CEVA Inc reported Q3 2024 (calendar Q3 ended 2024-09-30) revenue of $27.21 million, up 13.0% year over year but down 4.3% quarter over quarter. The company maintained an impressive gross margin of 85.44% ($23.25 million gross profit), underscoring the durability of its IP licensing model. However, operating profitability remained negative, with operating income of -$2.62 million and EBITDA of -$1.63 million, as CEVA continued to invest aggressively in R&D and related go-to-market activities to strengthen its DSP/AI platforms and sensor software capabilities for 5G, IoT, and computer-vision applications. Net income was -$1.31 million, reflecting ongoing investment intensity and non-cash or non-operating items that can distort quarterly profitability in a growth-oriented IP licensor.
The balance sheet remains structurally healthy, with substantial liquidity and a disciplined capital structure: cash and equivalents of $13.23 million, total cash and short-term investments of $156.11 million, modest total debt of $5.20 million, and a net cash position of about -$8.03 million. The company generated cash from operations of $0.399 million for the quarter, while free cash flow was essentially flatly negative at -$0.015 million, constrained by working-capital dynamics and ongoing investment in investments (net investing cash flow was -$9.245 million). CEVA’s current ratio stood at 7.60, reflecting strong short-term liquidity.
Looking ahead, management commentary (where available) indicates continued emphasis on expanding licensing opportunities around DSP/AI processors, wireless platforms, and sensor fusion software; however, explicit forward guidance was not provided in the data. Investors should monitor pipeline win rates, enrollment of new licensees, and the pace of R&D-driven productization, which are likely to drive both profitability and revenue growth over multi-quarter horizons.