NEON · Neonode Inc.

Neonode's Q1 2026 results reflect a modest revenue recovery driven by new license agreements, particularly in the MultiSensing platform, which transitioned from development to production with an automotive OEM. Revenue increased 19.7% year-over-year to $0.6 million, with license fees up 19.1% to $0.6 million and non-recurring engineering revenue rising 37.5% to $22,000. However, operating expenses grew 8.6% to $2.7 million, primarily due to higher professional fees for ISO recertifications and tax analysis, leading to a slight widening of the operating loss to $2.1 million from $2.0 million. Net loss from continuing operations was $1.9 million ($0.11 per share), compared to $1.8 million ($0.11 per share) a year ago. Cash used by operations increased to $2.1 million from $1.4 million, driven by higher net loss and working capital changes. The company ended the quarter with $23.2 million in cash and equivalents and $0.5 million in accounts receivable, totaling $23.8 million, down from $25.8 million at year-end 2025. Management highlighted the strategic shift toward MultiSensing licensing and continued decline in legacy zForce business, particularly in printer and automotive infotainment segments. The company is focusing on automotive partnerships and exploring retail opportunities in loss prevention and analytics. No forward guidance was provided.