Neonode Inc. (NEON) Stock

Neonode Inc. (NEON) is a Technology stock trading at $1.00 (as of 2026-08-12), with a market capitalization of $16.78M and a trailing P/E of 2.1. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Neonode Inc. develops optical sensing technology used for contactless touch, touch, and gesture sensing, and provides related embedded sensor modules and technology licensing to OEMs, original design manufacturers, and systems integrators. It also offers software for video scene analysis and sells branded sensor products through distributors.

Understand Neonode Inc.: how it makes money

Neonode designs optical sensing chips and ML-based scene analysis software, selling embedded sensor modules and licensing its IP to electronics OEMs. Revenue is a thin mix of product sales, license fees, and one-time engineering fees, all currently at near-zero scale.

A 98% gross margin on near-zero revenue reveals a pure-IP model where the entire operating loss is a fixed R&D and overhead burden that dissolves only if licensing volume scales.

Business quality (Unprofitable): Unprofitable with no demonstrated path to positive operating cash flow at current revenue levels.

Bull case

  • Near-zero cost of goods: Gross margin of 98% means each dollar of product or license revenue carries almost no direct cost, so any meaningful scaling would flow almost entirely to operating income.

Bear case

  • Revenue shrinking to near zero: Top line declined roughly 20% year over year to essentially $0 in the quarter ended June 2026, indicating the commercial pipeline has not yet produced meaningful recurring sales.
  • Cash burn far exceeds revenue: Operating margin of -487% against near-zero revenue means the company is consuming cash at nearly five times its tiny top line, creating a concrete funding-timeline risk before the IP model ever scales.
Valuation — source: SEC EDGAR (first-party)
Price$1.00
Market Cap$16.78M
P/E Ratio2.1
EV / EBITDA-0.6
Price / Book0.81
Price / Sales8.22
FCF Yield-61.6%
DCF Value (model)$7.50
DCF Upside vs Price650.1%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$2.06M
Net Margin411.9%
Revenue Growth (YoY)-20.4%
EPS Growth (YoY)18.2%
FCF Growth (YoY)28.5%
Financial Health — source: SEC EDGAR
Altman Z-Score-4.58 (distress)
Valuation vs Sector & Industry
Stock P/E2.1
Sector P/E (Technology)31.8
Industry P/E (Electronic Equipment)38.0
vs Sector-93.5%
vs Industry-94.6%
Company
SectorTechnology
IndustryElectronic Equipment
CEOPierre Daniel Alexus
Employees40
CountrySE
IPO Date1989-01-09

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NEON earnings history · NEON institutional & insider holders · NEON KPIs & operating metrics · NEON financials · NEON investor presentations & press releases · NEON SEC filings · NEON peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-12.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.