--- title: "Network 1 Tech | 10-Q: FY2026 Q1 Revenue: USD 0" type: "News" locale: "en" url: "https://longbridge.com/en/news/285775018.md" datetime: "2026-05-08T20:51:10.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285775018.md) - [en](https://longbridge.com/en/news/285775018.md) - [zh-HK](https://longbridge.com/zh-HK/news/285775018.md) --- # Network 1 Tech | 10-Q: FY2026 Q1 Revenue: USD 0 Revenue: As of FY2026 Q1, the actual value is USD 0. EPS: As of FY2026 Q1, the actual value is USD -0.02. EBIT: As of FY2026 Q1, the actual value is USD -1.799 M. Network-1 Technologies, Inc. operates as a single reporting segment, focusing on the development, licensing, and protection of its intellectual property assets. #### Revenue Network-1 Technologies, Inc. reported no revenue for the three months ended March 31, 2026, which is a decrease from $150,000 for the three months ended March 31, 2025. #### Operating Expenses Operating expenses increased to $1,415,000 for the three months ended March 31, 2026, compared to $795,000 for the same period in 2025. This $620,000 increase was primarily due to a $654,000 rise in professional fees and related costs, including $625,000 in increased litigation-related costs. This was partially offset by a $42,000 reduction in costs of revenue due to the absence of revenue in Q1 2026. #### Net Loss Network-1 Technologies, Inc. realized a net loss of -$511,000 (or -$0.02 per share basic and diluted) for the three months ended March 31, 2026, an increase of $148,000 year-over-year compared to a net loss of -$363,000 (or -$0.02 per share basic and diluted) for the same period in 2025. This increased net loss was influenced by a $1,052,000 gain on equity investment and the benefit of no recognized share of net losses from an equity method investee (which was -$462,000 in Q1 2025). These positive impacts were offset by lower revenue (-$150,000), increased litigation costs (+$625,000), realized and unrealized losses on marketable securities (+$436,000), deferred income taxes (+$356,000), and a decrease in interest and dividend income (+$100,000). #### Other Income/Losses A gain of $1,052,000 was recorded for the three months ended March 31, 2026, on an equity investment following ILiAD’s private financing and a change in accounting method. The company recorded realized and unrealized losses of -$287,000 for Q1 2026, representing a decrease of $436,000 compared to gains of $149,000 in Q1 2025, primarily due to unrealized losses of -$103,000 from a decrease in market value of U.S. government securities and fixed-income mutual funds. A deferred tax expense of $245,000 was recorded for Q1 2026, contrasting with a deferred tax benefit of -$111,000 for Q1 2025, resulting in a net increase of $356,000 in deferred income taxes. No net losses were recognized from an equity method investee in Q1 2026, compared to -$462,000 in Q1 2025, due to the conversion to the fair value method of accounting for the investment. #### Cash Flow Net cash used in operating activities increased by $469,000 to -$310,000 for the three months ended March 31, 2026, from $159,000 net cash provided by operating activities in Q1 2025. Net cash used in investing activities increased by $3,533,000 to -$3,248,000 for Q1 2026, compared to $285,000 net cash provided by investing activities in Q1 2025, primarily due to increased purchases of marketable securities (+$2,802,000) and sales of marketable securities (+$770,000) as investments shifted to longer duration maturities. Net cash used in financing activities was -$1,234,000 for Q1 2026, a decrease of $67,000 from -$1,301,000 in Q1 2025, mainly due to reduced stock repurchases (+$65,000). #### Liquidity and Capital Resources As of March 31, 2026, Network-1 Technologies, Inc.’s principal sources of liquidity included cash and cash equivalents and marketable securities totaling $34,589,000, with working capital of $33,674,000. Working capital decreased by $2,662,000 from $36,336,000 at December 31, 2025, primarily due to dividend payments of -$1,140,000, net cash used in operating activities of -$310,000, and lower accrued payroll of -$289,000, partially offset by increased current liabilities of $340,000. The company believes it has sufficient liquidity to fund operations for the next twelve months and the foreseeable future, with potential for increased liquidity from pending patent infringement litigation or the realization of its investment in ILiAD. #### Strategic Outlook Network-1 Technologies, Inc.’s core strategy involves continuing to license and monetize its intellectual property assets, including M2M/IOT, HFT, Cox, and Smart Home Patent Portfolios, and acquiring additional high-quality IP with significant licensing potential. The company also maintains an investment in ILiAD Biotechnologies, Inc., where its ownership was reduced to approximately 2.5% on a fully diluted basis after a Series B financing, and has a dividend policy of semi-annual cash dividends of $0.05 per share, subject to Board review. A stock repurchase program is in place, with $4,827,750 remaining for repurchases as of March 31, 2026, and the company is monitoring its potential classification as a Personal Holding Company, which could subject it to a 20% tax on undistributed personal holding company income. ### Related Stocks - [NTIP.US](https://longbridge.com/en/quote/NTIP.US.md) ## Related News & Research - [Advance Auto Parts Reports First Quarter 2026 Results; Reaffirms Full Year 2026 Guidance | AAP Stock News](https://longbridge.com/en/news/287202242.md) - [The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance | HD Stock News](https://longbridge.com/en/news/286890512.md) - [ONWARD Medical to Announce First Quarter 2026 Results on May 26, 2026 | ONWRY Stock News](https://longbridge.com/en/news/286858298.md) - [PRO REIT declares May 2026 cash distribution of $0.0375 per unit](https://longbridge.com/en/news/287207393.md) - [LOWE'S REPORTS FIRST QUARTER 2026 SALES AND EARNINGS RESULTS | LOW Stock News](https://longbridge.com/en/news/287043063.md)