Network-1 Technologies (NTIP) AI Stock Analysis

• Market Cap: $30.35M
• Dividend Yield: 7.52%
• 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: 49 Neutral
• Price Target: $1.50 ▲(12.78% Upside)

The overall stock score reflects significant financial challenges, with declining revenues and net losses being the most impactful factors. Technical analysis indicates bearish momentum, while the high dividend yield offers some valuation appeal. However, the negative P/E ratio underscores profitability concerns.

Positive Factors

Strong Equity Position

A strong equity position with low leverage enhances financial stability, providing a solid foundation for future growth and resilience against market fluctuations.

Shareholder-Friendly Actions

The share repurchase program reflects confidence in the company's financial health and commitment to returning value to shareholders, potentially boosting investor confidence.

High Gross Profit Margin

A high gross profit margin indicates efficient cost management and pricing power, which can sustain profitability even amid revenue fluctuations.

Negative Factors

Declining Revenue

Significant revenue decline suggests challenges in maintaining market share or product demand, impacting long-term growth prospects and financial stability.

Negative Cash Flow

Negative operating cash flow indicates potential liquidity issues and operational inefficiencies, threatening the company's ability to fund operations and invest in growth.

Patent Litigation Risk

Ongoing patent litigation can be costly and time-consuming, diverting resources from core operations and potentially impacting financial performance and strategic focus.

Network-1 Technologies Business Overview & Revenue Model

Company Description

Network-1 Technologies (NTIP) is a technology company focused on the development and commercialization of innovative networking solutions and intellectual property. The company primarily operates in the telecommunications and technology sectors, offering a range of products and services that enhance network efficiency and security. NTIP is known for its proprietary technologies in areas such as network management, cybersecurity, and data communications, aiming to provide cutting-edge solutions to enterprises and service providers.

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: 1.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.33 is below the 20-day moving average (MA) of 1.39, below the 50-day MA of 1.45, and below the 200-day MA of 1.35, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.49 is Neutral, neither overbought nor oversold. The STOCH value of 2.45 is Positive, 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	$359.80M	73.84	0.90%	―	71.28%	-89.20%
NTIP	49 Neutral	$30.35M	-12.00	-5.87%	7.52%	-92.03%	-77.99%
OMEX	46 Neutral	$125.97M	-2.31	―	―	-41.55%	-249.30%
SGRP	40 Neutral	$18.45M	-0.84	-93.99%	―	-35.72%	-277.39%
PMAX	39 Underperform	$6.60M	-1.01	-344.73%	―	-18.89%	-917.54%

Network-1 Technologies Corporate Events

Network-1 Technologies Holds Annual Stockholders Meeting

At the Annual Meeting of Stockholders of Network-1 Technologies, Inc. held on September 18, 2025, stockholders voted to elect four directors, approve executive compensation, and ratify Marcum LLP as the independent public accounting firm for the fiscal year ending December 31, 2025. These decisions reflect the company’s ongoing governance and financial oversight strategies, potentially impacting its operational stability and stakeholder confidence.

Network-1 Technologies Initiates Patent Litigation

On September 10, 2025, Network-1 Technologies‘ subsidiary, HFT Solutions, LLC, initiated patent litigation against Optimer US LLC and Optima Trading US LLC for infringing on multiple patents related to high frequency trading technologies. These patents, part of the HFT Patent Portfolio acquired in March 2022, are crucial for firms using FPGA hardware to achieve low-latency trading. The litigation underscores Network-1’s commitment to protecting its intellectual property, potentially impacting its market position and stakeholders by reinforcing its patent rights in the high frequency trading sector.

Network-1 Technologies Declares Semi-Annual Cash Dividend

On September 5, 2025, Network-1 Technologies, Inc. announced a semi-annual cash dividend of $0.05 per common share, payable on September 29, 2025, to stockholders of record as of September 19, 2025. This decision reflects the company’s ongoing dividend policy, which is subject to periodic review and adjustments based on financial conditions and strategic considerations.