Neonode (NEON) AI Stock Analysis

• Market Cap: $459.52M
• Dividend Yield: N/A
• Average Volume (3M): 544.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.55
• Revenue Growth: -18.53%
• EPS Growth: 46.30%
• Country: US
• Employees: 40
• Sector: Technology
• Sector Strength: 94
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.11
• Shares Outstanding: 16,782,923
• 10 Day Avg. Volume: 298,726
• 30 Day Avg. Volume: 544,181
• PEG Ratio: -7.66
• Price to Book (P/B): 30.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -87.26
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 27.71
• Enterprise Value/Gross Profit: 157.21
• Enterprise Value/Ebitda: -12.39
• 1Y Price Target: $21.50
• Price Target Upside: -24.16% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: $28.00 ▼(-1.23%Downside)

Neonode's overall stock score reflects significant financial challenges, including declining revenues and persistent negative cash flow, which are the most critical factors. The technical indicators show a bullish trend, but overbought conditions present risks. The valuation is unfavorable due to a negative P/E ratio, highlighting concerns about profitability.

Neonode Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Neonode makes money primarily through the licensing of its patented optical sensing technologies to other companies. This involves entering into agreements with manufacturers and technology providers who incorporate Neonode's touch and gesture control solutions into their own products. The company earns revenue from licensing fees, which are typically structured as royalties based on the sales of the end products that utilize Neonode's technology. Additionally, Neonode may generate income from direct sales of its hardware components, such as sensors and modules, which are sold to partners and customers for integration into their systems. Key partnerships with major players in the automotive and electronics industries contribute significantly to its earnings by expanding the reach and application of its technologies in high-demand markets.

Neonode Financial Statement Overview

Summary

Neonode's financial performance is weak, with declining revenues and inconsistent gross profit margins. The balance sheet shows some stability with low debt-to-equity, but persistent negative cash flows and reliance on external funding are concerning.

Income Statement

Neonode's income statement reveals significant challenges. The company has experienced declining revenues with a notable drop from 2023 to 2024. Gross profit margins are positive but have been inconsistent, with a sharp decline in 2023. The company struggles with profitability, evidenced by negative EBIT and net profit margins, indicating operational inefficiencies and high expenses relative to revenue.

Balance Sheet

The balance sheet reflects some financial stability, with equity outweighing debt, resulting in a low debt-to-equity ratio. However, stockholders' equity has been decreasing over the years. The equity ratio is relatively healthy, but the company's total assets have been on a downward trend, which could impact future financial flexibility.

Cash Flow

Cash flow analysis shows persistent negative free cash flow, indicating potential liquidity issues. Operating cash flow is consistently negative, and the free cash flow to net income ratio is unfavorable. Financing activities have been crucial in maintaining cash levels, suggesting reliance on external funding to support operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.11M	3.83M	5.67M	5.84M	5.98M
Gross Profit	2.99M	3.77M	4.87M	4.88M	4.91M
EBITDA	-6.41M	-5.58M	-4.65M	-5.97M	-5.02M
Net Income	-6.47M	-10.12M	-5.28M	-7.27M	-6.28M
Balance Sheet
Total Assets	18.38M	19.01M	21.20M	22.99M	16.57M
Cash, Cash Equivalents and Short-Term Investments	16.43M	16.16M	14.82M	17.38M	10.47M
Total Debt	546.00K	106.00K	259.00K	865.00K	1.75M
Total Liabilities	1.94M	1.85M	1.78M	3.15M	4.68M
Stockholders Equity	16.44M	17.16M	19.42M	23.88M	15.11M
Cash Flow
Free Cash Flow	-5.63M	-6.43M	-6.86M	-7.75M	-5.81M
Operating Cash Flow	-5.59M	-6.31M	-6.81M	-7.68M	-5.75M
Investing Cash Flow	152.00K	-123.00K	-52.00K	-67.00K	-58.00K
Financing Cash Flow	5.78M	7.78M	4.51M	14.57M	13.61M

Neonode Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEON, the sentiment is Positive. The current price of 28.35 is above the 20-day moving average (MA) of 23.98, above the 50-day MA of 16.21, and above the 200-day MA of 10.31, indicating a bullish trend. The MACD of 3.36 indicates Positive momentum. The RSI at 73.90 is Negative, neither overbought nor oversold. The STOCH value of 81.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NEON.

Neonode Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$34.16B	5.47	-11.67%	1.85%	5.30%	-18.30%
LPTH	57 Neutral	$141.14M	―	-24.86%	―	2.59%	-48.02%
KOPN	52 Neutral	$273.50M	―	-112.75%	―	28.16%	74.88%
NEON	51 Neutral	$459.52M	―	-40.61%	―	-18.53%	46.30%
WRAP	45 Neutral	$68.78M	―	-166.89%	―	-44.97%	75.63%
WBX	44 Neutral	$141.36M	―	-138.61%	―	14.08%	-9.62%
HOLO	―	$27.80M	―	-7.37%	―	―	―

Neonode Corporate Events

Neonode Holds Annual Stockholders Meeting, Key Decisions Made

On July 3, 2025, Neonode Inc. conducted its Annual Meeting of Stockholders, where key decisions were made. Ulf Rosberg and Peter Kruk were reelected as Class II directors for a three-year term. Additionally, stockholders ratified Crowe LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, and approved the compensation of the company’s named executive officers on an advisory basis.

The most recent analyst rating on (NEON) stock is a Buy with a $16.50 price target. To see the full list of analyst forecasts on Neonode stock, see the NEON Stock Forecast page.

Neonode Adjourns Annual Meeting Due to Lack of Quorum

On June 26, 2025, Neonode Inc. announced that its 2025 Annual Meeting of Stockholders was adjourned due to a lack of quorum. The meeting will reconvene on July 3, 2025, to allow more time for stockholders to vote on the proposals. The company emphasized the importance of stockholder participation to ensure a quorum is reached, as no business can be conducted without it.

The most recent analyst rating on (NEON) stock is a Buy with a $16.50 price target. To see the full list of analyst forecasts on Neonode stock, see the NEON Stock Forecast page.

Neonode Adjourns Annual Meeting Due to Lack of Quorum

On June 12, 2025, Neonode Inc. announced that its 2025 Annual Meeting of Stockholders was convened and adjourned without any business being conducted due to a lack of quorum. The meeting will reconvene on June 26, 2025, to allow additional time for stockholders to vote on existing proposals. The company emphasized the importance of stockholder participation to ensure a quorum is reached, as no changes have been made to the proposals, and previously submitted proxies will still be valid.

The most recent analyst rating on (NEON) stock is a Buy with a $16.50 price target. To see the full list of analyst forecasts on Neonode stock, see the NEON Stock Forecast page.