Neonode Reveals Financial Performance: A Decline and Future Strategies

Neonode Reports Financial Results for the Third Quarter of 2025

On November 6, 2025, Neonode Inc. (NASDAQ: NEON) announced its financial results for the quarter and nine-month period ending September 30, 2025. The company's performance showcases both challenges and opportunities as it navigates a shifting landscape in the technology sector.

Quarterly Financial Performance

For the third quarter, Neonode reported revenues of $0.4 million from continuing operations, reflecting a significant decrease of 48.7% compared to the same period last year. This downturn was primarily attributed to a reduced demand from legacy customers in the printer and automotive infotainment sectors. Operating expenses experienced a slight increase of 4.0%, totaling $2.1 million.

However, the company did report a notable gain from a patent assignment, which amounted to $15.5 million. This gain was realized after a brokerage fee and was contingent on a legal settlement involving Aequitas Technologies LLC and Samsung Electronics. Consequently, Neonode's income from continuing operations reached $13.9 million, or $0.83 per share, a significant recovery compared to a loss of $1.0 million or $0.07 per share in the previous year.

Year-to-Date Financial Highlights

For the first nine months of 2025, revenues from continuing operations totaled $1.5 million, representing a decrease of 37.1%. Operating expenses remained relatively stable, increasing only by 0.9% to $7.3 million. Notably, the gain from the patent assignment was again a substantial highlight, contributing to a total income from continuing operations of $10.2 million, or $0.60 per share, a turnaround from a loss of $4.4 million, or $0.28 per share, from the previous year.

Challenges and Future Directions

In a statement from CEO Daniel Alexus, he acknowledged the continuing decline in revenues from Neonode's traditional business segments and the subdued demand for its products in key markets. He emphasized the company's commitment to exploring new business opportunities, as well as advancing its product roadmap to ensure long-term growth.

To mitigate the impact of the current challenges, Neonode is focusing on its MultiSensing® technology, which positions the company as a leader in synthetic, data-driven Human-Machine Interface (HMI) solutions. The company is actively working on existing projects, aiming to enhance partnerships in the automotive sector and explore new verticals where its technology can effectively address specific challenges.

In a strategic move, Neonode decided to transition its zForce® platform into maintenance mode, concentrating efforts on supporting existing clients while phasing out further development. This decision reflects the narrowing market potential for these solutions.

Summary

In conclusion, while Neonode faces notable challenges in its legacy business segments, the company is actively redefining its strategic direction. With a focus on innovative solutions like MultiSensing and the maintenance of key partnerships, Neonode aims to pave the way for sustainable growth and improved profitability in the coming years. The financial gains from patent assignments provide a stabilizing cushion that the company intends to leverage in its quest for broader opportunities in the tech landscape.

Contacts for More Information

For further details or inquiries, the President and CEO Pierre Daniel Alexus and CFO Fredrik Nihlén are available to provide more information regarding the company's financial standing and future prospects.