Pixelworks Reports Third Quarter 2026 Financial Results

Quarterly revenue increased, but the loss from continuing operations widened as research and development and administrative expenses rose.

Rhea-AI Summary

Pixelworks (NASDAQ: PXLW) reported third-quarter 2026 revenue of $378,000, with higher sales but a wider loss from continuing operations than a year earlier. Revenue compared with $241,000 in third-quarter 2025. The continuing-operations loss widened to $2.775 million from $2.563 million, while the loss attributable to Pixelworks narrowed to $2.775 million from $4.432 million.

A multi-year Meta device certification agreement will bring TrueCut Motion content to Meta's VR devices. Pixelworks repurchased $1.2 million of common shares below book value and ended September with approximately $50 million in cash, cash equivalents and short-term marketable securities. Nine-month revenue reached $888,000 versus $400,000; net income attributable to Pixelworks was $75.013 million, including $85.153 million from discontinued operations. The Shanghai subsidiary sale closed January 6, 2026.

12 points · 3 major

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0 major · 7 points

How the balance works

Positive

• Major pointNine-month attributable net income reached $75.013 million versus an $18.900 million loss, including $85.153 million from discontinued operations.
• Major pointTotal liabilities declined to $1.947 million from $20.857 million at December 31, 2025.
• Major pointPixelworks shareholders' equity reached $49.070 million versus a $21.092 million deficit at December 31, 2025.
• Moderate pointThird-quarter revenue rose to $378,000 from $241,000 a year earlier.
• Moderate point$1.2 million in common shares repurchased below book value during the third quarter. 2.7% of market cap
• Moderate pointApproximately $50 million in cash, cash equivalents and short-term marketable securities at quarter-end.
• Moderate pointThird-quarter attributable net loss narrowed to $2.775 million, or $0.46 per share, from $4.432 million, or $0.81.
• Moderate pointNine-month revenue increased to $888,000 from $400,000 a year earlier.

4 minor points

• Minor pointMulti-year Meta certification agreement adds a device customer for TrueCut Motion content on Meta's VR devices.
• Minor pointThird-quarter gross profit increased to $348,000 from $217,000 a year earlier.
• Minor pointThird-quarter interest income and other improved to $648,000 from negative $3,000 a year earlier.
• Minor pointNine-month gross profit increased to $640,000 from $323,000 a year earlier.

Negative

• Moderate pointThird-quarter continuing-operations loss widened to $2.775 million from $2.563 million; per-share loss narrowed to $0.46 from $0.47.
• Moderate pointNine-month continuing-operations loss widened to $10.140 million, or $1.63 per share, from $7.958 million, or $1.51.
• Moderate pointNine-month restructuring expense totaled $2.089 million versus none a year earlier. 4.7% of market cap
• Minor pointThird-quarter research and development expense increased to $1.472 million from $932,000 a year earlier.
• Minor pointThird-quarter selling, general and administrative expense increased to $2.311 million from $1.902 million a year earlier.

2 minor points

• Minor pointNine-month research and development expense increased to $3.632 million from $2.798 million a year earlier.
• Minor pointNine-month selling, general and administrative expense increased to $6.627 million from $5.746 million a year earlier.

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Key Figures

Revenue: $378 thousand Net loss from continuing operations: $2,775 thousand Continuing-operations loss per share: $0.46 +3 more

Revenue

$378 thousand

Q3 2026 (vs. $241 thousand in Q3 2025)

Net loss from continuing operations

$2,775 thousand

Q3 2026 (vs. $2,563 thousand in Q3 2025)

Continuing-operations loss per share

$0.46

Q3 2026, basic and diluted

Shares repurchased

$1.2 million

Q3 2026; repurchased for less than book value under the stock repurchase program

Cash and cash equivalents

$40,892 thousand

September 30, 2026 balance sheet

Short-term marketable securities

$8,932 thousand

September 30, 2026 balance sheet

Previous Earnings Reports

1 past event · Latest: Aug 11

Same Type 1 event

1. Aug 11

   Q2 earnings

   24h Move

   +10.5%

   Q2 continuing-operations revenue was $64,000 and net loss was $2.8 million.

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

Key Terms

discontinued operations, short-term marketable securities, weighted average shares outstanding, redeemable non-controlling interest

4 terms

discontinued operations financial

"Net loss from continuing operations (2,775) (2,563)"

Discontinued operations are parts of a company that it has decided to sell or shut down, and no longer plans to run in the future. This matters to investors because it helps them understand which parts of the business are ongoing and which are being phased out, providing a clearer picture of the company’s current performance and future prospects. Think of it like a store closing a department—it no longer contributes to sales or profits.

short-term marketable securities financial

"Cash and cash equivalents | $ 40,892 | | $ 11,243 Short-term marketable securities"

Current, highly liquid debt or equity investments that a company holds to park cash and that are expected to be converted to cash within one year (or the company’s operating cycle if longer). They trade in active markets or have short contractual maturities and low credit risk, such as Treasury bills, commercial paper, money‑market instruments and short‑term bonds; on the balance sheet they are shown as current assets and are typically measured at fair value or amortized cost depending on accounting rules. The key limits are the short time to maturity and high liquidity; they are treated differently from longer‑term investments because their value and interest sensitivity change more quickly with market rates.

weighted average shares outstanding financial

"Weighted average shares outstanding: Basic 6,056 5,440"

The weighted average shares outstanding is the average number of a company’s common shares that were available during a reporting period, adjusted so each change (like new shares issued or shares bought back) counts only for the portion of the period it was in effect. Investors use it to calculate per-share measures such as earnings per share, so it shows how ownership dilution or buybacks affect what each share is entitled to—like averaging how many people were at a potluck over time to determine each person’s share of the food.

redeemable non-controlling interest financial

"LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND SHAREHOLDERS' EQUITY"

A redeemable non-controlling interest is a minority ownership stake in a subsidiary that can be sold back to or bought out by the parent company or subsidiary at a predetermined time or under certain conditions. For investors, it matters because this claim can act like a future cash obligation or potential dilution, changing the parent’s reported equity, net income allocation, and near‑term cash needs—much like a few partners in a small business who can force the owner to buy them out.

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PORTLAND, Ore., Nov. 11, 2026 /PRNewswire/ -- Pixelworks, Inc. (NASDAQ: PXLW) ("Pixelworks" or the "Company"), a provider of innovative cinematic and enhanced visualization solutions, today announced financial results for the third quarter ended September 30, 2026.

Third Quarter 2026 and Recent Highlights

• Announced multi-year device certification agreement with Meta to bring TrueCut Motion® cinematic content to Meta's VR Devices, including the upcoming Meta VR Glasses
• Worked with Universal Pictures on DreamWorks Animation's original animated comedy, Forgotten Island, theatrically released in late September
• Repurchased $1.2 million of shares of common stock for less than book value under the Company's stock repurchase program
• Ended the third quarter with cash, cash equivalents and short-term marketable securities of approximately $50 million

"During the third quarter, we continued to execute on our strategy of building and scaling a pure-play technology licensing business centered on TrueCut Motion and our visualization solutions," stated Todd DeBonis, Chairman and CEO of Pixelworks. "This included steady progress toward our near-term objectives of growing the TrueCut Motion ecosystem of premium large-format exhibitors and expanding the availability of cinematic TrueCut Motion-graded content.

"Most recently, we achieved a major milestone with Meta becoming our first major device manufacturer customer for TrueCut Motion device certification. This multi-year agreement, which is ahead of the original timeline for our device licensing program, will bring unmatched cinematic clarity and highly immersive content to Meta's VR devices. We also believe this partnership will meaningfully accelerate the pipeline of new TrueCut Motion-graded titles. Importantly, we remain well capitalized to execute on our strategy and continue driving growing momentum for our differentiated TrueCut Motion content across both theatrical and device experiences."

Conference Call Information

Pixelworks will host a conference call today, November 11, 2026, at 2:00 p.m. Pacific Time. Analysts and investors are invited to join the Company's conference call using the following information:

Third Quarter 2026 Conference Call
Date: Wednesday, November 11, 2026
Time: 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time)
Live Webcast Link: Click Here
Dial-in Participation Registration Link: Click Here

Advanced registration is required for dial-in participants. Please complete the linked registration form above to receive a dial-in number and dedicated PIN for accessing the conference call by phone. A live and archived audio webcast of the conference call will also be accessible via the investors section of Pixelworks' website: www.pixelworks.com.

Pixelworks, Inc.

Pixelworks (NASDAQ: PXLW) is a technology licensing company specializing in cinematic visualization solutions, including industry-leading content creation, delivery and display processing solutions that enable highly authentic viewing experiences with superior visual quality. Pixelworks has more than 20 years of delivering image processing innovation to leading providers of consumer electronics, professional displays and video streaming services.

About TrueCut Motion

TrueCut Motion® is a powerful video platform from Pixelworks that provides filmmakers with a new palette for motion. It enables shot-by-shot motion grading, allowing creators to manage judder, motion blur, and frame rates to achieve a consistent, cinematic look across all screens. For more information on TrueCut Motion, visit: www.truecutmotion.com

Note: Pixelworks, the Pixelworks logo, TrueCut Motion and TrueCut are registered trademarks of Pixelworks, Inc.

Note Regarding Financial Statements

As previously announced, on January 6, 2026, the Company completed the transaction to sell its shares in Pixelworks Semiconductor Technology (Shanghai) Co., Ltd., a subsidiary of Pixelworks ("Pixelworks Shanghai"), to a special purpose entity led by VeriSilicon Microelectronics (Shanghai). The contribution from the Pixelworks Shanghai semiconductor subsidiary to the operating results of the Company for the three and nine months ended September 30, 2026 was determined to be immaterial. Therefore, the Company's reported financial results contained in today's press release do not include discontinued operations activity from the first several days of January 2026 before the sale closed.

Safe Harbor Statement

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by use of terms such as "begin," "continue," "will," "expect", "believe," "anticipate" and similar terms or the negative of such terms, and include, without limitation, statements regarding the expansion and adoption of TrueCut Motion technology and the Company's strategy to grow as a global technology licensing business. All statements other than statements of historical fact are forward-looking statements for purposes of this release. Such statements are based on management's current expectations, estimates and projections about the Company's business. These statements are not guarantees of future performance and involve numerous risks, uncertainties and assumptions that are difficult to predict. Actual results could vary materially from those contained in forward looking statements due to many factors, including, without limitation, market and other conditions and other factors described in our other filings with the Securities and Exchange Commission (the "SEC") from time to time. More information regarding potential factors that could affect the Company's financial results and could cause actual results to differ materially from those discussed in the forward-looking statements is included from time to time in the Company's Securities and Exchange Commission filings, including its Annual Report on Form 10-K for the year ended December 31, 2025, as well as subsequent SEC filings.

The forward-looking statements contained in this release are as of the date of this release, and the Company does not undertake any obligation to update any such statements, whether as a result of new information, future events or otherwise.

[Financial Tables Follow]

PIXELWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Revenue, net	$          378		$          241		$          888		$          400
Cost of revenue	30		24		248		77
Gross profit	348		217		640		323
Operating expenses:
Research and development (1)	1,472		932		3,632		2,798
Selling, general and administrative (2)	2,311		1,902		6,627		5,746
Restructuring	—		—		2,089		—
Total operating expenses	3,783		2,834		12,348		8,544
Loss from operations	(3,435)		(2,617)		(11,708)		(8,221)
Interest income and other	648		(3)		1,544		62
Loss before income taxes	(2,787)		(2,620)		(10,164)		(8,159)
Benefit for income taxes	(12)		(57)		(24)		(201)
Net loss from continuing operations	(2,775)		(2,563)		(10,140)		(7,958)
Net income (loss) from discontinued operations, net of income taxes	—		(2,030)		85,153		(11,580)
Net income (loss)	(2,775)		(4,593)		75,013		(19,538)
Less: Net loss attributable to redeemable non- controlling interest and non-controlling interest	—		161		—		638
Net income (loss) attributable to Pixelworks, Inc.	$       (2,775)		$       (4,432)		$      75,013		$     (18,900)
Net loss from continuing operations per share - basic and diluted	$        (0.46)		$        (0.47)		$        (1.63)		$        (1.51)
Net income (loss) from discontinued operations per share:
Basic	$           —		$        (0.37)		$        13.66		$        (2.20)
Diluted	$           —		$        (0.37)		$        13.36		$        (2.20)
Net income (loss) attributable to Pixelworks, Inc. per share:
Basic	$        (0.46)		$        (0.81)		$        12.03		$        (3.59)
Diluted	$        (0.46)		$        (0.81)		$        11.77		$        (3.59)
Weighted average shares outstanding:
Basic	6,056		5,440		6,233		5,258
Diluted	6,056		5,440		6,375		5,258
(1) Includes stock-based compensation	353		100		566		344
(2) Includes stock-based compensation	759		483		1,643		1,156

 

PIXELWORKS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)
	September 30, 2026		December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$          40,892		$          11,243
Short-term marketable securities	8,932		—
Accounts receivable, net	95		—
Prepaid expenses and other current assets	386		568
Current assets held for sale	—		38,422
Total current assets	50,305		50,233
Property and equipment, net	190		205
Operating lease right-of-use assets	461		704
Other assets, net	61		121
Total assets	$          51,017		$          51,263
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$             328		$               —
Accrued liabilities and current portion of long-term liabilities	984		1,972
Current portion of income taxes payable	—		43
Current liabilities held for sale	—		18,005
Total current liabilities	1,312		20,020
Operating lease liabilities, net of current portion	154		298
Income taxes payable, net of current portion	481		508
Deferred tax liability	—		31
Total liabilities	1,947		20,857
Commitments and contingencies
Redeemable non-controlling interest	—		28,600
Shareholders' equity:
Preferred stock	—		—
Common stock	506,624		504,405
Treasury stock, at cost	(4,432)		—
Accumulated other comprehensive income	244		2,882
Accumulated deficit	(453,366)		(528,379)
Total Pixelworks, Inc. shareholders' equity (deficit)	49,070		(21,092)
Non-controlling interest	—		22,898
Total shareholders' equity	49,070		1,806
Total liabilities, redeemable non-controlling interest and shareholders' equity	$          51,017		$          51,263

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/pixelworks-reports-third-quarter-2026-financial-results-302936914.html

SOURCE Pixelworks, Inc.

FAQ

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

What were Pixelworks' third-quarter 2026 financial results?

Pixelworks reported $378,000 in revenue and a $2.775 million attributable net loss, or $0.46 per share. A year earlier, revenue was $241,000 and the attributable net loss was $4.432 million, or $0.81 per share. The continuing-operations loss widened to $2.775 million from $2.563 million.

What does Pixelworks' multi-year Meta agreement cover?

The multi-year device certification agreement will bring TrueCut Motion cinematic content to Meta's VR devices, including the upcoming Meta VR Glasses. Pixelworks said the agreement arrived ahead of the original timeline for its device licensing program.