Stockholm, November 12th / PRNewswire / -- Neonode Inc (Nasdaq ticker: NEON) ("Neonode" or "the Company") today announced its financial results for the three months and nine months ending September 30, 2026.

Three-month financial summary as of September 30, 2026:

• Operating income for the ongoing business was $500,000, representing a growth of 24.4% compared to the same period last year.
• Operating expenses for ongoing operations amounted to $1.8 million, a decrease of 13.2% compared to the same period last year.
• The operating loss for the period was $1.1 million, equivalent to $0.07 per share; in the same period last year, revenue was $13.9 million, equivalent to $0.83 per share, which included a net income of $15.5 million from patent transfers.
• 1.6 million US dollars were used for operating activities this period, compared to 1.5 million US dollars in the same period last year.
• As of September 30, 2026, cash and accounts receivable amounted to 20.2 million US dollars, whereas as of December 31, 2025, it was 25.8 million US dollars.

Nine-month financial summary as of September 30, 2026:

• Operating income for the ongoing business was $1.6 million, an increase of 5.4% compared to the same period last year.
• The ongoing operating expenses amounted to 7.3 million US dollars, representing a 0.2% increase compared to the same period last year.
• The operating loss for the period was $5.1 million, equivalent to $0.31 per share; in the same period last year, revenue was $10.2 million, equivalent to $0.60 per share, which included a net income of $15.5 million from patent transfers.
• 5.6 million US dollars were used for operating activities this period, compared to 4.6 million US dollars in the same period last year.

CEO Comment

Neonode, President and CEO, Daniel Alexus stated: "In the third quarter, we continued to drive Neonode's transformation towards a more scalable software licensing business. Supported by the advancement of automotive licensing agreements and an increase in project deliveries, revenue grew by over 24% compared to the same period last year. In the third quarter, MultiSensing ® licensing revenue more than quadrupled compared to the third quarter of 2025. These advancements reflect our progress in transforming technology into customer value."

"At the same time, we have maintained cost discipline, with operating expenses lower than those of the same period last year."

Looking at the first nine months, both revenue and licensing income have increased, with licensing income growing by 13%, while operating expenses have remained relatively stable overall. From January to September 2026, MultiSensing's licensing income nearly quadrupled compared to the same period in 2025. However, our revenue base is still not sufficient to achieve profitability, and operating activities continued to consume cash this quarter. It remains crucial to convert business opportunities into revenue while controlling costs.

The significant change in year-on-year profitability mainly reflects the one-time income from patent transfers recognized in the third quarter of 2025. This contribution did not recur this year, therefore, this comparison should not be interpreted as a corresponding deterioration in the core business.

"Our priorities remain clear: to complete existing customer projects, to transform evaluations and contacts with partners into business agreements, and to develop our licensing business with financial discipline. Our liquidity provides the foundation for advancing these priorities. Our focus remains on transforming technological and commercial opportunities into sustainable revenue growth and long-term shareholder value," summarized Alexus.

Quarterly Financial Overview as of September 30, 2026

For the three months ending September 30, 2026, the continuing operations revenue was $500,000, which represents a 24.4% increase compared to the same period in 2025. Of this, licensing revenue amounted to $400,000, a 9.4% increase from the same period in 2025, mainly due to new licensing agreements. Non-recurring engineering revenue for that quarter was $91,000, a 279.2% increase from the same period in 2025, due to an increase in project deliveries.

For the three months ending September 30, 2026, the operating expenses for ongoing operations amounted to $1.8 million, which represents a decrease of 13.2% compared to the same period in 2025. This decrease is mainly attributed to reductions in wages and related costs, as well as a reduction in professional fees.

For the three months ending September 30, 2026, the operating loss amounted to $1.1 million, or $0.07 per share; in the same period of 2025, the operating income was $13.9 million, or $0.83 per share, which included a net income of $15.5 million from patent transfers.

In the third quarter of 2026, $1.6 million was used for operating activities, compared to $1.5 million during the same period in 2025. The increase was mainly due to reductions in accounts payable, accrued wages, and employee benefits.

As of September 30, 2026, cash and accounts receivable totaled 20.2 million US dollars, with working capital for ongoing operations amounting to 19.2 million US dollars; as of December 31, 2025, these figures were 25.8 million US dollars and 24.1 million US dollars respectively. The company's financial condition and liquidity provide stability, enabling it to pursue its strategy of seeking more opportunities for innovative technology licensing.

For more information, please contact:

President and Chief Executive Officer

Chief Financial Officer

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Downloadable file: SOURCE Neonode