Pixelworks (PXLW) Announces Q3 Loss, Falls Short of Revenue Projections
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 11 2025
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Source: NASDAQ.COM
Quarterly Performance: Pixelworks reported a quarterly loss of $0.69 per share, better than the expected loss of $0.86, marking a 19.77% earnings surprise. However, revenues of $8.77 million fell short of estimates and decreased from $9.53 million a year ago.
Stock Outlook: The company's stock has underperformed, losing about 30% since the start of the year, while the S&P 500 gained 16.2%. The current Zacks Rank for Pixelworks is #3 (Hold), indicating expected performance in line with the market.
Earnings Estimates: The consensus EPS estimate for the upcoming quarter is -$0.74 on $10 million in revenues, with a fiscal year estimate of -$3.90 on $34.3 million in revenues. The trend of earnings estimate revisions will be crucial for future stock performance.
Industry Context: Pixelworks operates in the Electronics - Semiconductors industry, which ranks in the top 33% of Zacks industries. Comparatively, Ambarella, another company in the same sector, is expected to report strong earnings growth in its upcoming results.
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Analyst Views on PXLW
Wall Street analysts forecast PXLW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PXLW is 12.00 USD with a low forecast of 12.00 USD and a high forecast of 12.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 6.540
Low
12.00
Averages
12.00
High
12.00
Current: 6.540
Low
12.00
Averages
12.00
High
12.00
About PXLW
Pixelworks, Inc. is a provider of visual processing semiconductor and software solutions. Its primary target markets are Mobile (smartphone and tablet), Home & Enterprise (projectors, personal video recorders, and over-the-air streaming devices), and Cinema (creation, remastering, and delivery of digital video content). The Company’s product categories include Semiconductor Hardware and Software and Platform Licensing. Its Semiconductor Hardware products include Visual Processor integrated circuits (ICs) for mobile devices, ImageProcessor SoCs for digital projectors and Transcoder ICs for media players, set-top-box recorders. Its Software and Platform Licensing products include Pixelworks Pro display processing software for smartphones and TrueCut Motion platform for grading, content creation and distribution tools and device certification. Its core visual processing technologies include MotionEngine, Artificial Intelligence Based Display Processing, Advanced Scaling, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Pixelworks Completes Sale of Shares in Pixelworks Semiconductor
- Completion of Share Sale: Pixelworks announced the successful completion of its share sale in Pixelworks Semiconductor, with specific transaction amounts undisclosed, aimed at optimizing asset allocation and enhancing financial flexibility.
- Strategic Restructuring: This share sale is part of Pixelworks' strategic restructuring, intended to concentrate resources on core operations, thereby improving overall operational efficiency and market competitiveness.
- Financial Impact: Through this transaction, Pixelworks expects to improve its balance sheet, although the specific financial implications remain unclear, it is anticipated to provide more funding support for future investments.
- Market Reaction: The market reacted positively to the share sale, with analysts believing it will help Pixelworks better address industry challenges and seize opportunities in emerging markets.
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Pixelworks Closes Sale of Subsidiary for $51 Million
- Transaction Completion: Pixelworks successfully closed the sale of its shares in Pixelworks Semiconductor Technology (Shanghai) Co., Ltd., resulting in net cash proceeds of approximately RMB 357 million ($51 million), which will enhance the company's cash flow and support future investments.
- Tax Matters Handling: Approximately RMB 8.7 million ($1.2 million) from the transaction is being held in an escrow account to be released upon resolution of certain tax matters in China, reflecting the company's cautious approach to compliance.
- Shareholder Rights Release: With the completion of this transaction, all previous repurchase rights held by former shareholders of Pixelworks Shanghai were fully released, further simplifying the company's equity structure and aiding future strategic decisions.
- Market Positioning Strengthened: This transaction allows Pixelworks to focus more on its core business, enhancing its competitive position in the video and display processing solutions market, which is expected to yield higher growth potential for the company.
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