CEVA INC Leases Disclosure
NOTE 4: LEASES
The Company leases substantially all of its office space and vehicles under operating leases. The Company's leases have original lease periods expiring between 2026 and 2040. Some leases include one or more options to renew. The Company does not assume renewals in its determination of the lease term unless the renewals are deemed to be reasonably certain. Lease payments included in the measurement of the lease liability comprise the following: the fixed non-cancelable lease payments, payments for optional renewal periods where it is reasonably certain the renewal period will be exercised, and payments for early termination options unless it is reasonably certain the lease will not be terminated early.
In 2025, the Company signed an operating lease agreement for new offices in Israel, resulting in an additional lease commitment of approximately $12,500. The lease commenced in the fourth quarter of 2025, and will remain in effect until December 30, 2035, with an option to extend the lease for an additional period of up to 5 years, subject to the conditions of the lease agreement. The Company provided bank guarantees in connection with its lease agreement in Israel in a total amount of $772. To secure these guarantees, the Company placed an equivalent amount in a bank deposit, which is recorded under “Other long‑term assets.”
The following is a summary of weighted average remaining lease terms and discount rate for all of the Company’s operating leases:
|
December 31, 2025 |
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|
Weighted average remaining lease term (years) |
12.72 | |||
|
Weighted average discount rate |
4.73 |
% |
||
Total operating lease cost and cash payments for operating leases were as follows:
|
Year ended December 31, |
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|
2023 |
2024 |
2025 |
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|
Operating lease cost |
$ | 2,967 | $ | 2,763 | $ | 2,787 | ||||||
|
Cash payments for operating leases |
$ | 2,947 | $ | 2,440 | $ | 4,229 | ||||||
Maturities of lease liabilities are as follows:
|
2026 |
1,795 | |||
|
2027 |
2,177 | |||
|
2028 |
1,755 | |||
|
2029 |
1,610 | |||
|
2030 |
1,613 | |||
|
2031 and thereafter |
12,959 | |||
|
Total undiscounted cash flows |
21,909 | |||
|
Less imputed interest |
5,778 | |||
|
Present value of lease liabilities |
$ | 16,131 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Mar 7, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2019 | Feb 28, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.