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0001040161false00010401612025-05-132025-05-13

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): May 13, 2025

PIXELWORKS, INC.
(Exact name of registrant as specified in its charter)
 
Oregon   000-30269   91-1761992
(State or other jurisdiction
of incorporation)		   (Commission File Number)   (I.R.S. Employer
Identification No.)
 
16760 SW Upper Boones Ferry Rd., Suite 101
Portland, OR 97224
(503) 601-4545
(Address, including zip code, and telephone number, including
area code, of registrant’s principal executive offices)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock PXLW The Nasdaq Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company   ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐




Item 2.02    Results of Operations and Financial Condition.

On May 13, 2025, Pixelworks, Inc. (the “Company”) issued a press release announcing financial results for the three month period ended March 31, 2025 and held a conference call to discuss the Company's financial results. The press release and conference call contain forward-looking statements regarding the Company and include cautionary statements identifying important factors that could cause actual results to differ materially from those anticipated.

The press release issued May 13, 2025 is furnished herewith as Exhibit 99.1, to this Report and a copy of the Company's conference call script announcing these financial results is furnished herewith as Exhibit 99.2. The information in this Item 2.02, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liability of that Section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933 or the Exchange Act, except as otherwise stated in such filing.

Item 9.01    Financial Statements and Exhibits.

(d)    Exhibits.
    
Exhibit No. Description
99.1
99.2
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).









SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
  PIXELWORKS, INC.
(Registrant)
Dated: May 13, 2025 /s/ Haley F. Aman
 
Haley F. Aman
Chief Financial Officer






EX-99.1 2 pxlw_q1x25xearningsrelease.htm PRESS RELEASE Document

Exhibit 99.1
pixelworkslogo24.jpg

Pixelworks Reports First Quarter 2025 Financial Results

PORTLAND, Ore., May 13, 2025 – Pixelworks, Inc. (NASDAQ: PXLW), a leading provider of innovative video and display processing solutions, today announced financial results for the first quarter ended March 31, 2025.
First Quarter and Recent Highlights
•Total revenue of $7.1 million, with revenue from the mobile market increasing 140% sequentially
•Announced joint development with Tencent’s PerfDog and the introduction of new ‘Frame Generation’ benchmarking tool to evaluate and boost mobile gaming performance
•Formalized new collaborative partnership with a market-leading post production company, expanding the ecosystem for Pixelworks’ TrueCut Motion platform
•Pixelworks continued to advance discussions with key prospective third-parties related to potential strategic options following previous expressed interest in the Company’s Pixelworks Shanghai subsidiary
“First quarter results were consistent with our expectations, as revenue reflected anticipated first quarter seasonality in the home and enterprise market, partially offset by an initial recovery and sequential growth in mobile business,” commented Todd DeBonis, President and CEO of Pixelworks. “Notably, our reported results demonstrated significant realized benefits from our previous and ongoing actions to streamline our cost structure, with first quarter operating expenses down more than $2 million year-over-year.
“Driving renewed growth in mobile remains among our top priorities, and we continue to be encouraged by the depth of our current program engagements with mobile OEM customers, particularly those targeted at incorporating our new, low-cost mobile graphics accelerator solution in mid- and entry-level smartphones. In addition to our focused efforts in mobile, we are in active discussions with customers on adjacent revenue opportunities, including ASIC design services and IP licensing, which we expect to capitalize on over the coming quarters. Separately, during the quarter we formalized a strategic partnership for TrueCut Motion with a market-leading post production company, further expanding our TrueCut Motion ecosystem and facilitating broader industry adoption.
“Looking ahead, we are focused on executing our strategic and operational objectives in a dynamic global macroeconomic environment, while remaining committed to a streamlined cost structure and maintaining a path for our Pixelworks Shanghai subsidiary reaching profitability in the second half of 2025.”
First Quarter 2025 Financial Results
Revenue in the first quarter of 2025 was $7.1 million, compared to $9.1 million in the fourth quarter of 2024 and $16.1 million in the first quarter of 2024. The sequential decrease in first quarter revenue was driven by a combination of anticipated seasonality in the home and enterprise market as well as the prior quarter including higher sales of end-of-life products, partially offset by sequential revenue growth in the Company’s mobile business.
On a GAAP basis, gross profit margin in the first quarter of 2025 was 48.7%, compared to 54.6% in the fourth quarter of 2024 and 50.5% in the first quarter of 2024. First quarter 2025 GAAP operating expenses were $11.5 million, compared to $11.5 million in the fourth quarter of 2024 and $13.6 million in the year-ago quarter.
On a non-GAAP basis, first quarter 2025 gross profit margin was 49.9%, compared to 54.8% in the fourth quarter of 2024 and 50.7% in the year-ago quarter. First quarter 2025 non-GAAP operating expenses were $10.4 million, compared to $10.4 million in the fourth quarter of 2024 and $12.6 million in the year-ago quarter.


For the first quarter of 2025, the Company recorded a GAAP net loss of $7.8 million, or ($0.13) per share, compared to a GAAP net loss of $5.4 million, or ($0.09) per share, in the fourth quarter of 2024, and a GAAP net loss of $5.1 million, or ($0.09) per share, in the year-ago quarter. Note, the Company refers to “net loss attributable to Pixelworks, Inc.” as “net loss”.
For the first quarter of 2025, the Company recorded a non-GAAP net loss of $6.5 million, or ($0.11) per share, compared to a non-GAAP net loss of $4.3 million, or ($0.07) per share, in the fourth quarter of 2024, and a non-GAAP net loss of $4.0 million, or ($0.07) per share, in the first quarter of 2024.
Adjusted EBITDA in the first quarter of 2025 was a negative $5.8 million, compared to a negative $3.6 million in the fourth quarter of 2024 and a negative $3.2 million in the year-ago quarter.
Business Outlook
The Company’s current business outlook, including guidance for the second quarter of 2025, will be discussed as part of the scheduled conference call.
Conference Call Information
Pixelworks will host a conference call today, May 13, 2025, at 2:00 p.m. Pacific Time. Analysts and investors are invited to join the Company’s conference call using the following information:

First Quarter 2025 Conference Call
Date: Tuesday, May 13, 2025
Time: 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time)
Live Webcast Link: Click Here
Dial-in Participation Registration Link: Click Here

Advanced registration is required for dial-in participants. Please complete the linked registration form above to receive a dial-in number and dedicated PIN for accessing the conference call by phone. A live and archived audio webcast of the conference call will also be accessible via the investors section of Pixelworks’ website: www.pixelworks.com.

Pixelworks, Inc.
Pixelworks provides industry-leading content creation, video delivery and display processing solutions and technology that enable highly authentic viewing experiences with superior visual quality, across all screens – from cinema to smartphone and beyond. The Company has a 20-year history of delivering image processing innovation to leading providers of consumer electronics, professional displays, and video streaming services. For more information, please visit the company's web site at www.pixelworks.com.

Note: Pixelworks, TrueCut Motion and the Pixelworks logo are trademarks of Pixelworks, Inc.




Non-GAAP Financial Measures
This earnings release makes reference to non-GAAP gross profit margins, non-GAAP operating expenses, non-GAAP net loss and non-GAAP net loss per share, which exclude stock-based compensation expense and restructuring expense which are both required under GAAP. The press release also makes reference to and reconciles GAAP net loss and adjusted EBITDA, which Pixelworks defines as GAAP net loss attributable to Pixelworks before interest income and other, net, income tax provision, depreciation and amortization, as well as the specific items listed above.
Pixelworks management uses these non-GAAP financial measures internally to understand, manage and evaluate the business and establish its operational goals, review its operations on a period-to-period basis, for compensation evaluations, to measure performance, and for budgeting and resource allocation. Pixelworks management believes it is useful for management and investors to review, as applicable, both GAAP information and non-GAAP financial measures to help assess the performance of Pixelworks’ continuing business and to evaluate Pixelworks’ future prospects. These non-GAAP measures, when reviewed together with the GAAP financial information, provide additional transparency and information for comparison and analysis of operating performance and trends. These non-GAAP measures exclude certain items to facilitate management’s review of the comparability of our core operating results on a period-to-period basis.
Because the Company’s non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures and should be read only in conjunction with the Company’s consolidated financial results as presented in accordance with GAAP. A reconciliation between GAAP and non-GAAP financial measures is included in this earnings release which is available in the investor relations section of the Pixelworks website.
Safe Harbor Statement
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by use of terms such as “begin,” “continue,” “will,” “expect”, “believe,” “anticipate” and similar terms or the negative of such terms, and include, without limitation, statements about potential strategic options with respect to Pixelworks Shanghai, adjacent revenue opportunities, the adoption of our TrueCut Motion technology, and the potential for Pixelworks Shanghai reaching profitability in the second half of 2025. All statements other than statements of historical fact are forward-looking statements for purposes of this release, including any projections of revenue or other financial items or any statements regarding the plans and objectives of management for future operations. Such statements are based on management's current expectations, estimates and projections about the Company's business. These statements are not guarantees of future performance and involve numerous risks, uncertainties and assumptions that are difficult to predict. Actual results could vary materially from those contained in forward looking statements due to many factors, including, without limitation: the actual adoption of TrueCut Motion platform; the actual performance of the smartphone market; our ability to execute on our strategy; competitive factors, such as rival chip architectures, introduction or traction by competing designs, or pricing pressures; the success of our products in new or expanding markets; current global economic challenges, including the trade dispute and negotiations between the United States and other nations, including China; changes in the digital display and projection markets; seasonality in the consumer electronics market; our efforts to achieve profitability from operations; our limited financial resources; and our ability to attract and retain key personnel. More information regarding potential factors that could affect the Company's financial results and could cause actual results to differ materially from those discussed in the forward-looking statements is included from time to time in the Company's Securities and Exchange Commission filings, including its Annual Report on Form 10-K for the year ended December 31, 2024, as well as subsequent SEC filings.
The forward-looking statements contained in this release are as of the date of this release, and the Company does not undertake any obligation to update any such statements, whether as a result of new information, future events or otherwise.

[Financial Tables Follow]




PIXELWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
March 31, December 31, March 31,
2025 2024 2024
Revenue, net $ 7,094  $ 9,090  $ 16,054 
Cost of revenue (1) 3,642  4,124  7,940 
Gross profit 3,452  4,966  8,114 
Operating expenses:
Research and development (2) 6,523  6,916  8,073 
Selling, general and administrative (3) 4,632  4,425  5,534 
Restructuring 393  115  — 
Total operating expenses 11,548  11,456  13,607 
Loss from operations (8,096) (6,490) (5,493)
Interest income and other, net 97  141  434 
Government subsidies received 13  1,100  — 
Total other income, net 110  1,241  434 
Loss before income taxes (7,986) (5,249) (5,059)
Provision for income taxes 34  216  105 
Net loss (8,020) (5,465) (5,164)
Less: Net loss attributable to non-controlling interests and redeemable non-controlling interests 259  102  98 
Net loss attributable to Pixelworks Inc. $ (7,761) $ (5,363) $ (5,066)
Net loss attributable to Pixelworks Inc. per share - basic and diluted $ (0.13) $ (0.09) $ (0.09)
Weighted average shares outstanding - basic and diluted 60,587  59,228  57,472 
——————
(1) Includes:
Restructuring 75  —  — 
Stock-based compensation 10  12  18 
(2) Includes stock-based compensation 222  266  330 
(3) Includes stock-based compensation 519  638  727 




PIXELWORKS, INC.
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL INFORMATION *
(In thousands, except per share data)
(Unaudited)
Three Months Ended
March 31, December 31, March 31,
2025 2024 2024
Reconciliation of GAAP and non-GAAP gross profit
GAAP gross profit $ 3,452  $ 4,966  $ 8,114 
Restructuring 75  —  — 
Stock-based compensation 10  12  18 
Total reconciling items included in gross profit 85  12  18 
Non-GAAP gross profit $ 3,537  $ 4,978  $ 8,132 
Non-GAAP gross profit margin 49.9  % 54.8  % 50.7  %
Reconciliation of GAAP and non-GAAP operating expenses
GAAP operating expenses $ 11,548  $ 11,456  $ 13,607 
Reconciling item included in research and development:
Stock-based compensation 222  266  330 
Reconciling items included in selling, general and administrative:
Stock-based compensation 519  638  727 
Restructuring 393  115  — 
Total reconciling items included in operating expenses 1,134  1,019  1,057 
Non-GAAP operating expenses $ 10,414  $ 10,437  $ 12,550 
Reconciliation of GAAP and non-GAAP net loss attributable to Pixelworks, Inc.
GAAP net loss attributable to Pixelworks Inc. $ (7,761) $ (5,363) $ (5,066)
Reconciling items included in gross profit 85  12  18 
Reconciling items included in operating expenses 1,134  1,019  1,057 
Non-GAAP net loss attributable to Pixelworks Inc. $ (6,542) $ (4,332) $ (3,991)
Non-GAAP net loss attributable to Pixelworks Inc. per share - basic and diluted $ (0.11) $ (0.07) $ (0.07)
Non-GAAP weighted average shares outstanding - basic and diluted 60,587  59,228  57,472 
*Set forth above are reconciliations of the non-GAAP financial measure to the most directly comparable GAAP financial measure. The non-GAAP financial measure disclosed by the company has limitations and should not be considered a substitute for, or superior to, the financial measure prepared in accordance with GAAP, and the reconciliations from GAAP to Non-GAAP actuals should be carefully evaluated. Please refer to "Non-GAAP Financial Measures” in this document for an explanation of the adjustments made to the comparable GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors.



PIXELWORKS, INC.
RECONCILIATION OF GAAP AND NON-GAAP NET LOSS PER SHARE
(Figures may not sum due to rounding)
(Unaudited)
Three Months Ended
March 31, December 31, March 31,
2025 2024 2024
Dollars per share Dollars per share Dollars per share
Basic Diluted Basic Diluted Basic Diluted
Reconciliation of GAAP and non-GAAP net loss attributable to Pixelworks, Inc.
GAAP net loss attributable to Pixelworks Inc. $ (0.13) $ (0.13) $ (0.09) $ (0.09) $ (0.09) $ (0.09)
Reconciling items included in gross profit —  —  —  —  —  — 
Reconciling items included in operating expenses 0.02  0.02  0.02  0.02  0.02  0.02 
Non-GAAP net loss attributable to Pixelworks Inc. $ (0.11) $ (0.11) $ (0.07) $ (0.07) $ (0.07) $ (0.07)
*Set forth above are reconciliations of the non-GAAP financial measure to the most directly comparable GAAP financial measure. The non-GAAP financial measure disclosed by the company has limitations and should not be considered a substitute for, or superior to, the financial measure prepared in accordance with GAAP, and the reconciliations from GAAP to Non-GAAP actuals should be carefully evaluated. Please refer to "Non-GAAP Financial Measures” in this document for an explanation of the adjustments made to the comparable GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors.




PIXELWORKS, INC.
RECONCILIATION OF GAAP AND NON-GAAP GROSS PROFIT MARGIN *
(Figures may not sum due to rounding)
(Unaudited)
Three Months Ended
March, 31 December, 31 March 31,
2025 2024 2024
Reconciliation of GAAP and non-GAAP gross profit margin
GAAP gross profit margin 48.7  % 54.6  % 50.5  %
Restructuring 1.1  —  — 
Stock-based compensation 0.1  0.1  0.1 
Total reconciling items included in gross profit 1.2  0.1  0.1 
Non-GAAP gross profit margin 49.9  % 54.8  % 50.7  %
*Set forth above are reconciliations of the non-GAAP financial measure to the most directly comparable GAAP financial measure. The non-GAAP financial measure disclosed by the company has limitations and should not be considered a substitute for, or superior to, the financial measure prepared in accordance with GAAP, and the reconciliations from GAAP to Non-GAAP actuals should be carefully evaluated. Please refer to "Non-GAAP Financial Measures” in this document for an explanation of the adjustments made to the comparable GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors.





PIXELWORKS, INC.
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL INFORMATION *
(In thousands)
(Unaudited)
Three Months Ended
March 31, December 31, March 31,
2025 2024 2024
Reconciliation of GAAP net loss attributable to Pixelworks Inc. and adjusted EBITDA
GAAP net loss attributable to Pixelworks Inc. $ (7,761) $ (5,363) $ (5,066)
Stock-based compensation 751  916  1,075 
Restructuring 468  115  — 
Non-GAAP net loss attributable to Pixelworks Inc. $ (6,542) $ (4,332) $ (3,991)
EBITDA adjustments:
Depreciation and amortization $ 828  $ 691  $ 1,109 
Interest income and other, net (97) (141) (434)
Non-GAAP provision for income taxes 34  216  105 
Adjusted EBITDA $ (5,777) $ (3,566) $ (3,211)

*Set forth above are reconciliations of the non-GAAP financial measure to the most directly comparable GAAP financial measure. The non-GAAP financial measure disclosed by the company has limitations and should not be considered a substitute for, or superior to, the financial measure prepared in accordance with GAAP, and the reconciliations from GAAP to Non-GAAP actuals should be carefully evaluated. Please refer to "Non-GAAP Financial Measures” in this document for an explanation of the adjustments made to the comparable GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors




PIXELWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
March 31,
2025		 December 31,
2024
ASSETS
Current assets:
Cash and cash equivalents $ 18,504  $ 23,647 
Accounts receivable, net 5,371  5,804 
Inventories 5,004  4,210 
Prepaid expenses and other current assets 1,714  1,191 
Total current assets 30,593  34,852 
Property and equipment, net 5,860  6,500 
Operating lease right of use assets 2,907  3,368 
Other assets, net 693  945 
Goodwill 18,407  18,407 
Total assets $ 58,460  $ 64,072 
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND
SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 1,655  $ 1,400 
Accrued liabilities and current portion of long-term liabilities 7,043  6,581 
Current portion of income taxes payable 136  365 
Total current liabilities 8,834  8,346 
Long-term liabilities, net of current portion 217  375 
Deposit liability 12,998  13,109 
Operating lease liabilities, net of current portion 1,123  1,450 
Income taxes payable, net of current portion 824  914 
Total liabilities 23,996  24,194 
Redeemable non-controlling interest 27,533  27,396 
Total Pixelworks, Inc. shareholders’ equity (15,975) (10,568)
Non-controlling interest 22,906  23,050 
Total shareholders' equity 6,931  12,482 
Total liabilities, redeemable non-controlling interest and shareholders’ equity $ 58,460  $ 64,072 



Contacts:
Investor Contact
Shelton Group
Brett Perry
P: +1-214-272-0070
E: bperry@sheltongroup.com

Company Contact
Pixelworks, Inc.
Haley Aman
P: +1-503-601-4540
E: haman@pixelworks.com
EX-99.2 3 q12025conferencecallscript.htm CONFERENCE CALL SCRIPT Document

Exhibit 99.2


Pixelworks, Inc. 1Q 2025 Conference Call
Tuesday, May 13, 2025

Operator
Good day ladies and gentlemen, and welcome to Pixelworks Inc.’s first quarter 2025 earnings conference call. I will be your operator for today’s call. At this time, all participants are in a listen-only mode. Following management’s prepared remarks, instructions will be given for the question-and-answer session. This conference call is being recorded for replay purposes. I would now like to turn the call over to Brett Perry with Shelton Group Investor Relations.
Brett Perry
Good afternoon and thank you for joining today’s call. With me on the call are Pixelworks’ President and CEO, Todd DeBonis, and Chief Financial Officer, Haley Aman. The purpose of today's conference call is to supplement the information provided in Pixelworks' press release issued earlier today announcing the Company's financial results for the first quarter of 2025.
Before we begin, I would like to remind you that various remarks we make on this call, including those about our projected future financial results, economic and market trends and our competitive position constitute forward-looking statements. These forward-looking statements and all other statements made on this call that are not historical facts are subject to a number of risks and uncertainties that may cause actual results to differ materially.
All forward-looking statements are based on the Company's beliefs as of today, Tuesday, May 13, 2025. The Company undertakes no obligation to update any such statements to reflect events or circumstances occurring after today. Please refer to today's press release, the Company’s annual report on Form 10-K for the year ended December 31, 2024, and subsequent SEC filings for a description of factors that could cause forward-looking statements to differ materially from actual results.
Additionally, the Company's press release and management statements during this conference call will include discussions of certain measures and financial information in GAAP and non-GAAP terms, including gross margin, operating expenses, net loss, and net loss per share. Non-GAAP measures exclude restructuring costs and stock-based compensation expense.
The Company uses these non-GAAP measures internally to assess its operating performance. We believe these non-GAAP measures provide a meaningful perspective on our core operating results and underlying cash flow dynamics. We caution investors to consider these measures in addition to, and not as a substitute for nor superior to, the Company's consolidated financial results as presented in accordance with GAAP.
Also note, throughout the Company's press release and management statements during this conference, we refer to net loss attributable to Pixelworks, Inc. as simply net loss. For additional details and reconciliations of GAAP to non-GAAP net loss and GAAP net loss to adjusted EBITDA, please refer to the Company’s press release issued earlier today.
With that, I will now turn the call over to Pixelworks’ CEO, Todd DeBonis, for his opening remarks.
Todd DeBonis
Thank you, Brett. Good afternoon and welcome to everyone on the phone and webcast. We appreciate you joining us for today’s conference call.
As reported in our press release earlier today, first quarter results were consistent with our expectations. Revenue reflected anticipated first quarter seasonality in the Home and Enterprise market, which was partially offset by sequential growth in our Mobile business. We also realized significant benefits from our previous and continued actions to streamline our cost structure, with first quarter operating expenses down more than $2 million year-over-year.
Similar to the format and flow of remarks last quarter, I’ll begin with comments on our TrueCut Motion business in the U.S., then review the developments specific to our majority owned Pixelworks Shanghai subsidiary, including an update on the strategic review process.
Starting with our TrueCut Motion platform. As discussed last quarter, achieving a tipping point for broader adoption and commercialization requires creating momentum across an ecosystem comprised of filmmakers, studios, content distributors and exhibitors, and device manufacturers. We continued to make tangible progress on all these strategic fronts over the last quarter.
First, with respect to the broader film industry. For the first time since the pandemic, there are indications of an uptick in activity from filmmakers and studios. This includes a positive trajectory for both the planned number and quality of new release theatrical titles, representing a positive shift in the overall industry landscape, from prolonged headwinds to a tailwind.


Specific to TrueCut Motion content, we are still targeting to double the number of titles year-over-year, from 5 in 2024 to 10 in 2025.
In line with this growth in titles, we are seeing announcements of major capital investments by exhibitors in both the standard and large format premium laser theaters that benefit the most from the TrueCut Motion format. As of today, our exhibition ecosystem includes over 1,500 of the world’s highest grossing premium theaters.
Additionally, we have maintained our focused efforts to expand the TrueCut ecosystem in support of accelerating future content growth and scaling access to motion grading capabilities. As evidence of our most recent progress and traction, during the quarter we formalized a strategic partnership with a market-leading post-production company. Notably, this partnership serves to bring TrueCut Motion further upstream in the larger post-production process, streamlining the accessibility of TrueCut motion grading tools to more filmmakers. As this and other partners come on board, we will scale our ability to bring filmmaker awareness of TrueCut, leading to further growth in title releases.
With our collective theatrical ecosystem efforts approaching critical mass, we’ve begun engaging in deeper discussions with targeted leading device companies to incorporate TrueCut Motion capability and certification in future devices. On our previous conference call, I referred to active dialogue with 3 major device brands. What I can share today is that we recently completed rigorous certification testing with one of these brands, allowing us to start jointly engaging with streaming services providers. This robust demonstration of a major improvement in the user experience for film in the home validates our progress toward the end goal of bringing TrueCut Motion to the mass market via home entertainment devices.
Turning to our Pixelworks Shanghai subsidiary, which as a reminder comprises all our semiconductor business, including open market and co-developed visual display processing chips for the mobile as well as home and enterprise markets.
Starting with an update on the Mobile business. As expected, mobile revenue increased sequentially in the first quarter, primarily reflecting shipments of visual processors in support of customers’ previously launched smartphone models. Driving renewed and sustained growth in mobile remains among our top priorities, and we are making steady progress on the product transition to our latest visual processing solutions. This includes expanding our served target market with our new, low-cost mobile graphics accelerator solution for mid- and entry-level smartphones. Our current focus continues to be on a co-development of capabilities with a lead mobile OEM customer on multiple programs targeted for launch later this year. Separately, we also have multiple active program engagements with additional mobile OEMs for both our X7 Prime solution as well as our latest flagship mobile visual processor.
Alongside our focused efforts to secure new design-ins for our latest visual processor solutions, we are continuing to drive innovation aimed at expanding the mobile gaming ecosystem. In April, we announced our strategic collaboration with Tencent's PerfDog, a well-established platform for mobile gaming performance testing. The motivation behind this collaborative project was to help the gaming ecosystem overcome specific technical challenges associated with objectively and reliably testing visual display performance across mobile devices that incorporate a dedicated visual processor. As a result, we jointly introduced with PerfDog the "Frame Generation" index, which is a multi-dimensional framework for quantifying and evaluating mobile gaming performance. This innovative index for performance testing provides gaming and smartphone developers with precise, real-time data for benchmarking, enabling enhanced optimization and ultimately superior visual display performance for mobile gaming.
Shifting to our Home and Enterprise business, which following our completed end-of-life shipments of transcoding products in the fourth quarter, is now exclusively comprised of our visual processor System-on-Chips for the 3LCD digital projector market. Revenue was down sequentially consistent with typical first quarter seasonality, as Japanese OEM customers managed-down internal inventories in advance of their fiscal year-end. Projector only revenue for the quarter was effectively flat year-over-year. Acknowledging the increasingly dynamic global macro and trade environment, we haven’t seen any significant impacts on the projector market, nor any change in order patterns from our large co-development customer. Barring any large global economic shifts, we continue to anticipate total projector business in 2025 to look similar to 2024.
Apart from our primary Mobile and Home and Enterprise businesses, I previously outlined several new adjacent revenue opportunities that our team is pursuing. Today, all these engagements remain in-play with the potential to contribute meaningful upside revenue in support of our focus on driving renewed growth and paving a path to profitability.
Briefly recapping these opportunities and their current status. First, we established a framework to provide ASIC design services, and we are engaged with a large international OEM to become the first customer for turn-key services as well as potential licensing of our display IP. We are currently in advanced discussions, including review and negotiation of technical details, with this anticipated lead customer, and we believe this initial design services engagement could contribute meaningful revenue as soon as the third quarter.


Separately, we are also continuing to advance discussions with several unrelated parties to license specific intellectual property for their products. These respective licensing opportunities span multiple different end markets and include the potential to accelerate our efforts toward expanding the mobile gaming ecosystem.
Finally, we now have two different prior transcoding customers that have indicated interest in ordering our recently end-of-life’d transcoding chips that are no longer in production. Our team has recently confirmed that a limited production run of these legacy chips is technically feasible if initiated within a prescribed period. As such, we are prepared to accommodate one or both customers should they choose to move forward.
Bringing everything together and looking at the big picture. We expected the first half to be challenging from a total revenue perspective. We proactively took a series of actions to significantly reduce our cost structure and streamline the entire organization. Today, we have engagements across a diverse set of primary and secondary opportunities to drive renewed top-line growth. Taken together, we are well positioned to meaningfully benefit from upside revenue, and we continue to believe that our Pixelworks Shanghai subsidiary is poised to reach profitability in the second half of 2025.
As most on this call are aware, we engaged Morgan Stanley and initiated a formal review process in the later part of 2024 after receiving inbound strategic interest in our Pixelworks Shanghai subsidiary. Together with our financial advisor, we have since been engaged in due diligence with several qualified parties, while also continuing to evaluate potential ownership and collaboration structures to determine a more optimal scenario for enhancing Pixelworks Shanghai’s long-term growth potential as well as maximizing value for existing shareholders. Although the outcome is yet to be determined, we believe the process itself is nearing closure and likely to result in a clear strategic direction for our Pixelworks Shanghai subsidiary within 90 days.
In summary. We are focused on executing our strategic and operational objectives in a dynamic global macroeconomic environment. We’ve significantly reduced our overall cost structure and expect to realize continued benefits from a more streamlined organization. With respect to our Pixelworks Shanghai subsidiary, we are encouraged by the depth of customer engagements on smartphone programs, particularly for our new mobile graphics accelerator solution. We are also continuing to advance and expect to capitalize on multiple near-term adjacent revenue opportunities over the next several quarters. Additionally, we remain committed to a path for our Pixelworks Shanghai subsidiary to reach profitability in the second half of 2025.
With our TrueCut business, we are continuing to make inroads toward an expanded ecosystem and achieving the critical mass required to bring Pixelworks’ TrueCut Motion platform to more consumers – both in premium large format theaters and ultimately to home entertainment devices.
With that, I’ll turn the call to Haley to review the financials and provide guidance for the second quarter.
Haley Aman
Thank you, Todd.
Revenue for the first quarter of 2025 was $7.1 million compared to $9.1 million in the fourth quarter and $16.1 million in the first quarter of 2024. The sequential decrease in revenue reflected a combination of anticipated first quarter seasonality in the Home and Enterprise market as well as the fourth quarter including higher sales of end-of-life transcoding products. These were partially offset by sequential revenue growth in Mobile in the first quarter.
The breakdown of revenue in the first quarter was as follows:
•Home and Enterprise revenue was approximately $5.8 million.
•Revenue from Mobile was approximately $1.3 million.
First quarter non-GAAP gross profit margin was 49.9%, compared to 54.8% in the fourth quarter of 2024, and 50.7% in the first quarter of 2024. The sequential decrease in first quarter gross margin was primarily a result of the shift in product mix – between our Home and Enterprise, and Mobile businesses – as well as less overhead absorption.
Non-GAAP operating expenses of $10.4 million in the first quarter were flat with the prior quarter, however decreased approximately $2.2 million from $12.6 million in the first quarter of 2024. This year-over-year decrease in first quarter operating expenses reflects our previously implemented cost reduction actions through the end of 2024. We’ve also taken additional cost reduction measures since the beginning of 2025, which we expect to result in further reductions in operating expenses beginning in the second quarter. Collectively, the cost reductions we have implemented over the past 12 months are expected to contribute to a total year-over-year decrease in operating expenses of approximately $10.0 million for the full year of 2025.


On a non-GAAP basis, first quarter 2025 net loss was $6.5 million, or a loss of ($0.11) cents per share, compared to a net loss of $4.3 million, or a loss of ($0.07) cents per share, in the prior quarter, and a net loss of $4.0 million, or a loss of ($0.07) cents per share, in the first quarter of 2024.
Adjusted EBITDA for the first quarter of 2025 was a negative $5.8 million, compared to a negative $3.6 million in the prior quarter and a negative $3.2 million in the first quarter of 2024.
Turning to the balance sheet, we ended the first quarter with cash and cash equivalents of $18.5 million, compared to $23.6 million at the end of the fourth quarter. As previously discussed, we have and continue to take actions to reduce overall costs and preserve our existing cash balance.
Shifting to our current expectations and guidance for the second quarter of 2025.
Based on our existing backlog, we currently expect total revenue for the second quarter to be in a range of between $8.0 million and $9.0 million.
For the second quarter, we expect non-GAAP gross profit margin to be between 40% and 42%. This range primarily reflects anticipated product mix within home and enterprise as well as a lower margin mobile product mix.
With respect to operating expenses, we expect second quarter operating expenses to be in a range of between $9.0 million and $10.0 million on a non-GAAP basis. Note, this range reflects the initial expected benefits associated with our cost reduction actions in March, and anticipates only partial realized benefits from our most recent cost actions taken in early May.
Lastly, we expect second quarter non-GAAP EPS to range between a loss of ($0.11) cents per share and a loss of ($0.08) cents per share.
That completes our prepared remarks, and we look forward to taking your questions. Operator, please proceed with the Q&A session. Thank you.