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what it is
Pixelworks sells chips and software that make phone, projector, and video screens look better.
how it gets paid
Last year Pixelworks made $43M in revenue. Mobile visual processing was the main engine at $24M, or 56% of sales.
what just happened
Quarterly revenue hit $24M, but EPS was -$3.59.
At a glance
C++ balance sheet — some cracks in the foundation
45/100 earnings predictability — expect surprises
-$5.88 fy2024 eps est
$43M fy2024 rev est
26.7% operating margin
xvary composite: 27/100 — weak
What they do
Pixelworks sells chips and software that make phone, projector, and video screens look better.
Pixelworks was one of the first companies to launch MEMC for smartphones. That means motion smoothing for phones, which sounds minor until your screen looks worse without it. With 196 employees, the company has to win by being specialized, not broad.
How they make money
$43M
annual revenue
Mobile visual processing
$24M
Home & Enterprise
$13M
Cinema
$6M
The products that matter
licenses display-processing IP
Visual Processing IP
$38M–$42M 2026 target
this is the new asset-light model. if it works, a business that posted $693K in 2025 revenue suddenly looks viable. if it misses, there is not much underneath it.
pivot bet
software and design portfolio
Cinematic & Enhanced Visualization Solutions
$693K in 2025 revenue
this is the portfolio being licensed out. the problem is scale: $693K of current revenue leaves very little margin for execution mistakes.
tiny base
cash-funded operating runway
Balance Sheet
$58M cash · $1M debt
for now, the balance sheet is part of the product. it is what gives management time to prove the licensing model can become a real business.
time to prove it
Key numbers
$43M
Annual sales
That is the whole business. If sales slip 10%, you are looking at $4.3M less revenue.
26.7%
Operating margin
The company loses $26.70 on every $100 of sales before interest and taxes.
1.6
Beta
The stock moves 60% more than the market, so your chart will lurch harder than the S&P 500.
$1M
Long debt
Debt is tiny versus revenue, so the balance sheet is not the main problem.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
- long-term debt $1M (2% of capital)
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for PXLW right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Quarterly revenue hit $24M, but EPS was -$3.59.
Revenue was up 175% from a year ago, and gross margin reached 48.1%. The catch is that the company still posted a loss, so growth has not fixed the model yet.
$11M
revenue
$3.59
eps
48.1%
gross margin
the number that mattered
The 48.1% gross margin is the best proof the chips still have pricing power, but overhead still pushes the company into the red.
source: company earnings report
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What could go wrong
the #1 risk here is failing to turn a $693K licensing base into $38M–$42M of 2026 revenue. this is not a normal growth target. it is the entire post-divestiture thesis.
med
licensing ramp misses the target
Management is guiding to $38M–$42M for 2026 after producing $693K in 2025 revenue. That gap is so large that even one delayed deal matters.
If the ramp slips, the stock stops being a turnaround story and starts looking like a cash shell with operating losses.
med
the balance sheet is doing too much work
Pixelworks has $58M in cash and only $1M in long-term debt. That's the good news. The uncomfortable part is that the balance sheet is currently more tangible than the business model.
If cash burn stays elevated while revenue remains tiny, your margin of safety shrinks quarter by quarter.
med
partner concentration comes with the model
A licensing business often depends on a small number of commercial relationships. The snapshot does not show a broad installed customer base yet, which is the point.
A narrow partner set makes revenue lumpier and gives counterparties more leverage in negotiations.
med
the stock can move faster than the fundamentals
Beta is 1.6 and price stability is 5 / 100. Translation: this name already trades like a fragile small-cap special situation.
Even modest operational disappointment can create outsized drawdowns when the market is pricing a turnaround.
A company worth about $36M has $58M in cash, but that only protects you if the operating model becomes real before the runway starts shortening.
source: institutional data · regulatory filings · risk analysis
Pay attention to
2026 target
revenue tracking against $38M–$42M
This is the make-or-break metric. A company with $693K in 2025 revenue does not get the benefit of the doubt for long.
quarterly
cash burn versus deal momentum
$58M in cash buys time. It does not buy proof. You want new licensing traction before the balance sheet starts doing all the storytelling.
next filings
evidence the model is repeatable
One deal can create a headline. Repeated commercial wins create a business. The distinction matters more here than usual.
volatility
whether the stock settles down
A 1.6 beta and 5 / 100 price stability tell you the market still treats PXLW like a speculative reset, not a proven operator.
Analyst rankings
earnings predictability
45 / 100
45 / 100 means the earnings path is less reliable than average. in human-speak, analysts do not expect a smooth quarterly story here.
risk profile
1.6 beta
beta measures how sharply a stock tends to move versus the market. at 1.6, PXLW has historically moved with extra force in both directions.
source: institutional data
Institutional activity
institutional ownership data for PXLW is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$7
current price
n/a
target midpoint · n/a from current
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