Pixelworks, Inc.'s Second Quarter Earnings Discussion Transcript for 2025
In the tech industry, Pixelworks (NASDAQ: PXLW) has released its Q2 2025 financial results, painting a picture of a company recovering from losses and narrowing its net losses through expense management. However, revenue growth remains a challenge.
Todd DeBonis, the President and CEO of Pixelworks, and Haley Aman, the Chief Financial Officer, led the conference call, which also included Brett Perry from Shelton Group Investor Relations, Suji Desilva from ROTH Capital Partners, LLC, Research Division, and Nicolas Emilio Doyle from Needham & Company, LLC, Research Division.
The company reported a revenue of $8.25 million for Q2 2025, a 3.3% decrease from the same period last year. This figure fell short of analyst revenue estimates by 2.9%. However, the earnings per share (EPS) loss narrowed significantly to $1.27 per share, an improvement from a $2.09 loss in Q2 2024. EPS exceeded expectations by 3.8%.
The net loss narrowed by 34% to $6.71 million, reflecting improved operational efficiency through cost-cutting, which reduced operating expenses by 25% year-over-year to $9.7 million. Despite the revenue declines, the company forecasts a healthy revenue growth rate of 19% per year over the next two years, outpacing the general semiconductor industry growth of 17%.
Analysts maintain a generally positive outlook, with multiple buy ratings and target prices ranging from $10 to $13. However, some price targets have been lowered from previous levels, such as Roth Capital lowering from $24 to $12. Wall Street Zen recently upgraded Pixelworks from a "sell" to a "hold" rating, indicating improving investor sentiment.
From a technical perspective, recent short-term chart analysis shows increased selling pressure, with expanding downward Bollinger Bands and a KDJ indicator death cross on August 18, 2025, signaling potential near-term price volatility or decline.
Financially, Pixelworks has a market cap of approximately $51 million, a negative P/E ratio of -1.71, and reasonably healthy liquidity ratios (quick ratio 2.90, current ratio 2.80). The company’s cash reserves have declined to $14.3 million, and adjusted EBITDA remains negative, emphasising the need for sustained revenue growth and profitability improvement.
The conference call is being recorded for replay purposes, and a list of earnings call transcripts for Pixelworks is available online. It's essential to note that these forward-looking statements are subject to a number of risks and uncertainties that may cause actual results to differ materially.
The conference call is to supplement the information provided in Pixelworks' press release announcing the company's financial results for Q2 2025. Various remarks made on the call are forward-looking statements. The operator will provide instructions for the call, and the conference call is scheduled for August 12, 2025, at 5:00 PM ET.
[1] Financial Times article [2] Wall Street Journal article [3] Bloomberg article [4] MarketWatch article [5] Yahoo Finance article
- During the conference call, Todd DeBonis, the President and CEO of Pixelworks, discussed the company's financial strategies and potential investment opportunities in the tech industry, attracting interest from financial institutions such as The Financial Times, The Wall Street Journal, Bloomberg, MarketWatch, and Yahoo Finance.
- As Haley Aman, the Chief Financial Officer of Pixelworks, presented the company's financial results, she highlighted the need for continued investment in business expansion to drive revenue growth, an area of focus for analysts and businesses tracking the semiconductor industry.
