Pixelworks (PXLW) AI Stock Analysis

• Market Cap: $38.77M
• Dividend Yield: N/A
• Average Volume (3M): 386.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: -44.05%
• EPS Growth: -2.33%
• Country: US
• Employees: 196
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -1.00
• Shares Outstanding: 6,293,545
• 10 Day Avg. Volume: 777,497
• 30 Day Avg. Volume: 386,816
• PEG Ratio: -4.18
• Price to Book (P/B): -48.35
• Price to Sales (P/S): 11.83
• P/FCF Ratio: -21.68
• Enterprise Value/Market Cap: 1.99
• Enterprise Value/Revenue: 2.27
• Enterprise Value/Gross Profit: 4.51
• Enterprise Value/Ebitda: -3.09
• 1Y Price Target: $13.33
• Price Target Upside: 112.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $6.00 ▼(-4.46% Downside)

Pixelworks' overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues, negative profit margins, and cash flow challenges. Technical analysis indicates bearish momentum, further weighing on the score. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield. Despite some positive developments in the earnings call, such as sequential revenue growth and reduced operating expenses, the ongoing challenges and financial instability significantly influence the overall score.

Positive Factors

Strategic Asset Sale

The sale of Pixelworks Semiconductor Technology is expected to generate significant cash inflow ($50M-$60M), enhancing liquidity and enabling strategic investments or debt reduction, positively impacting long-term financial health.

Improved Gross Margin

Improved gross margins indicate operational efficiency and cost management, which can lead to better profitability and competitive pricing in the long term.

New Mobile Launch

The integration of Pixelworks' technology in new mobile launches by major brands like realme suggests strong product demand and potential for revenue growth in the mobile segment.

Negative Factors

Declining Revenue

Significant revenue decline indicates challenges in market demand or competitive positioning, which could impact long-term growth and market share.

Negative Profit Margins

Sustained negative profit margins reflect operational inefficiencies and could hinder investment in growth initiatives, affecting long-term viability.

Cash Flow Challenges

Negative cash flow indicates potential liquidity issues, limiting the company's ability to invest in R&D or manage debt, impacting future growth and stability.

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 primarily through the sale of its proprietary semiconductor products and software solutions. The company offers a range of products, including video processors and display controllers, which are integrated into various consumer electronics by original equipment manufacturers (OEMs). Key revenue streams include direct sales to OEMs, licensing agreements for its technology, and royalties from products that incorporate Pixelworks' innovations. The company has established significant partnerships with major brands in the consumer electronics industry, contributing to its earnings through collaborative development projects and integration of its technologies into high-demand devices. Additionally, as the demand for enhanced video experiences continues to grow, Pixelworks benefits from trends in the gaming and streaming markets, which require advanced video processing capabilities.

Pixelworks Financial Statement Overview

Summary

Pixelworks is facing significant financial difficulties, characterized by declining revenues, negative profit margins, and cash flow challenges. The negative equity position and high leverage ratios indicate potential solvency risks. The company needs to address its operational inefficiencies and improve its financial health to ensure long-term viability.

Income Statement

Pixelworks has experienced declining revenue over the past few years, with a significant drop of 83.2% in the TTM period. The company is facing negative profit margins, with a net profit margin of -82.37% and an EBIT margin of -82.36% in the TTM. These figures indicate substantial challenges in achieving profitability. The gross profit margin remains relatively stable at around 50%, but the overall financial performance is weak due to high operating losses.

Balance Sheet

The balance sheet reveals a concerning financial structure with negative stockholders' equity in the TTM period, indicating potential solvency issues. The debt-to-equity ratio is negative due to negative equity, and the return on equity is extremely high at 196.27%, reflecting significant losses relative to equity. The equity ratio is not calculable due to negative equity, highlighting financial instability.

Cash Flow

Pixelworks has negative operating and free cash flows, with a free cash flow growth rate of -11.28% in the TTM. The operating cash flow to net income ratio is -2.70, indicating cash flow challenges. The free cash flow to net income ratio is slightly positive at 1.05, suggesting some alignment between cash flow and reported losses, but overall cash flow performance is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.96M	43.21M	59.68M	70.15M	55.10M	40.85M
Gross Profit	17.08M	22.29M	25.71M	35.88M	27.69M	20.05M
EBITDA	-24.96M	-25.21M	-22.27M	-11.32M	-15.24M	-20.46M
Net Income	-27.97M	-28.72M	-26.18M	-16.03M	-19.82M	-26.53M
Balance Sheet
Total Assets	51.80M	64.07M	95.97M	102.32M	106.60M	72.04M
Cash, Cash Equivalents and Short-Term Investments	14.26M	23.65M	47.54M	56.82M	61.59M	31.51M
Total Debt	910.00K	3.49M	4.95M	3.54M	5.29M	7.13M
Total Liabilities	23.45M	24.19M	30.96M	30.07M	35.47M	19.17M
Stockholders Equity	-22.44M	-10.57M	12.54M	32.42M	40.22M	52.87M
Cash Flow
Free Cash Flow	-25.82M	-23.57M	-22.65M	-15.84M	-12.63M	-6.50M
Operating Cash Flow	-24.68M	-19.81M	-18.81M	-12.83M	-9.16M	-3.71M
Investing Cash Flow	261.00K	-3.12M	-3.99M	-3.01M	-3.23M	3.94M
Financing Cash Flow	853.00K	-971.00K	13.53M	11.07M	42.71M	23.77M

Pixelworks Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 6.28 is below the 20-day moving average (MA) of 7.74, below the 50-day MA of 9.63, and below the 200-day MA of 8.45, indicating a bearish trend. The MACD of -1.17 indicates Positive momentum. The RSI at 37.26 is Neutral, neither overbought nor oversold. The STOCH value of 22.86 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	58 Neutral	$268.05M	-20.16	-32.47%	―	22.00%	28.06%
QUIK	57 Neutral	$124.84M	-15.97	-28.91%	―	-25.90%	-459.91%
MX	44 Neutral	$81.55M	―	-8.46%	―	-7.79%	10.04%
GCTS	44 Neutral	$74.85M	-2.01	―	―	28.31%	-239.16%
PXLW	41 Neutral	$38.77M	-1.11	―	―	-44.05%	-2.33%
NA	41 Neutral	$96.64M	-4.58	-21.44%	―	―	―

Pixelworks Corporate Events

Pixelworks to Hold Special Meeting for Major Asset Sale Approval

Pixelworks, Inc. has announced a Special Meeting of Shareholders scheduled for November 26, 2025, to discuss and vote on several key proposals. The primary agenda includes the approval of the sale of all shares of Pixelworks Semiconductor Technology (Shanghai) Co., Ltd., which represents a significant portion of the company’s assets. This move, recommended by the Board of Directors, is seen as beneficial for the company and its shareholders, potentially impacting the company’s operational focus and market strategy. Additionally, shareholders will vote on executive compensation related to the sale and grant discretionary authority to the board to adjourn the meeting if necessary.

The most recent analyst rating on (PXLW) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Pixelworks stock, see the PXLW Stock Forecast page.

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.

The most recent analyst rating on (PXLW) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Pixelworks stock, see the PXLW Stock Forecast page.

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.

The most recent analyst rating on (PXLW) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Pixelworks stock, see the PXLW Stock Forecast page.

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.

The most recent analyst rating on (PXLW) stock is a Hold with a $14.50 price target. To see the full list of analyst forecasts on Pixelworks stock, see the PXLW Stock Forecast page.

Pixelworks’ Earnings Call: Optimism Amid Challenges

Pixelworks’ Earnings Call Reflects Cautious Optimism Amid Challenges

Pixelworks Reports Q2 2025 Financial Results

Pixelworks, Inc. is a prominent company specializing in video and display processing solutions, catering to a wide range of devices from cinema screens to smartphones. In its latest earnings report for the second quarter of 2025, Pixelworks announced a 16% sequential increase in revenue, attributed to seasonal growth in the home and enterprise markets. The company also highlighted its involvement in major film releases using its TrueCut Motion technology, enhancing viewing experiences in premium large format theaters.