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1. Company Snapshot

1.a. Company Description

CEVA, Inc.operates as a licensor of wireless connectivity and smart sensing technologies to semiconductor and original equipment manufacturer (OEM) companies worldwide.It designs and licenses various digital signal processors, AI processors, wireless platforms, and complementary software for sensor fusion, image enhancement, computer vision, voice input, and artificial intelligence (AI).


The company licenses a family of wireless connectivity and smart sensing technologies, and integrated IP solutions, including DSP-based platforms for 5G baseband processing in mobile, IoT, and infrastructure; imaging and computer vision for any camera-enabled devices; audio/voice/speech and ultra-low power always-on/sensing applications for multiple IoT markets; sensor fusion software and inertial measurement unit solutions for hearables, wearables, AR/VR, PC, robotics, remote controls, and IoT; and wireless IoT for Bluetooth, Wi-Fi 4/5/6/6E, Ultra-wideband (UWB), and NB-IoT.Its technologies are licensed to companies, which design, manufacture, market, and sell application-specific integrated circuits and application-specific standard products to mobile, consumer, automotive, robotics, industrial, aerospace and defense, and IoT companies for incorporation into various end products.The company delivers its DSP cores, platforms, and AI processors in the form of a hardware description language definition; and offers development platforms, software development kits, and software debug tools that facilitate system design, debug, and software development.


The company licenses its technology through a direct sales force.The company was formerly known as ParthusCeva, Inc.and changed its name to CEVA, Inc.


in December 2003.CEVA, Inc.was incorporated in 1999 and is headquartered in Rockville, Maryland.

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1.b. Last Insights on CEVA

CEVA's recent performance was driven by strong Q4 2024 earnings and revenue beat, with total revenue of $29.2 million outperforming analysts' forecasts of $27 million. Adjusted earnings per share (EPS) stood at $0.11, a 10% year-over-year increase, and in line with forecasts. The company's latest high-performance, high-efficiency communication DSPs for advanced 5G and 6G applications also showcased its innovation and scalability. Additionally, CEVA expanded its embedded AI NPU ecosystem through new partnerships, accelerating time-to-market for smart edge devices.

1.c. Company Highlights

2. CEVA's Q3 2025 Earnings: A Strong Performance Driven by AI and Wireless Connectivity

CEVA reported a revenue of $28.4 million for Q3 2025, up 4% year-over-year and 11% sequentially. Non-GAAP EPS came in at $0.11, beating estimates of $0.1. Gross margin was 88% on a GAAP basis and 89% on a non-GAAP basis, slightly better than guidance. Licensing revenue totaled $16 million, representing 56% of total revenue, while royalty revenue was $12.4 million, up 16% sequentially and 6% year-over-year.

Publication Date: Nov -20

📋 Highlights
  • Revenue & EPS Exceeded Expectations: Q3 revenue reached $28.4M with non-GAAP EPS of $0.11, surpassing forecasts.
  • Strategic AI Licensing Win: Microchip licensed CEVA's full NPU portfolio, contributing ~33% of Q3 licensing revenue and signaling industry AI adoption trends.
  • Strong Royalty Growth: Royalty revenue rose 16% sequentially ($12.4M) and 6% YoY, driven by IoT and Wi-Fi shipments.
  • Revenue Mix Shift: Licensing revenue ($16M, 56% of total) grew faster than royalties ($12.4M, 44%), reflecting AI's rising strategic importance.
  • Guidance & Gross Margin: Q4 revenue projected at $29–$33M; gross margin maintained at ~88% (GAAP) and 89% (non-GAAP), with full-year guidance unchanged.

AI Licensing Drives Growth

The company's AI licensing business is gaining traction, with AI processor licensing contributing roughly one-third of licensing revenue in both Q2 and Q3 2025. The deal with Microchip, a leading microcontroller and connectivity provider, to license CEVA's full NPU portfolio is a significant win, demonstrating the industry trend of embedding AI capabilities in product lines. As Amir Panush, CEO, stated, "Licensing a proven and scalable NPU architecture delivers the performance and scalability customers need while freeing resources to focus on software-optimized models and application-specific experiences."

Wireless Connectivity Continues to Perform Well

Royalty revenue growth was driven by record shipments in cellular IoT and Wi-Fi, with consumer IoT posting 9% year-over-year growth. The company saw wins in both established standards like Wi-Fi 6 and Bluetooth 5, and next-generation standards. CEVA expects continued momentum in the fourth quarter, driven by share gains at a U.S. OEM smartphone customer and strong ramps in Wi-Fi and cellular IoT.

Valuation and Outlook

With a P/S Ratio of 4.25 and an expected revenue growth rate of 14.7% next year, the stock appears to be reasonably valued. However, the P/E Ratio of -105.81 and EV/EBITDA of -47.22 indicate that the company's profitability is still a concern. Analysts will be watching to see if CEVA can continue to drive growth through its AI and wireless connectivity businesses. As Yaniv Arieli, CFO, mentioned, the company will carefully manage OpEx while investing in capabilities to drive revenue growth.

3. NewsRoom

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Why AI Stock Ceva Was Sliding Hard This Week

Nov -21

Source: fool.com

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CEVA ANNOUNCES THE PRICING OF UNDERWRITTEN PUBLIC OFFERING OF COMMON STOCK

Nov -19

Source: prnewswire.com

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CEVA ANNOUNCES COMMENCEMENT OF UNDERWRITTEN PUBLIC OFFERING OF COMMON STOCK

Nov -17

Source: prnewswire.com

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Ceva Receives 2025 IoT Edge Computing Excellence Award from IoT Evolution World

Nov -17

Source: prnewswire.com

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IntelPro Licenses Ceva Wi-Fi 6 and Bluetooth 5 IPs to Launch AIoT Matter-Ready SoCs

Nov -13

Source: prnewswire.com

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Ceva, Inc. $CEVA Shares Acquired by Acadian Asset Management LLC

Nov -12

Source: defenseworld.net

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United Micro Technology and Ceva Collaborate for 5G RedCap SoC to Accelerate Connected Vehicle Adoption

Nov -11

Source: prnewswire.com

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CEVA, Inc. (CEVA) Q3 2025 Earnings Call Transcript

Nov -10

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.73%)

6. Segments

Connect (Baseband for Handset and Other Devices, Bluetooth, Wi-Fi and Narrowband IoT)

Expected Growth: 8%

Increasing demand for 5G-enabled devices, growing adoption of IoT devices, and rising need for low-power connectivity solutions drive the growth of CEVA's Connect segment, which provides baseband IP for handsets and other devices, as well as Bluetooth, Wi-Fi, and Narrowband IoT technologies.

Sense & Infer (Sensor Fusion, Audio, Sound, Imaging, Vision and AI)

Expected Growth: 12%

Strong demand for AI-enabled devices, increasing adoption of computer vision in smartphones, growing need for sensor fusion in autonomous vehicles, and rising use of audio and sound processing in smart home devices drive CEVA's Sense & Infer segment growth, with a 12% growth rate.

7. Detailed Products

Freight Management

CEVA's freight management services provide a comprehensive solution for managing global freight operations, including air, land, and sea transportation.

Contract Logistics

CEVA's contract logistics services provide customized logistics solutions for businesses, including warehousing, distribution, and transportation management.

Warehousing and Distribution

CEVA's warehousing and distribution services provide secure, efficient, and cost-effective storage and distribution solutions for businesses.

Supply Chain Consulting

CEVA's supply chain consulting services provide expert analysis and optimization of supply chain operations to improve efficiency and reduce costs.

Omnichannel Logistics

CEVA's omnichannel logistics services provide seamless integration of online and offline channels, ensuring a unified customer experience.

Cold Chain Logistics

CEVA's cold chain logistics services provide temperature-controlled logistics solutions for pharmaceutical, biotech, and healthcare companies.

8. CEVA, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

CEVA, Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the increasing demand for logistics and supply chain services.

Bargaining Power Of Customers

CEVA, Inc. has a diverse customer base, but some customers have significant bargaining power due to their large volumes and long-term contracts.

Bargaining Power Of Suppliers

CEVA, Inc. has a strong supplier network and has established long-term relationships with its suppliers, reducing the bargaining power of suppliers.

Threat Of New Entrants

The logistics and supply chain industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to compete with CEVA, Inc.

Intensity Of Rivalry

The logistics and supply chain industry is highly competitive, with many established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.38%
Debt Cost 3.95%
Equity Weight 97.62%
Equity Cost 9.82%
WACC 9.68%
Leverage 2.44%

11. Quality Control: CEVA, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Amtech Systems

A-Score: 4.4/10

Value: 7.1

Growth: 4.7

Quality: 3.8

Yield: 0.0

Momentum: 9.0

Volatility: 1.7

1-Year Total Return ->

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nLIGHT

A-Score: 4.1/10

Value: 6.4

Growth: 2.6

Quality: 4.3

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

1-Year Total Return ->

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Aehr Test

A-Score: 4.1/10

Value: 6.2

Growth: 3.3

Quality: 4.5

Yield: 0.0

Momentum: 9.5

Volatility: 1.0

1-Year Total Return ->

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AXT

A-Score: 3.9/10

Value: 8.0

Growth: 0.8

Quality: 4.2

Yield: 0.0

Momentum: 9.5

Volatility: 1.0

1-Year Total Return ->

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CEVA

A-Score: 3.6/10

Value: 6.8

Growth: 1.4

Quality: 4.5

Yield: 0.0

Momentum: 6.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
MaxLinear

A-Score: 3.5/10

Value: 7.2

Growth: 0.6

Quality: 4.7

Yield: 0.0

Momentum: 6.5

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

23.0$

Current Price

23$

Potential

-0.00%

Expected Cash-Flows