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NT

NETWORK-1 TECHNOLOGIES, INC. (NTIP)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered no revenue with a larger net loss of $0.56M (-$0.02 EPS) as ILiAD-related equity method losses and lower other income weighed on results, while operating expenses fell year over year .
  • Cash, cash equivalents and marketable securities remained strong at $37.10M, supporting continued capital returns; the Board paid the semi-annual $0.05 dividend on September 29 and repurchased 56,705 shares during the quarter .
  • Litigation pipeline advanced: HFT Solutions (NTIP subsidiary) filed suit against Optiver (Sept 8) and the Samsung IoT/eSIM suit continued from Q2, underscoring monetization focus across HFT and M2M/IoT portfolios .
  • No formal guidance or Wall Street consensus estimates were available; trading narrative hinges on patent enforcement outcomes, capital return continuity, and ILiAD loss trajectory .

What Went Well and What Went Wrong

  • What Went Well

    • Balance sheet resilience: cash and marketable securities totaled $37.10M; management affirmed liquidity to fund operations for the next twelve months and foreseeable future .
    • Consistent capital returns: $0.05 dividend paid on Sep 29 and ongoing buybacks (56,705 shares, $78,428 cost; $4.92M remaining authorization) .
    • Strategic litigation momentum: HFT suit against Optiver launched; Samsung IoT/eSIM suit initiated in Q2; portfolio breadth highlighted (115 U.S. patents; 17 international) .

  • What Went Wrong

    • Top-line drought: zero revenue in Q3, matching Q3 2024; litigation settlements drove only $0.15M YTD revenue .
    • Earnings pressure: net loss widened to $0.56M vs $0.32M YoY; ILiAD equity method loss rose to $0.354M vs $0.308M YoY; other income fell vs Q3 2024 .
    • Limited visibility: no formal guidance on revenue/margins; forward-looking risks include litigation uncertainty, Cox portfolio appeal, potential PHC classification risk .

Financial Results

Quarterly trend (Q1–Q3 2025)

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD)$150,000 $— $—
Operating Loss (EBIT) ($USD)$(645,000) $(720,000) $(800,000)
Total Operating Expenses ($USD)$795,000 $720,000 $800,000
Interest & Dividend Income, net ($USD)$484,000 $445,000 $467,000
Net Realized/Unrealized Gains ($USD)$149,000 $22,000 $44,000
Net Loss ($USD)$(363,000) $(463,000) $(560,000)
Diluted EPS ($USD)$(0.02) $(0.02) $(0.02)
Basic Shares (WASO)22,914,799 22,873,907 22,807,916

Year-over-year (Q3 2025 vs Q3 2024)

MetricQ3 2024Q3 2025
Revenue ($USD)$— $—
Operating Loss (EBIT) ($USD)$(896,000) $(800,000)
Total Operating Expenses ($USD)$896,000 $800,000
Interest & Dividend Income, net ($USD)$524,000 $467,000
Net Realized/Unrealized Gains ($USD)$293,000 $44,000
Equity Method Loss ($USD)$(308,000) $(354,000)
Net Loss ($USD)$(316,000) $(560,000)
Diluted EPS ($USD)$(0.01) $(0.02)

KPIs and Balance Sheet (Q1–Q3 2025)

KPIQ1 2025Q2 2025Q3 2025
Cash & Equivalents ($USD)$12,288,000 $13,424,000 $7,708,000
Marketable Securities ($USD)$26,905,000 $25,061,000 $29,389,000
Total Assets ($USD)$43,871,000 $42,826,000 $41,034,000
Stockholders’ Equity ($USD)$42,701,000 $42,261,000 $40,522,000
Working Capital ($USD)$38,443,000 $38,288,000 $36,856,000
Dividend per Share (Quarter)$0.05 — $0.05
Shares Repurchased (Quarter)106,662 44,811 56,705
Buyback Spend (Quarter, $USD)$146,857 $55,337 $78,428
Avg Buyback Price (Quarter)$1.38 $1.23 $1.38

Estimates vs. Actuals

MetricQ3 2025 ActualQ3 2025 Consensus (S&P Global)
Revenue ($USD)$— N/A*
EPS ($USD)$(0.02) N/A*

Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend PolicyFY 2025Semi-annual $0.05 (paid Mar 28) Semi-annual $0.05 (paid Sep 29; declared Sep 5) Maintained
Share Repurchase Program24 months from Jun 17, 2025$5.0M authorization; remaining $4,994,853 at Jun 30 Remaining $4,916,425 at Sep 30 Maintained; capacity down due to Q3 buybacks ($78,428)
Revenue/Margins/OpEx/TaxQ4 2025 and FYNone provided None provided Maintained (no formal guidance)
OI&EQ4 2025 and FYNone provided None provided Maintained

Earnings Call Themes & Trends

Note: No earnings call transcript identified for Q3 2025.

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3 2025)Trend
Litigation pipeline (M2M/IoT, HFT)Acquired Smart Home portfolio (Mar 31) ; Samsung eSIM/5G suit (Jun 27) HFT Solutions filed suit vs Optiver (Sep 8) Increasing enforcement actions
Licensing revenue cadenceQ1: $150k from Remote Power settlement ; Q2: $0 Q3: $0; YTD revenue $150k Weak/volatile
Equity investee (ILiAD)Q1 loss $462k ; Q2 loss $279k Q3 loss $354k Volatile losses; ongoing drag
Capital returnsDividend paid in March; buybacks ongoing Dividend paid in September; buybacks ongoing Consistent
Liquidity/cash$39.19M cash+securities at Mar 31 ; $38.49M at Jun 30 $37.10M at Sep 30 Slight decline
Regulatory/legal riskSafe harbor and risk disclosures incl. Cox appeal, PHC risk (Q1/Q2) Reiterated risks and litigation uncertainties Persistent

Management Commentary

  • “Network-1 reported no revenue for the three month periods ended September 30, 2025 and 2024… For the nine month periods ended September 30, 2025 and 2024, Network-1 reported revenue of $150,000 and $100,000, respectively.”
  • “On September 8, 2025, Network-1’s wholly owned subsidiary, HFT Solutions, LLC, commenced patent litigation against Optiver US LLC and Optiver Trading US LLC…”
  • “At September 30, 2025, Network-1 had cash and cash equivalents and marketable securities of $37,097,000 and working capital of $36,856,000. Network-1 believes based on its current cash position it will have sufficient cash to fund its operations for the next twelve months and the foreseeable future.”
  • “Network-1 continues to pay dividends consistent with its dividend policy… On September 5, 2025, the Board of Directors declared a semi-annual cash dividend of $0.05 per common share which was paid on September 29, 2025.”
  • Prior quarter context: “On June 27, 2025, Network-1 commenced patent litigation against Samsung… for infringement of certain patents within Network-1’s M2M/IoT Patent Portfolio.”
  • Prior quarter context: “On March 31, 2025, Network-1 acquired a patent portfolio… enabling technology to support the interoperability of smart home IoT devices.”

Q&A Highlights

  • No Q3 2025 earnings call transcript was found; no Q&A themes or clarifications available [Search attempt returned no results].

Estimates Context

  • No S&P Global Wall Street consensus for Q3 2025 Revenue or EPS was available; comparisons to estimates are not possible at this time. Values retrieved from S&P Global.*
  • Implication: Without published consensus, buyside models likely anchor on realized other income, ILiAD loss trajectory, and litigation timing rather than near-term revenue forecasts .

Key Takeaways for Investors

  • Liquidity remains a strategic asset ($37.10M cash & marketable securities) to sustain dividend and opportunistic buybacks despite irregular licensing cash flows .
  • The litigation docket is the core catalyst path (Optiver HFT suit; Samsung IoT/eSIM suit); outcomes will drive monetization and can re-rate expectations .
  • Earnings volatility persists given zero quarterly revenue and equity method losses; watch ILiAD loss cadence and other income variability as near-term EPS drivers .
  • Capital returns are steady (Sep dividend, active repurchases); residual authorization of ~$4.92M offers downside support if shares remain near book value .
  • Operating intensity is contained YoY (Q3 operating expenses $0.80M vs $0.90M), but lower other income in Q3 amplified the net loss; balance of cost control vs enforcement progress is key .
  • No formal guidance or Street consensus increases narrative risk; positioning should reflect binary-litigation outcomes and timing uncertainty outlined in risk disclosures .
  • Short-term: trade around litigation headlines and capital return cadence; medium-term: thesis depends on portfolio monetization (Remote Power/Mirror Worlds history) and Smart Home/M2M/HFT ramps .