Despite maintaining high gross margins consistently exceeding 85%, the company reported a negative 18.6% operating margin in 2026Q1, highlighting a failure to translate intellectual property value into bottom-line profitability.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 |
|---|
| Sales/Revenue | 112.38M | 109.6M | 106.94M | 97.42M | 120.58M | 113.83M | 100.33M | 87.15M | 77.88M | 87.51M | 72.65M | 59.5M | 50.81M | 48.9M | 53.68M | 60.24M | 44.91M | 38.47M | 40.37M | 33.21M | 32.51M | 35.64M | 37.67M | 36.84M | 19.2M | 25.24M | 22.91M |
| Revenue Growth % | 2.99% | 2.49% | 9.77% | -19.21% | 5.93% | 13.46% | 15.12% | 11.91% | -11% | 20.45% | 22.11% | 17.11% | 3.9% | -8.9% | -10.89% | 34.13% | 16.75% | -4.7% | 21.54% | 2.17% | -8.79% | -5.41% | 2.27% | 91.89% | -23.96% | 10.19% | - |
| Cost of Goods Sold | 14.52M | 14.16M | 12.77M | 11.65M | 15.13M | 10.38M | 10.75M | 10.11M | 7.95M | 6.95M | 6.09M | 5.42M | 5M | 5.16M | 3.95M | 3.56M | 3.71M | 4.12M | 4.67M | 3.85M | 4.04M | 4.22M | 5.18M | 6.06M | 2.17M | 1.25M | 410K |
| COGS % of Revenue | - | 12.92% | 11.94% | 11.96% | 12.55% | 9.12% | 10.71% | 11.6% | 10.21% | 7.95% | 8.38% | 9.12% | 9.84% | 10.56% | 7.36% | 5.91% | 8.27% | 10.7% | 11.56% | 11.6% | 12.41% | 11.83% | 13.74% | 16.45% | 11.29% | 4.96% | 1.79% |
| Gross Profit | 97.86M | 95.44M | 94.17M | 85.77M | 105.45M | 103.45M | 89.58M | 77.05M | 69.93M | 80.55M | 66.57M | 54.08M | 45.81M | 43.74M | 49.73M | 56.68M | 41.2M | 34.35M | 35.7M | 29.36M | 28.47M | 31.42M | 32.49M | 30.77M | 17.03M | 23.99M | 22.5M |
| Gross Margin % | 87.08% | 87.08% | 88.06% | 88.04% | 87.45% | 90.88% | 89.29% | 88.4% | 89.79% | 92.05% | 91.62% | 90.88% | 90.16% | 89.44% | 92.64% | 94.09% | 91.73% | 89.3% | 88.44% | 88.4% | 87.59% | 88.17% | 86.26% | 83.55% | 88.71% | 95.04% | 98.21% |
| Gross Profit Growth % | - | 1.35% | 9.79% | -18.66% | 1.93% | 15.49% | 16.26% | 10.18% | -13.19% | 21.01% | 23.1% | 18.05% | 4.74% | -12.04% | -12.27% | 37.58% | 19.94% | -3.77% | 21.58% | 3.13% | -9.39% | -3.31% | 5.59% | 80.73% | -29.03% | 6.64% | - |
| Operating Expenses | 109.86M | 106.79M | 101.72M | 99.24M | 101.56M | 96.41M | 90.34M | 78.97M | 71.17M | 64.68M | 52.18M | 47.76M | 44.35M | 38.98M | 37.36M | 38.13M | 31.32M | 29.38M | 33.95M | 31.26M | 31.33M | 33.8M | 31M | 33.91M | 15.52M | 10.85M | 10.11M |
| OpEx % of Revenue | - | 97.43% | 95.12% | 101.87% | 84.22% | 84.7% | 90.05% | 90.61% | 91.39% | 73.92% | 71.82% | 80.28% | 87.28% | 79.71% | 69.6% | 63.3% | 69.75% | 76.38% | 84.11% | 94.12% | 96.39% | 94.86% | 82.28% | 92.05% | 80.83% | 42.96% | 44.13% |
| Selling, General & Admin | 32.41M | 31.36M | 29.5M | 25.95M | 25.66M | 25.02M | 26.02M | 24.2M | 22.52M | 23.06M | 20.11M | 18.35M | 17.87M | 17.76M | 17.11M | 16.59M | 13.42M | 12.82M | 13.72M | 11.97M | 12.15M | 12.32M | 12.83M | 12.17M | 6.91M | 5.75M | 5.28M |
| SG&A % of Revenue | - | 28.61% | 27.59% | 26.64% | 21.28% | 21.98% | 25.94% | 27.77% | 28.91% | 26.35% | 27.68% | 30.84% | 35.17% | 36.32% | 31.89% | 27.53% | 29.87% | 33.32% | 34% | 36.05% | 37.38% | 34.57% | 34.05% | 33.03% | 36.01% | 22.78% | 23.03% |
| Research & Development | 77M | 74.83M | 71.62M | 72.69M | 70.32M | 69.09M | 62.01M | 52.84M | 47.76M | 40.38M | 30.84M | 28.11M | 25.83M | 21.22M | 20.24M | 21.54M | 17.91M | 16.56M | 20.17M | 19.14M | 18.77M | 20.15M | 17.28M | 17.38M | 8.41M | 5.09M | 4.83M |
| R&D % of Revenue | - | 68.28% | 66.97% | 74.61% | 58.31% | 60.69% | 61.81% | 60.63% | 61.32% | 46.15% | 42.45% | 47.25% | 50.83% | 43.39% | 37.71% | 35.76% | 39.88% | 43.05% | 49.97% | 57.62% | 57.74% | 56.55% | 45.86% | 47.19% | 43.83% | 20.18% | 21.1% |
| Other Operating Expenses | 449K | 598K | 599K | 594K | 5.58M | 2.3M | 2.31M | 1.92M | 901K | 1.24M | 1.24M | 1.3M | -404K | 0 | 0 | 0 | 0 | 0 | 53K | 148K | 414K | 1.33M | 892K | 4.36M | 189K | 0 | 0 |
| Operating Income | -12M | -11.35M | -7.54M | -13.47M | 3.9M | 7.04M | -763K | -1.92M | -1.25M | 15.87M | 14.39M | 6.31M | 1.46M | 4.76M | 12.37M | 18.55M | 9.87M | 4.97M | -2.37M | -1.9M | -2.86M | -5.59M | 1.5M | -11.75M | -20.7M | 13.15M | 12.39M |
| Operating Margin % | -10.68% | -10.35% | -7.06% | -13.82% | 3.23% | 6.18% | -0.76% | -2.21% | -1.6% | 18.14% | 19.8% | 10.61% | 2.88% | 9.73% | 23.04% | 30.8% | 21.99% | 12.92% | -5.88% | -5.71% | -8.81% | -15.69% | 3.98% | -31.91% | -107.84% | 52.08% | 54.08% |
| Operating Income Growth % | - | -50.38% | 43.97% | -445.66% | -44.66% | 1022.67% | 60.34% | -54.54% | -107.84% | 10.34% | 127.92% | 331.74% | -69.28% | -61.52% | -33.34% | 87.88% | 98.67% | 309.35% | -25.08% | 33.71% | 48.81% | -473.12% | 112.75% | 43.22% | -257.45% | 6.13% | - |
| EBITDA | -7.86M | -7.21M | -3.41M | -8.58M | 11.46M | 14.03M | 5.06M | 3.35M | 2.91M | 19.12M | 17.02M | 7.61M | 2.11M | 5.43M | 12.89M | 19.06M | 10.4M | 5.46M | -1.65M | -868K | -1.03M | -2.75M | 4.91M | -6.92M | -18.11M | 13.85M | 12.92M |
| EBITDA Margin % | -7% | -6.58% | -3.19% | -8.81% | 9.5% | 12.32% | 5.04% | 3.84% | 3.74% | 21.85% | 23.43% | 12.79% | 4.15% | 11.1% | 24.02% | 31.64% | 23.16% | 14.19% | -4.08% | -2.61% | -3.16% | -7.73% | 13.04% | -18.78% | -94.37% | 54.84% | 56.4% |
| EBITDA Growth % | -166.54% | -111.5% | 60.29% | -174.92% | -18.31% | 177.28% | 51.21% | 14.87% | -84.77% | 12.35% | 123.67% | 260.49% | -61.12% | -57.89% | -32.35% | 83.21% | 90.58% | 431.19% | -89.86% | 15.48% | 62.71% | -156.04% | 171.04% | 61.82% | -230.84% | 7.14% | - |
| D&A (Non-Cash Add-back) | 4.14M | 4.14M | 4.14M | 4.88M | 7.56M | 6.99M | 5.82M | 5.27M | 4.16M | 3.25M | 2.63M | 1.3M | 649K | 670K | 525K | 506K | 528K | 488K | 726K | 1.03M | 1.84M | 2.84M | 3.42M | 4.84M | 2.59M | 697K | 533K |
| EBIT | -9.3M | -4.69M | -7.54M | -13.47M | 4.59M | 9.64M | 2.96M | 1.92M | 2.08M | 20.08M | 17.49M | 8.49M | 3.15M | 8.98M | 17.01M | 23.54M | 13.57M | 4.97M | 1.75M | -1.9M | -2.86M | -2.39M | 1.5M | -3.13M | 1.51M | 13.15M | 12.39M |
| Net Interest Income | 7.48M | 6.91M | 5.88M | 4.49M | 2.79M | 1.45M | 2.85M | 3.67M | 3.73M | 3.05M | 2.24M | 1.73M | 1.7M | 2.38M | 3.24M | 2.87M | 2.12M | 2.86M | 2.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 7.48M | 6.91M | 5.88M | 4.49M | 3.19M | 1.87M | 3.28M | 4.22M | 4.5M | 4.23M | 3.3M | 2.85M | 2.82M | 3.88M | 4.51M | 4.94M | 3.72M | 2.86M | 2.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 397K | 420K | 444K | 554K | 773K | 1.18M | 1.06M | 1.11M | 1.12M | 1.5M | 1.27M | 2.07M | 1.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 6.5M | 6.66M | 4.79M | 5.26M | 301K | 2.18M | 3.28M | 3.29M | 2.55M | 3.03M | 2.04M | 1.07M | 571K | 2.71M | 3.38M | 2.91M | 2.1M | 5.76M | 10.57M | 3.64M | 2.68M | -390K | 796K | 63K | -207K | 462K | 322K |
| Pretax Income | -5.5M | -4.69M | -2.75M | -8.21M | 4.2M | 9.22M | 2.52M | 1.37M | 1.3M | 18.9M | 16.43M | 7.38M | 2.03M | 7.47M | 15.75M | 21.47M | 11.97M | 10.73M | 12.37M | 1.74M | -186K | -2.27M | 2.29M | -11.69M | -20.91M | 13.61M | 12.71M |
| Pretax Margin % | -4.89% | -4.28% | -2.58% | -8.42% | 3.48% | 8.1% | 2.51% | 1.57% | 1.67% | 21.6% | 22.61% | 12.41% | 4% | 15.28% | 29.34% | 35.64% | 26.65% | 27.89% | 30.64% | 5.23% | -0.57% | -6.36% | 6.09% | -31.74% | -108.92% | 53.91% | 55.48% |
| Income Tax | 6.27M | 5.95M | 6.03M | 10.23M | 18.07M | 6.82M | 4.9M | 1.34M | 729K | 1.87M | 3.33M | 1.11M | 2.85M | 788K | 2.06M | 2.91M | 591K | 2.38M | 3.8M | 447K | -88K | -120K | 645K | 300K | 1.01M | 3.25M | 3.44M |
| Effective Tax Rate % | -114.08% | -126.82% | -218.91% | -124.7% | 430.66% | 74% | 194.37% | 97.95% | 55.95% | 9.9% | 20.24% | 15.09% | 140.29% | 10.54% | 13.09% | 13.54% | 4.94% | 22.22% | 30.74% | 25.72% | 47.31% | 5.3% | 28.1% | -2.57% | -4.85% | 23.92% | 27.05% |
| Net Income | -11.77M | -10.64M | -8.79M | -11.88M | -23.18M | 396K | -2.38M | 28K | 574K | 17.03M | 13.1M | 6.27M | -819K | 6.68M | 13.69M | 18.56M | 11.38M | 8.35M | 8.56M | 1.29M | -98K | -2.27M | 1.65M | -11.99M | -21.92M | 10.36M | 9.27M |
| Net Margin % | -10.47% | -9.71% | -8.22% | -12.19% | -19.23% | 0.35% | -2.37% | 0.03% | 0.74% | 19.46% | 18.03% | 10.53% | -1.61% | 13.67% | 25.5% | 30.81% | 25.33% | 21.7% | 21.22% | 3.89% | -0.3% | -6.36% | 4.38% | -32.55% | -114.2% | 41.02% | 40.48% |
| Net Income Growth % | -76.59% | -21.08% | 26.03% | 48.76% | -5954.29% | 116.65% | -8596.43% | -95.12% | -96.63% | 29.98% | 109.03% | 865.2% | -112.25% | -51.15% | -26.27% | 63.14% | 36.33% | -2.56% | 563.44% | 1417.35% | 95.68% | -237.33% | 113.76% | 45.3% | -311.7% | 11.67% | - |
| Net Income (Continuing) | -11.77M | -10.64M | -8.79M | -18.44M | -13.88M | 2.4M | -2.38M | 28K | 574K | 17.03M | 13.1M | 6.27M | -819K | 6.68M | 13.69M | 18.56M | 11.38M | 8.35M | 8.56M | 1.29M | -98K | -2.27M | 1.65M | -11.99M | -21.92M | 10.36M | 9.27M |
| Discontinued Operations | 0 | 0 | 0 | 6.56M | -9.3M | -2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.43 | -0.44 | -0.37 | -0.51 | -1.00 | 0.02 | -0.11 | 0.00 | 0.03 | 0.75 | 0.61 | 0.30 | -0.04 | 0.30 | 0.59 | 0.77 | 0.51 | 0.41 | 0.42 | 0.06 | -0.01 | -0.12 | 0.09 | -0.66 | -1.21 | 0.57 | 0.51 |
| EPS Growth % | -252.26% | -18.92% | 27.45% | 49% | -5982.35% | 115.45% | - | -95.29% | -96.6% | 22.95% | 103.33% | 855.67% | -113.23% | -49.15% | -23.38% | 50.98% | 24.39% | -2.38% | 600% | - | 95.75% | -233.33% | 113.64% | 45.45% | -312.28% | 11.76% | - |
| EPS (Basic) | - | -0.44 | -0.37 | -0.51 | -1.00 | 0.02 | -0.11 | 0.00 | 0.03 | 0.78 | 0.63 | 0.31 | -0.04 | 0.30 | 0.60 | 0.80 | 0.54 | 0.42 | 0.43 | 0.07 | -0.01 | -0.12 | 0.09 | -0.66 | -2.15 | 1.15 | 1.03 |
| Diluted Shares Outstanding | 27.68M | 24.3M | 23.61M | 23.48M | 23.17M | 23.25M | 22.11M | 22.32M | 22.5M | 22.56M | 21.57M | 20.99M | 20.62M | 22.46M | 23.36M | 24.15M | 22.43M | 20.41M | 20.57M | 20.15M | 19.19M | 18.81M | 19.02M | 18.11M | 18.05M | 18.05M | 18.05M |
| Basic Shares Outstanding | 27.68M | 24.3M | 23.61M | 23.48M | 23.17M | 22.82M | 22.11M | 21.93M | 22.03M | 21.77M | 20.85M | 20.48M | 20.48M | 22.01M | 22.8M | 23.17M | 21.25M | 19.72M | 20.01M | 19.61M | 19.19M | 18.81M | 18.42M | 18.11M | 10.18M | 9.04M | 9.04M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Persistent Operating Margin Deficit
According to recent financial disclosures, CEVA's revenue growth remains highly volatile, fluctuating between a 9.7% contraction in 2025Q2 and an 11.5% expansion in 2026Q1, suggesting that the company's licensing-heavy model is struggling to achieve the consistent, scalable growth required to outpace its significant R&D expenditure.
The erratic nature of top-line performance appears to be driven by the lumpy recognition of licensing deals rather than a steady ramp in royalty volumes. Investors should monitor whether the company can transition toward more predictable, recurring royalty streams, as the current reliance on episodic licensing creates significant quarterly variance.
As reported in quarterly filings, CEVA maintains structurally high gross margins consistently exceeding 85%, yet this impressive figure fails to translate into bottom-line profitability, indicating that the company's core IP business model is currently unable to leverage its intellectual property into a sustainable operating profit.
While the 85.8% gross margin in 2026Q1 highlights the inherent scalability of an IP-licensing business, the persistent operating losses suggest that the cost of maintaining a competitive R&D pipeline is disproportionately high relative to current revenue levels. This disconnect warrants further investigation into whether the company's IP portfolio is truly gaining market share or merely sustaining its existing footprint.
Based on the provided income statement data, R&D expenses remain the primary driver of the company's cost structure, consistently consuming a substantial portion of gross profit and preventing the firm from achieving consistent operating leverage despite its high-margin, asset-light business model.
The company's commitment to heavy R&D spending appears to be a defensive necessity to remain relevant in the 5G and AI-driven semiconductor landscape. However, the lack of a clear path to operating profitability suggests that management must either significantly increase royalty-bearing unit volumes or optimize its engineering headcount to reach a sustainable break-even point.
Analysis of recent income statements reveals that significant stock-based compensation, which reached $4.9 million in 2025Q3, continues to weigh on the company's financial results, complicating the assessment of true operational performance and masking the underlying cash burn inherent in the current business model.
The reliance on equity-based incentives to attract and retain engineering talent effectively shifts the cost of R&D from the income statement to the shareholder base through dilution. Investors should be cautious, as the persistent gap between GAAP net income and operational cash flow suggests that the company's reported losses may understate the true economic cost of its operations.
As indicated by the recent income statement trends, the rise of open-source architectures like RISC-V poses a credible threat to CEVA's pricing power, potentially forcing a margin compression that could further exacerbate the company's struggle to achieve consistent profitability in the competitive semiconductor IP market.
Short-sellers may focus on the company's inability to convert its high gross margins into positive operating income, viewing the current R&D spend as a sunk cost rather than a growth investment. If the company fails to secure significant design wins in emerging markets like automotive or spatial awareness, the current valuation may appear increasingly difficult to justify.
Quick answers to the most common questions about buying CEVA stock.
For fiscal year 2025, CEVA, Inc. (CEVA) reported total revenue of $109.6M. This represents a 378.4% increase compared to $22.9M in 2000.
CEVA, Inc. (CEVA) reported a net loss of $10.6M for the fiscal year ending 2025.
CEVA, Inc. (CEVA) reported an operating income of $-11.3M, resulting in an operating profit margin of -10.4%. This margin reflects the operational efficiency of the business before interest and taxes.
CEVA, Inc. (CEVA) generated $95.4M in gross profit for the year, representing a gross profit margin of 87.1%. This demonstrates the company's core pricing power and production efficiency.