NEON

Company Overview — What Does Neonode Inc. Do?

Neonode Inc., together with its subsidiaries, develops optical sensing solutions for contactless touch, touch, and gesture sensing in the United States, Japan, South Korea, China, and internationally. It also offers software solutions for scene analysis using advanced machine learning algorithms to detect and track persons and objects in video streams for cameras and other types of imagers. In addition, the company licenses its technology to original equipment manufacturers (OEMs) and Tier 1 suppliers. Further, it provides embedded sensors modules to OEMs, original design manufacturers, and systems integrators; and engineering consulting services. Additionally, the company sells Neonode branded sensor products, such as AirBar products through distributors. It serves office equipment, automotive, industrial automation, medical, military, and avionics markets. Neonode Inc. was incorporated in 1997 and is headquartered in Stockholm, Sweden. Neonode Inc. (NEON) is classified as a micro-cap stock in the Technology sector, specifically within the Electronic Equipment industry. The company is led by CEO Urban Forssell and employs approximately 50 people. With a market capitalization of $24M, NEON is one of the notable companies in the Technology sector.

Neonode Inc. (NEON) Stock Rating — Avoid (April 2026)

As of April 2026, Neonode Inc. receives a Avoid rating with a composite score of 30.4/100 and 1 out of 5 stars from the Blank Capital Research quantitative model.NEON ranks #3,990 out of 4,446 stocks in our coverage universe. Within the Technology sector, Neonode Inc. ranks #499 of 584 stocks, placing it in the lower half of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

NEON Stock Price and 52-Week Range

Neonode Inc. (NEON) currently trades at $1.37. The 52-week high for NEON is $29.90, which means the stock is currently trading -95.4% from its annual peak. The 52-week low is $1.45, putting the stock -5.5% above its annual trough. Recent trading volume was 78K shares, suggesting relatively thin trading activity.

Is NEON Overvalued or Undervalued? — Valuation Analysis

Neonode Inc. (NEON) carries a value factor score of 80/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 2.49x, compared to the Technology sector average of 45.27x — a discount of 94%. The price-to-book ratio stands at 0.96x, versus the sector average of 3.16x. The price-to-sales ratio is 9.94x, compared to 1.06x for the average Technology stock. On an enterprise value basis, NEON trades at 2.70x EV/EBITDA, versus 12.79x for the sector.

Based on these multiples, Neonode Inc. appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.

Neonode Inc. Profitability — ROE, Margins, and Quality Score

Neonode Inc. (NEON) earns a quality factor score of 10/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 38.5%, compared to the Technology sector average of -1.4%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 35.3% versus the sector average of -1.0%.

On a margin basis, Neonode Inc. reports gross margins of 98.1%, compared to 50.9% for the sector. The operating margin is 582.5% (sector: -0.5%). Net profit margin stands at 629.8%, versus -1.5% for the average Technology stock. Revenue growth is running at -69.8% on a trailing basis, compared to 14.2% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.

NEON Debt, Balance Sheet, and Financial Health

Neonode Inc. has a debt-to-equity ratio of 9.0%, compared to the Technology sector average of 43.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 12.05x, indicating strong short-term liquidity. Total debt on the balance sheet is $382,000. Cash and equivalents stand at $12M.

NEON has a beta of 0.94, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for Neonode Inc. is 25/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.

Neonode Inc. Revenue and Earnings History — Quarterly Trend

In TTM 2026, Neonode Inc. reported revenue of $2M and earnings per share (EPS) of $0.51. Net income for the quarter was $9M. Gross margin was 98.1%. Operating income came in at $9M.

In FY 2025, Neonode Inc. reported revenue of $2M and earnings per share (EPS) of $0.51. Net income for the quarter was $8M. Gross margin was 98.7%. Revenue grew -33.7% year-over-year compared to FY 2024. Operating income came in at $7M.

In Q3 2025, Neonode Inc. reported revenue of $430,000 and earnings per share (EPS) of $0.85. Net income for the quarter was $14M. Gross margin was 97.9%. Revenue grew -48.7% year-over-year compared to Q3 2024. Operating income came in at $14M.

In Q2 2025, Neonode Inc. reported revenue of $599,000 and earnings per share (EPS) of $-0.11. Net income for the quarter was $-2M. Gross margin was 99.0%. Revenue grew -57.9% year-over-year compared to Q2 2024. Operating income came in at $-2M.

Over the past 8 quarters, Neonode Inc. has demonstrated a growth trajectory, with revenue expanding from $1M to $2M. Investors analyzing NEON stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

NEON Dividend Yield and Income Analysis

Neonode Inc. (NEON) does not currently pay a dividend. This is common among smaller companies in the Electronic Equipment industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Technology dividend stocks may want to explore other Technology stocks or use the stock screener to filter by dividend yield.

NEON Momentum and Technical Analysis Profile

Neonode Inc. (NEON) has a momentum factor score of 11/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 39/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 62/100 reflects moderate short selling activity.

NEON vs Competitors — Technology Sector Ranking and Peer Comparison

Within the Technology sector, Neonode Inc. (NEON) ranks #499 out of 584 stocks based on the Blank Capital composite score. This places NEON in the lower half of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.

Comparing NEON against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full NEON vs S&P 500 (SPY) comparison to assess how Neonode Inc. stacks up against the broader market across all factor dimensions.

NEON Next Earnings Date

No upcoming earnings date has been announced for Neonode Inc. (NEON) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy NEON? — Investment Thesis Summary

The quantitative profile for Neonode Inc. suggests caution. The quality score of 10/100 flags below-average profitability. The value score of 80/100 suggests attractive pricing relative to fundamentals. Momentum is weak at 11/100, a headwind for near-term performance. High volatility (stability score 25/100) increases portfolio risk.

In summary, Neonode Inc. (NEON) earns a Avoid rating with a composite score of 30.4/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on NEON stock.

Related Resources for NEON Investors

Explore more research and tools: NEON vs S&P 500 comparison, top Technology stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare NEON head-to-head with peers: NEON vs IHS, NEON vs VRSN, NEON vs ESE.