Neonode Reports Quarter Ended September 30, 2026 Financial Results

Rhea-AI Summary

Neonode (NASDAQ: NEON) reported third-quarter revenue of $0.5 million, with growth in licensing and engineering deliveries during 2026. Revenue from continuing operations rose 24.4% year over year, while operating expenses fell 13.2% to $1.8 million. The loss from continuing operations was $1.1 million, or $0.07 per share, versus income of $13.9 million, or $0.83 per share, a year earlier. The prior-year quarter included a $15.5 million net patent-assignment gain.

For the first nine months, revenue from continuing operations rose 5.4% to $1.6 million, and operating expenses increased 0.2% to $7.3 million. The loss from continuing operations was $5.1 million, versus income of $10.2 million a year earlier, which included the same patent gain. Cash and accounts receivable fell to $20.2 million at September 30 from $25.8 million at December 31, 2025. Neonode plans to build its software licensing business and convert evaluations into commercial agreements.

9 points · 0 major

MixediHow this balance works

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 8 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter continuing-operations revenue rose 24.4% year over year to $0.5 million.
• Moderate pointThird-quarter continuing-operations expenses fell 13.2% year over year to $1.8 million.
• Minor pointThird-quarter licensing revenue increased 9.4% year over year to $0.4 million, mainly from new agreements.
• Minor pointThird-quarter non-recurring engineering revenue rose 279.2% year over year to $91,000 on increased project deliveries.
• Minor pointThird-quarter MultiSensing licensing revenue more than quadrupled compared with the third quarter of 2025.

4 minor points

• Minor pointNine-month continuing-operations revenue increased 5.4% year over year to $1.6 million.
• Minor pointNine-month licensing income grew 13% compared with the same period in 2025.
• Minor pointNine-month MultiSensing licensing revenue nearly quadrupled compared with the same period in 2025.
• Minor point. Forward-looking: it has not happened yet and may not happen.Licensing expansion plans include delivering existing programs and converting evaluations and partner engagements into commercial agreements.

Negative

• Moderate pointThird-quarter continuing-operations loss was $1.1 million, or $0.07 per share, versus $13.9 million income, or $0.83 per share.
• Moderate pointNine-month operating cash use increased to $5.6 million from $4.6 million in the same period of 2025.
• Moderate pointCash and accounts receivable fell to $20.2 million at September 30, 2026, from $25.8 million at December 31, 2025.
• Minor pointNine-month continuing-operations loss was $5.1 million, or $0.31 per share, versus $10.2 million income, or $0.60 per share.
• Minor pointPrior-year patent-assignment gain of $15.5 million supported both earnings comparisons and did not recur in 2026.

3 minor points

• Minor pointNine-month continuing-operations expenses increased 0.2% year over year to $7.3 million.
• Minor pointThird-quarter operating cash use increased to $1.6 million from $1.5 million in the same quarter of 2025.
• Minor pointContinuing-operations working capital fell to $19.2 million at September 30, 2026, from $24.1 million at December 31, 2025.

Key Figures

Quarterly revenue: $0.5 million; up 24.4% Quarterly operating expenses: $1.8 million; down 13.2% Quarterly loss: $1.1 million, or $0.07 per share +5 more

Quarterly revenue

$0.5 million; up 24.4%

Three months ended September 30, 2026, year over year

Quarterly operating expenses

$1.8 million; down 13.2%

Continuing operations, three months ended September 30, 2026, year over year

Quarterly loss

$1.1 million, or $0.07 per share

Continuing operations, three months ended September 30, 2026

Cash used by operations

$1.6 million vs. $1.5 million

Third quarter 2026 vs. the same period in 2025

Cash and accounts receivable

$20.2 million vs. $25.8 million

September 30, 2026 vs. December 31, 2025

Nine-month revenue

$1.6 million; up 5.4%

Nine months ended September 30, 2026, year over year

Nine-month loss

$5.1 million, or $0.31 per share

Continuing operations, nine months ended September 30, 2026

MultiSensing licensing revenue

More than quadrupled

Third quarter 2026 vs. third quarter 2025

Previous Earnings Reports

2 past events · Latest: Aug 12

Same Type 2 events

1. Aug 12

   Quarterly earnings

   24h Move

   +1.1%

   Q2 revenue fell while license fees increased, expenses rose, and continuing-operations loss widened.

2. May 13

   Quarterly earnings

   24h Move

   -4.1%

   Q1 revenue grew, but operating expenses and cash use rose alongside a continuing-operations loss.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-recurring engineering, working capital, patent assignment

3 terms

non-recurring engineering financial

"Revenues from non-recurring engineering for the three months ended September 30, 2026"

One-time engineering costs incurred to design, develop, test, certify or customize a product, system or production process—covering activities such as prototyping, tooling, software development and technical validation. These expenses are paid up front rather than recurring with each unit and can be spread over future production. For investors, non-recurring engineering affects short-term profits and cash flow and shapes future margins because it’s an upfront investment that reduces per-unit costs as volume rises, like paying to build a custom tool that makes later parts cheaper to produce.

working capital financial

"working capital for continuing operations was $19.2 million"

Working capital is the money a business has available to cover its daily expenses, like paying bills and buying supplies. It’s like the cash in your wallet that helps you handle everyday costs; having enough ensures the business can operate smoothly without running into money shortages.

View in glossary

patent assignment financial

"which included the net gain from the patent assignment of $15.5 million"

A patent assignment is a legal transfer of ownership of one or more patent rights from the current owner (assignor) to another party (assignee). It is typically made in a written, signed agreement and may be recorded with the relevant patent office to give public notice; once effective the assignee holds the exclusive rights that come with patent ownership (to make, use, sell, license, or enforce the patent) subject to any existing licenses or encumbrances. A patent assignment differs from a license because it transfers title to the patent rather than granting permission to use it while the original owner keeps title.

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STOCKHOLM, Nov. 12, 2026 /PRNewswire/ -- Neonode Inc. (NASDAQ: NEON) ("Neonode" or the "Company") today reported financial results for the three and nine months ended September 30, 2026.

FINANCIAL SUMMARY FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2026:

• Revenues from continuing operations of $0.5 million, an increase of 24.4% compared to the same period in the prior year.
• Operating expenses from continuing operations of $1.8 million, a decrease of 13.2% compared to the same period in the prior year.
• Loss from continuing operations of $1.1 million, or $0.07 per share, compared to an income of $13.9 million, or $0.83 per share, for the same period in the prior year, which included the net gain from the patent assignment of $15.5 million.
• Cash used by operations of $1.6 million, compared to $1.5 million for the same period in the prior year.
• Cash and accounts receivable of $20.2 million as of September 30, 2026 compared to $25.8 million as of December 31, 2025.

FINANCIAL SUMMARY FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2026: 

• Revenues from continuing operations of $1.6 million, an increase of 5.4% compared to the same period in the prior year.
• Operating expenses from continuing operations of $7.3 million, an increase of 0.2% compared to the same period in the prior year.
• Loss from continuing operations of $5.1 million, or $0.31 per share, compared to an income of $10.2 million, or $0.60 per share, for the same period in the prior year, which included the net gain from the patent assignment of $15.5 million.
• Cash used by operations of $5.6 million, compared to $4.6 million for the same period in the prior year.

THE CEO'S COMMENTS

"During the third quarter, we continued the transformation of Neonode toward a more scalable software licensing business. Revenue grew by more than 24% compared with the same period last year, supported by the ramp-up of an automotive license agreement and increased engineering project deliveries. MultiSensing® licensing revenue more than quadrupled in the third quarter of 2026 compared with the third quarter of 2025. These developments reflect progress in translating our technology into customer business," said Daniel Alexus, President & CEO of Neonode.

"Alongside this growth, we maintained cost discipline, with operating expenses lower than in the same quarter last year."

"Looking at the first nine months, revenue and licensing income grew, including 13% growth in licensing, while operating expenses remained broadly stable. MultiSensing licensing revenue nearly quadrupled in January–September 2026 compared with the same period in 2025. However, our revenue base is not yet sufficient to achieve profitability, and operations continued to reduce our cash balance during the quarter. Converting commercial opportunities into revenue while keeping costs under control remains essential."

"The substantial year-over-year difference in earnings primarily reflects the one-time gain from patent assignment recognized in the third quarter of 2025. That contribution was not repeated this year, and the comparison should not be interpreted as a corresponding deterioration in the underlying business."

"Our priorities remain clear: deliver on existing customer programs, convert evaluations and partner engagements into commercial agreements, and build our licensing business with financial discipline. Our liquidity provides a foundation to pursue these priorities, and our focus remains on turning technology and commercial opportunities into sustainable revenue growth and long-term shareholder value," concluded Mr. Alexus.

FINANCIAL OVERVIEW FOR THE QUARTER ENDED SEPTEMBER 30, 2026

Revenues from continuing operations for the three months ended September 30, 2026 were $0.5 million, an increase of 24.4% compared to the same period in 2025. License revenues were $0.4 million, an increase of 9.4% compared to the same period in 2025. The increase was mainly due to new license agreements. Revenues from non-recurring engineering for the three months ended September 30, 2026 were $91,000, an increase of 279.2% compared to the same period in 2025. The increase was the result of increased project deliveries.

Operating expenses from continuing operations for the three months ended September 30, 2026 were $1.8 million, a decrease of 13.2% compared to the same period in 2025. The decrease was mainly related to lower payroll and related costs and lower professional fees.

Loss from continuing operations for the three months ended September 30, 2026 was $1.1 million, or $0.07 per share, compared to an income from continuing operations of $13.9 million, or $0.83 per share, for the same period in 2025, which included the net gain from the patent assignment of $15.5 million.

Cash used by operations was $1.6 million in the third quarter of 2026 compared to $1.5 million for the same quarter in 2025. The increase was primarily due to a decrease in accounts payable, accrued payroll and employee benefits.

Cash and accounts receivable totaled $20.2 million and working capital for continuing operations was $19.2 million as of September 30, 2026, compared to $25.8 million and $24.1 million as of December 31, 2025, 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-quarter-ended-september-30--2026-financial-results,c4423353

The following files are available for download:

https://mb.cision.com/Main/17297/4423353/4368562.pdf	Neonode - 3Q 2026 Earnings Release
https://news.cision.com/neonode/i/neonode-reports-quarter-ended-september-30--2026-financial-results,c3580235	Neonode Reports Quarter Ended September 30, 2026 Financial Results

 

View original content:https://www.prnewswire.com/news-releases/neonode-reports-quarter-ended-september-30-2026-financial-results-302937981.html

SOURCE Neonode

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Neonode's third-quarter 2026 revenue and earnings?

Neonode reported $0.5 million in revenue from continuing operations, up 24.4% year over year, and a loss from continuing operations of $1.1 million, or $0.07 per share. The prior-year quarter had income from continuing operations of $13.9 million, or $0.83 per share, including a $15.5 million net patent-assignment gain.

Why did Neonode's third-quarter 2026 operating expenses decline?

Operating expenses from continuing operations fell mainly because of lower payroll and related costs and lower professional fees. Quarterly expenses totaled $1.8 million, down 13.2% compared with the same period in 2025.

Why did Neonode use more operating cash in the third quarter of 2026?

The increase in operating cash use primarily reflected decreases in accounts payable, accrued payroll and employee benefits. Operating cash use totaled $1.6 million, compared with $1.5 million in the third quarter of 2025.