Pixelworks Inc. Common Stock (PXLW)

FairStock Score: 32/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable earnings power, honest book value, and a price that leaves a margin of safety. Pixelworks does not yet show that. It sells video delivery, display processing, and TrueCut Motion content tools, but filed figures show fiscal Q2 2026, the quarter ended 2026-06-30, revenue of only $64,000 and a net loss of $2.8M. Fiscal Q1 2026, the quarter ended 2026-03-31, reported net income of $80.6M, but that result is wildly out of line with the surrounding losses and needs to be understood as an outlier until proven otherwise. For FY2025, ended 2025-12-31, revenue was $693,000 and net loss $22.5M; FY2024 revenue was $43.2M with a $28.7M net loss; FY2023 revenue was $59.7M with a $26.2M net loss. FairStock's Lynch category is none, because the company has lost money in each of the last four years. At the 2026-10-13 close of $5.58, FairStock calculates P/B 0.65, P/E -3.44, ROE -25.44%, ROCE -14.33%, FCF yield -47.3%, Piotroski 5/9, and Altman Z -1.19. The low D/E of 0.01 is a small comfort, but trailing free cash flow is -$16.0M, and the Altman score suggests financial distress. A sub-book price can be a bargain or a warning; here, with revenue near zero and continuing losses, it looks more like the latter. I see no evidence of a durable competitive moat—just intellectual property and licensing possibilities that must still be converted into repeatable profits.

In plain English: Pixelworks makes technology and software for video delivery, streaming, and display processing. The business is very weak: it is losing money, and revenue has collapsed in recent reports. At $5.58, the price does not look supported by current sales or profits and looks speculative rather than clearly cheap on fundamentals.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer