📊 CEVA Key Takeaways
Is Ceva Inc. (CEVA) a Good Investment?
CEVA is operationally unprofitable with negative operating income (-18.8% margin) and burning cash (-7.2M FCF) despite strong 86.2% gross margins, indicating structural cost control issues. While the balance sheet provides a liquidity cushion (10.26x current ratio, no debt), the company must urgently demonstrate a path to profitability or risk capital depletion within 3 years at current burn rates.
CEVA shows attractive underlying unit economics with an 87.1% gross margin, a debt-free balance sheet, and very strong liquidity, which gives it flexibility to absorb near-term weakness. However, modest 2.5% revenue growth, negative operating and net margins, and negative free cash flow indicate that growth quality is currently mixed and profitability remains the core challenge. The fundamentals support patience rather than aggression until operating leverage improves.
Ceva Inc. Key Strengths (CEVA)
- Exceptional gross margin of 86.2% indicates valuable IP and product-market fit
- Strong balance sheet with zero long-term debt and $338.2M stockholders' equity
- Excellent liquidity position with 10.26x current ratio and $21.4M cash reserves
- Very high gross margin indicates strong intellectual property and favorable revenue mix
- Debt-free capital structure and large equity base reduce financial risk
- Current and quick ratios near 10x provide substantial liquidity cushion
CEVA Stock Risks: Ceva Inc. Investment Risks
- Negative operating cash flow (-4.9M) and free cash flow (-7.2M) indicate cash burn unsustainable beyond 3 years
- Operating expenses structurally misaligned with revenue ($27M), suggesting cost structure crisis or revenue stagnation
- Negative profitability metrics (net margin -16.5%, ROE -1.3%, EPS -$0.44) with no clear turnaround trajectory
- Operating and net losses show the business is not currently converting revenue into earnings
- Negative operating cash flow and free cash flow weaken the quality of reported revenue
- Low revenue growth limits confidence that fixed costs will be absorbed quickly
Key Metrics to Watch
- Operating margin trajectory and path to breakeven
- Operating cash flow recovery (currently -4.9M)
- Revenue growth acceleration needed to leverage existing cost base
- Quarterly cash burn rate relative to remaining reserves
- Operating margin trend
- Free cash flow and operating cash flow conversion
Ceva Inc. (CEVA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 10.26x current ratio provides a solid financial cushion.
CEVA Profit Margin, ROE & Profitability Analysis
CEVA vs Technology Sector: How Ceva Inc. Compares
How Ceva Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Ceva Inc. Stock Overvalued? CEVA Valuation Analysis 2026
Based on fundamental analysis, Ceva Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Ceva Inc. Balance Sheet: CEVA Debt, Cash & Liquidity
CEVA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Ceva Inc.'s revenue has declined by 11% over the 5-year period, indicating business contraction. The most recent EPS of $-0.51 indicates the company is currently unprofitable.
CEVA Revenue Growth, EPS Growth & YoY Performance
CEVA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $24.2M | -$3.3M | $-0.14 |
| Q3 2018 | $21.4M | -$1.7M | $-0.08 |
| Q2 2018 | $17.5M | -$2.1M | $-0.09 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Ceva Inc. Dividends, Buybacks & Capital Allocation
CEVA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Ceva Inc. (CIK: 0001173489)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CEVA
What is the AI rating for CEVA?
Ceva Inc. (CEVA) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 79% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CEVA's key strengths?
Claude: Exceptional gross margin of 86.2% indicates valuable IP and product-market fit. Strong balance sheet with zero long-term debt and $338.2M stockholders' equity. ChatGPT: Very high gross margin indicates strong intellectual property and favorable revenue mix. Debt-free capital structure and large equity base reduce financial risk.
What are the risks of investing in CEVA?
Claude: Negative operating cash flow (-4.9M) and free cash flow (-7.2M) indicate cash burn unsustainable beyond 3 years. Operating expenses structurally misaligned with revenue ($27M), suggesting cost structure crisis or revenue stagnation. ChatGPT: Operating and net losses show the business is not currently converting revenue into earnings. Negative operating cash flow and free cash flow weaken the quality of reported revenue.
What is CEVA's revenue and growth?
Ceva Inc. reported revenue of $27.0M.
Does CEVA pay dividends?
Ceva Inc. does not currently pay dividends.
Where can I find CEVA SEC filings?
Official SEC filings for Ceva Inc. (CIK: 0001173489) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CEVA's EPS?
Ceva Inc. has a diluted EPS of $-0.44.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CEVA's fundamental grade?
Based on our AI fundamental analysis in June 2026, Ceva Inc. has a C grade with 79% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CEVA stock overvalued or undervalued?
Valuation metrics for CEVA: ROE of -1.3% (sector avg: 22%), net margin of -16.5% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is CEVA's AI grade for 2026?
Our dual AI analysis gives Ceva Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CEVA's free cash flow?
Ceva Inc.'s operating cash flow is $-4.9M, with capital expenditures of $2.3M. FCF margin is -26.6%.
How does CEVA compare to other Technology stocks?
Vs Technology sector averages: Net margin -16.5% (avg: 18%), ROE -1.3% (avg: 22%), current ratio 10.26 (avg: 2.5).