Neonode Inc. (NEON)
NASDAQ:NEON
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Neonode
(NASDAQ:NEON)
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Rating:51Neutral
Price Target:
$2.00
▲(5.26% Upside)
Action:Reiterated
Date:05/21/26
The score is primarily held back by weak financial performance—ongoing operating losses and significant negative free cash flow—despite a strong balance sheet and improved recent revenue/gross margin. Technical indicators are moderately supportive in the near term, but valuation remains challenging due to negative earnings and no dividend.
Positive Factors
Conservative balance sheet / low leverage
Neonode's minimal debt and meaningful equity provide a durable financial buffer against operating losses. Low leverage reduces refinancing risk and gives management flexibility to fund R&D, honor royalty arrangements, or pursue partnerships without immediate capital raises.
Negative Factors
Large negative operating and free cash flow
Sustained cash burn of roughly $11M TTM is a material structural weakness given the company's small revenue base. Continued negative cash flow forces reliance on existing liquidity or external financing, raising dilution or solvency risks if revenue growth stalls.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
Neonode's minimal debt and meaningful equity provide a durable financial buffer against operating losses. Low leverage reduces refinancing risk and gives management flexibility to fund R&D, honor royalty arrangements, or pursue partnerships without immediate capital raises.
Read all positive factors
Neonode (NEON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$30.38M
Dividend YieldN/A
Average Volume (3M)1.44M
Price to Earnings (P/E)3.4
Beta (1Y)1.94
Revenue Growth-36.94%
EPS GrowthN/A
CountryUS
Employees40
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.51
Shares Outstanding16,782,923
10 Day Avg. Volume497,098
30 Day Avg. Volume1,436,721
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)1.18
Price to Sales (P/S)14.16
P/FCF Ratio-2.82
Enterprise Value/Market Cap0.24
Enterprise Value/Revenue3.42
Enterprise Value/Gross Profit3.66
Enterprise Value/Ebitda0.97
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.38
Revenue Forecast (FY)$3.49M
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 an...
How the Company Makes Money
Neonode primarily makes money through (1) licensing its technology and intellectual property (IP) to other companies and (2) services/engineering support related to integrating its technology into customer products. Historically, this model has in...
Neonode Earnings Call Summary
Earnings Call Date:Feb 28, 2024
(Q4-2023)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The earnings call reveals a challenging year for Neonode, marked by significant revenue declines and strategic shifts. However, the company has made a strategic pivot towards technology licensing, which they believe will streamline operations and create future growth opportunities. While the strategic changes and cash position are positive, the overall financial performance for 2023 was disappointing.Positive Updates
Breakthrough Driver Monitoring Software Award
Neonode announced a significant win in Q4 2023 with a leading commercial vehicle manufacturer for their driver monitoring software, marking a major milestone after several years of development.
Negative Updates
Decline in Total Revenue
Total revenue for 2023 was $4.4 million, representing a 22% decrease compared to 2022.
Read all updates
Q4-2023 Updates
Positive
Negative
Breakthrough Driver Monitoring Software Award
Neonode announced a significant win in Q4 2023 with a leading commercial vehicle manufacturer for their driver monitoring software, marking a major milestone after several years of development.
Read all positive updates
Company Guidance
During the Neonode Q4 2023 earnings call, it was announced that the company's revenue for 2023 was $4.4 million, reflecting a 22% decrease from 2022. License revenues fell by 15% to $3.8 million due to surplus inventory at customer sites, while product revenues decreased by 38% to $0.6 million, attributed to low demand. Operating expenses rose 5% to $10.7 million, primarily due to increased marketing and payroll costs. The company reported a net loss of $10.1 million for 2023, up from a $4.9 million loss in 2022, influenced by impairment losses and purchase commitments related to the phase-out of their Products business. Despite these challenges, the company has $17.1 million in cash and receivables, an increase of $0.8 million from the previous year. Looking forward, Neonode plans to focus entirely on technology and software licensing, leveraging their strong licensing DNA to drive future growth, and has already secured a significant driver monitoring software award from a commercial vehicle manufacturer, which is expected to provide momentum into 2024.Neonode Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
78
Positive
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.16M | 2.06M | 3.11M | 3.83M | 5.67M | 5.84M |
| Gross Profit | 2.02M | 1.70M | 2.99M | 3.82M | 4.87M | 4.88M |
| EBITDA | 7.66M | -7.74M | -6.41M | -5.58M | -4.77M | -5.97M |
| Net Income | 8.36M | 8.49M | -6.47M | -10.12M | -4.88M | -6.45M |
Balance Sheet | ||||||
| Total Assets | 24.91M | 26.89M | 18.38M | 19.01M | 21.20M | 22.99M |
| Cash, Cash Equivalents and Short-Term Investments | 23.23M | 25.36M | 16.43M | 16.16M | 14.82M | 17.38M |
| Total Debt | 258.00K | 371.00K | 546.00K | 10.00K | 259.00K | 865.00K |
| Total Liabilities | 2.06M | 2.20M | 1.94M | 1.85M | 1.78M | 3.15M |
| Stockholders Equity | 22.85M | 24.69M | 16.44M | 17.16M | 19.42M | 23.88M |
Cash Flow | ||||||
| Free Cash Flow | -11.06M | -10.35M | -5.63M | -6.43M | -6.86M | -7.75M |
| Operating Cash Flow | -11.00M | -10.25M | -5.59M | -6.31M | -6.81M | -7.68M |
| Investing Cash Flow | 19.32M | 19.30M | 152.00K | -123.00K | -52.00K | -67.00K |
| Financing Cash Flow | -12.00K | -11.00K | 5.78M | 7.78M | 4.51M | 14.57M |
Neonode Technical Analysis
Neutral
1.90
Price Trends
1.58
Positive
1.68
Positive
3.84
Negative
Market Momentum
0.04
Positive
51.65
Neutral
53.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEON, the sentiment is Neutral. The current price of 1.9 is above the 20-day moving average (MA) of 1.71, above the 50-day MA of 1.58, and below the 200-day MA of 3.84, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 51.65 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NEON.
Neonode Risk Analysis
Neonode disclosed 27 risk factors in its most recent earnings report. Neonode reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Neonode Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $199.88M | 5,372.98 | 0.15% | ― | 41.39% | ― | |
54 Neutral | $46.57M | 633.89 | 1.70% | ― | 13.08% | -55.10% | |
51 Neutral | $30.38M | 3.43 | 38.45% | ― | -36.94% | ― | |
46 Neutral | $53.35M | -6.14 | -142.33% | ― | -7.72% | -7.28% | |
45 Neutral | $210.51M | -2.05 | -139.20% | ― | -64.10% | 31.45% |
* Technology Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.