Network-1 Technologies, Inc. (NYSE American: NTIP) reported no revenue for the three months ended September 30, 2026, and a net loss of $2,333,000. The intellectual property company also reported higher operating expenses, losses on marketable securities and updates on its pending patent litigation.
#Third-quarter and nine-month financial results
Network-1's operating expenses rose to $1,608,000 for the three month period ended September 30, 2026, compared with $800,000 for the comparable period in 2025. For the nine month period, operating expenses were $4,036,000, compared with $2,315,000 for the nine month period ended September 30, 2025. The company attributed the increases primarily to higher litigation-related professional fees and related costs.
The company reported no revenue for the three month period ended September 30, 2026, compared with no revenue in the same period in 2025. For the nine month period ended September 30, 2026, Network-1 reported no revenue, compared with $150,000 for the corresponding period in 2025.
Network-1's third-quarter net loss was $2,333,000, or $0.10 per share basic and diluted, compared with a net loss of $560,000, or $0.02 per share basic and diluted, for the comparable 2025 period. For the first nine months of 2026, the company reported a net loss of $3,499,000, or $0.15 per share basic and diluted, compared with a net loss of $1,386,000, or $0.06 per share basic and diluted, for the first nine months of 2025.
#Investment and marketable securities results
During the first nine months of 2026, Network-1 recorded a gain of $1,052,000 from remeasuring its investment in ILiAD Biotechnologies, Inc. The accounting change followed ILiAD's closing of its $115,000,000 financing in February 2026, after which Network-1 moved from the equity method to the cost method for that investment.
Marketable securities produced a net realized and unrealized loss of $1,060,000 in the third quarter, compared with a net realized and unrealized gain of $44,000 in the comparable 2025 period. For the nine month period, the company recorded a net realized and unrealized loss of $1,339,000, compared with gains of $215,000 in the corresponding period of 2025. Network-1 said the losses were primarily linked to unrealized losses caused by higher short-term Treasury yields, which reduced the market prices of its fixed income securities.
#Patent litigation developments
Network-1 said it continues to pursue four pending patent litigations involving its M2M/IoT, HFT and Cox patent portfolios.
The company's case against Samsung Electronics Co., LTD and Samsung Electronics America, Inc. concerns six patents in the M2M/IoT Patent Portfolio. Network-1 alleges that certain eSIM and 5G technologies used in Samsung mobile devices, including Galaxy smartphones, watches and tablets, infringe the patents. The trial is scheduled for June 7, 2027.
On July 1, 2026, Network-1 dismissed its patent infringement case against Jump Trading, LLC without prejudice. It continues to pursue cases against Citadel Securities, LLC and Optiver US, LLC and Optiver Trading US, LLC over alleged infringement of certain HFT patents. On October 5, 2026, the U.S. Patent Trial and Appeal Board denied institution, on the merits, of five Inter Partes Review proceedings requested by Optiver involving five HFT patents that Network-1 is not currently asserting in the litigation.
In the litigation against Google and YouTube involving the Cox Patent Portfolio, the U.S. Court of Appeals for the Federal Circuit issued an opinion in April 2026 overturning a non-infringement judgment concerning Patent No. 8,205,237 and remanding the matter to the U.S. District Court for the Southern District of New York for further proceedings. A trial is scheduled for December 8, 2026.
#Liquidity, dividends and share repurchases
As of September 30, 2026, Network-1's principal sources of liquidity consisted of cash and cash equivalents and marketable securities of $31,102,000. Working capital was $29,868,000. Management believes, based on the company's current cash position, that Network-1 has sufficient liquidity to fund operations for the foreseeable future.
Network-1's dividend policy provides for semiannual cash dividends of $0.05 per share ($0.10 per share annually), historically paid in March and September. During the nine month period ended September 30, 2026, the company declared and paid $0.05 per share in March 2026 and $0.05 per share in September 2026. The policy remains subject to periodic review by the Board of Directors and is subject to change at any time depending upon Network-1's earnings, financial requirements and other factors existing at the time.
The company did not repurchase shares during the three month period ended September 30, 2026. During the nine month period, it repurchased 95,976 shares of common stock at an aggregate cost of $133,014, exclusive of commissions, under its Share Repurchase Program.
#Business focus and stated risks
Network-1 acquires, develops, licenses and protects intellectual property and proprietary technologies. As of September 30, 2026, it owned 122 U.S. patents, of which 54 were expired, and 15 international patents. Its current strategy includes efforts to monetize its M2M/IoT, HFT, Cox and Smart Home patent portfolios.
The company said its forward-looking statements are subject to risk factors and uncertainties disclosed in its Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission on March 13, 2026. These include uncertain revenue from licensing intellectual property; uncertainty over the outcomes of pending litigation involving the HFT, M2M/IoT and Cox patent portfolios; and uncertainty about its ability to acquire or invest in high quality patents with significant licensing opportunities.
Network-1 also identified risks related to achieving revenue and profits from its M2M/IoT, HFT, Smart Home and Cox portfolios; achieving a successful outcome on its investment in ILiAD Biotechnologies, Inc. or other intellectual property it may acquire or finance; entering additional licence agreements; and whether cash dividends will continue to be paid. Other stated risks include entering strategic relationships to license or otherwise monetize intellectual property, potential future classification as a Personal Holding Company that may result in a special cash dividend to stockholders, future economic conditions, technology changes, and legislative, regulatory and competitive developments.
#Key Takeaways
- Network-1 reported no revenue for the third quarter and first nine months of 2026.
- The company recorded a third-quarter net loss of $2,333,000 and a nine-month net loss of $3,499,000.
- Litigation-related costs and losses on marketable securities contributed to the reported results.
- Network-1 reported $31,102,000 in cash, cash equivalents and marketable securities as of September 30, 2026.
- Pending litigation includes cases involving Samsung, Citadel, Optiver, Google and YouTube, with trial dates stated for December 8, 2026 and June 7, 2027.
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