Neonode Reports 2025 Financial Results

STOCKHOLM, March 18, 2026 /PRNewswire/ -- Neonode Inc. (NASDAQ: NEON) ("Neonode" or the "Company") today reported financial results for the fiscal year ended December 31, 2025.

FINANCIAL SUMMARY FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025:

• Revenues from continuing operations of $2.1 million, a decrease of 33.7% compared to the prior year.
• Operating expenses from continuing operations of $10.2 million, an increase of 6.7% compared to the prior year.
• Gain from patent assignment of $15.5 million after brokerage fee.
• Income from continuing operations of $8.0 million, or $0.48 per share, compared to a loss of $5.9 million, or $0.37 per share, for the prior year.
• Cash used by operations of $10.3 million, compared to $5.6 million for the prior year.
• Cash and accounts receivable of $25.7 million as of December 31, 2025 compared to $17.2 million million for the prior year-end.

PATENT ASSIGNMENT HIGHLIGHTS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025:

• Gains from the patent assignment to Aequitas Technologies LLC ("Aequitas") amounted to $15.5 million. in cash paid in October 2025. This amount represents the final outcome of the process by Neonode Smartphone LLC, an unrelated third party that is a subsidiary of Aequitas ("Aequitas Sub"), against Samsung Electronics Co., Ltd. and Samsung Electronics America, Inc., excluding any potential tax recoveries.
• On September 15, 2025, the United States District Court for the Northern District of California granted a joint motion to lift the stay in the case between Aequitas Sub and Apple Inc. (assigned docket number 6:20-cv-00505-ADA). The legal proceedings between the two parties will now resume.

THE CEO'S COMMENTS

"2025 was a year of meaningful transformation, even as we continued to face significant top-line pressure. This transformation laid the foundation for a refocused strategic direction as we move into 2026. As part of this shift, we transitioned the zForce platform into maintenance mode to intensify our focus on our MultiSensing technology platform and direct our efforts and investments toward computer vision and machine learning technology leadership," said Daniel Alexus, President & CEO of Neonode.

"We also realigned our go-to-market approach by unifying our sales and marketing organizations and appointing a new Executive Vice President for Sales & Marketing to our leadership team – now consisting of the CEO, CFO, EVP Product & Engineering, and EVP Sales & Marketing. We believe this unified and strengthened structure positions us to execute on our strategy with a strong commercial focus and alignment around our MultiSensing platform and target markets."

"Within MultiSensing, we prioritized customer delivery throughout the year, which culminated with the start of production with our previously announced commercial vehicle OEM in December – an important validation of our solution maturity and commercial readiness. While our legacy zForce business continued its expected decline as part of the planned transition, we experienced growth with NEXTY Electronics as they moved their zForce-based next-generation amusement systems into production late in the year," Mr. Alexus continued.

"In 2026, our focus is squarely on driving growth for our MultiSensing business. This includes expanding license revenues from our first DMS production customer and advancing additional strategic partnerships across the automotive industry. Although automotive OEMs are navigating cost pressures, geopolitical uncertainty, and consolidation, the in-cabin sensing market remains on a long-term growth trajectory, driven by regulatory requirements, advancements in autonomy, and heightened expectations for enhanced cabin experiences."

"Beyond automotive, we are also evaluating additional growth verticals where MultiSensing offers a strong product-market fit and we can shorten time to revenue for our investments into our technology platform," Mr. Alexus concluded.

FINANCIAL OVERVIEW FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025

Revenues from continuing operations for fiscal 2025 were $2.1 million, a 33.7% decrease compared to 2024. License revenues were $1.8 million, a decrease of 32.2% compared to 2024. The decrease was mainly due to lower demand for our legacy customers' products within printer and passenger car touch applications. Revenues from non-recurring engineering for fiscal 2025 were $0.2 million, a 43.0% decrease compared to 2024.

Operating expenses from continuing operations for fiscal 2025 were $10.2 million, a 6.7% increase compared to 2024. The increase was mainly due to unfavorable exchange rate development and higher professional fees.

Gain from the patent assignment to Aequitas after a brokerage fee payable by the Company in connection with the original assignment was $15.5 million.

Income from continuing operations for fiscal 2025 was $8.0 million, or $0.48 per share, compared to a loss from continuing operations of $5.9 million, or $0.37 per share for 2024.

Cash used by operations was $10.3 million in fiscal 2025 compared to $5.6 million for 2024. The decrease was primarily due to the brokerage fee payable by the Company in connection with the original patent assignment to Aequitas.

Cash and accounts receivable totaled $25.7 million and working capital for continuing operations was $24.1 million as of December 31, 2025, compared to $17.2 million and $16.1 million as of December 31, 2024, 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

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