Pixelworks (PXLW) AI Stock Analysis

• Market Cap: $38.96M
• Dividend Yield: N/A
• Average Volume (3M): 386.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: -38.72%
• EPS Growth: 16.01%
• Country: US
• Employees: 196
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.69
• Shares Outstanding: 6,293,545
• 10 Day Avg. Volume: 777,497
• 30 Day Avg. Volume: 386,816
• PEG Ratio: >-0.01
• Price to Book (P/B): -4.03
• Price to Sales (P/S): 0.99
• P/FCF Ratio: -1.81
• Enterprise Value/Market Cap: 1.98
• Enterprise Value/Revenue: 2.32
• Enterprise Value/Gross Profit: 4.65
• Enterprise Value/Ebitda: -3.50
• 1Y Price Target: $12.00
• Price Target Upside: 96.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $6.50 ▲(6.56% Upside)

Pixelworks' overall stock score is primarily impacted by its poor financial performance, with significant challenges in revenue, profitability, and cash flow management. While recent corporate events and strategic transactions offer potential for improved financial flexibility, the current financial health remains a major concern. Technical indicators and valuation metrics further reflect the company's struggles, though the earnings call provided some positive developments.

Positive Factors

Strategic Asset Sale

The sale of the Shanghai subsidiary will provide significant cash inflow, enhancing financial flexibility and allowing focus on core business areas.

Cost Management

Effective cost management reduces cash burn and supports operational efficiency, crucial for long-term financial health and profitability.

TrueCut Motion Platform

The TrueCut Motion platform's growing adoption in films indicates potential for future revenue growth and strengthens Pixelworks' market position.

Negative Factors

Declining Revenue

A year-over-year revenue decline reflects challenges in market demand or competitive positioning, impacting long-term growth prospects.

Negative Profitability Margins

Sustained negative margins indicate ongoing profitability challenges, which can hinder reinvestment in growth and innovation.

Geopolitical Risks

Geopolitical tensions pose risks to international operations and market access, potentially limiting growth opportunities in key regions.

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, including image processor integrated circuits, such as embedded microprocessors, digital signal processing technology, and software that control the operations and signal processing within high-end display systems; video co-processor integrated circuits that work with an image processor to post-process video signals to enhance the performance or feature set of the overall video solution; and transcoder integrated circuits, which comprise embedded microprocessors, digital signal processing technology, and software that control the operations and signal processing for converting bitrates, resolutions, and codecs. As of March 31, 2022, it had an intellectual property portfolio of 334 patents related to the visual display of digital image data. The company sells its through a direct sales force, distributors, and manufacturers' representatives in Japan, China, Taiwan, the United States, Europe, and Korea. Pixelworks, Inc. was incorporated in 1997 and is based in Portland, Oregon.

How the Company Makes Money

Pixelworks generates revenue through the sale of its semiconductor products, which include innovative video processing chips and software solutions. The company's key revenue streams are derived from licensing its technology to manufacturers of display and video devices, as well as direct sales of its integrated circuits (ICs) to OEMs (original equipment manufacturers) and ODMs (original design manufacturers). Significant partnerships with leading electronics companies further bolster its earnings, allowing Pixelworks to expand its market reach and integrate its technology into a wide range of consumer and professional devices. Additionally, the company may benefit from recurring revenue through ongoing software updates and support services for its products.

Pixelworks Financial Statement Overview

Summary

Pixelworks is facing significant financial challenges across all verticals. The income statement shows declining revenues and negative profitability margins. The balance sheet highlights a precarious financial position with negative equity, while cash flow statements indicate poor cash management and growth. The company needs to address these issues to improve its financial health.

Income Statement

Pixelworks has been experiencing declining revenue with a negative growth rate of -2.23% in TTM. The company also shows negative margins across the board, with a net profit margin of -82.37% and an EBIT margin of -82.36% in TTM, indicating significant profitability challenges. The gross profit margin remains relatively stable at 50.28%, but overall, the income statement reflects a struggling financial performance.

Balance Sheet

The balance sheet reveals a concerning financial position with negative stockholders' equity of -$23.93 million in TTM, leading to a negative debt-to-equity ratio. The return on equity is extremely high at 133.11% in TTM, but this is due to the negative equity base rather than strong performance. The equity ratio is also negative, indicating potential solvency issues.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, with a free cash flow growth rate of -21.58% in TTM. The operating cash flow to net income ratio is -2.70, suggesting inefficiencies in converting income into cash. The free cash flow to net income ratio is slightly positive at 1.05, but overall cash flow management appears weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.20M	43.21M	59.68M	70.15M	55.10M	40.85M
Gross Profit	16.57M	22.29M	25.71M	35.88M	27.69M	20.05M
EBITDA	-22.00M	-25.21M	-22.27M	-13.57M	-16.45M	-20.46M
Net Income	-24.42M	-28.72M	-26.18M	-16.03M	-19.82M	-26.53M
Balance Sheet
Total Assets	50.52M	64.07M	95.97M	102.32M	106.60M	72.04M
Cash, Cash Equivalents and Short-Term Investments	14.61M	23.65M	47.54M	56.82M	61.59M	31.51M
Total Debt	2.07M	3.49M	4.95M	3.54M	5.29M	10.45M
Total Liabilities	23.60M	24.19M	30.96M	30.07M	35.47M	19.17M
Stockholders Equity	-23.93M	-10.57M	12.54M	32.42M	40.22M	52.87M
Cash Flow
Free Cash Flow	-17.22M	-23.57M	-22.65M	-15.84M	-12.63M	-6.50M
Operating Cash Flow	-16.87M	-19.81M	-18.81M	-12.83M	-9.16M	-3.71M
Investing Cash Flow	1.04M	-3.12M	-3.99M	-3.01M	-3.23M	3.94M
Financing Cash Flow	1.25M	-971.00K	13.53M	11.07M	42.71M	23.77M

Pixelworks Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.10
• 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 PXLW, the sentiment is Negative. The current price of 6.1 is below the 20-day moving average (MA) of 6.48, below the 50-day MA of 7.39, and below the 200-day MA of 7.97, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 41.02 is Neutral, neither overbought nor oversold. The STOCH value of 28.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PXLW.

Pixelworks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GSIT	51 Neutral	$191.36M	-12.15	-32.47%	―	22.00%	28.06%
QUIK	49 Neutral	$103.57M	-10.17	-39.72%	―	-28.05%	-488.63%
PXLW	46 Neutral	$38.96M	-1.30	―	―	-38.72%	16.01%
MX	46 Neutral	$92.47M	-2.47	-8.46%	―	-7.79%	10.04%
GCTS	43 Neutral	$79.94M	-1.79	―	―	-46.98%	-186.82%
NA	37 Underperform	$70.95M	-3.36	-21.44%	―	―	―

Pixelworks Corporate Events

Pixelworks Reconvenes Shareholder Meeting for Proposal Vote

On December 8, 2025, Pixelworks, Inc. reconvened its 2025 Special Meeting of Shareholders, which was adjourned due to insufficient votes for Proposal 1, concerning the sale of shares of its subsidiary, Pixelworks Semiconductor Technology (Shanghai). The meeting will reconvene on December 19, 2025, to allow more time for shareholders to vote, as the proposal requires approval from 67% of outstanding shares. The board supports the proposal, believing it is in the best interest of the company and its shareholders, with recommendations from independent proxy advisory groups to vote in favor.

Pixelworks Adjourns Shareholder Meeting for Key Vote

On November 26, 2025, Pixelworks, Inc. held a Special Meeting of Shareholders to consider three proposals, including the sale of its subsidiary, Pixelworks Semiconductor Technology (Shanghai). The meeting was adjourned due to insufficient votes for Proposal 1, which required approval from 67% of outstanding shares. The meeting will reconvene on December 8, 2025, to allow more time for shareholders to vote. The Board and independent advisory groups support the proposal, which is seen as beneficial for the company and its stakeholders.

Pixelworks Sells 37 Patents for $3 Million

On October 22, 2025, Pixelworks, Inc. sold 37 patents to an unrelated third party for $3.0 million. The patents, originally acquired through ViXS Systems, Inc., pertain to markets no longer pursued by Pixelworks, allowing the company to record a gain of approximately $3.0 million in the fourth quarter of 2025.

Pixelworks Announces Sale of Shanghai Subsidiary Shares

On October 15, 2025, Pixelworks, Inc. announced a definitive agreement to sell its shares in its Shanghai subsidiary, Pixelworks Semiconductor Technology (Shanghai) Co., Ltd., to a special purpose entity led by VeriSilicon Microelectronics for approximately $133 million USD. This transaction, which requires shareholder approval and is expected to close by the end of 2025, represents a strategic move to maximize value for shareholders and involves the release of certain repurchase rights by minority shareholders. The company anticipates receiving $50 million to $60 million in net cash proceeds after transaction costs and taxes, and the agreement includes provisions for termination fees under specific circumstances.

Pixelworks Announces $7M Stock Purchase Agreement

On October 6, 2025, Pixelworks, Inc. announced a common stock purchase agreement with two institutional investors, aiming to raise approximately $7 million through the sale of 666,667 shares at $10.50 each. The proceeds are intended for working capital and general corporate purposes, with the offering expected to close on October 7, 2025. This move is part of Pixelworks’ strategy to strengthen its financial position and support ongoing operations, reflecting its commitment to maintaining a competitive edge in the video processing industry.