Neonode Inc (NASDAQ: NEON) is a Stockholm-headquartered technology licensing company that develops software and sensing solutions for human-machine interaction and machine perception. It makes money primarily through patent licensing fees paid by OEMs and Tier 1 automotive suppliers who embed Neonode's technology into their own products. License fees accounted for 88.4% of total revenue in FY2025, with non-recurring engineering services making up the remaining 11.6%. Total revenue was $2.1M in FY2025, down 33.7% from $3.1M in FY2024. The company's two technology platforms are MultiSensing, focused on driver and in-cabin monitoring for the automotive market, and zForce, an optical touch and gesture sensing platform transitioned to maintenance mode in September 2025 with no new customer sales. Since 2010, licensing customers have shipped over 95 million products incorporating Neonode technology. Customer concentration is high: in FY2024, Seiko Epson (27.3%), Alps Alpine (20.7%), Hewlett-Packard (20.4%), and one commercial vehicle OEM (11.8%) together accounted for over 80% of revenue. As of December 31, 2025, Neonode had 39 employees and 6 consultants.

Revenue model

Patent and technology licensing fees (88.4% of FY2025 revenue) plus non-recurring engineering services (11.6% of FY2025 revenue). Licenses are paid by OEMs and Tier 1 automotive suppliers who embed Neonode's technology into products they manufacture and sell.

Products and services

MultiSensing platform: machine perception software using machine learning to detect and track persons and objects in video streams, targeted at automotive driver and in-cabin monitoring. zForce platform: optical sensing technology for touch, contactless touch, and gesture sensing, transitioned to maintenance mode in September 2025 with no new customer sales.

Customers and end markets

Primary end markets are automotive, consumer electronics, and amusement. In FY2024, top customers were Seiko Epson (27.3% of revenue), Alps Alpine (20.7%), Hewlett-Packard (20.4%), and one commercial vehicle OEM (11.8%). Customers are mainly OEMs and Tier 1 automotive suppliers.

Value-chain role

Tier 2 technology and IP licensor. Neonode licenses technology to Tier 1 automotive suppliers, who deliver systems to OEMs. In some cases Neonode engages directly with OEMs. The patent portfolio, which includes 56 issued patents and 9 patents pending across the US, Europe, Japan, China, and South Korea as of the filing date, underpins the licensing business.

Geographic exposure

Corporate headquarters in Stockholm, Sweden (approximately 6,700 square feet as of December 31, 2025). Employees and consultants located in the United States, Sweden, Japan, and Taiwan. Revenue geographic breakdown by region includes South Korea and the United States as disclosed segments, though specific percentages are not provided in the excerpts.

Competitors

SmartEye, Cipia, Xperi, Seeing Machines, PUX, Jungo

Source: SEC 10-K, filed 2026-03-18

Industry: Electronic Components, NEC