The two patent litigation catalysts — Google/YouTube remand and Samsung IPR denials — are the primary near-term value drivers. Monitor for settlement/licensing announcements from either case; a favorable outcome in either could unlock material revenue. The $0 revenue quarter underscores the binary nature of the business — no licensing income means no operating leverage.
Price Chart
Executive Summary
Network-1 reported Q1 2026 revenue of $0 (down from $150K YoY) and a net loss of $511K ($0.02/share), widening from a $363K loss in Q1 2025. Operating expenses surged 78% to $1.415M due to litigation costs, while a $1.052M non-cash gain from the ILiAD investment remeasurement partially offset the loss. The stock will trade on the two favorable patent litigation developments: the Federal Circuit overturned a non-infringement ruling against Google/YouTube, and the PTAB denied Samsung's IPR petitions on all six asserted M2M/IoT patents, strengthening Network-1's enforcement position.
Key Financial Metrics
Key Facts
- Revenue was $0 for Q1 2026 vs $150K in Q1 2025 — no licensing income in the quarter.
- Operating loss widened to $1.415M from $645K YoY, driven by a $625K increase in litigation-related professional fees.
- Net loss of $511K ($0.02/share) vs $363K ($0.02/share) YoY; the loss included a $1.052M non-cash gain from remeasuring the ILiAD investment.
- Cash and marketable securities totaled $34.589M at March 31, 2026, down from $36.869M at year-end 2025.
- Federal Circuit overturned non-infringement ruling against Google/YouTube on April 23, 2026, remanding for further proceedings on the Cox Patent Portfolio.
- PTAB denied institution of all six IPR petitions filed by Samsung against Network-1's M2M/IoT patents in April/May 2026.
- Company repurchased 60,996 shares at $82,681 ($1.36 avg) during Q1; $5M buyback program remains active.
- Semi-annual dividend of $0.05/share maintained.
Financial Impact
No revenue quarter; operating cash burn of ~$1.4M; $34.6M cash runway sufficient for foreseeable future.
Risk Factors
- Patent litigation outcomes are binary and unpredictable; adverse rulings could destroy value.
- Cash burn rate is accelerating ($1.4M/quarter operating loss) with no revenue to offset.
- Marketable securities portfolio declined $436K YoY due to rising Treasury yields, reducing a key income source.
- ILiAD investment (now at cost) is illiquid and its value depends on future financing or exit.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001072613-26-000395 |
| Document: form8k.htm | 0001072613-26-000395 |
| Document: 0001072613-26-000395-index-headers.html | 0001072613-26-000395 |
| Document: 0001072613-26-000395-index.html | 0001072613-26-000395 |
| Document: 0001072613-26-000395.txt | 0001072613-26-000395 |
| 8-K Data (Synthetic) | 0001072613-26-000395 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 6, 2026 14w ago | 8-K | $1.47 $1.61 | ▲ +9.52% | ▲ +7.62% | $1.55 (+5.44%) |
Jul 2, 2026 15w ago | 8-K | $1.49 $1.56 | ▲ +4.70% | ▲ +1.69% | $1.55 (+4.03%) |
May 12, 2026 22w ago | 8-K | $1.47 $1.62 | ▲ +10.20% | ▲ +5.82% | $1.55 (+5.44%) |
Apr 28, 2026 24w ago | 8-K | $1.37 $1.63 | ▲ +18.98% | ▲ +14.99% | $1.55 (+13.14%) |
Apr 23, 2026 25w ago | Court Ruling | $1.46 $1.49 | ▲ +2.05% | ▼ −2.86% | $1.55 (+6.16%) |
Apr 23, 2026 25w ago | Court Ruling | $1.46 $1.46 | · 0.00% | ▼ −5.02% | $1.55 (+6.16%) |
US Market Status
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