10-Q · May 11, 2026
Ceva, Inc. achieved a significant rebound in Q1 2026 with total revenues of $27.0 million, reflecting an 11% year-over-year increase. The company reported a diluted EPS of $0.04, surpassing estimates and showcasing a…
Earnings analysis · 10-Q
CEVA earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
Ceva delivered a solid Q2: revenue rose to $29.033 million, exceeded consensus by 3.0%, and reported EPS of $0.08 versus the $0.03 estimate. Licensing and related revenue grew 21% to $18.221 million, contributing to…
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Ceva delivered a solid Q2: revenue rose to $29.033 million, exceeded consensus by 3.0%, and reported EPS of $0.08 versus the $0.03 estimate. Licensing and related revenue grew 21% to $18.221 million, contributing to non-GAAP operating-margin expansion to 11% from 3%, although GAAP diluted loss per share remained $0.10. Currency volatility, including a $1.0 million quarterly FX loss and potential $1.6 million quarterly expense exposure from a 10% dollar weakening, remains the primary headwind; the filing provides no quantified forward guidance.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $0.08
- Operating margin
- 11.0%
What stood out
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Revenue beat consensus and prior periods
Q2 revenue was $29.033 million, up approximately 7.5% from $27 million in Q1 2026 and 11.7% from $26 million in Q2 2025. Revenue also exceeded consensus of $28.176 million by approximately $0.857 million, or 3.0%.
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EPS beat; GAAP loss narrowed
Reported EPS was $0.08 versus consensus of $0.03, a $0.05 beat. GAAP diluted loss per share improved to $0.10 from $0.15 in the year-ago quarter.
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Licensing growth drove margin expansion
Licensing and related revenue increased 21% year over year to $18.221 million, supporting non-GAAP operating margin expansion to 11% from 3% in the comparable period.
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Higher investment balances lifted interest income
Interest income and gains on marketable securities increased to $2.0 million in Q2 2026 from $1.5 million in Q2 2025, principally reflecting higher bank-deposit and marketable-securities balances after the fourth-quarter 2025 follow-on offering.
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Controls remained effective
Management reported that disclosure controls and procedures were effective as of June 30, 2026, and that no change in internal control over financial reporting materially affected, or was reasonably likely to materially affect, controls during the quarter.
What to watch
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Currency losses and payroll exposure
The company recorded a foreign-exchange loss of $1.0 million in Q2 2026 versus a $0.6 million gain in Q2 2025. Management states it expects to continue experiencing exchange-rate and currency effects; a hypothetical 10% weakening of the U.S. dollar against the NIS and Euro would increase Q2 salary and employee-related expenses by approximately $1.6 million.
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Unrealized investment losses
As of June 30, 2026, unrealized losses on the investment portfolio were $0.9 million. Although management expects to hold affected corporate bonds until recovery or maturity, it states there is no assurance that current market-value declines will be recovered.
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Uninsured cash concentration
The filing states that deposits exceed FDIC insurance limits or comparable foreign limits, creating potential access and principal risk if a financial institution fails. No loss of principal or lack of access has occurred to date, but the company provides no assurance that access would not be affected.
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Unresolved legal proceeding
The company includes a provision of approximately $0.1 million for one unresolved ordinary-course legal proceeding as of June 30, 2026. Management says no other litigation is expected to have a material effect, but the proceeding remains unresolved.
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GAAP profitability remains negative
The 10-Q identifies no material changes to the risk factors disclosed in the December 31, 2025 Form 10-K. Nonetheless, GAAP diluted loss per share remained $0.10 in Q2 2026 despite improvement from $0.15 in Q2 2025.
Management's outlook
The 10-Q provides no quantified revenue or EPS guidance and does not state that prior guidance was raised, maintained, lowered, or withdrawn. Management does state it expects to continue experiencing the effects of exchange-rate and currency fluctuations.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.