Neonode (NEON) AI Stock Analysis

• Market Cap: $51.02M
• Dividend Yield: N/A
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• Revenue Growth: -41.25%
• EPS Growth: 47.09%
• Country: US
• Employees: 40
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.12
• Shares Outstanding: 16,782,923
• 10 Day Avg. Volume: 497,098
• 30 Day Avg. Volume: 1,436,721
• PEG Ratio: 0.53
• Price to Book (P/B): 7.95
• Price to Sales (P/S): 42.03
• P/FCF Ratio: -23.21
• Enterprise Value/Market Cap: 8.14
• Enterprise Value/Revenue: 159.39
• Enterprise Value/Gross Profit: 165.09
• Enterprise Value/Ebitda: -62.05
• 1Y Price Target: $6.00
• Price Target Upside: 97.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: $3.00 ▼(-1.32% Downside)

Neonode's overall stock score is primarily impacted by its weak financial performance and technical indicators. The company's declining revenues, negative profitability, and liquidity issues are significant concerns. Additionally, bearish technical signals and a negative P/E ratio further weigh down the stock's attractiveness. The absence of earnings call insights and corporate events means these factors do not influence the score.

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 generates revenue primarily through licensing its proprietary touch technology and software solutions to manufacturers across various industries. The company earns money by entering into licensing agreements that allow its partners to integrate Neonode's technology into their products. Key revenue streams include royalties from these licensing agreements, as well as direct sales of hardware and software solutions. Significant partnerships with automotive manufacturers and tech companies bolster its revenues, as these collaborations expand the reach of Neonode's technology into new markets and applications. Additionally, the company may also explore revenue opportunities through research and development contracts and collaborations aimed at enhancing its product offerings.

Neonode Financial Statement Overview

Summary

Neonode's financial performance is challenged by declining revenues and inconsistent gross profit margins. The balance sheet shows some stability with low debt, but decreasing stockholders' equity and persistent negative cash flow highlight liquidity concerns 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	2.60M	3.11M	3.83M	5.67M	5.84M	5.98M
Gross Profit	2.52M	2.99M	3.77M	4.87M	4.88M	4.91M
EBITDA	-6.69M	-6.41M	-5.58M	-4.65M	-5.97M	-5.02M
Net Income	-6.29M	-6.47M	-10.12M	-5.28M	-7.27M	-6.28M
Balance Sheet
Total Assets	15.06M	18.38M	19.01M	21.20M	22.99M	16.57M
Cash, Cash Equivalents and Short-Term Investments	13.24M	16.43M	16.16M	14.82M	17.38M	10.47M
Total Debt	485.00K	546.00K	106.00K	259.00K	865.00K	1.75M
Total Liabilities	2.41M	1.94M	1.85M	1.78M	3.15M	4.68M
Stockholders Equity	12.65M	16.44M	17.16M	19.42M	23.88M	15.11M
Cash Flow
Free Cash Flow	-5.58M	-5.63M	-6.43M	-6.86M	-7.75M	-5.81M
Operating Cash Flow	-5.57M	-5.59M	-6.31M	-6.81M	-7.68M	-5.75M
Investing Cash Flow	-16.00K	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: Negative
• Last Price: 3.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEON, the sentiment is Negative. The current price of 3.04 is below the 20-day moving average (MA) of 3.43, below the 50-day MA of 6.91, and below the 200-day MA of 12.19, indicating a bearish trend. The MACD of -0.94 indicates Negative momentum. The RSI at 24.47 is Positive, neither overbought nor oversold. The STOCH value of 9.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NEON.

Neonode Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPSH	―	$71.38M	-88.62	-3.84%	―	7.47%	-133.39%
LGL	―	$32.64M	151.25	0.56%	―	26.84%	-45.92%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MVIS	―	$343.10M	-2.90	-115.11%	―	-71.30%	17.62%
NEON	―	$51.02M	-8.04	-48.54%	―	-41.25%	47.09%
WBX	―	$69.29M	―	-184.98%	―	-11.22%	6.15%

Neonode Corporate Events

Neonode Announces Settlement Gains from Patent Lawsuit

On September 3, 2025, Neonode Inc. announced its expected financial gains from a patent lawsuit settlement involving its subsidiary, Neonode Smartphone LLC, and Samsung Electronics Co. Ltd. Although Neonode was not directly involved in the lawsuit, it is entitled to 50% of the net proceeds, estimated to be between $15 million and $20 million, following a settlement reached on September 2, 2025. The company is still evaluating the tax and financial implications of these proceeds, and no decision has been made regarding their use.

The most recent analyst rating on (NEON) stock is a Hold with a $24.00 price target. To see the full list of analyst forecasts on Neonode stock, see the NEON Stock Forecast page.

Neonode Reports Decline in Q2 2025 Earnings

Neonode Inc., headquartered in Stockholm, Sweden, is a publicly traded company specializing in advanced optical sensing solutions for contactless touch and gesture control, primarily serving the consumer electronics, automotive, and self-service kiosk markets. The company recently released its financial results for the quarter ended June 30, 2025, revealing a challenging period with declining revenues and increased losses.