Neonode Inc. (NEON) Market Cap
Neonode Inc. has a market capitalization of $26.3M.
Financials based on reported quarter end 2025-12-31
Price: $1.57
▲ 0.01 (0.64%)
Market Cap: 26.35M
NASDAQ · time unavailable
CEO: Pierre Daniel Alexus
Sector: Technology
Industry: Hardware, Equipment & Parts
IPO Date: 1989-01-09
Website: https://www.neonode.com
Neonode Inc. (NEON) - Company Information
Market Cap: 26.35M · Sector: Technology
Neonode Inc., together with its subsidiaries, develops optical sensing solutions for contactless touch, touch, and gesture sensing in the United States, Japan, South Korea, China, and internationally. It also offers software solutions for scene analysis using advanced machine learning algorithms to detect and track persons and objects in video streams for cameras and other types of imagers. In addition, the company licenses its technology to original equipment manufacturers (OEMs) and Tier 1 suppliers. Further, it provides embedded sensors modules to OEMs, original design manufacturers, and systems integrators; and engineering consulting services. Additionally, the company sells Neonode branded sensor products, such as AirBar products through distributors. It serves office equipment, automotive, industrial automation, medical, military, and avionics markets. Neonode Inc. was incorporated in 1997 and is headquartered in Stockholm, Sweden.
Analyst Sentiment
Based on 1 ratings
Consensus Price Target
No data available
Price & Moving Averages
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Management tone was cautiously confident: Urban describes “momentum” from a Q4 driver monitoring software design win and frames the Dec 12 pivot to 100% licensing as a simplification that should improve gross margins. However, the Q&A pressure points center on hard underperformance and execution risk. Jesper asked about quantification of royalties/revenue impact; Urban would not provide numbers, only characterizing royalty economics as “a few dollars per vehicle” and emphasizing long (18–36 month) development cycles. He also admitted Products business results were weak (“meager” events outcomes) despite marketing spend, and attributed revenue decline to weak demand and printer royalty weakening in Q3/Q4. Financially, 2023 showed sharp deterioration: revenue -22% to $4.4M, license revenue -15% to $3.8M, and product revenue -38% to $0.6M, with a $10.1M net loss driven by $3.6M impairment and canceled purchase commitments tied to winding down Products. So the “what’s next” story is real, but near-term numbers and guidance remain non-quantified.
Growth Catalysts
- Breakthrough driver monitoring software design win announced in Q4 2023 from a leading commercial vehicle manufacturer; management framed it as a stepping stone for 2024+
- Scalable software platform momentum in automotive from increased customer interest post-design win (OEMs and Tier 1s asking for proposals)
- Launch of new 100% technology & software licensing strategy (Dec 12) to simplify ops and re-focus sales/marketing
Business Development
- Leading commercial vehicle manufacturer awarded driver monitoring software program (Tier 1 software supplier directly to OEM; used across multiple brands/models)
- Printer manufacturers: legacy royalty streams stable in 2023 first half, then weakened in Q3/Q4; management pursuing upgrades and increased use across printer families
- Automotive Tier 1 suppliers and OEMs showing renewed interest; management targeting direct OEM engagement and partner-based channel via Tier 1 system suppliers (modules/cameras) that integrate Neonode software
- TSM customers/value-added resellers/distributors: management says more than a handful of larger customers and valued resellers are seriously interested and negotiations for licensing are underway to enable customer-owned production
Financial Highlights
- Total revenue 2023: $4.4M, down 22% vs 2022
- License revenue 2023: $3.8M, down 15% vs 2022 (impacted by end-customer inventory reductions and underlying printer volumes, especially Q3/Q4)
- Product revenue 2023: $0.6M, down 38% vs 2022 (weak demand for TSM products; decision announced in December to phase out Products business)
- Operating expenses 2023: $10.7M, up 5% vs 2022 (increased marketing spend and payroll-related costs)
- Net loss 2023: $10.1M vs $4.9M net loss in 2022
- Net cash burn from operating activities 2023: $6.3M, down 7% vs 2022
- Cost of revenues impacted by non-cash and one-time items from Products business phase-out: impairment loss $3.6M (no cash flow effect) and canceled purchase commitments/fees for future components
- 2024 production plan for TSMs: produce and sell during first half; wind down production unit in Kungsbacka with rent ending end of September
Capital Funding
- Cash and accounts receivable as of Dec 31, 2023: $17.1M (up $0.8M vs prior year)
- No explicit buyback/debt levels provided in transcript
Strategy & Ops
- Phasing out Products business announced in December 2023; winding down production unit in Kungsbacka, Sweden
- During 2024: continue producing/selling TSMs in IT & Industrial during first half; operate production unit at full speed as wind-down is prepared for second half
- Sales/marketing network reduction: dismount product-sales direct/indirect reseller/distributor network for TSMs and shift those partners toward licensing agreements
- Target operating model re-structured marketing/sales into two areas: IT & Industrial (printers, interactive kiosks, Medtech, industrial automation) and Automotive (100% automotive; commercial vehicles, light vehicles, off-highway vehicles)
- Operational simplification framed as reduced complexity from running only licensing vs licensing + products
Market Outlook
- No formal revenue/profit guidance provided; management: no guidance on growth or margins
- Management stated ambition: double turnover 'actually several times' over coming years (qualitative)
- Automotive ramp-up timeline: after Q4 award triggers application development typically 18–36 months; NRE revenues during development; royalties per vehicle produced during production
- Automotive sales cycles described as long (already working with customers ~2+ years before securing business)
Risks & Headwinds
- Printer royalty weakening in Q3/Q4 2023 tied to underlying customer product sales and some inventory reductions ahead of year-end
- TSM product demand weakness after COVID-era normalization; products underperformed vs projections/targets
- Automotive royalty pressure: competitive landscape with Tier 1 DMS suppliers and other Tier 2; vehicle manufacturers pressure pricing low (management said it expects 'very good' margins relatively speaking)
- Long automotive development/sales cycles increase execution/timing risk (18–36 month application development; reliance on multiple programs for eventual scale)
Sentiment: CAUTIOUS
Note: This summary was synthesized by AI from the NEON Q4 2023 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.
Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"Headline (latest quarter ended 2025-12-31): Revenue $0.52M, Net Income -$2.09M (EPS -0.12). QoQ (vs 2025-09-30): Revenue rose +20.9% (from $0.43M to $0.52M) but Net Income sharply deteriorated from +$14.18M to -$2.09M. Over the 4-quarter window (2025-03-31 to 2025-12-31), revenue is relatively range-bound (~$0.43M–$0.60M) while earnings are highly volatile, swinging between losses and a very large profit in 2025-09-30. Profitability/earnings quality: Net margin deteriorated dramatically in the latest quarter (net income divided by revenue is deeply negative). The unusually large profitability spike in 2025-09-30 followed by a large swing suggests non-recurring items or accounting volatility; the trend is not one of consistent margin expansion. Cash flow: Free cash flow is negative in every quarter provided (latest FCF about -$5.62M), indicating ongoing cash burn despite minimal disclosed capex. Balance sheet: Total assets declined QoQ (from $32.82M to $26.89M), while equity fell slightly (from $26.80M to $24.69M). Net debt is negative throughout (net cash position), which helps resilience but does not offset continued burn. Shareholder returns: Price momentum is very weak (1Y -80.5%, 6M -56.5%), and with no dividend history and no buyback data, total shareholder returns are poor."
Revenue Growth
QoQ revenue increased +20.9% (2025-12-31 vs 2025-09-30), but over the 4-quarter period revenue remained fairly range-bound (~$0.43M–$0.60M). YoY comparisons were not possible because prior-year quarter data was not provided.
Profitability
Net income swung from +$14.18M (2025-09-30) to -$2.09M (2025-12-31). Latest net margin is sharply negative; overall margin trend is unstable rather than improving.
Cash Flow Quality
FCF is negative in all quarters provided (latest FCF ~-$5.62M). No dividends and no buyback evidence; cash burn appears persistent.
Leverage & Balance Sheet
Equity is positive and net debt is negative (net cash) across all quarters, supporting resilience. However, total assets declined QoQ (about -18%) and equity drifted down slightly QoQ.
Shareholder Returns
Market performance is sharply negative (1Y -80.5%, 6M -56.5%). With 0 dividend yield and no buyback data, total returns are currently unattractive.
Analyst Sentiment & Valuation
No price target data is provided, and market cap is unavailable in the dataset, limiting valuation assessment. The stock’s severe drawdown implies low near-term sentiment/expectations.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.