The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 12 | — | 20.8x | Bottom tier | |
Growth | 33 | 3.0% | 6.1% | Bottom tier | |
Quality | 48 | -9.1% | 6.6% | Around median | |
Safety | 78 | 0.6x | 0.7x | Top tier | |
Capital Return | 32 | — | 2.02% | Bottom tier | |
Momentum | 82 | 104.1% | 4.1% | Top tier | |
Sentiment | 77 | 7 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
CEVA, Inc. is active in licensing digital processing, wireless signaling, and artificial intelligence platforms targeted at smart edge devices (Edge AI). The company's business model relies on two primary revenue sources: first, intellectual property (IP) licensing to semiconductor companies and device manufacturers, and second, collecting recurring royalties that are directly tied to the volume of device shipments integrating its technologies in global markets.
During the first quarter of 2026, the company's financial results showed strong performance as total revenue increased by 11% year-over-year to reach $27.0 million, compared to $24.2 million in the first quarter of 2025. This growth was driven by an exceptional performance in the licensing and related revenue segment, which jumped 18% to $17.8 million, marking the company's strongest licensing quarter in three years and representing 66% of total revenue, while royalty revenue amounted to $9.2 million, accounting for the remaining 34%.
On the profitability front, CEVA recorded a gross margin of 86% on a GAAP basis and 87% on a non-GAAP basis. However, operating expenses led to a GAAP net loss of $4.5 million (or a loss of $0.16 per share), compared to a net loss of $3.3 million in the first quarter of 2025, while the company achieved non-GAAP net income of $1.1 million (or $0.04 per share).
CEVA stock receives a strong positive valuation from the analyst community with a general consensus recommending a 'Buy', with an average price target of $45.4, with estimates ranging from a high of $55 to a low of $40. Considering the stock's 52-week trading range of $17.02 to $51.25, the stock is currently trading below the analysts' average price target, reflecting good upside potential if upgraded growth targets are achieved.
Figures in the text are as of 2026-06-15; the live price is shown at the top of the page.
The company achieved record licensing revenue of $17.8 million in the first quarter of 2026 as a result of signing 14 new licensing agreements, including two deals with original equipment manufacturers (OEMs). This momentum is driven by the company's successful strategy of offering integrated system solutions rather than individual components, such as Bluetooth HDT deals for next-generation chips and the expansion of ultra-wideband (UWB) technology licensing with leading microcontroller unit (MCU) providers in the US.
The automotive sector is showing highly promising growth following the entry of the Renesas R-Car V4H platform, which integrates CEVA's AI processor and accelerator, into commercial production for the 2026 Toyota RAV4, one of the best-selling cars globally. Additionally, the company announced a strategic collaboration with NXP to integrate its technologies into S32E2 and S32Z2 software-defined automotive processors. These steps pave the way for long-term, stable royalty streams as AI content increases in modern vehicles.
Reported Bluetooth shipments decreased to 206 million units compared to 233 million units in the prior year's quarter, but this decline is due to accounting methodology rather than a drop in market demand. The company is experiencing an accelerated shift toward combo chips that combine Wi-Fi and Bluetooth together, and it counts these combined units under Wi-Fi shipments, which doubled their combo shipments year-over-year. These combo chips feature higher average selling prices (ASPs), offsetting the decline in standalone Bluetooth shipments and yielding better returns.
Automated analysis for informational purposes only — not investment advice.
The company's management expects second-quarter 2026 revenue to range between $26 million and $30 million, reflecting continued sequential and year-over-year growth. Estimates also indicate a gross margin of 87% on a GAAP basis and 88% on a non-GAAP basis. Non-GAAP operating expenses are expected to range between $22.2 million and $23.2 million, which is flat compared to first-quarter levels.
CEVA possesses a strong cash position of $216 million, including cash, equivalents, marketable securities, and bank deposits, which provides it with significant financial flexibility. Management intends to allocate capital in a disciplined manner by continuing to invest in the development of its proprietary technology product roadmap. Additionally, the company is actively seeking selective, strategic acquisition (M&A) opportunities in the communications, sensing, and AI sectors to accelerate growth and expand its business scale.