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Gauzy Ltd. (GAUZ)
NASDAQ:GAUZ
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Gauzy Ltd.
(NASDAQ:GAUZ)
Rating:40Underperform
Price Target:
$5.50
▲(8.06% Upside)
Positive Factors
Order Backlog
Gauzy exited with a record backlog of $38.3 million, providing strong future revenue visibility.
Partnerships and Contracts
Management noted ramping business with Yutong, the first time this bus OEM was announced as well as an award with a European auto OEM for an EV platform to ramp with annual volumes at approximately 50,000.
Revenue Growth
Yutong bus OEM up 250% year over year and Ford Class 8 truck ADAS ramp on track.
Negative Factors
Labor Challenges
Labor availability in aero cockpit shading impacted revenue by approximately $4 million and gross profit by approximately $1 million, delaying the EBITDA breakeven target.
Gauzy Ltd. (GAUZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
N/A
Dividend YieldN/A
Average Volume (3M)73.90K
Price to Earnings (P/E)―
Beta (1Y)0.31
Revenue Growth7.87%
EPS Growth50.42%
CountryUS
Employees708
SectorGeneral
Sector StrengthN/A
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.57
Shares Outstanding18,743,137
10 Day Avg. Volume76,447
30 Day Avg. Volume73,903
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/Revenue2.18
Enterprise Value/Gross Profit7.79
Enterprise Value/Ebitda-6.39
Forecast
1Y Price Target
$8.50Price Target Upside66.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Gauzy Ltd. Business Overview & Revenue Model
Company DescriptionGauzy Ltd., an integrated light and vision control company, develops, manufactures, and supplies vision and light control technologies in Israel, the United States, France, rest of Europe, Asia, and internationally. It operates through four segments: Architecture, Automotive, Safety tech, and Aeronautics. The company offers suspended particle device, liquid crystal, and films for smart glass applications, as well as camera monitoring systems, and other AI-powered advanced driver assistance system solutions. It also provides glass rooftops, side windows and windshields for commercial; retail, residential, healthcare, and hospitality application; camera and motion sensor systems, smart mirrors, and safety doors for buses, coaches, recreational vehicles, and specific vehicles; and shading and cabin management systems for private and commercial aircraft and helicopters. The company was incorporated in 2009 and is based in Tel Aviv, Israel.
How the Company Makes MoneyGauzy Ltd. generates revenue through the sale of its smart glass products and light control technologies to a diverse clientele in the automotive, architectural, and consumer electronics sectors. The company's revenue streams primarily consist of product sales, licensing agreements, and collaborative partnerships with manufacturers and distributors. Gauzy collaborates with industry leaders to integrate its light control solutions into their products, enhancing their value propositions. Additionally, the company benefits from long-term contracts and strategic alliances that provide stable income and expand its market reach. Significant factors contributing to Gauzy's earnings include its ability to innovate and adapt its technologies to meet the specific needs of its partners and customers.
Gauzy Ltd. Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Neutral
While there were notable declines in revenue and adjusted EBITDA, as well as challenges in the Aero and Architecture segments, the call highlighted solid performance, significant business milestones, improved financial terms, and a strong purchase order backlog. The reaffirmation of 2025 guidance underscores confidence in future growth.Q1-2025 Updates
Positive Updates
Solid First Quarter Performance
Despite global uncertainties, Gauzy delivered a solid first quarter with strong demand for their technologies, highlighting the resilience of their business model.
Significant Business Milestones
Key milestones include partnerships with Air France KLM for advanced shading systems, Mercedes-Benz for dual-technology windows, and ramp-up of Cadillac Celestique EV production.
Record Purchase Order Backlog
The backlog of purchase orders expanded from below $31 million at the end of 2024 to almost $36 million by the end of March 2025, indicating strong continued demand.
Improved Financial Terms on Debt
Gauzy secured a $10 million debt facility at more favorable terms, including a 370 basis point interest rate reduction and no prepayment penalties.
Reaffirmed 2025 Guidance
The company reaffirmed its revenue guidance for 2025, anticipating revenue in the range of $130 million to $140 million with more than 30% growth at the midpoint.
Operational Cash Flow Improvements
Cash use in operating activities improved significantly from $6.9 million in the prior year to $0.6 million in the first quarter of 2025.
Negative Updates
Revenue Decline Compared to Prior Year
First quarter revenues were $22.4 million, down from $24.7 million in the prior year period.
Adjusted EBITDA Decrease
Adjusted EBITDA was negative $5.5 million, compared to negative $4.8 million in the prior year quarter.
Aero Segment Revenue Decline
Aero segment revenue was $7.6 million, down 24.6% compared to $10.1 million in the prior year quarter, with gross margin also declining.
Architecture Segment Revenue Decline
Architecture segment revenue was $2.4 million, down 8.2% compared to $2.6 million in the prior year quarter, impacted by macro uncertainties.
Company Guidance
During the first quarter of 2025, Gauzy Limited demonstrated resilience in the face of global market uncertainties, reporting revenues of $22.4 million, a decrease from $24.7 million in the prior year. The company experienced growth in its Automotive and Safety Tech divisions, with Safety Tech revenues slightly increasing to $10.8 million, while Aero and Architecture faced temporary delivery shifts due to market hesitations. Gross margins improved to 25.6%, up from 25.1% the previous year, with significant advancements in operational efficiencies. Operating expenses declined by 9% to $14.4 million, while adjusted EBITDA was negative at $5.5 million, reflecting ongoing challenges. Gauzy reaffirmed its 2025 guidance, expecting annual revenues between $130 million and $140 million and positive adjusted EBITDA, supported by a robust backlog of purchase orders, which increased from $31 million to nearly $36 million by March's end. The company's strategic partnerships, notably with Air France KLM and Mercedes-Benz, alongside a new $10 million debt facility, position it for sustained growth through the year.Gauzy Ltd. Financial Statement Overview
Summary
Gauzy Ltd. faces significant financial challenges with consistent losses, high leverage, and negative cash flows. Despite revenue growth, operational inefficiencies and financial instability are major concerns. The reliance on external financing highlights liquidity pressures.Income Statement
Gauzy Ltd. exhibits a challenging financial performance with consistent losses. The TTM data shows a negative gross profit margin of 27.9% and worsening net profit margin of -50.1%. The revenue growth rate has significantly slowed, indicating potential issues in market expansion or product competitiveness. Despite some revenue growth, operational inefficiencies and high costs are evident, as reflected in negative EBIT and EBITDA margins.42
Neutral
Balance Sheet
The balance sheet reveals high leverage with a debt-to-equity ratio of approximately 1.21 for TTM. This, coupled with a negative equity position in previous periods, indicates financial risk. The equity ratio has improved to 28.9%, suggesting some stabilization, but the overall financial health remains weak due to high liabilities and reliance on debt financing.38
Negative
Cash Flow
The cash flow analysis shows a negative free cash flow and a concerning trend of operating cash flow deficits. The free cash flow to net income ratio is unfavorable, and the operating cash flow to net income ratio indicates inefficiencies. However, consistent financing cash flows suggest efforts to maintain liquidity, although sustainability remains uncertain.45
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 101.17M | 103.53M | 77.98M | 49.03M | 7.31M | 4.74M |
| Gross Profit | 28.24M | 29.74M | 16.28M | 5.98M | 2.02M | 1.41M |
| EBITDA | -34.46M | -34.92M | -59.88M | -28.50M | -16.35M | -10.32M |
| Net Income | -50.71M | -53.18M | -79.27M | -37.90M | -17.22M | -12.46M |
Balance Sheet | ||||||
| Total Assets | 134.56M | 138.25M | 127.94M | 109.54M | 22.01M | 22.53M |
| Cash, Cash Equivalents and Short-Term Investments | 1.18M | 5.62M | 4.71M | 4.70M | 1.86M | 7.92M |
| Total Debt | 47.13M | 48.37M | 135.04M | 63.44M | 12.30M | 6.28M |
| Total Liabilities | 95.66M | 89.92M | 194.30M | 101.61M | 20.56M | 11.39M |
| Stockholders Equity | 38.90M | 48.33M | -66.35M | 7.93M | 1.45M | 11.14M |
Cash Flow | ||||||
| Free Cash Flow | -37.45M | -43.52M | -41.54M | -33.43M | -14.36M | -11.87M |
| Operating Cash Flow | -25.53M | -31.91M | -31.11M | -29.75M | -12.63M | -10.64M |
| Investing Cash Flow | -11.75M | -11.46M | -10.62M | -39.49M | -6.39M | -855.00K |
| Financing Cash Flow | 36.08M | 44.57M | 41.69M | 71.61M | 12.93M | 18.83M |
Gauzy Ltd. Technical Analysis
Negative
5.09
Price Trends
6.65
Negative
7.80
Negative
8.69
Negative
Market Momentum
-0.44
Positive
31.23
Neutral
47.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GAUZ, the sentiment is Negative. The current price of 5.09 is below the 20-day moving average (MA) of 5.84, below the 50-day MA of 6.65, and below the 200-day MA of 8.69, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 31.23 is Neutral, neither overbought nor oversold. The STOCH value of 47.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GAUZ.
Gauzy Ltd. Risk Analysis
Gauzy Ltd. disclosed 74 risk factors in its most recent earnings report. Gauzy Ltd. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gauzy Ltd. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $465.54M | 7.34 | 15.04% | ― | 2.83% | ― | |
55 Neutral | $6.15B | -2.31 | -24.71% | 6.04% | 15.14% | 1.34% | |
54 Neutral | ― | 17.15% | ― | ― | ― | ||
40 Underperform | ― | -94.46% | ― | 7.87% | 50.42% | ||
38 Underperform | $26.03M | ― | -559.73% | ― | ― | 43.68% | |
| ― | 26.51 | -2.49% | ― | ― | ― | ||
| ― | $227.49M | ― | 4.43% | ― | ― | ― |
* General Sector Average
Performance Comparison
GAUZ
Gauzy Ltd.
5.09
-4.51
-46.98%
FBLG
FibroBiologics, Inc.
0.60
-1.26
-67.74%
LOBO
Lobo EV Technologies Ltd.
0.58
-1.60
-73.39%
AUNA
Auna S.A. Class A
6.34
-0.46
-6.76%
INTJ
Intelligent Group Ltd
0.70
-0.32
-31.37%
LEGT
Legato Merger Corp. III
10.73
0.55
5.40%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.