Network-1 Technologies (NTIP) AI Stock Analysis

• Market Cap: $29.67M
• Dividend Yield: 7.58%
• Average Volume (3M): 7.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.05
• Revenue Growth: -92.03%
• EPS Growth: -77.99%
• Country: US
• Employees: 2
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -0.03
• Shares Outstanding: 22,819,660
• 10 Day Avg. Volume: 4,528
• 30 Day Avg. Volume: 7,470
• PEG Ratio: -0.09
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 309.23
• P/FCF Ratio: -28.74
• Enterprise Value/Market Cap: -0.10
• Enterprise Value/Revenue: -19.23
• Enterprise Value/Gross Profit: -45.08
• Enterprise Value/Ebitda: 1.13
• 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: 50 Neutral
• Price Target: $1.50 ▲(13.64% Upside)

The score is held back primarily by weak operating results and negative cash flow despite a strong, debt-free balance sheet. Technical indicators also lean bearish with the price below key moving averages. Offsetting factors include a high dividend yield and a newly adopted buyback plan that could support shareholder returns.

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 Technologies generates revenue primarily through the licensing of its patented technologies to other companies in the telecommunications and technology sectors. The company has established significant partnerships with major players in the industry, allowing it to earn royalties from the use of its intellectual property. Additionally, NTIP may engage in direct sales of its proprietary products and solutions, further diversifying its revenue streams. The ongoing demand for enhanced network security and performance solutions provides a stable market for the company’s offerings, contributing to its earnings.

Network-1 Technologies Financial Statement Overview

Summary

Network-1 Technologies exhibits financial instability with declining revenues and persistent net losses. Despite a strong equity position and low leverage, the company faces challenges with operational cash flows and asset shrinkage. The downward trend in revenue and free cash flow raises concerns about future growth prospects.

Income Statement

The income statement reveals a declining revenue trend with a significant drop from $36.03M in 2021 to $100K in 2024, leading to negative net income. The gross profit margin stands at 72% for 2024, but the company struggles with negative EBIT and EBITDA margins due to high expenses relative to revenue. The net profit margin also reflects losses. Revenue growth has been inconsistent, with a drastic decline in recent years.

Balance Sheet

The balance sheet shows a strong equity position with a debt-to-equity ratio near zero, indicating low leverage. Stockholders' equity remains robust at $44.31M in 2024, comprising most of the total assets. However, the shrinking asset base and consistent equity declines may signal future challenges. The equity ratio is high, indicating stability, but declining asset levels could be concerning.

Cash Flow

Cash flow statements demonstrate fluctuating free cash flow, with negative growth in recent years, and operating cash flow turning negative in 2024. The company maintains a positive cash balance, but negative free cash flow and operating cash flow to net income ratios suggest operational inefficiencies. The cash position is eroding due to negative operating cash flows, raising sustainability concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	150.00K	100.00K	2.60M	0.00	36.03M	4.40M
Gross Profit	64.00K	72.00K	1.73M	0.00	23.88M	4.18M
EBITDA	-2.55M	-3.44M	-1.90M	-3.54M	19.88M	-688.00K
Net Income	-2.53M	-3.03M	-1.46M	-2.33M	14.28M	-1.71M
Balance Sheet
Total Assets	41.03M	45.41M	52.28M	57.97M	64.82M	51.19M
Cash, Cash Equivalents and Short-Term Investments	37.10M	40.60M	45.47M	48.44M	59.62M	44.87M
Total Debt	0.00	24.00K	23.00K	173.00K	0.00	0.00
Total Liabilities	512.00K	1.10M	1.58M	2.86M	4.66M	2.03M
Stockholders Equity	40.52M	44.31M	50.69M	55.11M	60.16M	49.16M
Cash Flow
Free Cash Flow	-1.41M	-1.08M	331.00K	-5.96M	19.40M	-554.00K
Operating Cash Flow	-997.00K	-1.08M	331.00K	-5.44M	19.50M	-503.00K
Investing Cash Flow	-2.81M	1.05M	6.54M	-22.27M	2.99M	6.31M
Financing Cash Flow	-2.80M	-3.72M	-3.42M	-3.34M	-3.50M	-2.88M

Network-1 Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 1.32 is below the 20-day moving average (MA) of 1.33, below the 50-day MA of 1.40, and below the 200-day MA of 1.35, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 43.09 is Neutral, neither overbought nor oversold. The STOCH value of 26.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NTIP.

Network-1 Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ACTG	63 Neutral	$362.69M	78.47	0.90%	―	71.28%	-89.20%
NTIP	50 Neutral	$29.67M	-11.91	-5.87%	7.58%	-92.03%	-77.99%
OMEX	47 Neutral	$123.18M	-2.24	―	―	-41.55%	-249.30%
SGRP	40 Neutral	$21.26M	-0.94	-93.99%	―	-35.72%	-277.39%
PMAX	40 Underperform	$5.04M	-0.75	-344.73%	―	-18.89%	-917.54%

Network-1 Technologies Corporate Events

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.