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NT

NETWORK-1 TECHNOLOGIES, INC. (NTIP)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $0.15M, up from $0 in Q1 2024, driven by a litigation settlement tied to the Remote Power Patent; net loss narrowed to $0.36M ($0.02/share) vs $0.92M ($0.04/share) YoY as operating expenses fell by $0.12M, largely due to lower professional fees .
  • Other income was strong: interest and dividends of $0.48M and gains on marketable securities of $0.15M supported results despite equity-method losses from ILiAD Biotechnologies of $0.46M (vs $0.63M in Q1 2024) .
  • Liquidity remains robust with $39.19M in cash and marketable securities and working capital of $38.44M as of March 31, 2025; Board maintained semi-annual dividend policy ($0.05 per share paid March 28, 2025) and continued buybacks (106,662 shares for ~$0.15M during Q1) .
  • No Wall Street consensus coverage was available (EPS and revenue estimates) and no earnings call transcript was found; near-term stock catalysts hinge on monetization of patent portfolios and litigation outcomes, including newly acquired Smart Home Patent Portfolio (March 31, 2025) .

What Went Well and What Went Wrong

What Went Well

  • Revenue returned ($0.15M) in Q1 2025 versus no revenue in Q1 2024, tied to a litigation settlement related to the Remote Power Patent .
  • Operating expenses decreased by $123,000 YoY, primarily from a $98,000 reduction in professional fees as litigation spending fell .
  • Strong non-operating income: interest and dividends of $484,000 and realized/unrealized gains of $149,000 provided material offset to operating loss .

What Went Wrong

  • Continued equity-method losses from ILiAD Biotechnologies ($462,000 in Q1 2025), remaining a sizable drag on net results despite an improvement vs Q1 2024 .
  • Operating loss persisted ($645,000), reflecting limited recurring licensing revenue and ongoing portfolio costs .
  • No earnings call transcript or analyst estimate coverage, constraining near-term visibility and institutional engagement [List search results show no call or consensus].

Financial Results

Quarterly Trend (oldest → newest)

MetricQ2 2024Q3 2024Q1 2025
Revenue ($USD)$100,000 $0 $150,000
Total Operating Expenses ($USD)$1,642,000 $896,000 $795,000
Operating Loss ($USD)$(624,000) $(896,000) $(645,000)
Interest & Dividend Income ($USD)$452,000 $524,000 $484,000
Net Gains on Marketable Securities ($USD)$54,000 $293,000 $149,000
Net Income (Loss) ($USD)$(658,000) $(316,000) $(363,000)
EPS (Basic/Diluted, $USD)$(0.03) $(0.01) $(0.02)

YoY Comparison (Q1 2025 vs Q1 2024)

MetricQ1 2024Q1 2025
Revenue ($USD)$— $150,000
Total Operating Expenses ($USD)$918,000 $795,000
Operating Loss ($USD)$(918,000) $(645,000)
Interest & Dividend Income ($USD)$431,000 $484,000
Net Gains on Marketable Securities ($USD)$48,000 $149,000
Equity-Method Loss (ILiAD) ($USD)$(628,000) $(462,000)
Net Income (Loss) ($USD)$(920,000) $(363,000)
EPS (Basic/Diluted, $USD)$(0.04) $(0.02)

KPIs and Balance Sheet

KPIQ2 2024Q3 2024Q1 2025
Cash & Equivalents ($USD)$19,939,000 $14,315,000 $12,288,000
Marketable Securities ($USD)$22,660,000 $27,201,000 $26,905,000
Working Capital ($USD)$42,369,000 $41,058,000 $38,443,000
Shares Repurchased (period)373,701 119,615 106,662
Avg Repurchase Price ($/sh)$1.84 $1.58 $1.38
Dividend per Share (semi-annual)$0.05 (Mar 2024) $0.05 (Sep 2024) $0.05 (Mar 2025)

Segment Breakdown

  • Not applicable; revenue derived from IP licensing and litigation settlements (no disclosed operating segments) .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per ShareSemi-annual$0.05 per share (policy) $0.05 declared Feb 19, 2025; paid Mar 28, 2025 Maintained
Share Repurchase ProgramThrough Jun 2025Up to $5.0M authorization (Jun 14, 2023) Program active; 106,662 shares repurchased in Q1 2025 for ~$146,857 Maintained
Liquidity Outlook2025Sufficient to fund operations (prior disclosures) Management expects sufficient liquidity based on cash and marketable securities Maintained

Earnings Call Themes & Trends

No earnings call transcript was found for Q1 2025.

TopicPrevious Mentions (Q3 2024 and Q2 2024)Current Period (Q1 2025)Trend
Licensing Revenue DriversQ3/Q2: Revenue tied to settlements on Remote Power Patent; variability noted Q1: $0.15M from litigation settlement on Remote Power Patent Stable, event-driven
Litigation/LegalOngoing Cox, M2M/IoT, HFT portfolios; appeals vs large tech; AI risk noted Smart Home Portfolio acquired; continued focus on monetization; legal activity reduced professional fees Portfolio expanded; legal spend down
DividendsSemi-annual $0.05 paid Mar/Sep 2024 $0.05 paid Mar 28, 2025; policy under periodic review Maintained
Share RepurchasesActive: 373,701 shares in Q2; 119,615 in Q3 106,662 shares in Q1 at $1.38 avg Ongoing
LiquidityCash & securities ~$42.6M (Q2) and $41.5M (Q3); sufficient funding outlook $39.19M in cash & securities; sufficient for foreseeable future Slightly lower, still strong
Patent Portfolio StrategyMonetize Cox/M2M/IoT/HFT/Mirror Worlds/Remote Power Added Smart Home Portfolio (8 U.S., 1 international; plus pending apps) Broadened scope

Management Commentary

  • “Network-1 had revenue of $150,000 for the quarter ended March 31, 2025 as compared to no revenue for the quarter ended March 31, 2024. Revenue in 2025 was from a litigation settlement involving Network-1’s Remote Power Patent.”
  • “Network-1’s operating expenses decreased by $123,000 in 2025 compared to 2024, primarily due to a decrease of $98,000 in professional fees as a result of a decrease in spending on litigation.”
  • “At March 31, 2025, Network-1’s principal sources of liquidity consisted of cash and cash equivalents and marketable securities of $39,193,000 and working capital of $38,443,000… [we] will have sufficient liquidity to fund [our] operations for the foreseeable future.”
  • “On March 31, 2025, Network-1 acquired a patent portfolio… enabling technology to support the interoperability of smart home IoT devices… consisting of eight (8) U.S. patents and one (1) international patent as well as eleven (11) U.S. pending patent applications and five (5) pending international patents.”

Q&A Highlights

  • No Q1 2025 earnings call transcript available; no Q&A themes or clarifications to report [List search results show no call].

Estimates Context

  • Wall Street consensus coverage was unavailable for EPS and revenue for Q1 2025; no beat/miss assessment can be made. Values retrieved from S&P Global.*
    | Metric | Q1 2025 Consensus | Q1 2025 Actual | |--------|--------------------|----------------| | Revenue ($USD) | N/A* | $150,000 | | Primary EPS ($USD) | N/A* | $(0.02) |

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Event-driven revenue resumed via litigation settlement; sustained top-line will depend on further licensing wins from Remote Power and new Smart Home portfolios .
  • Cost discipline is evident as professional fees fell with reduced litigation activity; continued operating expense control will be critical to narrowing losses .
  • Strong balance sheet and ongoing shareholder returns (dividends and buybacks) provide downside support while management pursues monetization of expanded patent assets .
  • Equity-method losses from ILiAD remain a headwind; monitoring milestones and potential dilution or funding needs at the investee is prudent .
  • Near-term trading catalysts: additional settlements/licenses, clarity on major appeals/ongoing cases, and initial monetization steps for the Smart Home Patent Portfolio; absence of analyst coverage and calls may limit immediate institutional participation .
  • With no consensus estimates, positioning should focus on legal calendar and monetization pipeline rather than “beat/miss” trades; liquidity strength allows patience while optionality from new portfolios develops .