Neonode Reports 2025 Financial Results

Rhea-AI Summary

Neonode (NASDAQ: NEON) reported fiscal 2025 results with revenues of $2.1 million (down 33.7% YoY) and operating expenses of $10.2 million. A $15.5 million gain from a patent assignment drove income from continuing operations of $8.0 million ($0.48 per share). Cash used by operations was $10.3 million and cash plus receivables totaled $25.7 million as of December 31, 2025.

The company shifted zForce to maintenance and is focusing on its MultiSensing platform, starting production with a commercial vehicle OEM in December 2025.

Positive

• One-time patent assignment gain of $15.5M
• Income from continuing operations of $8.0M ($0.48 per share)
• Cash and accounts receivable increased to $25.7M at year-end

Negative

• Revenues declined 33.7% YoY to $2.1M
• Cash used by operations rose to $10.3M
• Core license revenue fell to $1.8M, down 32.2% YoY

News Market Reaction – NEON

-9.20%

19 alerts

-9.20% News Effect

-11.6% Trough in 26 hr 27 min

-$3M Valuation Impact

$26M Market Cap

1.1x Rel. Volume

On the day this news was published, NEON declined 9.20%, reflecting a notable negative market reaction. Argus tracked a trough of -11.6% from its starting point during tracking. Our momentum scanner triggered 19 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $3M from the company's valuation, bringing the market cap to $26M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Revenue (continuing ops): $2.1 million (down 33.7%) Operating expenses: $10.2 million (up 6.7%) Patent assignment gain: $15.5 million +5 more

8 metrics

Revenue (continuing ops) $2.1 million (down 33.7%) Fiscal year ended Dec 31, 2025 vs prior year

Operating expenses $10.2 million (up 6.7%) Fiscal year ended Dec 31, 2025 vs prior year

Patent assignment gain $15.5 million Cash received in Oct 2025 from Aequitas-related patent assignment

Income from continuing ops $8.0 million ($0.48/share) Fiscal year 2025 vs $5.9 million loss ($0.37/share) in 2024

Cash used by operations $10.3 million vs $5.6 million Fiscal year 2025 vs prior year, impacted by brokerage fee

Cash & accounts receivable $25.7 million vs $17.2 million As of Dec 31, 2025 vs Dec 31, 2024

License revenues $1.8 million (down 32.2%) Fiscal year 2025 vs 2024, legacy printer and car touch weakness

Non-recurring engineering revenue $0.2 million (down 43.0%) Fiscal year 2025 vs 2024

Market Reality Check

Price: $1.40 Vol: Volume 151,966 is 35% abo...

normal vol

$1.40 Last Close

Volume Volume 151,966 is 35% above the 20-day average of 112,813, showing elevated trading interest ahead of/around the earnings release. normal

Technical Shares at $1.63 are trading well below the 200-day MA of $8.85 and 94.55% below the 52-week high, near the 52-week low.

Peers on Argus

NEON was down 1.81% with two sector peers, MPTI and GAUZ, also in downside momen...

2 Down

NEON was down 1.81% with two sector peers, MPTI and GAUZ, also in downside momentum at about -5.9% and -5.3%. This, plus scanner data flagging a median move of -5.6%, points to broader electronic components weakness alongside company-specific earnings.

Previous Earnings Reports

5 past events · Latest: Aug 13 (Negative)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Aug 13	Q2 2025 earnings	Negative	-1.0%	Revenues and license fees fell sharply, losses widened, and cash declined.
May 14	Q1 2025 earnings	Negative	-1.2%	Revenue from continuing operations dropped and net loss increased year over year.
Mar 21	2024 full-year results	Negative	-1.2%	Full-year revenues declined and losses from continuing operations remained sizable.
Nov 06	Q3 2024 earnings	Negative	-2.6%	Revenues were flat to slightly down and net losses persisted for the quarter and YTD.
Aug 08	Q2 2024 earnings	Neutral	+1.6%	Higher total revenue but weaker licensing and continued net losses balanced the tone.

Pattern Detected

Earnings releases have generally highlighted declining core revenues and persistent losses, and the stock has tended to move modestly lower on these updates, with an average move of about -0.88% and no major positive reactions.

Recent Company History

Over the past two years, Neonode’s earnings updates have consistently shown pressure on its licensing business. Events on Aug 8, 2024, Nov 6, 2024, Mar 21, 2025, May 14, 2025, and Aug 13, 2025 reported revenue declines, ongoing net losses, and customer concentration, even as strategy shifted toward MultiSensing and zForce licensing. Price reactions around these earnings were modestly negative on average. Today’s 2025 results again emphasize weak core revenue but a swing to profit from a patent assignment gain.

Historical Comparison

-0.9% avg move · Past earnings news moved NEON about -0.88% on average. Today’s -1.81% move on 2025 results is direct...

earnings

-0.9%

Average Historical Move earnings

Past earnings news moved NEON about -0.88% on average. Today’s -1.81% move on 2025 results is directionally consistent but somewhat larger than prior updates.

Earnings releases show a transition from declining legacy licensing revenues and recurring losses toward a software-focused MultiSensing strategy, with 2025 marking a profit driven by a patent assignment rather than improved core operations.

Market Pulse Summary

The stock moved -9.2% in the session following this news. The decline reflects ongoing concern over ...

Analysis

The stock moved -9.2% in the session following this news. The decline reflects ongoing concern over Neonode’s shrinking core revenue base, despite a one-time patent assignment that produced $8.0 million in income from continuing operations. Past earnings events averaged about -0.88%, so a larger negative move would still fit a pattern of skepticism toward results. With revenues down 33.7% and operating expenses at $10.2 million, investors may have focused on underlying performance rather than the non-recurring gain.

AI-generated analysis. Not financial advice.

STOCKHOLM, March 18, 2026 /PRNewswire/ -- Neonode Inc. (NASDAQ: NEON) ("Neonode" or the "Company") today reported financial results for the fiscal year ended December 31, 2025.

FINANCIAL SUMMARY FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025:

• Revenues from continuing operations of $2.1 million, a decrease of 33.7% compared to the prior year.
• Operating expenses from continuing operations of $10.2 million, an increase of 6.7% compared to the prior year.
• Gain from patent assignment of $15.5 million after brokerage fee.
• Income from continuing operations of $8.0 million, or $0.48 per share, compared to a loss of $5.9 million, or $0.37 per share, for the prior year.
• Cash used by operations of $10.3 million, compared to $5.6 million for the prior year.
• Cash and accounts receivable of $25.7 million as of December 31, 2025 compared to $17.2 million million for the prior year-end.

PATENT ASSIGNMENT HIGHLIGHTS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025:

• Gains from the patent assignment to Aequitas Technologies LLC ("Aequitas") amounted to $15.5 million. in cash paid in October 2025. This amount represents the final outcome of the process by Neonode Smartphone LLC, an unrelated third party that is a subsidiary of Aequitas ("Aequitas Sub"), against Samsung Electronics Co., Ltd. and Samsung Electronics America, Inc., excluding any potential tax recoveries.
• On September 15, 2025, the United States District Court for the Northern District of California granted a joint motion to lift the stay in the case between Aequitas Sub and Apple Inc. (assigned docket number 6:20-cv-00505-ADA). The legal proceedings between the two parties will now resume.

THE CEO'S COMMENTS

"2025 was a year of meaningful transformation, even as we continued to face significant top-line pressure. This transformation laid the foundation for a refocused strategic direction as we move into 2026. As part of this shift, we transitioned the zForce platform into maintenance mode to intensify our focus on our MultiSensing technology platform and direct our efforts and investments toward computer vision and machine learning technology leadership," said Daniel Alexus, President & CEO of Neonode.

"We also realigned our go-to-market approach by unifying our sales and marketing organizations and appointing a new Executive Vice President for Sales & Marketing to our leadership team – now consisting of the CEO, CFO, EVP Product & Engineering, and EVP Sales & Marketing. We believe this unified and strengthened structure positions us to execute on our strategy with a strong commercial focus and alignment around our MultiSensing platform and target markets."

"Within MultiSensing, we prioritized customer delivery throughout the year, which culminated with the start of production with our previously announced commercial vehicle OEM in December – an important validation of our solution maturity and commercial readiness. While our legacy zForce business continued its expected decline as part of the planned transition, we experienced growth with NEXTY Electronics as they moved their zForce-based next-generation amusement systems into production late in the year," Mr. Alexus continued.

"In 2026, our focus is squarely on driving growth for our MultiSensing business. This includes expanding license revenues from our first DMS production customer and advancing additional strategic partnerships across the automotive industry. Although automotive OEMs are navigating cost pressures, geopolitical uncertainty, and consolidation, the in-cabin sensing market remains on a long-term growth trajectory, driven by regulatory requirements, advancements in autonomy, and heightened expectations for enhanced cabin experiences."

"Beyond automotive, we are also evaluating additional growth verticals where MultiSensing offers a strong product-market fit and we can shorten time to revenue for our investments into our technology platform," Mr. Alexus concluded.

FINANCIAL OVERVIEW FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025

Revenues from continuing operations for fiscal 2025 were $2.1 million, a 33.7% decrease compared to 2024. License revenues were $1.8 million, a decrease of 32.2% compared to 2024. The decrease was mainly due to lower demand for our legacy customers' products within printer and passenger car touch applications. Revenues from non-recurring engineering for fiscal 2025 were $0.2 million, a 43.0% decrease compared to 2024.

Operating expenses from continuing operations for fiscal 2025 were $10.2 million, a 6.7% increase compared to 2024. The increase was mainly due to unfavorable exchange rate development and higher professional fees.

Gain from the patent assignment to Aequitas after a brokerage fee payable by the Company in connection with the original assignment was $15.5 million.

Income from continuing operations for fiscal 2025 was $8.0 million, or $0.48 per share, compared to a loss from continuing operations of $5.9 million, or $0.37 per share for 2024.

Cash used by operations was $10.3 million in fiscal 2025 compared to $5.6 million for 2024. The decrease was primarily due to the brokerage fee payable by the Company in connection with the original patent assignment to Aequitas.

Cash and accounts receivable totaled $25.7 million and working capital for continuing operations was $24.1 million as of December 31, 2025, compared to $17.2 million and $16.1 million as of December 31, 2024, respectively. Our financial position and liquidity provide stability and enable us to execute our strategy to secure more licensing opportunities for our innovative technologies.

For more information, please contact:

President and Chief Executive Officer
Pierre Daniel Alexus
E-mail: daniel.alexus@neonode.com
Phone: +46 767 60 29 90

Chief Financial Officer
Fredrik Nihlén
E-mail: fredrik.nihlen@neonode.com
Phone: +46 703 97 21 09

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/neonode/r/neonode-reports-2025-financial-results,c4323010

The following files are available for download:

https://mb.cision.com/Main/17297/4323010/3989331.pdf	Neonode - 4Q and 2025 Full Year Earnings Release
https://news.cision.com/neonode/i/neonode-reports-2025-financial-results,c3520516	neonode-reports-2025-financial-results

 

View original content:https://www.prnewswire.com/news-releases/neonode-reports-2025-financial-results-302717523.html

SOURCE Neonode

FAQ

What did Neonode (NEON) report for full-year 2025 revenue and EPS?

Neonode reported $2.1 million in revenue and $0.48 EPS for 2025. According to the company, the EPS reflects a $15.5 million patent assignment gain that materially improved reported income versus the prior-year loss.

Why did Neonode (NEON) report a profit in 2025 despite falling sales?

Neonode reported profit primarily due to a $15.5 million patent assignment gain. According to the company, operating revenue declined, so the one-time patent payment was the main driver of reported income.

How did Neonode's (NEON) cash position change at December 31, 2025?

Cash and accounts receivable rose to $25.7 million as of December 31, 2025. According to the company, the increase largely reflects the patent assignment cash receipt and related working capital improvement.

What operational shifts did Neonode (NEON) announce for 2026?

Neonode said it moved zForce into maintenance and will prioritize its MultiSensing platform in 2026. According to the company, this includes commercial focus on automotive in-cabin sensing and expanding license revenues from production customers.

Did Neonode (NEON) secure any commercial production wins in 2025?

Yes, Neonode started production with a commercial vehicle OEM in December 2025. According to the company, this production start validates solution maturity and supports planned license revenue expansion for MultiSensing.