Ceva Inc (CEVA)
NASDAQ:CEVA
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Ceva
(NASDAQ:CEVA)
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Rating:57Neutral
Price Target:
$30.00
▲(28.10% Upside)
Action:ReiteratedDate:04/26/26
The score is held back primarily by weak financial performance (continued GAAP losses and thin/volatile free cash flow) and a valuation profile constrained by negative earnings. These are partially offset by constructive earnings-call signals (8–12% 2026 revenue growth guidance and strong licensing/connectivity and AI/NPU momentum) and a strong technical uptrend, though the stock appears overbought near-term.
Positive Factors
High gross margins
Sustained ~88% non‑GAAP gross margins reflect structurally strong product economics for CEVA's IP business. High gross margins provide long-term operating leverage potential, allowing incremental revenues (royalties/licenses) to flow to profit as SG&A and R&D growth is contained.
Negative Factors
Persistent GAAP losses
Ongoing GAAP operating and net losses demonstrate that core scale and cost structure have not yet translated into consistent accounting profitability. This structural shortfall limits retained-earnings accumulation and pressures returns, potentially forcing trade-offs between growth investments and cost control.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained ~88% non‑GAAP gross margins reflect structurally strong product economics for CEVA's IP business. High gross margins provide long-term operating leverage potential, allowing incremental revenues (royalties/licenses) to flow to profit as SG&A and R&D growth is contained.
Read all positive factors
Ceva (CEVA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$753.25M
Dividend YieldN/A
Average Volume (3M)337.82K
Price to Earnings (P/E)―
Beta (1Y)2.22
Revenue Growth2.49%
EPS Growth-18.72%
CountryUS
Employees406
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.18
Shares Outstanding27,754,135
10 Day Avg. Volume302,776
30 Day Avg. Volume337,823
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 Cap0.90
Enterprise Value/Revenue6.20
Enterprise Value/Gross Profit7.12
Enterprise Value/Ebitda-150.53
Forecast
1Y Price Target
$28.80Price Target Upside22.97% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.5
Revenue Forecast (FY)$120.69M
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 11, 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
Positive
23.42
Price Trends
20.24
Positive
21.12
Positive
22.85
Positive
Market Momentum
0.71
Negative
70.83
Negative
96.82
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CEVA, the sentiment is Positive. The current price of 23.42 is above the 20-day moving average (MA) of 19.94, above the 50-day MA of 20.24, and above the 200-day MA of 22.85, indicating a bullish trend. The MACD of 0.71 indicates Negative momentum. The RSI at 70.83 is Negative, neither overbought nor oversold. The STOCH value of 96.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.56B | 7.47 | 99.25% | ― | 29.18% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $2.46B | -12.29 | -7.72% | ― | 11.61% | -136.34% | |
57 Neutral | $753.25M | -49.15 | -3.73% | ― | 2.49% | -18.72% | |
56 Neutral | $2.78B | -89.67 | -8.87% | ― | -26.39% | -147.85% | |
51 Neutral | $885.70M | -4.89 | -37.84% | ― | 0.33% | 3.17% | |
50 Neutral | $1.21B | -19.92 | 361.65% | ― | 22.27% | 5.09% |
* Technology Sector Average
CEVA
Ceva
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Ceva Corporate Events
Executive/Board ChangesShareholder Meetings
Ceva Announces Retirement of Long-Serving Board Member
Neutral
Apr 20, 2026
Ceva, Inc. reported on April 20, 2026 that long‑serving board member Sven‑Christer Nilsson has decided to retire from its board of directors and will not stand for re‑election at the annual shareholders’ meeting scheduled f...
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.