Earnings Releases·Nov 12, 2026, 6:06 AM ET

Pixelworks — Third Quarter 2026 Earnings Summary

Q3 2026 net revenue rose to $378,000 from $241,000 in the prior year period, while nine-month revenue increased to $888,000 from $400,000; however, operating losses widened to $3.435 million for the quarter and $11.708 million for the nine months due to higher operating expenses and $2.089 million in restructuring costs.
The company reported a net income of $75.013 million for the nine months ended September 30, 2026, compared to a net loss of $18.9 million in 2025, driven primarily by an $85.153 million gain from discontinued operations related to the sale of its Shanghai subsidiary.
Management secured a multi-year device certification agreement with Meta for TrueCut Motion technology, characterizing it as a major milestone and the first major device manufacturer customer, achieved ahead of the original licensing program timeline.
Balance sheet strength improved significantly with cash and short-term marketable securities totaling approximately $50 million as of September 30, 2026, while total liabilities decreased to $1.947 million from $20.857 million at the end of 2025.
Strategic activities included the repurchase of $1.2 million in common stock and the execution of a strategy to scale a pure-play technology licensing business centered on TrueCut Motion and visualization solutions.