Pixelworks (PXLW)
NASDAQ:PXLW
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Pixelworks
(NASDAQ:PXLW)
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Rating:48Neutral
Price Target:
$5.50
▲(9.56% Upside)
Action:ReiteratedDate:03/25/26
The score is held down primarily by weak financial performance (severe revenue contraction, negative equity, and ongoing cash burn) and a bearish technical trend (price below key moving averages with negative MACD). The latest earnings call adds meaningful support via a strengthened cash position and lower operating expenses after the Shanghai sale, but near-term revenue visibility remains very limited. Valuation contributes only modestly given the negative P/E and no dividend yield data.
Positive Factors
Strong Liquidity Runway
Proceeds from the Shanghai sale left Pixelworks with roughly $58–62M of cash, providing a multi‑quarter runway and strategic optionality. This materially lowers near‑term financing and refinancing risk, funds R&D and partner engagements, and supports the transition to a licensing model without immediate revenue pressure.
Negative Factors
Minimal Continuing Revenue
Continuing‑operations revenue was only about $690K in FY2025, effectively negligible versus run‑rate needs. The firm's new licensing model is unproven at scale; until the company converts exhibitor/studio interest and content credits into repeatable licensing fees, revenue visibility and profitability remain highly uncertain.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Liquidity Runway
Proceeds from the Shanghai sale left Pixelworks with roughly $58–62M of cash, providing a multi‑quarter runway and strategic optionality. This materially lowers near‑term financing and refinancing risk, funds R&D and partner engagements, and supports the transition to a licensing model without immediate revenue pressure.
Read all positive factors
Pixelworks (PXLW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.93M
Dividend YieldN/A
Average Volume (3M)40.70K
Price to Earnings (P/E)―
Beta (1Y)1.25
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. Volume70,314
30 Day Avg. Volume40,697
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 Cap0.49
Enterprise Value/Revenue22.35
Enterprise Value/Gross Profit-8.03
Enterprise Value/Ebitda-1.74
Forecast
1Y Price Target
$10.00Price Target Upside99.20% 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.
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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
Negative
5.02
Price Trends
6.09
Negative
6.27
Negative
7.75
Negative
Market Momentum
-0.23
Positive
34.69
Neutral
19.13
Positive
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 5.02 is below the 20-day moving average (MA) of 5.84, below the 50-day MA of 6.09, and below the 200-day MA of 7.75, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 34.69 is Neutral, neither overbought nor oversold. The STOCH value of 19.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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% | |
55 Neutral | $162.87M | -6.72 | -58.66% | ― | -28.05% | -488.63% | |
53 Neutral | $190.70M | -17.74 | -22.69% | ― | 22.00% | 28.06% | |
49 Neutral | $104.59M | -2.86 | -11.40% | ― | -7.79% | 10.04% | |
49 Neutral | $81.19M | -1.46 | ― | ― | -46.98% | -186.82% | |
48 Neutral | $31.93M | -2.36 | 109.22% | ― | -38.72% | 16.01% | |
37 Underperform | $70.24M | -77.29 | -16.83% | ― | ― | ― |
* Technology Sector Average
PXLW
Pixelworks
5.02
-2.50
-33.25%
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Pixelworks Corporate Events
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...
Business Operations and StrategyExecutive/Board ChangesM&A TransactionsShareholder Meetings
Pixelworks Shareholders Approve Shanghai Unit Sale and Pay
Positive
Dec 31, 2025
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 compa...
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.