Pixelworks (PXLW)
NASDAQ:PXLW
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Pixelworks
(NASDAQ:PXLW)
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Rating:58Neutral
Price Target:
$7.50
▲(34.65% Upside)
Action:Reiterated
Date:05/22/26
The score is held back primarily by weak financial performance—ongoing operating losses and persistent cash burn despite a low-debt balance sheet. Technicals are moderately supportive with improving near-term momentum, and valuation screens very cheap but may be influenced by non-operating gains. The latest earnings call improves the outlook on liquidity and cost structure, but near-term revenue remains small and the licensing ramp is still unproven.
Positive Factors
Strong liquidity, zero debt
A large cash balance with no debt materially reduces insolvency risk and provides runway for the company to execute its licensing pivot. This balance-sheet strength supports strategic optionality (buybacks, M&A, JVs) and cushions the business while recurring licensing revenues scale.
Negative Factors
Persistent negative operating cash flow
Consistent negative operating and free cash flow indicates ongoing cash burn that is not yet resolved by operations. This structural cash shortfall forces reliance on non-operating gains, asset sales, or capital allocation choices and constrains reinvestment into product development or go-to-market expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong liquidity, zero debt
A large cash balance with no debt materially reduces insolvency risk and provides runway for the company to execute its licensing pivot. This balance-sheet strength supports strategic optionality (buybacks, M&A, JVs) and cushions the business while recurring licensing revenues scale.
Read all positive factors
Pixelworks (PXLW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$44.99M
Dividend YieldN/A
Average Volume (3M)111.15K
Price to Earnings (P/E)0.7
Beta (1Y)1.18
Revenue Growth-38.72%
EPS Growth16.01%
CountryUS
Employees196
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)10.17
Shares Outstanding6,363,258
10 Day Avg. Volume249,167
30 Day Avg. Volume111,148
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-0.46
Enterprise Value/Revenue3.47
Enterprise Value/Gross Profit7.91
Enterprise Value/Ebitda5.66
Forecast
1Y Price Target
$10.00Price Target Upside79.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.6
Revenue Forecast (FY)$1.00M
Pixelworks Business Overview & Revenue Model
Company Description
Pixelworks, Inc., together with its subsidiaries, develops and markets semiconductor and software solutions for mobile, home entertainment, content, and business and education markets. The company provides video display processor products, includi...
How the Company Makes Money
Pixelworks makes money primarily by selling its display processing products and licensing related technologies to device makers and their supply chains. The company’s core revenue stream is product revenue from shipping its video/display processin...
Pixelworks Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call conveyed a strategic transition to a capitalized, asset-light technology licensing company with strong near-term liquidity, validated product use cases (notably the high-profile theatrical project) and a clear plan to materially lower operating expenses starting in Q2. However, near-term revenue remains small in absolute terms, operating expenses in Q1 significantly exceeded revenue, and the business is still dependent on studios and exhibitors to build a licensing pipeline. Overall the company appears better positioned financially and operationally after the sale and restructuring, but meaningful cash-generating licensing outcomes are still in early stages.Positive Updates
Strong balance sheet and liquidity
Ended Q1 2026 with approximately $58.0 million in cash and cash equivalents, $0 debt, and net cash proceeds of ~ $51 million from the January sale of the Shanghai semiconductor subsidiary. All prior liabilities and the redeemable noncontrolling interest from the Shanghai subsidiary were fully released.
Negative Updates
Low absolute revenue and early-stage licensing monetization
TrueCut-related revenue remains modest in absolute terms at ~$450,000 for Q1 2026; the company acknowledged it is not generating material licensing revenue yet and expects initial adoption to be limited while it builds the ecosystem and content pipeline.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong balance sheet and liquidity
Ended Q1 2026 with approximately $58.0 million in cash and cash equivalents, $0 debt, and net cash proceeds of ~ $51 million from the January sale of the Shanghai semiconductor subsidiary. All prior liabilities and the redeemable noncontrolling interest from the Shanghai subsidiary were fully released.
Read all positive updates
Company Guidance
The company reiterated a high‑level operating framework rather than formal quarterly guidance: it ended Q1 with approximately $58 million in cash (net proceeds from the Shanghai sale were about $51 million), $0 debt, and a newly authorized $5 million stock repurchase program (2‑year window beginning May 15) after cancelling the unused ATM; Q1 revenue was roughly $450,000 (TrueCut Motion; FY‑2025 TrueCut revenue was ~$690,000) with gross profit of $253,000 (56.7% margin), total Q1 operating expenses of $5.2 million that included about $2.0 million of one‑time restructuring and ~$360,000 of stock‑based compensation, and management is targeting cash operating expenses of around $2.0 million starting in Q2 and expects quarterly interest income of $400,000–$500,000 going forward.Pixelworks Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
52
Neutral
Cash Flow
21
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | -5.96M | 693.00K | 43.21M | 59.68M | 70.15M | 55.10M |
| Gross Profit | -2.61M | -1.93M | 22.29M | 25.71M | 35.88M | 27.69M |
| EBITDA | -3.65M | -8.88M | -25.21M | -22.27M | -13.57M | -16.45M |
| Net Income | 65.85M | -22.50M | -28.72M | -26.18M | -16.03M | -19.82M |
Balance Sheet | ||||||
| Total Assets | 60.00M | 51.26M | 64.07M | 95.97M | 102.32M | 106.60M |
| Cash, Cash Equivalents and Short-Term Investments | 57.82M | 11.24M | 23.65M | 47.54M | 56.82M | 61.59M |
| Total Debt | 568.00K | 739.00K | 3.49M | 4.95M | 3.54M | 5.29M |
| Total Liabilities | 2.77M | 20.86M | 24.19M | 30.96M | 30.07M | 35.47M |
| Stockholders Equity | 57.23M | -21.09M | -10.57M | 12.54M | 32.42M | 40.22M |
Cash Flow | ||||||
| Free Cash Flow | -19.01M | -21.05M | -23.57M | -22.65M | -15.84M | -12.63M |
| Operating Cash Flow | -18.47M | -20.61M | -19.81M | -18.81M | -12.83M | -9.16M |
| Investing Cash Flow | 47.66M | 3.31M | -3.12M | -3.99M | -3.01M | -3.23M |
| Financing Cash Flow | 10.13M | 11.72M | -971.00K | 13.53M | 11.07M | 42.71M |
Pixelworks Technical Analysis
Positive
5.57
Price Trends
5.82
Positive
6.03
Positive
7.17
Negative
Market Momentum
0.35
Negative
62.46
Neutral
79.96
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 5.57 is below the 20-day moving average (MA) of 6.27, below the 50-day MA of 5.82, and below the 200-day MA of 7.17, indicating a neutral trend. The MACD of 0.35 indicates Negative momentum. The RSI at 62.46 is Neutral, neither overbought nor oversold. The STOCH value of 79.96 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% | |
60 Neutral | $392.93M | -24.38 | -59.94% | ― | -21.32% | -113.45% | |
59 Neutral | $385.02M | -27.19 | -21.96% | ― | 22.44% | 1.58% | |
58 Neutral | $44.99M | 0.67 | -2573.87% | ― | -38.72% | 16.01% | |
52 Neutral | $247.43M | -12.57 | -10.13% | ― | -20.64% | 44.67% | |
46 Neutral | $309.89M | -4.81 | 60.21% | ― | -32.54% | -89.88% | |
46 Neutral | $56.87M | -8.46 | -16.83% | ― | -33.13% | ― |
* Technology Sector Average
PXLW
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19.49%
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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...
Business Operations and StrategyStock Buyback
Pixelworks Launches First-Ever $5 Million Share Repurchase
Positive
Mar 31, 2026
On March 31, 2026, Pixelworks announced that its board had approved the company’s first-ever stock repurchase program, authorizing up to $5 million of common stock to be bought back over a two-year period beginning May 15, 2026. The buybacks...
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.