Pixelworks Earnings Call Transcripts
Fiscal Year 2026
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Q2 2026 marked the first full quarter as a pure-play technology licensing company, with revenue of $64,000 and a 60.9% gross margin. The company remains well-capitalized, expanded its premium exhibitor network, and signed its first major device certification agreement, expecting sequential revenue growth in Q3.
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Q1 2026 marked a transformation with the sale of the Shanghai subsidiary, restructuring, and a shift to a focused technology licensing model. Revenue was $450K, gross margin 56.7%, and cash ended at $58M with no debt. Industry trends favor premium large format content.
Fiscal Year 2025
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Transformed into a technology licensing company after selling its Shanghai subsidiary, with a strong cash position of $58 million projected for March 2026. Focus is on expanding TrueCut Motion adoption in premium theaters, with high gross margins and reduced operating expenses.
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Q3 2025 saw 6% sequential revenue growth, improved gross margin, and reduced operating expenses. A transformative sale of the Shanghai subsidiary is expected to yield $50–$60 million, enabling a shift to a technology licensing model and enhancing financial flexibility.
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Q2 2025 saw sequential revenue growth to $8.3M, improved margins, and reduced operating expenses. TrueCut Motion gained traction in premium cinema and home devices, while the Shanghai subsidiary's strategic review nears completion. Q3 revenue is guided at $8.5–$9.5M.
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Q1 2025 revenue declined year-over-year due to seasonality and lower end-of-life product sales, but mobile showed sequential growth. Cost reductions are driving lower operating expenses, and profitability for the Shanghai subsidiary is targeted for H2 2025. Q2 revenue is guided between $8M and $9M.
Fiscal Year 2024
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Q4 revenue declined year-over-year due to mobile headwinds, but gross margin and operating expenses improved from cost reductions and favorable mix. Strategic review of the Shanghai subsidiary continues, while TrueCut Motion achieved key studio agreements and device maker interest. Sequential mobile revenue growth is expected in 2025.
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Q3 revenue reached $9.5M, with gross margin expanding to 51.3% and operating expenses declining due to cost reductions. Mobile revenue fell sharply year-over-year, but new products and cost actions position the business for growth in 2025.
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Q2 2024 revenue was $8.5M, with gross margin above 50% and significant cost reductions implemented. Mobile revenue declined due to a major customer pause, but sequential growth is expected in Q3, supported by new product launches and stable home/enterprise performance.