54B | -89.67 | -7.08% | ― | -3.23% | -122.16% | |
52 Neutral | $536.21M | -49.15 | -3.73% | ― | 5.55% | -239.94% | |
47 Neutral | $646.38M | -5.48 | -37.84% | ― | -4.99% | -12.11% | |
47 Neutral | $823.87M | -19.92 | 361.65% | ― | 20.45% | 12.28% |
* Technology Sector Average
CEVA
Ceva
19.32
-1.17
-5.71%
AEHR
Aehr Test Systems
50.25
43.47
641.15%
ICHR
Ichor Holdings
48.85
32.18
193.04%
INDI
indie Semiconductor
2.89
1.23
74.10%
SKYT
SkyWater Technology
28.07
22.22
379.83%
AIP
Arteris
18.12
12.53
224.15%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.