Sequential Revenue Growth and Improved Gross Margin
Revenue grew by 6% sequentially, reaching $8.8 million in Q3 2025. Gross margin improved to approximately 50%, slightly better than expected.
Significant Reduction in Operating Expenses
Operating expenses decreased sequentially and were down $3.1 million year-over-year. The company reduced cash burn by more than 60% year-over-year.
Positive Developments in TrueCut Motion Platform
TrueCut Motion was credited in three new theatrical releases and is expected to feature in an upcoming Universal Pictures film. The company is close to an agreement with a strategic partner for broader distribution.
Transformative Transaction for Shanghai Subsidiary
A definitive agreement to sell Pixelworks, Inc's. ownership in the Shanghai subsidiary is expected to result in net cash proceeds of $50 million to $60 million, providing financial flexibility.
Cash Position Strengthened
A registered direct offering and sale of patents contributed approximately $10 million to cash, with a balance of around $22 million as of October 31, 2025.