#USA #Stockholm #Neonode #MultiSensing #zForce

Neonode Reports Quarter Ended March 31, 2026 Financial Results

Neonode Inc. (NASDAQ: NEON), known for its innovative touch technology solutions, has released its financial results for the first quarter of 2026, showing a significant growth trajectory alongside operational challenges. During the three months ending March 31, the company reported revenues from continuing operations amounting to $0.6 million. This figure reflects a 19.7% increase compared to the previous year, demonstrating strong performance across various geographical locations and licensing platforms.

The company's President and CEO, Daniel Alexus, expressed optimism about the recent performance, citing the growth as largely fueled by their flagship products, MultiSensing® and zForce®. He noted, “This growth was driven by performance across all geographies and both of our licensing platforms.” With MultiSensing transitioning from development to production for automotive OEM customers, Neonode has positioned itself to commence generating new licensing revenue streams.

Financial Highlights

• - Revenue: The revenue increase was not just limited to general sales but was also supported by new licensing agreements, which contributed to a 19.1% rise in license revenues. Additionally, revenues from non-recurring engineering surged by 37.5%, reaching $22,000 for the quarter, indicating a positive trend in project deliveries.

Despite the positive revenue growth, Neonode faced operational challenges. The operating expenses for the quarter stood at $2.7 million, an increase of 8.6% from the previous year, mainly attributed to higher professional fees related to ISO recertifications and tax analysis. The continued operational loss, reported at $1.9 million or $0.11 per share, mirrors last year’s loss, highlighting the ongoing need for strategic adaptation amidst evolving market demands.

Future Prospects

“While we anticipate continued decline in our zForce legacy business, particularly impacting the printer and automotive infotainment sectors due to subdued demand, we see promising opportunities for growth in MultiSensing as our automotive partner scales production,” Alexus elaborated on the contrasting performance sectors within the company.

Neonode's client strategy is focused on nurturing existing projects while seeking new strategic partnerships within the automotive sector and exploring verticals such as retail, where applications for loss prevention and customer analytics present significant opportunities for value creation.

Operational Overview and Cash Position

In terms of cash flow, operational expenses for Q1 2026 reached $2.1 million, up from $1.4 million in the same quarter last year, primarily due to increased operational costs and higher prepaid expenses. As of March 31, 2026, Neonode holds $23.8 million in cash and accounts receivable, a decrease from $25.8 million recorded at the end of 2025, illustrating the effects of elevated cash use in operations.

The company maintains a robust liquidity position, enabling them to pursue additional licensing opportunities for their cutting-edge technologies. With a focus on maintaining stability while expanding their market presence, Neonode looks toward the future with a strategic vision aimed at leveraging their technological advancements to drive profitability.

In summary, despite experiencing certain declines in legacy areas, Neonode’s innovative drive and strategic pivots towards new revenue channels appear to set a positive course for the company as they navigate through 2026.

For further inquiries and more information regarding their financial outlook, stakeholders can reach out to Pierre Daniel Alexus, President and CEO, or Fredrik Nihlén, CFO via the company's official communications.