Elauwit Connection, Inc. (ELWT) AI Stock Analysis

• Market Cap: $39.78M
• Dividend Yield: N/A
• Average Volume (3M): 89.92K
• Price to Earnings (P/E): ―
• Beta (1Y): -3.77
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 20
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): N/A
• Shares Outstanding: 6,619,796
• 10 Day Avg. Volume: 44,965
• 30 Day Avg. Volume: 89,922
• PEG Ratio: -0.46
• Price to Book (P/B): -10.58
• Price to Sales (P/S): 5.65
• P/FCF Ratio: -12.40
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 1.93
• Enterprise Value/Gross Profit: 7.60
• Enterprise Value/Ebitda: -31.66
• 1Y Price Target: $12.00
• Price Target Upside: 79.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $5.00 ▼(-25.26% Downside)
• Action: Reiterated Date: 01/23/26
• Date: Action: Reiterated 01/23/26

The score is held down primarily by weak financial performance: persistent losses, negative equity, rising debt, and ongoing cash burn outweigh strong revenue growth. Technicals are mixed and not strong enough to offset fundamentals, while recent financing events modestly support liquidity but add dilution risk.

Positive Factors

Revenue Growth Momentum

Sustained top-line momentum reflects real customer demand and market traction, creating a foundation to scale fixed-cost absorption. Over a 2–6 month horizon, continued revenue growth improves odds of moving toward break-even if management tightens operating spend or raises gross margins.

Completed Public Offering and Nasdaq Listing

A completed underwritten offering and Nasdaq listing materially strengthen liquidity and institutional access, reducing immediate refinancing pressure. The capital and listing are structural supports for executing growth plans and attracting talent via the stock incentive plan over the coming quarters.

Limited Reinvestment Pressure

Low capex intensity means cash burn stems mainly from operations rather than heavy reinvestment, lowering near-term capital needs for growth. This structural characteristic gives management clearer levers (cost control, pricing) to extend runway without large incremental capex.

Negative Factors

Negative Stockholders' Equity & Rising Debt

A negative equity base and materially higher debt constrain financial flexibility and raise refinancing risk. Over several months this limits options for non-dilutive financing, increases potential covenant pressure, and weakens the company’s ability to absorb further shocks or pursue opportunistic investments.

Persistent Operating Cash Burn

Ongoing negative operating cash flow indicates the business currently consumes cash to run core operations, requiring continued external funding. This structural cash burn shortens runway despite recent raises and forces tradeoffs between growth, cost cuts, and further dilution over the 2–6 month horizon.

Weak Profitability and Low Gross Margin

Low gross margins and deep operating losses point to unfavorable unit economics and a cost structure that precludes near-term profitability. Without durable margin improvement or pricing power, sustaining growth will likely require ongoing capital or structural changes to the business model.

Elauwit Connection, Inc. Business Overview & Revenue Model

Company Description

Elauwit Connection, Inc. provides broadband internet network for the multifamily and student housing property sectors in the United States. The company designs, installs, operates, and maintains fiber optics and WiFi networks throughout each contracted property, as well as offers bandwidth, 24/7 network monitoring, network maintenance, and resident support services. It provides its services to wholesale, REITs, property ownership groups, and property management companies. The company was founded in 2019 and is headquartered in Cheyenne, Wyoming.

How the Company Makes Money

Elauwit Connection, Inc. Financial Statement Overview

Summary

Despite sharp revenue growth in 2024, profitability is very weak (low gross margin and deeply negative operating/net margins). The balance sheet is stressed with negative equity and materially higher debt, and cash flow remains solidly negative with ongoing operating cash burn.

Income Statement

Revenue grew sharply in 2024 ($8.5M vs. $3.9M in 2023), showing demand traction. However, profitability remains very weak: gross margin is low (~13.7%) and operating results are deeply negative (EBIT margin about -37.9%), driving a large net loss with a net margin around -40.9%. The key positive is top-line momentum, but the core issue is that the current cost structure is not supporting sustainable earnings.

Balance Sheet

The balance sheet is stressed by negative stockholders’ equity in both years (about -$4.5M in 2024 and -$2.9M in 2023), indicating accumulated losses and limited financial cushion. Debt increased materially to ~$3.5M in 2024 from ~$1.2M in 2023, raising refinancing and liquidity risk. Total assets rose to ~$7.7M, but the negative equity position is a meaningful weakness that constrains flexibility.

Cash Flow

Cash generation is consistently negative: operating cash flow was about -$3.9M in 2024 and -$2.0M in 2023, with free cash flow equally negative in both periods. Losses are being accompanied by cash burn rather than being offset by non-cash charges, which increases reliance on external funding. The main strength is limited evidence of heavy reinvestment pressure (free cash flow mirrors operating cash flow), but the overall cash trajectory remains unfavorable.

Breakdown	TTM	Dec 2024	Dec 2023
Income Statement
Total Revenue	20.25M	8.49M	3.92M
Gross Profit	5.15M	1.16M	195.00K
EBITDA	-1.24M	-3.20M	-2.59M
Net Income	-1.64M	-3.47M	-2.69M
Balance Sheet
Total Assets	9.09M	7.73M	1.41M
Cash, Cash Equivalents and Short-Term Investments	762.00K	287.00K	329.00K
Total Debt	4.22M	3.48M	1.22M
Total Liabilities	14.14M	12.26M	4.32M
Stockholders Equity	-5.05M	-4.54M	-2.91M
Cash Flow
Free Cash Flow	-2.06M	-3.87M	-2.00M
Operating Cash Flow	-2.06M	-3.87M	-2.00M
Investing Cash Flow	0.00	250.00K	0.00
Financing Cash Flow	1.88M	3.58M	2.24M

Elauwit Connection, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDT	70 Outperform	$1.22B	15.12	27.94%	0.47%	2.52%	10.02%
CXDO	67 Neutral	$190.53M	42.51	7.87%	―	12.91%	222.63%
OOMA	62 Neutral	$319.33M	144.85	2.59%	―	4.22%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
UCL	56 Neutral	$63.12M	8.30	29.12%	―	-2.61%	85.42%
ELWT	46 Neutral	$39.78M	-24.60	―	―	―	―
IQST	45 Neutral	$9.41M	―	-79.86%	―	43.19%	-63.65%

Elauwit Connection, Inc. Corporate Events

Elauwit Connection Closes Sale of Additional Shares

On November 24, 2025, Elauwit Connection, Inc. announced the closing of the sale of an additional 68,989 shares of its common stock, following the partial exercise of the underwriter’s over-allotment option in connection with its initial public offering. This transaction raised an additional $0.6 million in gross proceeds, supplementing the previously announced $15.0 million from the IPO. The offering was managed by Craig-Hallum Capital Group LLC as the sole bookrunner, with legal counsel provided by Harter Secrest & Emery LLP for the company and Pryor Cashman LLP for the underwriters.

Elauwit Connection Announces Public Offering and Nasdaq Listing

On November 4, 2025, Elauwit Connection, Inc. announced an underwritten public offering of 1,667,000 shares of its common stock at $9.00 per share, with the offering closing on November 6, 2025. The gross proceeds from this offering are approximately $15 million, potentially increasing to $17.3 million if the over-allotment option is fully exercised. The company’s common stock began trading on the Nasdaq Capital Market under the symbol ‘ELWT’ on November 5, 2025. Additionally, on November 3, 2025, the company’s 2025 Stock Incentive Plan was approved by stockholders, allowing for various stock-based awards to employees and directors. The plan initially reserves 700,000 shares for issuance, with provisions for annual increases.