STOCKHOLM, Nov. 12, 2026 /PRNewswire/ — Neonode Inc. (NASDAQ: NEON) (“Neonode” or the “Company”) today reported financial results for the three and nine months ended September 30, 2026.

FINANCIAL SUMMARY FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2026:

• Revenues from continuing operations of $0.5 million, an increase of 24.4% compared to the same period in the prior year.
• Operating expenses from continuing operations of $1.8 million, a decrease of 13.2% compared to the same period in the prior year.
• Loss from continuing operations of $1.1 million, or $0.07 per share, compared to an income of $13.9 million, or $0.83 per share, for the same period in the prior year, which included the net gain from the patent assignment of $15.5 million.
• Cash used by operations of $1.6 million, compared to $1.5 million for the same period in the prior year.
• Cash and accounts receivable of $20.2 million as of September 30, 2026 compared to $25.8 million as of December 31, 2025.

FINANCIAL SUMMARY FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2026: 

• Revenues from continuing operations of $1.6 million, an increase of 5.4% compared to the same period in the prior year.
• Operating expenses from continuing operations of $7.3 million, an increase of 0.2% compared to the same period in the prior year.
• Loss from continuing operations of $5.1 million, or $0.31 per share, compared to an income of $10.2 million, or $0.60 per share, for the same period in the prior year, which included the net gain from the patent assignment of $15.5 million.
• Cash used by operations of $5.6 million, compared to $4.6 million for the same period in the prior year.

THE CEO’S COMMENTS

“During the third quarter, we continued the transformation of Neonode toward a more scalable software licensing business. Revenue grew by more than 24% compared with the same period last year, supported by the ramp-up of an automotive license agreement and increased engineering project deliveries. MultiSensing® licensing revenue more than quadrupled in the third quarter of 2026 compared with the third quarter of 2025. These developments reflect progress in translating our technology into customer business,” said Daniel Alexus, President & CEO of Neonode.

“Alongside this growth, we maintained cost discipline, with operating expenses lower than in the same quarter last year.”

“Looking at the first nine months, revenue and licensing income grew, including 13% growth in licensing, while operating expenses remained broadly stable. MultiSensing licensing revenue nearly quadrupled in January–September 2026 compared with the same period in 2025. However, our revenue base is not yet sufficient to achieve profitability, and operations continued to reduce our cash balance during the quarter. Converting commercial opportunities into revenue while keeping costs under control remains essential.”

“The substantial year-over-year difference in earnings primarily reflects the one-time gain from patent assignment recognized in the third quarter of 2025. That contribution was not repeated this year, and the comparison should not be interpreted as a corresponding deterioration in the underlying business.”

“Our priorities remain clear: deliver on existing customer programs, convert evaluations and partner engagements into commercial agreements, and build our licensing business with financial discipline. Our liquidity provides a foundation to pursue these priorities, and our focus remains on turning technology and commercial opportunities into sustainable revenue growth and long-term shareholder value,” concluded Mr. Alexus.

FINANCIAL OVERVIEW FOR THE QUARTER ENDED SEPTEMBER 30, 2026

Revenues from continuing operations for the three months ended September 30, 2026 were $0.5 million, an increase of 24.4% compared to the same period in 2025. License revenues were $0.4 million, an increase of 9.4% compared to the same period in 2025. The increase was mainly due to new license agreements. Revenues from non-recurring engineering for the three months ended September 30, 2026 were $91,000, an increase of 279.2% compared to the same period in 2025. The increase was the result of increased project deliveries.

Operating expenses from continuing operations for the three months ended September 30, 2026 were $1.8 million, a decrease of 13.2% compared to the same period in 2025. The decrease was mainly related to lower payroll and related costs and lower professional fees.

Loss from continuing operations for the three months ended September 30, 2026 was $1.1 million, or $0.07 per share, compared to an income from continuing operations of $13.9 million, or $0.83 per share, for the same period in 2025, which included the net gain from the patent assignment of $15.5 million.

Cash used by operations was $1.6 million in the third quarter of 2026 compared to $1.5 million for the same quarter in 2025. The increase was primarily due to a decrease in accounts payable, accrued payroll and employee benefits.

Cash and accounts receivable totaled $20.2 million and working capital for continuing operations was $19.2 million as of September 30, 2026, compared to $25.8 million and $24.1 million as of December 31, 2025, respectively. Our financial position and liquidity provide stability and enable us to execute our strategy to secure more licensing opportunities for our innovative technologies.

For more information, please contact:

President and Chief Executive Officer
Pierre Daniel Alexus
E-mail: daniel.alexus@neonode.com
Phone: +46 767 60 29 90

Chief Financial Officer
Fredrik Nihlén
E-mail: fredrik.nihlen@neonode.com
Phone: +46 703 97 21 09

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/neonode/r/neonode-reports-quarter-ended-september-30–2026-financial-results,c4423353

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SOURCE Neonode