Pixelworks (PXLW) AI Stock Analysis

• Market Cap: $40.34M
• Dividend Yield: N/A
• Average Volume (3M): 386.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• 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: 1.91
• Enterprise Value/Revenue: 2.32
• Enterprise Value/Gross Profit: 4.65
• Enterprise Value/Ebitda: -3.50
• 1Y Price Target: $12.00
• Price Target Upside: 87.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $6.50 ▲(1.40% Upside)

The score is held down primarily by very weak financial performance (deep losses, negative equity, and negative cash flows). Offsetting this, the latest earnings call points to improving cost discipline and a meaningful liquidity catalyst tied to the Shanghai divestiture and licensing-focused strategy. Technicals are mixed-to-neutral, while valuation metrics remain unfavorable due to ongoing losses and no dividend support.

Positive Factors

High Gross Margin

A roughly 50% gross margin signals durable product-level profitability driven by proprietary video processing IP. If sustained, this margin gives flexibility to cover fixed costs or scale licensing revenue, supporting long-term margin recovery as revenue mixes shift.

Shanghai Divestiture Proceeds

Realized proceeds of ~$51M materially strengthen liquidity and reduce capital strain. This crystallizes value from a capital-intensive unit and funds a strategic pivot to a lower-capex, licensing-focused model, improving balance sheet flexibility for months to years ahead.

Reduced Operating Cash Burn

A sustained >60% reduction in cash burn from operating improvements reflects management discipline and structural cost control. Lower recurring cash outflows extend runway, reduce financing needs, and make a transition to licensing or software revenue less risky over the medium term.

Negative Factors

Negative Stockholders' Equity

Negative equity signals accumulated losses and solvency strain, restricting access to traditional credit and raising investor scrutiny. This structural capital shortfall limits strategic optionality and increases reliance on asset sales or dilutive financing to sustain operations over coming quarters.

Persistent Negative Cash Flow

Ongoing negative operating and free cash flow indicates the core business does not generate sufficient cash to fund operations. Continued FCF deterioration forces dependence on asset disposals or external capital, undermining long-term self-sufficiency and strategic execution.

Declining Revenue & Deep Losses

A shrinking top line alongside very large negative margins shows the company has not yet converted product strengths into profitable scale. Structural demand or competitive challenges must be addressed to restore growth and turn sizable losses into sustainable profitability over the medium term.

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: 6.41
• 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 6.41 is below the 20-day moving average (MA) of 6.44, below the 50-day MA of 6.45, and below the 200-day MA of 7.86, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 47.22 is Neutral, neither overbought nor oversold. The STOCH value of 51.13 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	53 Neutral	$271.01M	-17.70	-32.47%	―	22.00%	28.06%
QUIK	49 Neutral	$127.32M	-12.97	-39.72%	―	-28.05%	-488.63%
PXLW	47 Neutral	$40.34M	-1.36	―	―	-38.72%	16.01%
MX	46 Neutral	$99.31M	-2.66	-8.46%	―	-7.79%	10.04%
GCTS	43 Neutral	$62.81M	-1.44	―	―	-46.98%	-186.82%
NA	37 Underperform	$78.26M	-3.71	-21.44%	―	―	―

Pixelworks Corporate Events

Pixelworks Completes Sale of Shanghai Semiconductor Subsidiary

On January 6, 2026, Pixelworks completed the previously announced sale of all its shares in its Shanghai-based subsidiary, Pixelworks Semiconductor Technology (Shanghai) Co., Ltd., to a special purpose entity led by VeriSilicon Microelectronics (Shanghai) Co., Ltd. Under a series of share purchase, support, and termination and release agreements, Pixelworks and other shareholders transferred 100% of PWSH’s outstanding capital stock to the buyer, resulting in net cash proceeds to Pixelworks of about RMB 357 million (approximately $51 million), with an additional RMB 8.7 million (about $1.2 million) placed in escrow pending resolution of tax matters in China. The deal, which also extinguished all prior repurchase rights held by former shareholders of the Shanghai unit, streamlines Pixelworks’ corporate structure and crystallizes the value of its Chinese semiconductor operations, potentially reshaping its capital allocation and strategic focus while clarifying ownership for partners and customers in that market.

The most recent analyst rating on (PXLW) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Pixelworks stock, see the PXLW Stock Forecast page.

Pixelworks Shareholders Approve Shanghai Unit Sale and Pay

On December 31, 2025, Pixelworks, Inc. reconvened its 2025 Special Meeting of Shareholders, originally convened on November 26 and adjourned twice in December, to vote on two remaining proposals. Shareholders holding approximately 61% of the company’s outstanding common stock on the record date voted in favor of the previously announced sale of all shares of Pixelworks Semiconductor Technology (Shanghai) Co., Ltd. owned indirectly by the company, although the board had earlier determined that this transaction does not constitute a sale of substantially all of Pixelworks’ property and assets and therefore does not require shareholder approval to be completed. In a separate advisory vote, shareholders also approved, by a majority of votes cast, the compensation arrangements for named executive officers that are tied to or otherwise relate to the sale, signaling investor support for both the strategic divestiture and the associated executive pay structure.

The most recent analyst rating on (PXLW) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Pixelworks stock, see the PXLW Stock Forecast page.

Pixelworks Board Approves Shanghai Subsidiary Sale Strategy

On December 19–20, 2025, Pixelworks’ board of directors met and then unanimously resolved by written consent to proceed with the pending sale of all shares of Pixelworks Semiconductor Technology (Shanghai) Co., Ltd. to Tiansui Xinyuan Technology (Shanghai) Co., Ltd., concluding that the deal does not constitute a sale of substantially all of the company’s assets and therefore does not require shareholder approval. The board cited the high capital needs and challenging capital structure of the Shanghai business, the more attractive, capital‑efficient economics of the TrueCut licensing business, the opportunity to eliminate growing repurchase obligations to other PWSH shareholders, and the strategic benefit of refocusing on core visual processing technology and a licensing‑based model; Pixelworks will stop seeking proxies on the sale, will use the December 31, 2025 special meeting only to vote on remaining proposals and adjourn, and expects to close the transaction in early January 2026 while asserting that the sale is in the best interests of the company and its shareholders.

The most recent analyst rating on (PXLW) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Pixelworks stock, see the PXLW Stock Forecast page.

Pixelworks Again Adjourns Special Meeting on Shanghai Divestiture

On December 19, 2025, Pixelworks reconvened its 2025 Special Meeting of Shareholders, originally convened on November 26 and later reconvened and adjourned on December 8, but again adjourned the meeting without voting on either of two proposals after failing to secure proxies or voting instructions from holders of at least 67% of its outstanding common shares in favor of a planned sale of all the stock of Pixelworks Semiconductor Technology (Shanghai) Co., Ltd. The company said the Special Meeting, which focuses on shareholder approval for divesting the Shanghai subsidiary, will reconvene via remote communication on December 31, 2025, underscoring ongoing challenges in obtaining sufficient shareholder support for a potentially significant shift in its business footprint.

The most recent analyst rating on (PXLW) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Pixelworks stock, see the PXLW Stock Forecast page.

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.

The most recent analyst rating on (PXLW) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Pixelworks stock, see the PXLW Stock Forecast page.

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.

The most recent analyst rating on (PXLW) stock is a Hold with a $7.00 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.