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Neonode Inc. Financial Results for Q3 2025

Neonode Inc. (NASDAQ: NEON), a company known for its innovative technology solutions, has released its financial outcomes for the three-month and nine-month periods concluding on September 30, 2025. This report reveals substantial shifts in revenue and operational focus, highlighting the company's adaptive strategies in a demanding market landscape.

Financial Summary

For the three months ending September 30, 2025, Neonode reported revenues of $0.4 million, marking a decrease of 48.7% compared to the same quarter the previous year. Operating expenses totaled $2.1 million, reflecting a 4% increase year-over-year. The significant financial highlight is the gain from a patent assignment of $15.5 million to Aequitas Technologies LLC, which underscores Neonode's strategic pivots and innovative approaches amidst a declining revenue trend.

During the nine-month period, total revenues were reported at $1.5 million, down 37.1%, while operating expenses slightly increased by 0.9%, reaching $7.3 million. Importantly, once again, the patent assignment allowed the company to register an income from continuing operations of $10.2 million, or $0.60 per share, while it had previously sustained a loss of $4.4 million, or $0.28 per share, during the same time in 2024.

Key Factors Influencing Financial Performance

The report pointed to a mixture of ongoing challenges and adaptations. Neonode's legacy business, particularly in printer and automotive infotainment sectors, continues to face diminished demand, which has substantially affected revenues. CEO Daniel Alexus emphasized that while the challenges persist, they are actively broadening their business opportunities by enhancing their technology offerings and establishing new partnerships.

The company has opted to transition its zForce® platform into maintenance mode to concentrate on serving current customers. This choice is primarily due to market dynamics that have significantly reduced the market potential for that solution.

Focus on MultiSensing® Technology

Central to Neonode’s future vision is the MultiSensing® platform, touted for its fully synthetic and data-driven human-machine interface (HMI) solutions. Mr. Alexus stated that their speed of execution in this arena remains a key differentiator and they are committed to expanding strategic partnerships within the automotive sector and exploring new applications for the technology.

Despite the downturn in its legacy business, Neonode is focusing on securing new partnerships to secure growth potential and strive toward long-term profitability.

Legal Developments

Significant to note is the ongoing legal situation involving Aequitas Technologies and Apple Inc. The United States District Court for the Northern District of California recently lifted a stay on the case, allowing the proceedings to resume. Neonode’s gains from the patent assignment stem from its association with Aequitas Technologies, reflecting the ongoing legal complexities surrounding technology patents in the industry.

Conclusion

The Q3 2025 report marks a considerable phase for Neonode as it navigates through revenue challenges while simultaneously investing in its future through innovation and strategic partnerships. As the company works to align its future growth trajectory, stakeholders continue to watch how Neonode manages its transformations within a rapidly evolving technology landscape. By focusing on new verticals and addressing real-world challenges with its technology, Neonode aims to redefine its market presence and pave a successful path forward.

For further inquiries, contact:
Pierre Daniel Alexus
President and CEO
Email: [email protected]
Phone: +46 767 60 29 90

Fredrik Nihlén
Chief Financial Officer
Email: [email protected]
Phone: +46 703 97 21 09

Supported by robust financial positioning and innovative technology, Neonode prepares to embrace the future while mitigating current operational challenges.