Pixelworks(US:PXLW)2025-11-12 13:56Financial Performance - Third quarter 2025 revenue was $8.8 million, a 6% increase from $8.3 million in Q2 2025, but a decrease from $9.5 million in Q3 2024[6] - The company recorded a GAAP net loss of $4.4 million, or ($0.81) per share, an improvement from a net loss of $6.7 million in Q2 2025 and $8.1 million in Q3 2024[8] - Adjusted EBITDA for Q3 2025 was a negative $3.6 million, an improvement from negative $4.3 million in Q2 2025 and negative $6.3 million in Q3 2024[8] - Non-GAAP net loss attributable to Pixelworks Inc. for Q3 2025 was $3,754,000, compared to $5,304,000 in Q2 2025 and $7,083,000 in Q3 2024[24] - GAAP net loss attributable to Pixelworks Inc. for Q3 2025 was $4,432,000, an improvement from a loss of $6,707,000 in Q2 2025 and $8,141,000 in Q3 2024[24] Margins and Expenses - GAAP gross margin for Q3 2025 was 49.8%, up 400 basis points from 45.8% in Q2 2025, and down from 51.2% in Q3 2024[8] - Non-GAAP gross margin for Q3 2025 was 49.9%, compared to 46.0% in Q2 2025 and 51.3% in Q3 2024[8] - Operating expenses decreased to $10.0 million in Q3 2025, down from $11.1 million in Q2 2025 and $13.5 million in Q3 2024[8] - Operating expenses totaled $9,993 million, with research and development expenses at $5,720 million, reflecting a decrease from $5,998 million in the previous quarter[20] - Stock-based compensation for Q3 2025 was $754,000, compared to $739,000 in Q2 2025 and $1,042,000 in Q3 2024[24] - Restructuring costs for Q3 2025 were $0, down from $643,000 in Q2 2025 and $90,000 in Q3 2024[24] Cash Flow and Assets - The company realized a $3 million cash inflow from the sale of non-strategic patents[7] - Total current assets decreased to $25,331,000 as of September 30, 2025, down from $34,852,000 as of December 31, 2024[26] - Cash and cash equivalents decreased to $14,611,000 as of September 30, 2025, compared to $23,647,000 as of December 31, 2024[26] - Total assets decreased to $50,521,000 as of September 30, 2025, from $64,072,000 as of December 31, 2024[26] - The company's total shareholders' equity deficit was $(1,152,000) as of September 30, 2025, compared to $12,482,000 as of December 31, 2024[26] Revenue Drivers and Market Performance - Sales growth was driven by increased demand in the home and enterprise markets[6] - For the three months ended September 30, 2025, Pixelworks reported net revenue of $8,771 million, a 6.3% increase from $8,250 million in the previous quarter[20] - Gross profit for the same period was $4,371 million, resulting in a gross profit margin of 49.9%, compared to 46.0% in the previous quarter[21][23] - Pixelworks received government subsidies amounting to $467 million during the quarter, contributing to the overall financial performance[20] - The company reported a total other income of $518 million for the three months ended September 30, 2025, compared to $867 million in the previous quarter[20] Corporate Actions - Pixelworks announced a definitive purchase agreement to sell all shares of its Pixelworks Shanghai subsidiary, pending shareholder approval[5] - The company completed a registered direct offering generating net proceeds of approximately $6.5 million[7]