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Pixelworks, Inc. (PXLW) Fundamental Analysis & AI Grade 2026

PXLW Nasdaq Services-Prepackaged Software OR CIK: 0001040161
Updated This Month • Analysis: May 15, 2026 • SEC Data: 2026-03-31
Combined AI Grade
D
85% Confidence
N/A
D
85% Conf
Pending
Analysis scheduled

📊 PXLW Key Takeaways

Revenue: $446.0K
Net Margin: 18,068.2%
Free Cash Flow: $-4.7M
Current Ratio: 28.21x
Debt/Equity: 0.00x
EPS: $12.46
AI Grade: D with 85% confidence
Pixelworks, Inc. (PXLW) receives a D fundamental grade with 85% confidence from our AI analysis based on SEC 10-K filings. With revenue of $446.0K, net profit margin of 18,068.2%, and return on equity (ROE) of 140.8%, Pixelworks, Inc. demonstrates mixed fundamentals in the Technology sector. Below is our complete PXLW stock analysis for 2026.

Is Pixelworks, Inc. (PXLW) a Good Investment?

Claude

Pixelworks is a non-functioning operating business with $446K in near-stagnant revenue and a $4.9M operating loss, generating negative operating and free cash flow. The $80.6M net income is entirely attributable to one-time non-operating gains, masking a fundamentally broken business model. The company is essentially a cash-holding entity slowly depleting reserves to fund unsustainable operations.

Pixelworks, Inc. Key Strengths (PXLW)

Claude
  • + No debt and clean balance sheet with $57.8M cash position providing runway
  • + Gross margin of 56.7% indicates legacy products retain unit economics
  • + Cash exceeds liabilities by 20.6x, providing interim financial flexibility

PXLW Stock Risks: Pixelworks, Inc. Investment Risks

Claude
  • ! Operating loss of -$4.9M with negative operating cash flow of -$4.6M indicates operations cannot sustain themselves
  • ! Revenue at $446K with +0.4% growth is effectively flat; business is in terminal decline
  • ! Net income of $80.6M driven entirely by non-operating/one-time gains, not sustainable business activity
  • ! Free cash flow of -$4.7M shows business is burning cash despite cash holdings

Key Metrics to Watch

Claude
  • * Operating cash flow trend (currently -$4.6M; any further deterioration indicates accelerating decline)
  • * Cash runway depletion rate (at -$4.7M FCF, current cash depletes in ~12 years if unchanged)
  • * Source and sustainability of non-operating gains driving net income

Pixelworks, Inc. (PXLW) Financial Metrics & Key Ratios

Revenue
$446.0K
Net Income
$80.6M
EPS (Diluted)
$12.46
Free Cash Flow
$-4.7M
Total Assets
$60.0M
Cash Position
$57.8M

💡 AI Analyst Insight

Strong liquidity with a 28.21x current ratio provides a solid financial cushion.

PXLW Profit Margin, ROE & Profitability Analysis

Gross Margin 56.7%
Operating Margin -1,100.9%
Net Margin 18,068.2%
ROE 140.8%
ROA 134.3%
FCF Margin -1,051.1%

PXLW vs Technology Sector: How Pixelworks, Inc. Compares

How Pixelworks, Inc. compares to Technology sector averages

Net Margin
PXLW 18,068.2%
vs
Sector Avg 18.0%
PXLW Sector
ROE
PXLW 140.8%
vs
Sector Avg 22.0%
PXLW Sector
Current Ratio
PXLW 28.2x
vs
Sector Avg 2.5x
PXLW Sector
Debt/Equity
PXLW 0.0x
vs
Sector Avg 0.5x
PXLW Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Pixelworks, Inc. Stock Overvalued? PXLW Valuation Analysis 2026

Based on fundamental analysis, Pixelworks, Inc. appears fundamentally strong relative to the Technology sector in 2026.

Return on Equity
140.8%
Sector avg: 22%
Net Profit Margin
18,068.2%
Sector avg: 18%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.00x
Sector avg: 0.5x

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.

Pixelworks, Inc. Balance Sheet: PXLW Debt, Cash & Liquidity

Current Ratio
28.21x
Quick Ratio
26.71x
Debt/Equity
0.00x
Debt/Assets
4.6%
Interest Coverage
-71.16x
Long-term Debt
$0.0

PXLW Revenue & Earnings Growth: 5-Year Financial Trend

PXLW 5-year financial data: Year 2020: Revenue $68.8M, Net Income N/A, EPS N/A. Year 2021: Revenue $55.1M, Net Income -$5.4M, EPS $-0.14. Year 2022: Revenue $70.1M, Net Income -$8.1M, EPS $-0.16. Year 2023: Revenue $70.1M, Net Income -$16.0M, EPS $-0.30. Year 2024: Revenue $59.7M, Net Income -$26.2M, EPS $-0.47.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Pixelworks, Inc.'s revenue has declined by 13% over the 5-year period, indicating business contraction. The most recent EPS of $-5.90 indicates the company is currently unprofitable.

PXLW Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-1,051.1%
Free cash flow / Revenue

PXLW Quarterly Earnings & Performance

Quarterly financial performance data for Pixelworks, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $8.8M -$4.4M $-0.81
Q2 2025 $8.3M -$5.1M $-1.27
Q1 2025 $7.1M -$5.1M $-0.09
Q3 2024 $9.5M -$5.1M $-0.12
Q2 2024 $8.5M -$5.1M $-0.11
Q1 2024 $10.0M -$5.1M $-0.09
Q3 2023 $16.0M -$4.5M $-0.08
Q2 2023 $13.6M -$4.6M $-0.09

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Pixelworks, Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$4.6M
Cash generated from operations
Capital Expenditures
$105.0K
Investment in assets
Dividends
None
No dividend program

PXLW SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Pixelworks, Inc. (CIK: 0001040161)

📋 Recent SEC Filings

Date Form Document Action
May 22, 2026 4 xslF345X06/edgardoc.xml View →
May 22, 2026 4 xslF345X06/edgardoc.xml View →
May 22, 2026 4 xslF345X06/edgardoc.xml View →
May 22, 2026 4 xslF345X06/edgardoc.xml View →
May 22, 2026 4 xslF345X06/edgardoc.xml View →

Frequently Asked Questions about PXLW

What is the AI rating for PXLW?

Pixelworks, Inc. (PXLW) has an AI grade of D with 85% confidence, based on fundamental analysis of SEC EDGAR filings.

What are PXLW's key strengths?

Claude: No debt and clean balance sheet with $57.8M cash position providing runway. Gross margin of 56.7% indicates legacy products retain unit economics.

What are the risks of investing in PXLW?

Claude: Operating loss of -$4.9M with negative operating cash flow of -$4.6M indicates operations cannot sustain themselves. Revenue at $446K with +0.4% growth is effectively flat; business is in terminal decline.

What is PXLW's revenue and growth?

Pixelworks, Inc. reported revenue of $446.0K.

Does PXLW pay dividends?

Pixelworks, Inc. does not currently pay dividends.

Where can I find PXLW SEC filings?

Official SEC filings for Pixelworks, Inc. (CIK: 0001040161) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is PXLW's EPS?

Pixelworks, Inc. has a diluted EPS of $12.46.

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 PXLW's fundamental grade?

Based on our AI fundamental analysis in June 2026, Pixelworks, Inc. has a D grade with 85% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is PXLW stock overvalued or undervalued?

Valuation metrics for PXLW: ROE of 140.8% (sector avg: 22%), net margin of 18,068.2% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.

What is PXLW's AI grade for 2026?

Our dual AI analysis gives Pixelworks, Inc. a combined D grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.

What is PXLW's free cash flow?

Pixelworks, Inc.'s operating cash flow is $-4.6M, with capital expenditures of $105.0K. FCF margin is -1,051.1%.

How does PXLW compare to other Technology stocks?

Vs Technology sector averages: Net margin 18,068.2% (avg: 18%), ROE 140.8% (avg: 22%), current ratio 28.21 (avg: 2.5).

Why is PXLW's return on equity (ROE) so high?

Pixelworks, Inc. has a return on equity of 140.8%, significantly above the Technology sector average of 22%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 18,068.2% net margin.

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 15, 2026 | Data as of: 2026-03-31 | Powered by Claude AI