Pixelworks (PXLW)
NASDAQ:PXLW
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Pixelworks
(NASDAQ:PXLW)
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Rating:47Neutral
Price Target:
$5.00
▼(-10.23% Downside)
Action:ReiteratedDate:04/01/26
The score is held down primarily by very weak financial performance (revenue collapse, persistent losses, negative operating/free cash flow, and negative equity) and a bearish technical setup (below key moving averages with negative MACD). Offsetting factors are the earnings call’s materially improved liquidity and reduced cost structure post-asset sale, though execution risk remains high due to negligible current revenue and uncertain timing of licensing monetization.
Positive Factors
Post-sale Liquidity
A material cash influx (~$62M total) provides meaningful runway to execute the transition to licensing, fund R&D and selective business development, and weather near-term revenue shortfalls. This reduces immediate refinancing risk and permits deliberate commercialization efforts without urgent capital raises.
Negative Factors
Collapsed revenue base
Revenue has effectively evaporated, leaving almost no recurring sales to fund operations. Long-term viability depends on converting partner interest into licensing and certification fees—an unproven, timing-uncertain path—so near-term financial performance is fragile despite cash on hand.
Read all positive and negative factors
Positive Factors
Negative Factors
Post-sale Liquidity
A material cash influx (~$62M total) provides meaningful runway to execute the transition to licensing, fund R&D and selective business development, and weather near-term revenue shortfalls. This reduces immediate refinancing risk and permits deliberate commercialization efforts without urgent capital raises.
Read all positive factors
Pixelworks (PXLW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$34.03M
Dividend YieldN/A
Average Volume (3M)47.33K
Price to Earnings (P/E)―
Beta (1Y)1.17
Revenue Growth-38.72%
EPS Growth16.01%
CountryUS
Employees196
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)1.51
Shares Outstanding6,361,258
10 Day Avg. Volume33,273
30 Day Avg. Volume47,334
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 Cap0.54
Enterprise Value/Revenue26.46
Enterprise Value/Gross Profit-9.51
Enterprise Value/Ebitda-2.06
Forecast
1Y Price Target
$10.00Price Target Upside79.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-3.02
Revenue Forecast (FY)$35.10M
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:Mar 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
The call communicated a decisive and materially positive corporate transformation: a monetized asset (Shanghai sale) that produced ~$51M in net proceeds, a strong cash position (~$58–62M expected through Q1), a lean cost structure (targeting ~$2M cash OpEx per quarter), a focused IP/R&D strategy, and early commercial validation via high-profile film credits and major exhibitor partnerships. Offsetting these positives are material near-term revenue weaknesses: reported continuing-operations revenue is negligible (~$690k tied to discontinued items), current content revenue remains subsidized, and licensing revenue from home-entertainment/device certification is not yet realized. The company has adequate liquidity and lowered operating costs to fund the transition, but significant execution risk remains in converting market interest into repeatable, high-margin licensing revenue.Positive Updates
Sale of Shanghai Subsidiary and Major Cash Inflow
Closed sale of Pixelworks' Shanghai semiconductor subsidiary on January 6, 2026 for net cash proceeds of approximately $51.0 million. Combined with year-end continuing-company cash of ~$11.2 million, the company effectively entered 2026 with ~ $62 million in cash on hand. There is an additional ~ $1.2 million expected in escrow to be released.
Negative Updates
Minimal Reported Revenue from Continuing Operations
Reported revenue figure referenced for fiscal year 2025 was approximately $690,000; management indicated this amount is effectively negligible for continuing operations and largely tied to items classified as discontinued operations, highlighting very limited current recurring revenue.
Read all updates
Q4-2025 Updates
Positive
Negative
Sale of Shanghai Subsidiary and Major Cash Inflow
Closed sale of Pixelworks' Shanghai semiconductor subsidiary on January 6, 2026 for net cash proceeds of approximately $51.0 million. Combined with year-end continuing-company cash of ~$11.2 million, the company effectively entered 2026 with ~ $62 million in cash on hand. There is an additional ~ $1.2 million expected in escrow to be released.
Read all positive updates
Company Guidance
Management guided that after closing the Shanghai subsidiary sale (net cash proceeds ≈ $51.0M) and exiting 2025 with ≈ $11.2M in cash, Pixelworks entered 2026 with roughly $62M on hand (plus ≈ $1.2M in escrow expected to be released) and now anticipates ending Q1 with ≈ $58M. They expect cash operating expenses of about $2.0M per quarter beginning in Q2, at least $1.5M of annual interest income on the cash balance, and will recognize severance/bonus/transaction costs in Q1; the company also cancelled its unused at‑the‑market facility. Other metrics noted: continuing‑operations revenue reported at ≈ $690K for FY2025 (comprised of discontinued operations), fewer than 25 full‑time employees (≈60% devoted to R&D), and a technology portfolio of over 60 issued and pending patents, with management calling expected gross margins on content creation and licensing “very high.”Pixelworks Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
28
Negative
Cash Flow
15
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 693.00K | 43.21M | 59.68M | 70.15M | 55.10M |
| Gross Profit | -1.93M | 22.29M | 25.71M | 35.88M | 27.69M |
| EBITDA | -8.88M | -25.21M | -22.27M | -13.57M | -16.45M |
| Net Income | -22.50M | -28.72M | -26.18M | -16.03M | -19.82M |
Balance Sheet | |||||
| Total Assets | 95.84M | 64.07M | 95.97M | 102.32M | 106.60M |
| Cash, Cash Equivalents and Short-Term Investments | 11.24M | 23.65M | 47.54M | 56.82M | 61.59M |
| Total Debt | 739.00K | 3.49M | 4.95M | 3.54M | 5.29M |
| Total Liabilities | 20.86M | 24.19M | 30.96M | 30.07M | 35.47M |
| Stockholders Equity | -21.09M | -10.57M | 12.54M | 32.42M | 40.22M |
Cash Flow | |||||
| Free Cash Flow | -21.05M | -23.57M | -22.65M | -15.84M | -12.63M |
| Operating Cash Flow | -20.61M | -19.81M | -18.81M | -12.83M | -9.16M |
| Investing Cash Flow | 3.31M | -3.12M | -3.99M | -3.01M | -3.23M |
| Financing Cash Flow | 11.72M | -971.00K | 13.53M | 11.07M | 42.71M |
Pixelworks Technical Analysis
Positive
5.57
Price Trends
5.76
Negative
6.15
Negative
7.66
Negative
Market Momentum
-0.11
Negative
50.64
Neutral
35.52
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 above the 20-day moving average (MA) of 5.39, below the 50-day MA of 5.76, and below the 200-day MA of 7.66, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 50.64 is Neutral, neither overbought nor oversold. The STOCH value of 35.52 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% | |
53 Neutral | $229.78M | -17.74 | -22.69% | ― | 22.00% | 28.06% | |
52 Neutral | $218.67M | ― | -58.66% | ― | -28.05% | -488.63% | |
50 Neutral | $71.42M | 3.95 | -16.83% | ― | ― | ― | |
49 Neutral | $115.88M | ― | -11.40% | ― | -7.79% | 10.04% | |
49 Neutral | $94.97M | -1.46 | ― | ― | -46.98% | -186.82% | |
47 Neutral | $34.03M | -2.36 | 109.22% | ― | -38.72% | 16.01% |
* Technology Sector Average
PXLW
Pixelworks
5.57
-0.69
-10.99%
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1.30
-0.11
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Nano Labs Ltd. Sponsored ADR Class A
2.77
-1.83
-39.78%
Pixelworks Corporate Events
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...
Business Operations and StrategyExecutive/Board Changes
Pixelworks Reshapes Board to Support Licensing Strategy
Positive
Jan 20, 2026
On January 14, 2026, Pixelworks implemented a series of board changes as part of its ongoing transformation into a global technology licensing company following the sale of its Shanghai-based subsidiary. Entertainment technology veteran Douglas J....
Executive/Board ChangesM&A Transactions
Pixelworks Adjusts Executive Bonuses After Shanghai Unit Sale
Neutral
Jan 16, 2026
On January 14, 2026, Pixelworks’ board compensation committee approved the payment of transaction-related bonuses to executives Todd DeBonis and Haley Aman under previously established bonus agreements connected to the sale of its subsidiary...
Business Operations and StrategyM&A Transactions
Pixelworks Completes Sale of Shanghai Semiconductor Subsidiary
Positive
Jan 6, 2026
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 (S...
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.