Start here if you're new
what it is
CEVA sells chip designs and software that let other companies add wireless, sensing, and AI features without building them from scratch.
how it gets paid
Last year Ceva made $110M in revenue.
why it's growing
Revenue grew 2.5% last year. 86.7% gross margin is the whole case. Gross margin → money left after direct costs → CEVA's model works on paper.
what just happened
The latest quarter in the filing narrative was ~$29M in revenue (up ~20%+ vs. prior year) with ~86.7% gross margin, but GAAP EPS was still –$0.07— premium unit economics, weak operating leverage.
At a glance
B+ balance sheet — decent shape, but not bulletproof
30/100 earnings predictability — expect surprises
0.1% return on capital — nothing to write home about
-$0.44 fy2025 eps est
~$110M revenue base — one licensing quarter can swing the year
xvary composite: 48/100 — below average
What they do
CEVA sells chip designs and software that let other companies add wireless, sensing, and AI features without building them from scratch.
CEVA's edge is licensing IP (intellectual property → reusable chip designs and software → customers pay without CEVA building chips). That model helped produce an 86.7% gross margin on $110 million of annual revenue, based on SEC data. You want that kind of business because every extra dollar of sales should be cheap to deliver, which makes the current -10.4% operating margin look like an execution problem, not a physics problem.
How they make money
$110M
annual revenue · their business grew +2.5% last year
total revenue
$110M
+2.5%
The products that matter
wireless connectivity licensing
Wireless Connectivity IP
$88M · 80% of revenue shown here
This $88M segment is still the center of gravity, which is why a Q1 2026 guide of $26M and a 17% decline matter so much.
the legacy base
ai and sensing licensing
AI & Smart Sensing IP
$22M · 20% of 2025 revenue
This $22M segment is the growth thesis in one line: it reached 20% of 2025 revenue, but it still has a lot of catching up to do.
the transition bet
edge ai processor ip
NeuPro-Nano NPU
recent industry recognition
The product got an award recently, which helps the narrative, but the revenue proof still sits inside an AI business that was only 20% of 2025 sales.
signal, not scale
Key numbers
86.7%
gross margin
Gross margin → money left after direct costs → CEVA's licensing model is structurally rich even before operating expenses get in the way.
–10.4%
operating margin
Operating margin → profit after running the business → CEVA still loses money at the operating line despite premium gross margin.
$110M
annual revenue
This is a very small company, which means one product cycle or one customer decision can move the whole story.
0.1%
return on capital
Return on capital → profit earned on the money used in the business → CEVA is barely generating returns today.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 4 — safer than 20% of stocks
- price stability 20 / 100
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for CEVA right now.
source: institutional data · return history unavailable
What just happened
mixed vs estimates
CEVA's latest reported quarter delivered ~$29M in revenue and ~86.7% gross margin, but GAAP earnings are still underwater.
Revenue in that quarter was up roughly 20% vs. prior year. GAAP EPS was –$0.07 for the period ending 12/31/24. Non-GAAP results can look better; GAAP still shows the profit bridge is not done.
~$29M
quarter revenue
–$0.07
quarter GAAP eps
~86.7%
gross margin (quarter)
the number that mattered
86.7% gross margin is the whole case. Gross margin → money left after direct costs → CEVA's model works on paper, so investors are waiting for operating leverage to finally show up.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
The #1 risk is wireless connectivity royalties shrinking faster than AI licensing scales.
med
The core business is still the business
Wireless Connectivity IP is $88M of the $110M revenue shown here. When Q1 2026 guidance points to $26M and a 17% drop, that is not a side issue.
About 80% of the revenue base is tied to the segment now guiding lower.
med
AI is real, but still small
AI and Smart Sensing reached $22M and 20% of 2025 revenue. That's enough to build a story around, not enough to absorb a large stumble in wireless.
The transition thesis needs the smaller segment to outrun the bigger one very quickly.
med
The profit bridge is still missing
An 86.7% gross margin usually comes with impressive earnings. Here, analysts still expect FY2025 EPS of -$0.44 and return on capital is just 0.1%.
If revenue softens again, the path from promising IP to real earnings gets pushed further out.
If the $88M wireless base keeps slipping while the $22M AI business stays too small to offset it, the whole investment case remains a transition story instead of becoming a growth story.
source: institutional data · regulatory filings · risk analysis
Pay attention to
next report
q1 2026 earnings delivery
Management guided to $26M in revenue. If they miss a weak guide, confidence gets worse from here.
mix shift
ai revenue moving above 20%
AI was 20% of 2025 revenue. You want that mix rising for the right reason — growth, not just a faster collapse in wireless.
profitability
loss-to-profit bridge
FY2025 EPS is still estimated at -$0.44. High gross margin only matters if it shows up below the operating line.
core risk
wireless demand deterioration
Wireless Connectivity IP is still $88M of revenue shown here. Another double-digit decline would keep the old business in charge of the stock.
Analyst rankings
earnings predictability
30 / 100
In human-speak, analysts do not expect smooth quarters here. Licensing timing can make the numbers jump around.
risk rank
4
That puts CEVA safer than only 20% of stocks in this framework. You are not getting a low-drama small cap.
price stability
20 / 100
The stock price tends to move like a company still trying to prove the story, because that is exactly what it is doing.
source: institutional data
Institutional activity
institutional ownership data for CEVA is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
~$20
current price
n/a
target midpoint · n/a from current
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive