📊 NEON Key Takeaways
Is Neonode Inc. (NEON) a Good Investment?
Neonode is experiencing severe operational deterioration with revenue collapsing 33.7% YoY to only $614K while operating cash flow and net income remain deeply negative. Despite a strong cash position of $23.2M and zero debt providing near-term liquidity, the company is burning approximately $2.1M quarterly with no clear path to profitability, suggesting a cash runway of roughly 11 quarters. Absence of insider purchases and microscopic revenue scale indicate fundamental business viability concerns.
Headline profitability and margins appear inflated by non-recurring or non-cash items and are not supported by operating cash flow. Core revenue is shrinking sharply and free cash flow is deeply negative, signaling weak earnings quality. While the balance sheet is cash-rich and debt-free, fundamentals need to stabilize before the risk/reward improves.
Neonode Inc. Key Strengths (NEON)
- Exceptional cash position of $23.2M with zero long-term debt provides liquidity buffer
- Strong balance sheet with $22.8M stockholders equity and 11.91x current ratio
- Extremely high gross margin of 99.3% indicates underlying product economics when scaled
- Debt-free, cash-rich balance sheet with minimal liabilities and 12x current ratio
- Licensing-heavy model with very high gross margins
- Recent net income and ROE strength bolster equity and liquidity runway
NEON Stock Risks: Neonode Inc. Investment Risks
- Revenue collapse of 33.7% YoY with absolute revenue of only $614K suggests terminal business decline
- Severe cash burn: operating cash flow of -$2.1M per quarter with estimated 11-quarter runway
- Deeply negative profitability: operating margin of -337.3% and net margin of -303.4% indicate unsustainable business model
- Zero insider Form 4 filings in 90 days signals lack of management confidence in recovery
- Business fundamentally unviable at current revenue scale relative to public company cost structure
- Core revenue decline (-33.7% YoY) at a very small scale
- Operating cash flow and FCF are deeply negative, indicating poor earnings quality
- Profitability likely driven by non-recurring items; EPS (diluted) still negative
Key Metrics to Watch
- Quarterly revenue trend - critical to assess if 33.7% decline stabilizes or accelerates
- Cash burn rate and remaining cash runway - determine near-term solvency window
- Operating cash flow and path to profitability - evaluate if business can become self-sustaining
- Gross margin sustainability - confirm if high margins can be maintained with scale
- Quarterly operating cash flow and free cash flow
- Core licensing/product revenue growth excluding one-offs
Neonode Inc. (NEON) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 11.91x current ratio provides a solid financial cushion.
NEON Profit Margin, ROE & Profitability Analysis
NEON vs Technology Sector: How Neonode Inc. Compares
How Neonode Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Neonode Inc. Stock Overvalued? NEON Valuation Analysis 2026
Based on fundamental analysis, Neonode Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Neonode Inc. Balance Sheet: NEON Debt, Cash & Liquidity
NEON Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Neonode Inc.'s revenue has declined by 64% over the 5-year period, indicating business contraction. The most recent EPS of $-0.66 indicates the company is currently unprofitable.
NEON Revenue Growth, EPS Growth & YoY Performance
NEON Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $513.0K | -$1.7M | N/A |
| Q3 2025 | $430.0K | -$1.1M | N/A |
| Q3 2024 | $838.0K | -$1.1M | $-0.07 |
| Q3 2020 | $1.2M | -$1.1M | N/A |
| Q2 2020 | $678.0K | -$1.3M | N/A |
| Q1 2020 | $1.2M | -$573.0K | N/A |
| Q3 2019 | $1.2M | -$809.0K | N/A |
| Q2 2019 | $1.5M | -$964.0K | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Neonode Inc. Dividends, Buybacks & Capital Allocation
NEON SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Neonode Inc. (CIK: 0000087050)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NEON
What is the AI rating for NEON?
Neonode Inc. (NEON) has a Combined AI Grade of C from Claude (D) and ChatGPT (C) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NEON's key strengths?
Claude: Exceptional cash position of $23.2M with zero long-term debt provides liquidity buffer. Strong balance sheet with $22.8M stockholders equity and 11.91x current ratio. ChatGPT: Debt-free, cash-rich balance sheet with minimal liabilities and 12x current ratio. Licensing-heavy model with very high gross margins.
What are the risks of investing in NEON?
Claude: Revenue collapse of 33.7% YoY with absolute revenue of only $614K suggests terminal business decline. Severe cash burn: operating cash flow of -$2.1M per quarter with estimated 11-quarter runway. ChatGPT: Core revenue decline (-33.7% YoY) at a very small scale. Operating cash flow and FCF are deeply negative, indicating poor earnings quality.
What is NEON's revenue and growth?
Neonode Inc. reported revenue of $614.0K.
Does NEON pay dividends?
Neonode Inc. does not currently pay dividends.
Where can I find NEON SEC filings?
Official SEC filings for Neonode Inc. (CIK: 0000087050) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NEON's EPS?
Neonode Inc. has a diluted EPS of $-0.21.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is NEON's fundamental grade?
Based on our AI fundamental analysis in May 2026, Neonode Inc. has a C grade with 77% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is NEON stock overvalued or undervalued?
Valuation metrics for NEON: ROE of -8.2% (sector avg: 22%), net margin of -303.4% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is NEON's AI grade for 2026?
Our dual AI analysis gives Neonode Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NEON's free cash flow?
Neonode Inc.'s operating cash flow is $-2.1M, with capital expenditures of $13.0K. FCF margin is -345.1%.
How does NEON compare to other Technology stocks?
Vs Technology sector averages: Net margin -303.4% (avg: 18%), ROE -8.2% (avg: 22%), current ratio 11.91 (avg: 2.5).