Pixelworks (PXLW) swings to $77.8M H1 2026 net income on asset sale
Rhea-AI Filing Summary
Pixelworks, Inc. reported second quarter 2026 results as a pure-play technology licensing company focused on its TrueCut Motion and visualization solutions. For the quarter ended June 30, 2026, net revenue from continuing operations was $64 thousand, producing a gross profit of $39 thousand and a loss from operations of $3.4 million. Net loss from continuing operations was $2.8 million, or $0.44 per basic and diluted share.
For the six months ended June 30, 2026, net revenue was $510 thousand and loss from continuing operations was $7.4 million. Including discontinued operations, Pixelworks reported net income of $77.8 million, largely reflecting the previously completed sale of its Pixelworks Shanghai semiconductor subsidiary, whose post-sale contribution in 2026 was determined to be immaterial. Basic earnings per share including discontinued operations were $12.30 year-to-date.
The company ended the quarter with $52.9 million in cash and cash equivalents and total shareholders’ equity of $52.0 million, up sharply from year-end 2025. Pixelworks repurchased $3.2 million of common stock under its stock repurchase program and highlighted new TrueCut Motion partnerships with Kinepolis Group and China Film CINITY for premium large format theaters.
Positive
- Net income of $77.8 million for the first half of 2026, compared with a $14.9 million net loss in the prior-year period, driven by the completed sale of the Pixelworks Shanghai subsidiary.
- Cash and cash equivalents rose to $52.9 million at June 30, 2026, up from $11.2 million at December 31, 2025, providing a substantially stronger liquidity position.
- Total shareholders’ equity improved to $52.0 million at June 30, 2026 from $1.8 million at year-end 2025, reflecting the gain on discontinued operations and balance sheet strengthening.
- The company repurchased $3.2 million of common stock under its stock repurchase program, returning capital to shareholders.
- New TrueCut Motion partnerships with Kinepolis Group and China Film CINITY expand the premium large format ecosystem for the company’s technology licensing strategy.
Negative
- Quarterly revenue from continuing operations declined to $64 thousand in Q2 2026 from $159 thousand in Q2 2025, while operating expenses increased.
- Loss from continuing operations widened to $7.4 million for the first half of 2026 from $5.4 million in the prior-year period, reflecting higher operating and restructuring costs.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 2026 Revenue: $64 thousand
Q2 2026 Net Loss from Continuing Operations: $2,796 thousand
H1 2026 Net Income: $77,788 thousand
+5 more
8 metrics
Q2 2026 Revenue
$64 thousand
Net revenue from continuing operations for the three months ended June 30, 2026
Q2 2026 Net Loss from Continuing Operations
$2,796 thousand
Net loss from continuing operations for the three months ended June 30, 2026
H1 2026 Net Income
$77,788 thousand
Net income for the six months ended June 30, 2026 including discontinued operations
Income from Discontinued Operations H1 2026
$85,153 thousand
Net income from discontinued operations for the six months ended June 30, 2026
Cash and Cash Equivalents
$52,888 thousand
Cash and cash equivalents as of June 30, 2026
Total Shareholders’ Equity
$51,981 thousand
Total shareholders’ equity as of June 30, 2026
Share Repurchases Q2 2026
$3.2 million
Common stock repurchased under the company’s stock repurchase program during Q2 2026
Weighted Average Shares Basic Q2 2026
6,294 thousand
Weighted average basic shares outstanding for the three months ended June 30, 2026
Key Terms
discontinued operations, redeemable non-controlling interest, restructuring, technology licensing company, +1 more
5 terms
discontinued operations financial
"Net income (loss) from discontinued operations, net of income taxes"
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.
redeemable non-controlling interest financial
"Less: Net loss attributable to redeemable non-controlling interest"
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.
restructuring financial
"Restructuring | 94 | — | 2,089 | —"
Restructuring is a deliberate rearrangement of a company’s operations, finances, or ownership—like reorganizing a cluttered house to run more efficiently—often involving cost cuts, asset sales, debt changes, or staff moves. Investors pay attention because restructuring can improve profitability and free up cash, but it can also signal distress, incur one-time costs, or dilute shareholder value; its success affects future earnings and stock performance.
technology licensing company financial
"transformation into a pure-play technology licensing company earlier in the year"
TrueCut Motion technical
"expanding the TrueCut Motion ecosystem through newly announced partnerships"
Earnings Snapshot
Q2 2026 revenue: $64 thousand
quarter and six months ended June 30, 2026
Q2 2026 revenue
$64 thousand
vs $159 thousand in Q2 2025
Q2 2026 net loss from continuing operations
$2,796 thousand
vs $2,580 thousand loss in Q2 2025
H1 2026 net income
$77,788 thousand
vs $14,945 thousand net loss in H1 2025
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Pixelworks (PXLW) perform financially in Q2 2026?
Pixelworks reported Q2 2026 revenue of $64 thousand and a net loss from continuing operations of $2.8 million. Gross profit was $39 thousand, and loss from operations totaled $3.4 million for the quarter.
What was Pixelworks (PXLW) net income for the first half of 2026?
For the six months ended June 30, 2026, Pixelworks reported net income of $77.8 million, compared with a $14.9 million net loss a year earlier, primarily due to the gain associated with discontinued operations from the sale of its Pixelworks Shanghai subsidiary.
How strong is Pixelworks (PXLW) balance sheet after Q2 2026?
At June 30, 2026, Pixelworks held $52.9 million in cash and cash equivalents and reported total shareholders’ equity of $52.0 million, both significantly higher than at December 31, 2025, indicating a stronger capital position.
What impact did discontinued operations have on Pixelworks (PXLW) results?
Discontinued operations, tied to the sale of the Pixelworks Shanghai subsidiary, contributed $85.2 million of income in the first half of 2026. The company determined that the subsidiary’s contribution after the January 6, 2026 sale closing was immaterial.
Did Pixelworks (PXLW) repurchase any stock in Q2 2026?
Yes. Pixelworks repurchased $3.2 million of common stock under its stock repurchase program during the second quarter of 2026, while ending the period with approximately $53 million in cash and cash equivalents.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 11, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(503 ) 601-4545
(Address, including zip code, and telephone number, including
area code, of registrant’s principal executive offices)
area code, of registrant’s principal executive offices)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
The | ||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On August 11, 2026, Pixelworks, Inc. (the “Company”) issued a press release announcing financial results for the three and six month periods ended June 30, 2026 and held a conference call to discuss the Company's financial results. The press release and conference call contain forward-looking statements regarding the Company and include cautionary statements identifying important factors that could cause actual results to differ materially from those anticipated.
The press release issued August 11, 2026 is furnished herewith as Exhibit 99.1 to this Report and a copy of the Company's conference call script announcing these financial results is furnished herewith as Exhibit 99.2. The information in this Item 2.02, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liability provisions of that Section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933 or the Exchange Act, except as otherwise stated in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |||||||
| 99.1 | Press Release issued by Pixelworks, Inc. dated August 11, 2026. | |||||||
| 99.2 | Pixelworks, Inc. Second Quarter Results Conference Call Script dated August 11, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PIXELWORKS, INC. | ||||||||
| (Registrant) | ||||||||
| Dated: | August 11, 2026 | /s/ Haley F. Aman | ||||||
Haley F. Aman Chief Financial Officer | ||||||||
Exhibit 99.1
Pixelworks Reports Second Quarter 2026 Financial Results
PORTLAND, Ore., August 11, 2026 – Pixelworks, Inc. (NASDAQ: PXLW) (“Pixelworks” or the “Company”), a provider of innovative cinematic and enhanced visualization solutions, today announced financial results for the second quarter ended June 30, 2026.
Second Quarter 2026 and Recent Highlights
•Secured Kinepolis Group’s endorsement and preferred exhibition of TrueCut Motion-enhanced versions of theatrical titles on Kinepolis’ Laser Ultra large format screens across Europe and North America
•Announced partnership with China Film CINITY Co., Ltd., expanding the TrueCut Motion ecosystem and prioritizing advanced TrueCut Motion grading technology in CINITY’s premium large format theaters
•Repurchased $3.2 million of shares of common stock under the Company’s stock repurchase program
•Ended the second quarter with cash and cash equivalents of approximately $53 million
“Having completed Pixelworks’ transformation into a pure-play technology licensing company earlier in the year, we are fully focused on building and scaling a global licensing business around our TrueCut Motion and visualization solutions,” stated Todd DeBonis, Chairman and CEO of Pixelworks. “During the second quarter, we continued to expand the TrueCut Motion ecosystem through newly announced partnerships with both CINITY and Kinepolis Group. These additional endorsements of TrueCut Motion-enhanced content strengthen our growing network of leading exhibitors committed to bringing TrueCut Motion to premium large format screens across key international markets.
“To-date, we have made significant headway on expanding our network of premium exhibitors, and we remain on track to grow the slate of TrueCut Motion-enhanced content with work currently underway on multiple titles for release in the coming quarters. We are well capitalized and expect to demonstrate further momentum in the second half of the year as we execute on our strategic growth objectives as a global technology licensing company.”
Conference Call Information
Pixelworks will host a conference call today, August 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:
Second Quarter 2026 Conference Call
Date: Tuesday, August 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 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 six months ended June 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.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenue, net | $ | 64 | $ | 159 | $ | 510 | $ | 159 | |||||||||||||||
| Cost of revenue | 25 | 46 | 218 | 53 | |||||||||||||||||||
| Gross profit | 39 | 113 | 292 | 106 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Research and development (1) | 1,195 | 896 | 2,160 | 1,866 | |||||||||||||||||||
| Selling, general and administrative (2) | 2,114 | 1,728 | 4,317 | 3,842 | |||||||||||||||||||
| Restructuring | 94 | — | 2,089 | — | |||||||||||||||||||
| Total operating expenses | 3,403 | 2,624 | 8,566 | 5,708 | |||||||||||||||||||
| Loss from operations | (3,364) | (2,511) | (8,274) | (5,602) | |||||||||||||||||||
| Interest income and other | 578 | 27 | 897 | 64 | |||||||||||||||||||
| Loss before income taxes | (2,786) | (2,484) | (7,377) | (5,538) | |||||||||||||||||||
| Provision (benefit) for income taxes | 10 | 96 | (12) | (143) | |||||||||||||||||||
| Net loss from continuing operations | (2,796) | (2,580) | (7,365) | (5,395) | |||||||||||||||||||
| Net income (loss) from discontinued operations, net of income taxes | — | (4,345) | 85,153 | (9,550) | |||||||||||||||||||
| Net income (loss) | (2,796) | (6,925) | 77,788 | (14,945) | |||||||||||||||||||
| Less: Net loss attributable to redeemable non-controlling interest and non-controlling interest | — | 218 | — | 477 | |||||||||||||||||||
| Net income (loss) attributable to Pixelworks, Inc. | $ | (2,796) | $ | (6,707) | $ | 77,788 | $ | (14,468) | |||||||||||||||
| Net loss from continuing operations per share - basic and diluted | $ | (0.44) | $ | (0.49) | $ | (1.16) | $ | (1.04) | |||||||||||||||
| Net income (loss) from discontinued operations per share: | |||||||||||||||||||||||
| Basic | $ | — | $ | (0.82) | $ | 13.47 | $ | (1.85) | |||||||||||||||
| Diluted | $ | — | $ | (0.82) | $ | 13.22 | $ | (1.85) | |||||||||||||||
| Net income (loss) attributable to Pixelworks, Inc. per share: | |||||||||||||||||||||||
| Basic | $ | (0.44) | $ | (1.27) | $ | 12.30 | $ | (2.80) | |||||||||||||||
| Diluted | $ | (0.44) | $ | (1.27) | $ | 12.07 | $ | (2.80) | |||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 6,294 | 5,282 | 6,323 | 5,166 | |||||||||||||||||||
| Diluted | 6,294 | 5,282 | 6,443 | 5,166 | |||||||||||||||||||
PIXELWORKS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
| June 30, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 52,888 | $ | 11,243 | |||||||
| Prepaid expenses and other current assets | 525 | 568 | |||||||||
| Current assets held for sale | — | 38,422 | |||||||||
| Total current assets | 53,413 | 50,233 | |||||||||
| Property and equipment, net | 215 | 205 | |||||||||
| Operating lease right-of-use assets | 430 | 704 | |||||||||
| Other assets, net | 51 | 121 | |||||||||
| Total assets | $ | 54,109 | $ | 51,263 | |||||||
| LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND SHAREHOLDERS' EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 519 | $ | — | |||||||
| Accrued liabilities and current portion of long-term liabilities | 957 | 1,972 | |||||||||
| Current portion of income taxes payable | 26 | 43 | |||||||||
| Current liabilities held for sale | — | 18,005 | |||||||||
| Total current liabilities | 1,502 | 20,020 | |||||||||
| Operating lease liabilities, net of current portion | 165 | 298 | |||||||||
| Income taxes payable, net of current portion | 461 | 508 | |||||||||
| Deferred tax liability | — | 31 | |||||||||
| Total liabilities | 2,128 | 20,857 | |||||||||
| Commitments and contingencies | |||||||||||
| Redeemable non-controlling interest | — | 28,600 | |||||||||
| Shareholders’ equity: | |||||||||||
| Preferred stock | — | — | |||||||||
| Common stock | 505,507 | 504,405 | |||||||||
| Treasury stock, at cost | (3,192) | — | |||||||||
| Accumulated other comprehensive income | 257 | 2,882 | |||||||||
| Accumulated deficit | (450,591) | (528,379) | |||||||||
| Total Pixelworks, Inc. shareholders’ equity (deficit) | 51,981 | (21,092) | |||||||||
| Non-controlling interest | — | 22,898 | |||||||||
| Total shareholders' equity | 51,981 | 1,806 | |||||||||
| Total liabilities, redeemable non-controlling interest and shareholders’ equity | $ | 54,109 | $ | 51,263 | |||||||
Contacts:
Investor Contact
Shelton Group
Brett Perry
P: +1-214-272-0070
E: bperry@sheltongroup.com
Company Contact
Pixelworks, Inc.
Haley Aman
P: +1-503-601-4540
E: haman@pixelworks.com