Core Insights - Pixelworks, Inc. reported improved financial results for Q3 2025, with all metrics meeting or exceeding guidance [3][5] - The company achieved a gross margin of approximately 50% for the quarter, benefiting from cost reduction measures [3][6] - Subsequent to Q3, Pixelworks completed a registered direct offering and sold non-strategic patents, generating approximately $10 million in cash [4][17] Financial Performance - Q3 2025 revenue was $8.8 million, up 6% sequentially from $8.3 million in Q2 2025, but down from $9.5 million in Q3 2024 [5][17] - GAAP gross profit margin for Q3 2025 was 49.8%, compared to 45.8% in Q2 2025 and 51.2% in Q3 2024 [6][28] - The company recorded a GAAP net loss of $4.4 million, or ($0.81) per share, an improvement from a loss of $6.7 million in Q2 2025 and $8.1 million in Q3 2024 [8][25] Operational Highlights - Operating expenses decreased to $10.0 million in Q3 2025 from $11.1 million in Q2 2025 and $13.5 million in the same quarter last year [6][7] - Non-GAAP net loss for Q3 2025 was $3.8 million, or ($0.69) per share, compared to a loss of $5.3 million in Q2 2025 and $7.1 million in Q3 2024 [9][26] - 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 [11][29] Strategic Initiatives - The company announced a definitive purchase agreement to sell its Pixelworks Shanghai subsidiary, which is expected to unlock substantial value for shareholders [4][17] - Pixelworks collaborated with realme on the launch of new smartphones featuring its visual processing technology, enhancing its market presence [17][31]