Network-1 Technologies (NTIP) AI Stock Analysis

• Market Cap: $33.73M
• Dividend Yield: 7.58%
• Average Volume (3M): 7.47K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.04
• Revenue Growth: -92.03%
• EPS Growth: -77.99%
• Country: US
• Employees: 2
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -0.04
• Shares Outstanding: 22,793,308
• 10 Day Avg. Volume: 4,528
• 30 Day Avg. Volume: 7,470
• PEG Ratio: 0.80
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 199.54
• P/FCF Ratio: -34.44
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: 328.57
• Enterprise Value/Gross Profit: 754.49
• Enterprise Value/Ebitda: -6.49
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $1.50 ▲(13.64% Upside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is held back primarily by weak financial performance (multi-year losses, very low recent revenue, and negative recent cash flow), partially offset by a strong balance sheet (no debt) and supportive capital-return events (dividend and structured buyback plan). Technicals add moderate support as the stock trades above key moving averages with generally positive momentum, while valuation is mixed due to the high yield but loss-driven negative P/E.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments or downturns.

High Gross Profit Margin

A high gross profit margin indicates efficient cost management and strong pricing power, which can support profitability even with revenue pressures.

Stock Repurchase Plan

The stock repurchase plan reflects confidence in the company's value and can enhance shareholder returns by reducing share count and potentially supporting the stock price.

Negative Factors

Revenue Decline

A sharp decline in revenue poses challenges for sustaining operations and growth, indicating potential issues with market demand or competitive positioning.

Negative Cash Flow

Negative operating cash flow suggests operational inefficiencies and can strain liquidity, impacting the company's ability to invest in growth or weather downturns.

Ongoing Losses

Continued losses indicate challenges in achieving profitability, which can limit reinvestment in the business and affect long-term viability.

Network-1 Technologies Business Overview & Revenue Model

Company Description

Network-1 Technologies, Inc. develops, licenses, and protects intellectual property assets. The company owns 95 patents, including the Cox patent portfolio relating to enabling technology for identifying media content on the Internet; M2M/IoT patent portfolio related to enabling technology for authenticating, provisioning, and using embedded sim cards in next generation IoT, machine-to-machine, and other mobile devices, including smartphones, tablets, and computers; and HFT patent portfolio covering technologies relating to high frequency trading that addresses technological problems associated with speed and latency, and provide critical latency gains in trading systems. Its patents also comprise the Mirror Worlds patent portfolio relating to foundational technologies that enable unified search and indexing, displaying, and archiving of documents in a computer system; and the remote power patent covering the delivery of power over Ethernet cables for the purpose of remotely powering network devices, such as wireless access ports, IP phones, and network-based cameras. The company was formerly known as Network-1 Security Solutions, Inc. and changed its name to Network-1 Technologies, Inc. in October 2013. Network-1 Technologies, Inc. was incorporated in 1990 and is headquartered in New Canaan, Connecticut.

How the Company Makes Money

Network-1 primarily makes money by licensing its patents to third parties in exchange for payments. Its main revenue streams are: (1) patent license fees and royalties received under negotiated license agreements (these may be structured as lump-sum payments, ongoing royalties, or a combination depending on the agreement); and (2) payments resulting from patent enforcement activities, including settlements and, when applicable, court-awarded damages or other legal remedies tied to infringement claims. Because the company’s model centers on monetizing patent rights rather than selling products, its earnings are significantly influenced by the timing and size of executed license agreements, the outcomes of litigation or settlement negotiations, and the strength/remaining life of its patent portfolios. Specific material partnerships or recurring counterparties: null.

Network-1 Technologies Financial Statement Overview

Summary

Overall fundamentals are weak despite a strong balance sheet. Profitability has deteriorated sharply since 2021, with sustained losses and minimal recent revenue, and cash flow has been negative in 2024–2025, indicating the business is funding ongoing losses from its balance sheet.

Income Statement

Profitability has deteriorated meaningfully: the company swung from strong profitability in 2021 (net margin ~39% on ~$36.0M revenue) to sustained losses from 2022–2025, with 2025 showing very small revenue (~$0.15M) and a deeply negative net margin (~-1,613%). Gross margin remains high when revenue exists (~66–72%), but the cost structure is not scaling down with revenue, leading to persistent operating losses and weak earnings quality/trend.

Balance Sheet

The balance sheet is a clear strength: debt is essentially zero (2025 total debt $0; debt-to-equity ~0), and equity remains sizable (~$39.6M in 2025) versus total assets (~$40.3M). That said, repeated net losses are eroding equity over time (equity down from ~ $60.2M in 2021 to ~$39.6M in 2025), and returns on equity have been negative in recent years (2025 ROE ~-6.1%), signaling ongoing value erosion if profitability doesn’t recover.

Cash Flow

Cash generation is inconsistent and recently weak: operating cash flow and free cash flow were negative in 2024–2025 (2025 operating/free cash flow about -$0.87M), following a positive 2023. The business showed strong cash production in 2021, but the more recent pattern suggests the company is funding ongoing losses with its balance sheet rather than internally generated cash, increasing reliance on existing capital if conditions persist.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	150.00K	100.00K	2.60M	0.00	36.03M
Gross Profit	108.00K	72.00K	1.73M	0.00	23.88M
EBITDA	-3.14M	-3.44M	-1.90M	-3.54M	19.88M
Net Income	-2.42M	-3.03M	-1.46M	-2.33M	14.28M
Balance Sheet
Total Assets	40.33M	45.41M	52.28M	57.97M	64.82M
Cash, Cash Equivalents and Short-Term Investments	36.87M	40.60M	45.47M	48.44M	59.62M
Total Debt	0.00	24.00K	23.00K	173.00K	0.00
Total Liabilities	770.00K	1.10M	1.58M	2.86M	4.66M
Stockholders Equity	39.56M	44.31M	50.69M	55.11M	60.16M
Cash Flow
Free Cash Flow	-869.00K	-1.08M	331.00K	-5.96M	19.40M
Operating Cash Flow	-869.00K	-1.08M	331.00K	-5.44M	19.50M
Investing Cash Flow	3.72M	1.05M	6.54M	-22.27M	2.99M
Financing Cash Flow	-2.60M	-3.72M	-3.42M	-3.34M	-3.50M

Network-1 Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTIP, the sentiment is Positive. The current price of 1.32 is below the 20-day moving average (MA) of 1.42, below the 50-day MA of 1.34, and below the 200-day MA of 1.35, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 63.35 is Neutral, neither overbought nor oversold. The STOCH value of 69.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NTIP.

Network-1 Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACTG	67 Neutral	$486.24M	16.61	4.02%	―	71.28%	-89.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
NTIP	54 Neutral	$33.73M	-7.23	-5.95%	7.58%	-92.03%	-77.99%
OMEX	47 Neutral	$81.94M	-1.15	95.57%	―	-41.55%	-249.30%
PMAX	45 Neutral	$1.39M	-5.53	-133.70%	―	-18.89%	-917.54%
SGRP	44 Neutral	$17.61M	-0.69	-95.31%	―	-35.72%	-277.39%

Network-1 Technologies Corporate Events

Network-1 Technologies Declares Semi-Annual Cash Dividend

On February 27, 2026, Network-1 Technologies, Inc. announced that its board had declared a semi-annual cash dividend of $0.05 per common share under its existing dividend policy. The dividend is scheduled to be paid on March 30, 2026, to shareholders of record as of March 16, 2026, reinforcing the company’s ongoing practice of returning cash to investors based on its monetization of patent portfolios.

The board noted that Network-1’s dividend policy is reviewed periodically and may change depending on cash position, financial needs, earnings and other prevailing factors, leaving future dividends at the board’s discretion. This flexible stance allows the company to balance shareholder distributions with the capital required to pursue additional high-value patent acquisitions and licensing opportunities in its targeted technology markets.

The most recent analyst rating on (NTIP) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Network-1 Technologies stock, see the NTIP Stock Forecast page.

Network-1 Technologies Adopts Rule 10b5-1 Stock Repurchase Plan

Network-1 Technologies, Inc. has adopted a Rule 10b5-1 trading plan authorized by its board of directors, enabling the company to repurchase its common stock even during periods when it might otherwise be restricted by trading blackouts or insider trading regulations. Under this plan, effective in designated windows starting January 2, 2026 and April 1, 2026, a third-party broker will be permitted to buy up to 1,000,000 shares of the company’s stock, subject to price, market, volume, and timing constraints, signaling a structured capital allocation approach that could support the stock price and shareholder returns while ensuring compliance with securities laws.

The most recent analyst rating on (NTIP) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Network-1 Technologies stock, see the NTIP Stock Forecast page.