Neonode (NEON) AI Stock Analysis

• Market Cap: $167.49M
• Dividend Yield: N/A
• Average Volume (3M): 91.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.61
• Revenue Growth: -18.53%
• EPS Growth: 46.30%
• Country: US
• Employees: 40
• Sector: Technology
• Sector Strength: 79
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.11
• Shares Outstanding: 16,782,923
• 10 Day Avg. Volume: 71,497
• 30 Day Avg. Volume: 91,645
• PEG Ratio: -2.89
• Price to Book (P/B): 11.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -32.92
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 9.58
• Enterprise Value/Gross Profit: 54.36
• Enterprise Value/Ebitda: -4.28
• 1Y Price Target: $16.50
• Price Target Upside: -1.84% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: $17.50 ▲(4.10%Upside)

Neonode's overall stock score is primarily influenced by its challenging financial performance, with declining revenues and persistent negative cash flows. Despite strong bullish momentum in technical analysis, overbought signals and a concerning valuation highlight risks. The absence of earnings call insights further limits the comprehensive evaluation of future prospects.

Neonode Business Overview & Revenue Model

Company Description

Neonode Inc. (NEON) is a technology company specializing in the development and licensing of advanced optical sensing solutions. Operating primarily in the sensor technology sector, Neonode provides innovative touch, gesture, and object-sensing solutions. Their core products include touch and gesture sensors that are integrated into various devices, ranging from automotive and consumer electronics to office equipment and industrial applications.

How the Company Makes Money

Neonode generates revenue primarily through the licensing of its patented optical sensing technology. The company earns income by partnering with original equipment manufacturers (OEMs) who incorporate Neonode's sensor solutions into their products. This licensing model allows Neonode to receive royalties based on the sales of these products. Additionally, Neonode may engage in collaborative development projects with these partners, further contributing to its revenue. Significant partnerships with companies in the automotive and consumer electronics industries play a crucial role in Neonode's revenue generation, as these sectors demand advanced sensing technologies for improved user interfaces and experiences.

Neonode Financial Statement Overview

Summary

Neonode's financial performance reveals significant challenges, with declining revenues and inconsistent gross profit margins. The balance sheet shows some stability with a low debt-to-equity ratio, but decreasing stockholders' equity and assets. Persistent negative cash flow signals potential liquidity issues and reliance on external funding.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.43M	3.11M	3.83M	5.67M	5.84M	5.98M
	Gross Profit
2.83M	2.99M	3.77M	4.87M	4.88M	4.91M
	EBIT
-6.60M	-6.55M	-5.74M	-5.29M	-7.11M	-6.19M
	EBITDA
-6.48M	-6.41M	-5.58M	-4.65M	-5.97M	-5.02M
	Net Income Common Stockholders
-6.12M	-6.47M	-10.12M	-5.28M	-7.27M	-6.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.99M	16.43M	16.16M	14.82M	17.38M	10.47M
	Total Assets
16.97M	18.38M	19.01M	21.20M	22.99M	16.57M
	Total Debt
543.00K	546.00K	106.00K	259.00K	865.00K	1.75M
	Net Debt
-14.45M	-15.88M	-16.05M	-14.56M	-16.52M	-8.73M
	Total Liabilities
2.40M	1.94M	1.85M	1.78M	3.15M	4.68M
	Stockholders Equity
14.57M	16.44M	17.16M	19.42M	23.88M	15.11M
Cash Flow		Free Cash Flow
-5.11M	-5.63M	-6.43M	-6.86M	-7.75M	-5.81M
	Operating Cash Flow
-5.04M	-5.59M	-6.31M	-6.81M	-7.68M	-5.75M
	Investing Cash Flow
112.00K	152.00K	-123.00K	-52.00K	-67.00K	-58.00K
	Financing Cash Flow
5.79M	5.78M	7.78M	4.51M	14.57M	13.61M

Neonode Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 16.81 is above the 20-day moving average (MA) of 10.54, above the 50-day MA of 10.23, and above the 200-day MA of 8.72, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 81.57 is Negative, neither overbought nor oversold. The STOCH value of 48.66 is Neutral, 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 *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
NEON	56 Neutral	$167.49M	―	-40.61%	―	-18.53%	46.30%
KOPN	54 Neutral	$268.62M	―	-112.75%	―	28.16%	74.88%
LPTH	54 Neutral	$120.12M	―	-24.86%	―	2.59%	-48.02%
WRAP	51 Neutral	$91.54M	―	-166.89%	―	-44.97%	75.63%
WBX	44 Neutral	$103.94M	―	-138.61%	―	14.08%	-9.61%

Neonode Corporate Events

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.

Neonode Announces Board Changes with New Appointments

On April 10, 2025, Neonode Inc. announced changes to its Board of Directors, with Cecilia Edström resigning as a Class I director and Didier Schreiber being appointed as her replacement. Schreiber, who has extensive experience in the automotive industry, is expected to contribute significantly to Neonode’s growth and development, aligning with the company’s focus on technology and innovation. The board also appointed Peter Kruk as the chair of the Compensation, Nominating and Governance Committee.