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Pixelworks
(NASDAQ:PXLW)
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Rating:59Neutral
Price Target:
$7.50
▲(23.15% Upside)
Action:Reiterated
Date:08/18/26
The score is held back primarily by weak financial performance—especially persistent negative operating/free cash flow and lack of consistent operating profitability. Offsetting factors include improving operational narrative from the latest call (margin and cost actions plus a meaningful device certification agreement) and positive technical momentum. Valuation appears very inexpensive on P/E, but the benefit is tempered by concerns about earnings quality and the early-stage revenue ramp.
Positive Factors
Strong Balance Sheet
A substantial cash balance with no debt gives Pixelworks financial flexibility to fund licensing expansion, absorb commercialization delays, and sustain operations while its newer business model develops.
Negative Factors
Persistent Cash Burn
Sustained negative operating and free cash flow means the business is not yet self-funding. Continued cash consumption could reduce strategic flexibility and eventually require external financing if commercialization takes longer than expected.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Balance Sheet
A substantial cash balance with no debt gives Pixelworks financial flexibility to fund licensing expansion, absorb commercialization delays, and sustain operations while its newer business model develops.
Read all positive factors
Pixelworks (PXLW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$42.22M
Dividend YieldN/A
Average Volume (3M)45.62K
Price to Earnings (P/E)0.6
Beta (1Y)1.27
Revenue Growth-38.72%
EPS Growth16.01%
CountryUS
Employees163
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)11.00
Shares Outstanding6,049,393
10 Day Avg. Volume31,652
30 Day Avg. Volume45,617
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)-1.66
Price to Sales (P/S)50.59
P/FCF Ratio-1.67
Enterprise Value/Market Cap>-0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$10.00Price Target Upside64.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.97
Revenue Forecast (FY)$1.30M
Pixelworks Business Overview & Revenue Model
Company Description
Pixelworks, Inc. provides content creation, video delivery, and display processing solutions, and technology in the United States. The company’s products and technology include TrueCut Motion Platform, a content creation software tools; and develo...
How the Company Makes Money
Pixelworks makes money primarily by selling its visual-processing semiconductor products and by licensing or bundling its visual-processing software/algorithms to device manufacturers and OEM/ODM partners. Key revenue streams typically include: (1...
Pixelworks Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Neutral
The call presents a mixed but constructive picture: Pixelworks is operating as a lean, well-capitalized pure-play licensing company with improving margins, materially lower operating expenses, a growing exhibitor ecosystem, and a meaningful device certification agreement that could accelerate monetization. However, current commercial revenue remains very small ($64k in Q2), near-term revenue is expected to be lumpy, and successful scaling depends on partner execution and content pipeline maturation. The company appears solvent and strategically positioned, but commercialization and revenue ramp remain early-stage and subject to execution risk.Positive Updates
Strong Cash Position and Zero Debt
Ended Q2 2026 with approximately $53.0 million in cash and cash equivalents and zero debt, providing ample runway and flexibility to execute the licensing strategy.
Negative Updates
Very Low Reported Revenue
Revenue for Q2 2026 was approximately $64,000 and first six months' total revenue was $510,000, highlighting that commercial licensing revenue remains early-stage and modest relative to cash reserves.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Cash Position and Zero Debt
Ended Q2 2026 with approximately $53.0 million in cash and cash equivalents and zero debt, providing ample runway and flexibility to execute the licensing strategy.
Read all positive updates
Company Guidance
Management did not provide formal quarterly guidance but said they expect sequential revenue growth in Q3 based on booked business while warning near-term revenue will be lumpy; Q2 revenue was ~$64k (first six months $510k; 2025 TrueCut revenue ~$690k), gross margin improved to 60.9% (from 56.7% in Q1), GAAP operating expenses were $3.4M in Q2 (down from $5.2M in Q1), and they reiterated a run-rate model of cash operating expenses under $2.5M per quarter through the remainder of 2026; the company ended Q2 with ~ $53M cash and zero debt, used ~ $1.7M in operating cash and ~$3.2M to repurchase stock (with ~$1.8M of buyback authorization remaining), and expects quarterly interest income of $400k–$500k given the current cash balance and interest rate environment.Pixelworks Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
56
Neutral
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | -14.14M | 693.00K | 43.21M | 59.68M | 70.15M | 55.10M |
| Gross Profit | -6.35M | -1.93M | 22.29M | 25.71M | 35.88M | 27.69M |
| EBITDA | -2.13M | -5.84M | -25.21M | -22.27M | -12.82M | -15.99M |
| Net Income | 69.76M | -22.50M | -28.72M | -26.18M | -16.03M | -19.82M |
Balance Sheet | ||||||
| Total Assets | 54.11M | 51.26M | 64.07M | 95.97M | 102.32M | 106.60M |
| Cash, Cash Equivalents and Short-Term Investments | 52.89M | 11.24M | 23.65M | 47.54M | 56.82M | 61.59M |
| Total Debt | 450.00K | 739.00K | 3.49M | 4.95M | 3.54M | 5.29M |
| Total Liabilities | 2.13M | 20.86M | 24.19M | 30.96M | 30.07M | 35.47M |
| Stockholders Equity | 51.98M | -21.09M | -10.57M | 12.54M | 32.42M | 40.22M |
Cash Flow | ||||||
| Free Cash Flow | -15.97M | -21.05M | -23.57M | -22.65M | -15.84M | -12.63M |
| Operating Cash Flow | -15.63M | -20.61M | -19.81M | -18.81M | -12.83M | -9.16M |
| Investing Cash Flow | 47.09M | 3.31M | -3.12M | -3.99M | -3.01M | -3.23M |
| Financing Cash Flow | 7.17M | 11.72M | -971.00K | 13.53M | 11.07M | 42.71M |
Pixelworks Technical Analysis
Positive
6.09
Price Trends
6.20
Positive
6.06
Positive
6.18
Positive
Market Momentum
0.20
Negative
58.85
Neutral
73.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PXLW, the sentiment is Positive. The current price of 6.09 is below the 20-day moving average (MA) of 6.27, below the 50-day MA of 6.20, and below the 200-day MA of 6.18, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 58.85 is Neutral, neither overbought nor oversold. The STOCH value of 73.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PXLW.
Pixelworks Risk Analysis
Pixelworks disclosed 25 risk factors in its most recent earnings report. Pixelworks reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pixelworks Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $42.22M | 0.63 | 434.73% | ― | -38.72% | 16.01% | |
59 Neutral | $270.18M | -14.82 | -21.96% | ― | 13.65% | 15.74% | |
54 Neutral | $233.73M | -16.19 | -52.74% | ― | -9.42% | -61.14% | |
48 Neutral | $181.18M | -2.58 | 73.41% | ― | -32.83% | -19.93% | |
46 Neutral | $139.10M | -4.31 | -12.72% | ― | -18.29% | 8.69% | |
46 Neutral | $43.41M | 1.37 | 19.78% | ― | -33.13% | ― |
* Technology Sector Average
PXLW
Pixelworks
6.80
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Pixelworks Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Pixelworks Shareholders Approve Amended Stock Incentive Plan
Positive
May 20, 2026
At its annual meeting held by telephone on May 20, 2026, Pixelworks, Inc. shareholders approved an amendment and restatement of the company’s 2006 Stock Incentive Plan, increasing the maximum shares authorized for issuance by 300,000 to a to...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.