Ceva Inc (CEVA)
NASDAQ:CEVA
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Ceva
(NASDAQ:CEVA)
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Rating:60Neutral
Price Target:
$46.00
▲(96.41% Upside)
Action:Reiterated
Date:06/06/26
The score is driven primarily by mixed fundamentals: a strong, low-leverage balance sheet and exceptional gross margins, but ongoing losses and a TTM shift back to negative cash flow. Technicals are supportive due to a strong uptrend, though overbought indicators raise near-term volatility risk. The latest earnings call was a positive offset with upgraded growth and margin-expansion expectations, while valuation remains pressured by lack of profitability and no dividend.
Positive Factors
Low leverage and strong balance sheet
Very low leverage (debt-to-equity ~0.05) gives CEVA durable financial flexibility to fund R&D, sustain licensing commercialization cycles and absorb royalty timing volatility. This reduces refinancing risk and supports strategic investment over the next 2–6 months.
Negative Factors
Ongoing GAAP losses and negative margins
Despite high gross margins, continuing negative operating and net margins show operating expenses outpace core profitability. Persistent GAAP losses impair free cash generation and constrain the company's ability to convert its capital base into sustained earnings over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage and strong balance sheet
Very low leverage (debt-to-equity ~0.05) gives CEVA durable financial flexibility to fund R&D, sustain licensing commercialization cycles and absorb royalty timing volatility. This reduces refinancing risk and supports strategic investment over the next 2–6 months.
Read all positive factors
Ceva (CEVA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.38B
Dividend YieldN/A
Average Volume (3M)1.06M
Price to Earnings (P/E)―
Beta (1Y)2.20
Revenue Growth2.99%
EPS Growth-64.99%
CountryUS
Employees406
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.45
Shares Outstanding27,859,370
10 Day Avg. Volume1,052,466
30 Day Avg. Volume1,059,505
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 Cap0.80
Enterprise Value/Revenue9.87
Enterprise Value/Gross Profit11.34
Enterprise Value/Ebitda-214.74
Forecast
1Y Price Target
$43.29Price Target Upside84.82% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)0.5
Revenue Forecast (FY)$120.61M
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 makes money primarily by licensing its semiconductor IP to customers and earning royalties when customers ship chips that incorporate CEVA technology. Its revenue model typically includes: (1) Upfront license fees: customers pay for the right...
Ceva Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
Overall the call conveyed a positive execution story: top‑line growth (+11% YoY), an 18% increase in licensing revenue, record Wi‑Fi volume (+158% YoY), multiple strategic wins (Bluetooth HDT full‑stack, NTN, UWB, automotive AI in Toyota RAV4) and an upgraded full‑year outlook and margin expansion targets. Offsetting items include flat total royalties (mobile softness), declines in Bluetooth and industrial IoT unit shipments, and wider GAAP losses in the quarter. On balance the operational momentum, high margins, strong licensing pipeline and upgraded guidance outweigh the near‑term royalty and unit headwinds.Positive Updates
Revenue Growth
Total revenues of $27.0M in Q1 FY2026, up 11% year-over-year, driven by strong licensing execution.
Negative Updates
Flat Total Royalties and Mobile Softness
Total royalty revenues were $9.2M, flat year‑over‑year, with near‑term weakness attributed to seasonal mobile softness, memory availability constraints and channel inventory in lower‑tier segments.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Total revenues of $27.0M in Q1 FY2026, up 11% year-over-year, driven by strong licensing execution.
Read all positive updates
Company Guidance
CEVA upgraded 2026 outlook toward the high end of its prior 8%–12% revenue growth range over 2025, expects typical seasonality with lower H1 and stronger H2 (subject to memory pricing/supply), and forecasts combined cost of revenues and OpEx to rise ~8% versus 2025; management now expects non‑GAAP operating margins and non‑GAAP net income to increase 40%–50% year‑over‑year. For Q2, revenue is guided to $26M–$30M, GAAP gross margin ~87% and non‑GAAP gross margin ~88% (ex. ~$0.2M equity‑based comp and ~$0.1M amortization), GAAP OpEx $27.7M–$28.7M (including ~$5.3M equity comp, $0.1M amortization and $0.1M acquisition costs), non‑GAAP OpEx $22.2M–$23.2M, net interest income ~ $1.7M, taxes ~ $1.5M, and share count ~28.0M (GAAP) / 29.7M (non‑GAAP).Ceva Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
78
Positive
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 112.38M | 109.60M | 106.94M | 97.42M | 120.58M | 113.83M |
| Gross Profit | 97.86M | 95.44M | 94.17M | 85.77M | 105.45M | 103.45M |
| EBITDA | -5.17M | -554.00K | -3.41M | -8.58M | 12.15M | 16.63M |
| Net Income | -11.77M | -10.64M | -8.79M | -11.88M | -23.18M | 396.00K |
Balance Sheet | ||||||
| Total Assets | 388.23M | 388.26M | 308.95M | 304.08M | 308.44M | 331.77M |
| Cash, Cash Equivalents and Short-Term Investments | 215.69M | 221.98M | 163.64M | 166.54M | 138.31M | 154.86M |
| Total Debt | 16.88M | 30.52M | 5.56M | 6.46M | 7.89M | 8.40M |
| Total Liabilities | 50.04M | 51.80M | 42.39M | 39.74M | 49.57M | 55.04M |
| Stockholders Equity | 338.18M | 336.46M | 266.56M | 264.34M | 258.87M | 276.73M |
Cash Flow | ||||||
| Free Cash Flow | -5.76M | 516.00K | 516.00K | -9.21M | 3.42M | 23.61M |
| Operating Cash Flow | -837.00K | 3.47M | 3.47M | -6.33M | 6.92M | 25.80M |
| Investing Cash Flow | -56.04M | -2.45M | -2.45M | 10.84M | -15.12M | -16.71M |
| Financing Cash Flow | 59.53M | -5.57M | -5.57M | -2.77M | -3.31M | 3.24M |
Ceva Technical Analysis
Positive
23.42
Price Trends
30.80
Positive
25.86
Positive
25.08
Positive
Market Momentum
4.59
Negative
60.25
Neutral
72.03
Neutral
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 below the 20-day moving average (MA) of 40.69, below the 50-day MA of 30.80, and below the 200-day MA of 25.08, indicating a bullish trend. The MACD of 4.59 indicates Negative momentum. The RSI at 60.25 is Neutral, neither overbought nor oversold. The STOCH value of 72.03 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
62 Neutral | $1.87B | 14.97 | 75.20% | ― | 67.18% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $2.48B | -42.95 | -7.50% | ― | 7.53% | -203.93% | |
60 Neutral | $1.38B | -102.47 | -3.89% | ― | 2.99% | -64.99% | |
58 Neutral | $1.72B | -45.14 | 445.97% | ― | 25.57% | 2.16% | |
56 Neutral | $3.67B | -264.71 | -8.87% | ― | -26.39% | -147.85% | |
52 Neutral | $1.09B | -5.29 | -42.36% | ― | 0.17% | -1.78% |
* Technology Sector Average
CEVA
Ceva
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103.53%
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Ceva Corporate Events
Executive/Board ChangesShareholder Meetings
Ceva Shareholders Elect Directors and Approve Executive Pay
Neutral
Jun 3, 2026
At its virtual annual meeting on June 2, 2026, Ceva, Inc. shareholders elected seven directors, including Bernadette Andrietti, Amir Faintuch and CEO Amir Panush, to one-year terms ending at the 2027 annual meeting. The vote results showed broad b...
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.