Neonode Inc. (NEON) AI Stock Analysis

Neonode Inc. specializes in developing advanced optical sensing solutions that enable contactless touch, traditional touch, and gesture sensing technologies across the United States, Japan, South Korea, China, and other markets. The company provides machine learning-powered software for scene analysis to detect and track individuals and objects in video streams. Neonode licenses proprietary technologies to OEMs and Tier 1 suppliers, provides embedded sensor modules to ODMs and systems integrators, and offers engineering consulting services. It also markets branded sensor products such as AirBar, serving office equipment, automotive, industrial automation, medical, military, and avionics sectors.

Revenue contracted consistently from $5.8M in FY2021 to $5.7M in FY2022, $3.8M in FY2023, $3.1M in FY2024, and $2.1M in FY2025, producing a 5-year revenue CAGR of -19.2%. Annual revenue growth fell 33.7% in FY2025, while gross margin stood at 82.4% and operating margin was -391.5%. Despite an operating loss, FY2025 net income reached $8.5M with net margin at 411.9%, though EPS remained negative at -$0.32. Over the trailing twelve months, revenue totaled $2.0M, with an operating margin of -486.6% and profit margin of 397.8%. In the latest quarter ended June 30, 2026, revenue fell 20.4% year-over-year.

As of June 30, 2026, Neonode held $21.3M in cash and short-term investments alongside total debt of $1.1M, yielding net cash of $20.3M. The company maintains strong liquidity with a current ratio of 10.86 and a debt-to-equity ratio of 0.05 against shareholders' equity of $20.8M. Operating cash flow in FY2025 was -$10.3M, matching free cash flow of -$10.3M. Capital expenditures totaled $91,000 in FY2025, while the share count expanded by 45.4% over 5 years.

With a market capitalization of $12.9M and enterprise value of -$6.3M, Neonode trades at a price-to-sales ratio of 6.3x, compared to the median of 2.8x for its US-listed Technology peers. Its trailing price-to-earnings ratio is 1.6x and forward P/E is 9.3x, compared to peer medians of 28.1x and 18.8x, respectively. The stock's EV-to-EBITDA stands at 0.7x versus the peer median of 16.6x. Over the past year, Neonode shares fell 77.4%, significantly underperforming the S&P 500 return of 16.8%. Over 5 years, the stock returned -91.1% against 83.0% for the S&P 500.

Neonode has coverage from 1 analyst providing estimates for the next fiscal year. The mean price target is $6.00, representing an upside of 679.2% over the last close of $0.77. For the next fiscal year, consensus estimates forecast an EPS of -$0.38, reflecting 7.3% growth, alongside revenue of $3.5M, representing 43.4% growth. Over the last four quarters, the company delivered 2 EPS beats. The next earnings date is scheduled for November 5, 2026.

This page is an AI-written research summary of Neonode Inc. (NEON). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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