CEVA (CEVA) has opened 2026 with Q1 revenue of about US$27.0 million, a basic EPS loss of US$0.16 and net income excluding extra items showing a loss of US$4.5 million, setting a cautious tone around profitability. Over recent quarters the company has seen revenue move between US$24.2 million and US$31.3 million while quarterly basic EPS has ranged from a loss of US$0.04 to a loss of US$0.16. This gives investors a clear view of how top line scale and per share results are interacting heading into this year. With trailing 12 month losses still weighing on the income statement, the key question now is whether management can translate revenue into healthier margins and push the business toward a more sustainable earnings profile.

See our full analysis for CEVA.

With the latest figures on the table, the next step is to see how these results line up with the widely held narratives around CEVA's growth potential, risk profile and path to profitability.

LTM losses of US$11.8 million keep profitability in focus

• Over the last twelve months, CEVA generated about US$112.4 million in revenue and reported a net loss of roughly US$11.8 million, with trailing basic EPS at a loss of US$0.47.
• Bulls point to forecasts for earnings to turn positive and grow at about 106.62% per year, yet this sits against a five year pattern of losses worsening around 21.1% per year and the current trailing loss, so the optimistic view relies on a sharp swing in profitability from where the business is today.
  • Supporters highlight that revenue is forecast to grow around 11.8% per year, slightly ahead of the wider US market at 11.6%, which they see as a base for that earnings ramp.
  • The tension is that the latest Q1 2026 loss of US$4.5 million and the trailing twelve month loss of US$11.8 million both show that the expected earnings acceleration has not yet appeared in the reported numbers.

Analysts who think the upside case wins out are effectively betting on that rapid shift in margins playing out over the next few years, even while the current figures are still in loss making territory. 🐂 CEVA Bull Case

Share price at US$37.08 versus DCF fair value of US$16.29

• CEVA trades at US$37.08 with a P/S ratio of 9.2x, compared with a DCF fair value figure of about US$16.29 and a reported Semiconductor industry P/S of 8.8x and peer average of 11.4x.
• Bears argue that paying this kind of multiple for a company that is still loss making is aggressive, and they also point to a DCF value well below the current price, which they see as a sign that expectations for future cash flows are already quite rich.
  • Critics also highlight that shareholders were diluted over the past year, so each share now represents a smaller slice of the same US$112.4 million of trailing revenue and US$11.8 million trailing loss.
  • The cautious view is that with a 9.2x P/S and a DCF fair value below the current share price, there is limited room for disappointment if the business does not move away from its trailing loss pattern quickly enough.

For anyone weighing the cautious case, the combination of ongoing losses, a premium P/S to the broader industry, and a DCF fair value below the current share price is at the heart of the concern. 🐻 CEVA Bear Case

Revenue steady around US$27 to 31 million per quarter

• Over the last six reported quarters, quarterly revenue has moved in a band between about US$24.2 million and US$31.3 million, with Q1 2026 coming in at roughly US$27.0 million while quarterly losses over that stretch have run between about US$1.1 million and US$4.5 million.
• The consensus style narrative talks about meaningful end market opportunities in areas like Edge AI and wireless connectivity, but the fact that revenue has stayed in this relatively tight US$24 to 31 million range while trailing losses still sit around US$11.8 million suggests the market is watching closely to see whether expected growth in areas like automotive, IoT and infrastructure actually translates into a bigger and more profitable revenue base than this recent range implies.
  • Supportive analysts point to record shipments in certain wireless categories and expanding use cases, but the trailing twelve month revenue of US$112.4 million shows that, so far, these positives add up to a mid US$100 million type revenue scale rather than a step change.
  • At the same time, the widening five year loss trend of about 21.1% per year means investors are likely to keep an eye on whether operating costs stay high relative to this revenue band or start to ease as any new growth arrives.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for CEVA on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Given the mix of cautious and optimistic takes so far, it makes sense to review the same figures and test whether they line up with your own expectations. Then, you can weigh both the concern and the upside by taking a closer look at the 1 key reward and 1 important warning sign.

See What Else Is Out There

CEVA is still reporting losses, carries a P/S of 9.2x against ongoing trailing losses of about US$11.8 million and has seen shareholder dilution.

If you are uneasy about paying up for a loss making stock with these pressures in play, it is worth checking out 44 high quality undervalued stocks to compare ideas that may offer stronger value today.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.