Pixelworks — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net revenue for the three months ended September 30, 2026, was $378,000, compared to $241,000 in the same period in 2025.
• Net revenue for the nine months ended September 30, 2026, was $888,000, compared to $400,000 in the same period in 2025.
• Gross profit for the three months ended September 30, 2026, was $348,000, compared to $217,000 in 2025.
• Gross profit for the nine months ended September 30, 2026, was $640,000, compared to $323,000 in 2025.
• Operating expenses for the three months ended September 30, 2026, were $3,783,000, compared to $2,834,000 in 2025.
• Operating expenses for the nine months ended September 30, 2026, were $12,348,000, compared to $8,544,000 in 2025.
• Research and development expenses for the three months ended September 30, 2026, were $1,472,000, compared to $932,000 in 2025.
• Research and development expenses for the nine months ended September 30, 2026, were $3,632,000, compared to $2,798,000 in 2025.
• Selling, general and administrative expenses for the three months ended September 30, 2026, were $2,311,000, compared to $1,902,000 in 2025.
• Selling, general and administrative expenses for the nine months ended September 30, 2026, were $6,627,000, compared to $5,746,000 in 2025.
• Restructuring expenses for the nine months ended September 30, 2026, were $2,089,000, compared to $0 in 2025.
• Loss from operations for the three months ended September 30, 2026, was $3,435,000, compared to a loss of $2,617,000 in 2025.
• Loss from operations for the nine months ended September 30, 2026, was $11,708,000, compared to a loss of $8,221,000 in 2025.
• Net loss from continuing operations for the three months ended September 30, 2026, was $2,775,000, compared to $2,563,000 in 2025.
• Net loss from continuing operations for the nine months ended September 30, 2026, was $10,140,000, compared to $7,958,000 in 2025.
• Net loss attributable to Pixelworks, Inc. for the three months ended September 30, 2026, was $2,775,000, compared to $4,432,000 in 2025.
• Net loss attributable to Pixelworks, Inc. for the nine months ended September 30, 2026, was a net income of $75,013,000, compared to a loss of $18,900,000 in 2025.
• Net loss per share (basic and diluted) from continuing operations for the three months ended September 30, 2026, was $0.46, compared to $0.47 in 2025.
• Net loss per share (basic and diluted) from continuing operations for the nine months ended September 30, 2026, was $1.63, compared to $1.51 in 2025.
• Net income per share (basic) attributable to Pixelworks, Inc. for the nine months ended September 30, 2026, was $12.03, compared to a loss of $3.59 in 2025.
• Cash, cash equivalents, and short-term marketable securities at the end of the third quarter were approximately $50 million.
• Cash and cash equivalents were $40,892,000 as of September 30, 2026, compared to $11,243,000 as of December 31, 2025.
• Short-term marketable securities were $8,932,000 as of September 30, 2026, compared to $0 as of December 31, 2025.
• Total assets were $51,017,000 as of September 30, 2026, compared to $51,263,000 as of December 31, 2025.
• Total liabilities were $1,947,000 as of September 30, 2026, compared to $20,857,000 as of December 31, 2025.
• Total shareholders' equity was $49,070,000 as of September 30, 2026, compared to $1,806,000 as of December 31, 2025.
• Accumulated deficit was $(453,366,000) as of September 30, 2026, compared to $(528,379,000) as of December 31, 2025.

Business Segments and Product Lines:

• Announced a multi-year device certification agreement with Meta to bring TrueCut Motion cinematic content to Meta's VR devices, including upcoming Meta VR Glasses.
• Collaborated with Universal Pictures on DreamWorks Animation's original animated comedy, Forgotten Island, which was theatrically released in late September.
• Executed a strategy focused on building and scaling a pure-play technology licensing business centered on TrueCut Motion and visualization solutions.
• Reported steady progress in growing the TrueCut Motion ecosystem of premium large-format exhibitors.
• Reported expanding the availability of cinematic TrueCut Motion-graded content.

Management Commentary and Tone:

• Todd DeBonis, Chairman and CEO, stated the company continued to execute on its strategy of scaling a pure-play technology licensing business.
• Management characterized the Meta agreement as a major milestone and the company's first major device manufacturer customer for TrueCut Motion device certification.
• Management noted the Meta agreement was achieved ahead of the original timeline for the device licensing program.
• Management expressed belief that the Meta partnership will meaningfully accelerate the pipeline of new TrueCut Motion-graded titles.
• Management stated the company remains well capitalized to execute on its strategy and drive momentum for TrueCut Motion content across theatrical and device experiences.

Other Key Points:

• Repurchased $1.2 million of shares of common stock for less than book value under the Company's stock repurchase program.
• Completed the transaction on January 6, 2026, to sell shares in Pixelworks Semiconductor Technology (Shanghai) Co., Ltd. to a special purpose entity led by VeriSilicon Microelectronics (Shanghai).
• The contribution from the Pixelworks Shanghai subsidiary to operating results for the three and nine months ended September 30, 2026, was determined to be immaterial.
• Reported financial results do not include discontinued operations activity from the first several days of January 2026 before the sale closed.
• Net income from discontinued operations for the nine months ended September 30, 2026, was $85,153,000, primarily driven by the sale of the Shanghai subsidiary.
• Net loss from discontinued operations for the three months ended September 30, 2025, was $2,030,000.
• Redeemable non-controlling interest was $0 as of September 30, 2026, compared to $28,600,000 as of December 31, 2025.
• Non-controlling interest was $0 as of September 30, 2026, compared to $22,898,000 as of December 31, 2025.