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Ceva
(NASDAQ:CEVA)
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Rating:57Neutral
Price Target:
$40.00
▲(10.04% Upside)
Action:Reiterated
Date:08/10/26
CEVA’s score is supported most by a strong balance sheet and a constructive earnings update with raised guidance and improving non-GAAP profitability. Offsetting this, the financial statements still show weak/negative TTM profitability and a deterioration in TTM cash generation, while technical indicators are mixed and valuation is challenged by negative earnings and no dividend support.
Positive Factors
Low leverage and balance sheet flexibility
Very low debt-to-equity and a sizable equity base give CEVA durable financial flexibility to fund R&D, tolerate cyclical royalty volatility and pursue licensing commercialization without near-term refinancing pressure, supporting strategic investments over the next several quarters.
Negative Factors
TTM deterioration in cash generation
A recent reversal to negative trailing‑twelve‑month operating and free cash flow increases near‑term cash burn risk and reduces optionality for discretionary R&D or M&A without drawing on cash reserves, pressuring the company if royalty ramps disappoint.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage and balance sheet flexibility
Very low debt-to-equity and a sizable equity base give CEVA durable financial flexibility to fund R&D, tolerate cyclical royalty volatility and pursue licensing commercialization without near-term refinancing pressure, supporting strategic investments over the next several quarters.
Read all positive factors
Ceva (CEVA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.08B
Dividend YieldN/A
Average Volume (3M)683.78K
Price to Earnings (P/E)―
Beta (1Y)2.37
Revenue Growth2.99%
EPS Growth-64.99%
CountryUS
Employees400
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.45
Shares Outstanding27,859,370
10 Day Avg. Volume529,704
30 Day Avg. Volume683,776
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
$48.50Price Target Upside33.43% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)0.53
Revenue Forecast (FY)$122.77M
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 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:Aug 10, 2026
(Q2-2026)
| 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
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 | -1.36M | -554.00K | 1.38M | -3.32M | 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
36.35
Price Trends
41.87
Negative
34.46
Positive
28.48
Positive
Market Momentum
-1.83
Negative
51.72
Neutral
73.78
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 36.35 is below the 20-day moving average (MA) of 36.91, below the 50-day MA of 41.87, and above the 200-day MA of 28.48, indicating a neutral trend. The MACD of -1.83 indicates Negative momentum. The RSI at 51.72 is Neutral, neither overbought nor oversold. The STOCH value of 73.78 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $1.60B | 13.75 | 63.70% | ― | 67.18% | ― | |
62 Neutral | $3.36B | -448.13 | -4.66% | ― | -15.21% | -81.50% | |
62 Neutral | $2.56B | -58.33 | -5.61% | ― | 9.10% | -92.70% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $1.08B | -85.36 | -3.89% | ― | 2.99% | -64.99% | |
55 Neutral | $1.46B | -34.23 | -357.77% | ― | 33.81% | -7.37% | |
50 Neutral | $916.69M | -5.46 | -43.90% | ― | 6.19% | 11.87% |
* Technology Sector Average
CEVA
Ceva
38.67
17.34
81.29%
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SKYT
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139.56%
AIP
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29.78
20.68
227.25%
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...
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...
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.