Pixelworks Inc Reports Q2 2025 Earnings: EPS Beats Estimate, Revenue Misses Estimate

Pixelworks Inc reported Q2 2025 revenue of $8.3mln, below the estimate of $8.5mln, but up 16% sequentially. The company achieved a GAAP net loss of $6.7mln, or ($1.27) per share, which beat the estimated EPS of -1.32. Pixelworks also reduced operating expenses to $11.1mln, down from $15.1mln in Q2 2024. The company is pursuing strategic opportunities, including collaborations for mobile visual processors and expanding its TrueCut Motion business.

Pixelworks Inc. reported its second-quarter 2025 earnings, revealing mixed results that included a revenue miss but an EPS beat. The company's revenue came in at $8.3 million, falling short of the estimated $8.5 million, but up 16% sequentially from the previous quarter [1]. The company's GAAP net loss was $6.7 million, or ($1.27) per share, which exceeded the estimated EPS of -$1.32. Operating expenses were reduced to $11.1 million, down from $15.1 million in Q2 2024 [2].

Despite the revenue miss, Pixelworks shares rose by 11.79% in aftermarket trading, closing at $8.53. This movement suggests investor optimism, possibly driven by strategic initiatives and future growth prospects. The stock’s performance contrasts with its 52-week high of $15.03 and low of $4.669.

Pixelworks is focusing on strategic initiatives in the mobile and visual processing sectors. The company anticipates increased profitability in its Shanghai subsidiary by Q4 2025, alongside exploring ASIC design services and IP licensing opportunities. CEO Todd DeBonis highlighted the company’s strategic focus, stating, "We are seeing progression and we currently have active IP evaluations underway with three tier one system companies in China and one tier one system company in North America" [2].

The company’s revenue of $8.3 million showed an improvement from $7.1 million in Q1 2025 but was lower than the $8.5 million recorded in the same quarter of 2024. The company continues to focus on its TrueCut Motion platform and mobile visual processors, aiming to capitalize on emerging opportunities in the mobile and display markets.

References:
[1] https://www.ainvest.com/news/pixelworks-q2-2025-unraveling-contradictions-revenue-streams-growth-projections-2508/
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-pixelworks-q2-2025-reveals-significant-eps-miss-93CH-4186866