Executive Summary

Q4 2024 continuing operations revenue was approximately $0.655M, down from $0.838M in Q3 and driven by lower legacy licensing demand partially offset by NRE; Q4 is derived from FY 2024 minus nine months figures disclosed in NEON’s filings .
Loss from continuing operations in Q4 was approximately $1.477M, higher than Q3’s $1.043M; EPS for the quarter was not disclosed, though Q2 and Q3 were -$0.11 and -$0.07 respectively .
Management emphasized the strategic transition to pure licensing, citing a DMS software award with a leading commercial vehicle OEM and selection of zForce-based TSM by NEXTY Electronics as proof points for future licensing revenue conversion .
No formal numerical guidance was provided; the focus remains on building licensing pipelines (DMS, touch) and exiting manufacturing, which reduced component purchases and operating cash burn versus prior year .

What Went Well and What Went Wrong

What Went Well

Strategic pivot completed: “we discontinued Touch Sensor Module (‘TSM’) manufacturing and positioned ourselves for a future fully focused on technology licensing” .
Licensing pipeline catalysts: “an award by a leading commercial vehicle OEM to supply MultiSensing driver monitoring system (‘DMS’) software… [and] zForce-based TSM technology was also selected by NEXTY Electronics for their next-generation amusement machines” .
Operating cash flow improved y/y: FY 2024 cash used in operations fell to $5.6M from $6.3M due to fewer component purchases after phasing out TSM manufacturing .

What Went Wrong

Full-year revenues declined 18.8% to $3.1M; license revenues fell 29.3% y/y as legacy printer and passenger car touch demand softened .
Loss from continuing operations widened to $5.9M (FY), or $0.37 per share; quarterly continuing ops loss also increased in Q4 vs Q3 .
Near-term license headwinds persisted in Q3 and Q4 as legacy volumes stayed weak, increasing reliance on NRE ahead of production-phase license monetization .

Financial Results

Revenue, EPS, Margins vs Prior Periods and Estimates

Metric	Q2 2024	Q3 2024	Q4 2024
Revenues – Continuing Ops ($USD Millions)	$1.424	$0.838	$0.655 (FY $3.108 − 9M $2.453)
Basic & Diluted EPS – Continuing Ops ($USD)	$(0.11)	$(0.07)	n/a disclosed (Derived net loss available)
Gross Margin ($USD Millions)	$0.939	$0.815	$0.603 (FY $2.992 − 9M $2.389)
Gross Margin % (Computed)	65.9% (0.939/1.424)	97.3% (0.815/0.838)	92.1% (0.603/0.655)
Operating Expenses ($USD Millions)	$2.746	$2.040	$2.307 (FY $9.539 − 9M $7.232)
Operating Loss ($USD Millions)	$(1.807)	$(1.225)	$(1.704) (FY $(6.547)$ − 9M $(4.843)$)
Loss from Continuing Ops ($USD Millions)	n/a (total net loss shown)	$(1.043)	$(1.477) (FY $(5.875)$ − 9M $(4.398)$)
Wall Street Consensus (Revenue, EPS)	Unavailable via S&P Global; no comparison provided (insufficient coverage)

Note: Q4 2024 quarterly figures are derived from FY 2024 (12 months) minus nine months ended September 30, 2024; EPS for Q4 was not separately disclosed in filings .

Segment/Revenue Mix

Revenue Component ($USD Millions)	Q2 2024	Q3 2024	Q4 2024
License Fees	$0.614	$0.731	~$0.569 (FY $2.687 − 9M $2.118)
Products (Continuing Ops)	$0.623	n/a (reclassified to discontinued ops by Q3)	n/a (discontinued)
Non-Recurring Engineering (NRE)	$0.187	$0.107	~$0.086 (FY $0.421 − 9M $0.335)

KPIs and Balance Sheet Highlights

KPI	Q2 2024	Q3 2024	Q4 2024
Cash + Accounts Receivable ($USD Millions)	$14.4	$18.6	$17.2
Working Capital ($USD Millions)	$13.2	$17.7	$16.1
Cash Used by Operations ($USD Millions)	$1.2	$1.3	~$1.2 (FY $5.6 − 9M $4.4)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q4 2024	None provided	None provided	Maintained (no formal guidance)
Margins	FY/Q4 2024	None provided	None provided	Maintained (no formal guidance)
OpEx	FY/Q4 2024	None provided	None provided	Maintained (no formal guidance)
OI&E / Tax	FY/Q4 2024	None provided	None provided	Maintained (no formal guidance)

Management did not issue numeric guidance; commentary focused on licensing transition, DMS and touch opportunities, and improved cash usage post-manufacturing exit .

Earnings Call Themes & Trends

Note: No Q4 2024 earnings call transcript was available in the document repository; themes below reflect press release commentary and prior quarter disclosures .

Topic	Previous Mentions (Q2 & Q3 2024)	Current Period (Q4 2024)	Trend
Automotive DMS	Ongoing OEM project; NRE revenue growth tied to DMS	DMS software award at leading commercial vehicle OEM; NRE pipeline supports future licensing	Strengthening toward licensing conversion
Touch/TM Licensing	Q2 product last-time-buys; transitioning to licensing only	Licensing-only model affirmed; NEXTY selection for next-gen amusement machines	Transition complete; new licensing footholds
Supply Chain/Components	Component purchases impacted Q2 cash outflow; post-phaseout, reduced purchases	Operating cash improved y/y due to fewer component buys after TSM exit	Improving cash efficiency
Legacy Demand	Lower legacy printer/passenger car touch demand in Q2/Q3	Continued decline impacting license revenues y/y	Ongoing headwind
Organization/Cost	Operating expenses modestly lower in Q3; focused mix shift	OpEx flat y/y, strategic reallocation to licensing	Stable, repositioned

Management Commentary

“Last year marked an important year of transition for Neonode as we discontinued Touch Sensor Module (‘TSM’) manufacturing and positioned ourselves for a future fully focused on technology licensing.” — Fredrik Nihlén, Interim President & CEO and CFO .
“We announced an award by a leading commercial vehicle OEM to supply MultiSensing driver monitoring system (‘DMS’) software… Neonode’s zForce-based TSM technology was also selected by NEXTY Electronics for their next-generation amusement machines.” — Fredrik Nihlén .
“Non-recurring engineering revenues… mainly attributable to the driver monitoring system (‘DMS’) project… Licensing revenues from legacy customers… decreased… due to lower demand.” — Fredrik Nihlén (Q3 PR) .
“Our driver and in-cabin monitoring solutions keep attracting attention… scalable and flexible… attractive to both commercial vehicle and passenger car manufacturers.” — Fredrik Nihlén (Q2 PR) .

Q&A Highlights

No Q4 2024 earnings call transcript was available; the company’s communications for Q4 were via the 8‑K press release and annual financial statements .
Prior quarter disclosures clarified that near-term revenue mix is NRE-heavy as DMS and touch licensing projects advance toward production-phase monetization .
Management reiterated reduced component purchases post-TSM phaseout, aiding operating cash flow trajectory .

Estimates Context

Wall Street consensus estimates (S&P Global) for Q4 2024 revenue/EPS were unavailable; NEON appears to have limited/insufficient analyst coverage for quarterly consensus. Comparisons to consensus cannot be provided.
We attempted to retrieve S&P Global consensus estimates programmatically but could not obtain values due to data access constraints; thus, no estimate-based beat/miss analysis is included.

Key Takeaways for Investors

The licensing-only pivot is complete; near-term revenue remains pressured by legacy demand declines, but OEM DMS and NEXTY selections are tangible catalysts for future licensing revenue as projects enter production phases .
Q4 sequential revenue declined (~~$0.655M vs $0.838M in Q3) and continuing ops loss increased (~~$1.477M vs $1.043M), underscoring reliance on NRE and the need for licensing conversion in 2025 .
Cash + AR is solid at $17.2M with working capital of $16.1M at year-end, providing runway to execute on licensing strategy without manufacturing-related working capital drag .
OpEx held roughly flat y/y (FY $9.5M), with mix realigned toward licensing; operating leverage depends on scaling license revenues from DMS/touch programs .
Without formal guidance or consensus estimates, focus should be on monitoring milestone disclosures (OEM validation, SOP timing) and NRE-to-license conversion cadence to gauge inflection .
Near-term trading may react to additional customer awards or production launches; downside risk remains if legacy demand continues to weaken before new licenses scale .

Sources: NEON Q4/FY 2024 8‑K and Exhibit 99.1 press release (March 21, 2025) ; Q3 2024 8‑K and press release (November 6, 2024) ; Q2 2024 8‑K and press release (August 8, 2024) . Additionally, PR Newswire distribution of FY 2024 results corroborates the press release content .

Neonode Inc. (NEON)·Q4 2024 Earnings Summary