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Ceva
(NASDAQ:CEVA)
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Rating:55Neutral
Price Target:
$35.00
▲(26.67% Upside)
Action:Reiterated
Date:08/11/26
The score is anchored by mixed financial performance: excellent gross margins and a low-debt balance sheet are offset by ongoing TTM losses and inconsistent free cash flow. The latest earnings call improves the outlook with raised guidance and stronger non-GAAP profitability, but technicals remain weak (price below key moving averages with negative MACD), and valuation signals are constrained by a negative P/E and no dividend.
Positive Factors
Licensing growth and strategic AI wins
Strong licensing growth and strategic AI-related agreements can broaden CEVA’s installed IP base and increase future royalty opportunities. First-time customers, direct OEMs, and broader platform wins also support deeper design adoption, which can compound revenue as customer products reach shipment.
Negative Factors
Persistent losses and inconsistent free cash flow
Despite strong gross margins, CEVA has not yet demonstrated durable GAAP profitability or consistent conversion of revenue into free cash flow. Continued losses and volatile cash generation could constrain internally funded investment and make results more sensitive to execution, spending, and working-capital changes.
Read all positive and negative factors
Positive Factors
Negative Factors
Licensing growth and strategic AI wins
Strong licensing growth and strategic AI-related agreements can broaden CEVA’s installed IP base and increase future royalty opportunities. First-time customers, direct OEMs, and broader platform wins also support deeper design adoption, which can compound revenue as customer products reach shipment.
Read all positive factors
Ceva (CEVA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$970.75M
Dividend YieldN/A
Average Volume (3M)675.77K
Price to Earnings (P/E)―
Beta (1Y)2.48
Revenue Growth8.82%
EPS Growth2.60%
CountryUS
Employees374
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.40
Shares Outstanding28,154,072
10 Day Avg. Volume633,982
30 Day Avg. Volume675,772
Financial Highlights & Ratios
PEG Ratio-2.59
Price to Book (P/B)1.55
Price to Sales (P/S)4.77
P/FCF Ratio1.01K
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$46.67Price Target Upside68.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)0.54
Revenue Forecast (FY)$124.96M
Ceva Business Overview & Revenue Model
Company Description
CEVA, Inc. is a global provider of intellectual property (IP) for advanced wireless connectivity and intelligent sensing solutions, serving semiconductor manufacturers and original equipment manufacturers (OEMs). The company specializes in develop...
How the Company Makes Money
CEVA primarily makes money by licensing its semiconductor IP to customers that design and ship chips and connected devices. Its revenue model is typically structured in two main streams: (1) upfront license fees paid when a customer signs an agree...
Ceva Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operational and financial picture: strong revenue growth (+13% YoY), a notable 21% increase in licensing revenue, major strategic AI and platform wins, expanded product shipments (+16% device shipments), improved non-GAAP profitability (operating margin up to 11%) and raised full-year guidance. Headwinds included FX-related financial income shortfall, modest year-over-year royalty growth, declines in Bluetooth and industrial IoT unit shipments, and ongoing industry risks around memory pricing and supply constraints. On balance, the favorable licensing execution, strategic platform deals, improving royalties, margin expansion, and raised guidance outweigh the contained risks and near-term softness in some shipment categories.Positive Updates
Revenue Growth
Total revenue increased 13% year-over-year to $29.0M and rose 7% sequentially, driven by strong licensing and improving royalties.
Negative Updates
Bluetooth Shipment Decline
Bluetooth shipments decreased 16% year-over-year to 295M units, reflecting softness in that segment.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Total revenue increased 13% year-over-year to $29.0M and rose 7% sequentially, driven by strong licensing and improving royalties.
Read all positive updates
Company Guidance
CEVA raised its 2026 revenue outlook to growth of 13%–15% (up from prior guidance of 12%), expects the second half to be stronger than the first, and still anticipates total non‑operating cost of revenues and operating expenses to increase roughly 8% year‑over‑year; management now expects non‑GAAP operating income to rise ≈70% YoY and non‑GAAP net income to rise ≈50% YoY. For Q3 revenue is guided to $30.5M–$34.5M with gross margins of ~87% GAAP and ~88% non‑GAAP (including approximately $0.2M equity‑based compensation and $0.1M amortization of acquired intangibles); GAAP operating expenses are expected to be $28.2M–$29.2M (incl. ~$5.4M equity‑based comp, $0.1M amortization, $0.1M acquisition costs) and non‑GAAP operating expenses $22.5M–$23.5M (similar to Q2). Net financial income is expected to be about $2.0M, income tax expense about $1.9M, and weighted average diluted shares roughly 28.2M on a GAAP basis and 30.0M on a non‑GAAP basis.Ceva Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
78
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 115.73M | 109.60M | 106.94M | 97.42M | 120.58M | 113.83M |
| Gross Profit | 101.12M | 95.44M | 94.17M | 85.77M | 105.45M | 103.45M |
| EBITDA | -971.00K | -554.00K | 1.38M | -3.32M | 12.15M | 16.63M |
| Net Income | -10.98M | -10.64M | -8.79M | -11.88M | -23.18M | 396.00K |
Balance Sheet | ||||||
| Total Assets | 391.89M | 388.26M | 308.95M | 304.08M | 308.44M | 331.77M |
| Cash, Cash Equivalents and Short-Term Investments | 215.57M | 221.98M | 163.64M | 166.54M | 138.31M | 154.86M |
| Total Debt | 17.42M | 30.52M | 5.56M | 6.46M | 7.89M | 8.40M |
| Total Liabilities | 51.64M | 51.80M | 42.39M | 39.74M | 49.57M | 55.04M |
| Stockholders Equity | 340.25M | 336.46M | 266.56M | 264.34M | 258.87M | 276.73M |
Cash Flow | ||||||
| Free Cash Flow | -1.06M | 516.00K | 516.00K | -9.21M | 3.42M | 23.61M |
| Operating Cash Flow | 3.81M | 3.47M | 3.47M | -6.33M | 6.92M | 25.80M |
| Investing Cash Flow | -53.48M | -2.45M | -2.45M | 10.84M | -15.12M | -16.71M |
| Financing Cash Flow | 65.42M | -5.57M | -5.57M | -2.77M | -3.31M | 3.24M |
Ceva Technical Analysis
Positive
27.63
Price Trends
31.34
Positive
36.92
Negative
29.47
Positive
Market Momentum
1.17
Negative
61.99
Neutral
84.73
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 27.63 is below the 20-day moving average (MA) of 30.09, below the 50-day MA of 31.34, and below the 200-day MA of 29.47, indicating a bullish trend. The MACD of 1.17 indicates Negative momentum. The RSI at 61.99 is Neutral, neither overbought nor oversold. The STOCH value of 84.73 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 |
|---|---|---|---|---|---|---|---|
62 Neutral | $2.24B | -51.67 | -5.61% | ― | 9.10% | -92.70% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $3.29B | -453.32 | -4.66% | ― | -15.21% | -81.50% | |
55 Neutral | $970.75M | -86.23 | -3.42% | ― | 8.82% | 2.60% | |
51 Neutral | $1.14B | -26.48 | -357.77% | ― | 33.81% | -7.37% | |
50 Neutral | $686.15M | -4.01 | -44.79% | ― | 6.19% | 11.87% |
* Technology Sector Average
CEVA
Ceva
34.48
7.14
26.12%
AEHR
Aehr Test Systems
100.78
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203.10%
ICHR
Ichor Holdings
59.76
39.95
201.67%
INDI
indie Semiconductor
2.96
-1.05
-26.18%
AIP
Arteris
23.26
12.76
121.52%
Ceva Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Ceva Announces Leadership Transition as COO Steps Down
Neutral
Jul 13, 2026
On July 8, 2026, Ceva, Inc. and Executive Vice President and Chief Operating Officer Michael Boukaya agreed that he would resign from his role, with his final day as COO set for August 1, 2026. He will remain employed by the company through Decemb...
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.