Gauzy Ltd. (GAUZ) AI Stock Analysis

• Market Cap: $20.99M
• Dividend Yield: N/A
• Average Volume (3M): 351.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: 7.87%
• EPS Growth: 50.42%
• Country: US
• Employees: 708
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 18,743,137
• 10 Day Avg. Volume: 453,053
• 30 Day Avg. Volume: 351,828
• PEG Ratio: 0.11
• Price to Book (P/B): 3.84
• Price to Sales (P/S): 1.79
• P/FCF Ratio: -4.26
• Enterprise Value/Market Cap: 10.49
• Enterprise Value/Revenue: 2.27
• Enterprise Value/Gross Profit: 8.17
• Enterprise Value/Ebitda: -9.87
• 1Y Price Target: $2.38
• Price Target Upside: 135.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.45
• Revenue Forecast (FY): $197.90M

• Rating: 39 Underperform
• Price Target: $0.95 ▼(-5.54% Downside)

The score is driven primarily by very weak financial performance (declining revenue, heavy losses, leverage concerns, and negative operating/free cash flow). Technical indicators add further downside pressure with a strong downtrend and weak momentum. Valuation provides little offset because the negative P/E reflects ongoing unprofitability and no dividend support is available.

Positive Factors

Diversified End Markets

Serving architectural, automotive and aerospace markets provides durable demand diversification. Multiple end-markets reduce reliance on any single vertical, widen addressable market for scale, and create multiple OEM and project pathways that can stabilize revenues over months to years.

Integrated Product + Systems Model

Selling both switchable materials and controllers/integration electronics creates sticky, system-level offerings. This bundled model raises switching costs, supports longer OEM or project contracts, and helps capture more value per installation versus component-only suppliers over the medium term.

Product-Level Gross Margin

A gross margin near 28% indicates product economics that can support profitability if operating expenses are controlled and volumes increase. Solid product margins create a pathway to sustainable operating profits once fixed costs are absorbed and commercial scale is achieved.

Negative Factors

Deep Negative Profitability

Large negative operating and net margins reflect persistent unprofitable core operations. Continued deep losses erode equity, necessitate external financing or restructuring, and restrict reinvestment capacity, raising the risk that current business models must be materially revised to reach sustainable profitability.

Elevated Leverage and Weak ROE

A leveraged balance sheet and severely negative ROE create ongoing interest and covenant pressure that can limit strategic flexibility. High debt amplifies liquidity stress during downturns, increases refinancing risk, and can force asset sales or dilution, weakening long-term shareholder returns.

Insolvency Proceedings and Debt Default Risk

Court-initiated insolvency for French units and the resulting default on senior facilities are structural liquidity and legal risks. They can trigger lender actions, disrupt supply or customer contracts, delay financial reporting, and require restructuring or capital raises that materially affect operations and strategic plans.

Gauzy Ltd. Business Overview & Revenue Model

Company Description

Gauzy 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 Money

Gauzy generates revenue primarily through the sale of its smart glass products and solutions, which are used in various industries, including architecture, automotive, and consumer electronics. The company has established key partnerships with manufacturers and distributors to expand its market reach and enhance its product offerings. Additionally, Gauzy earns revenue through licensing agreements for its proprietary technologies and by providing value-added services such as installation and customization of its products. The growing demand for energy-efficient and customizable solutions in both commercial and residential markets significantly contributes to the company's earnings.

Gauzy Ltd. Financial Statement Overview

Summary

Gauzy Ltd. faces significant financial challenges, including declining revenue, negative profitability margins, high leverage, and negative cash flow. These issues indicate a need for strategic financial restructuring.

Income Statement

Gauzy Ltd. has experienced declining revenue growth, with a negative growth rate of -4.31% in the TTM period. The company also shows negative profitability margins, including a net profit margin of -50.13% and an EBIT margin of -41.23%, indicating significant operational challenges. Despite a relatively stable gross profit margin of 27.91%, the overall income statement reflects financial instability and a need for strategic improvements.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.21, suggesting a leveraged position that could pose financial risks. The return on equity is negative at -97.09%, indicating that the company is not generating sufficient returns on shareholders' equity. However, the equity ratio is relatively stable, showing that equity still constitutes a significant portion of total assets. Overall, the balance sheet highlights financial leverage concerns and the need for improved equity returns.

Cash Flow

Cash flow analysis shows negative operating cash flow and free cash flow, with a free cash flow growth rate of -17.12% in the TTM period. The operating cash flow to net income ratio is negative, reflecting cash flow challenges. The free cash flow to net income ratio is positive at 1.47, indicating that free cash flow exceeds net income, but the overall cash flow situation remains concerning due to negative cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	96.81M	103.53M	77.98M	49.03M	7.31M	4.74M
Gross Profit	26.95M	29.74M	16.28M	5.98M	2.02M	1.41M
EBITDA	-22.31M	-34.92M	-59.88M	-28.50M	-16.35M	-11.75M
Net Income	-38.36M	-53.18M	-79.27M	-37.90M	-17.22M	-12.46M
Balance Sheet
Total Assets	136.81M	138.25M	127.94M	109.54M	22.01M	22.53M
Cash, Cash Equivalents and Short-Term Investments	1.24M	5.62M	4.71M	4.70M	1.86M	7.92M
Total Debt	63.28M	48.37M	135.04M	63.44M	9.30M	6.28M
Total Liabilities	118.95M	89.92M	194.30M	101.61M	20.56M	11.39M
Stockholders Equity	17.86M	48.33M	-66.35M	7.93M	1.45M	11.14M
Cash Flow
Free Cash Flow	-31.03M	-43.52M	-41.54M	-33.43M	-14.36M	-11.87M
Operating Cash Flow	-20.11M	-31.91M	-31.11M	-29.75M	-12.63M	-10.64M
Investing Cash Flow	-10.88M	-11.46M	-10.62M	-39.49M	-6.39M	-855.00K
Financing Cash Flow	-31.48M	44.57M	41.69M	71.61M	12.93M	18.83M

Gauzy Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1.01 is below the 20-day moving average (MA) of 1.19, below the 50-day MA of 2.57, and below the 200-day MA of 6.22, indicating a bearish trend. The MACD of -0.36 indicates Negative momentum. The RSI at 36.75 is Neutral, neither overbought nor oversold. The STOCH value of 27.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GAUZ.

Gauzy Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CPSH	60 Neutral	$56.81M	-89.16	-3.84%	―	38.22%	70.68%
NEON	49 Neutral	$31.89M	3.55	38.72%	―	-48.54%	―
REFR	49 Neutral	$43.41M	-22.60	-87.36%	―	-16.49%	-59.21%
LINK	41 Neutral	$61.58M	-30.89	-13.78%	―	-1.70%	17.13%
GAUZ	39 Underperform	$20.99M	-0.49	―	―	7.87%	50.42%

Gauzy Ltd. Corporate Events

Gauzy Ltd. Secures $12 Million Funding and Announces Board Changes

On December 2, 2025, Gauzy Ltd. announced it raised $12 million in new cash funding through privately negotiated transactions with existing investors and stakeholders, including Chutzpah Holdings and Orion Infrastructure Capital. This funding aims to advance the company’s operational objectives and strengthen its financial position. Additionally, Gauzy is addressing the insolvency proceedings of its French subsidiaries by providing financial support and appealing the findings with the French Commercial Court of Lyon. The company also announced the resignation of board members Jesse Ezriel Klein and Alejandro Weinstein, which has led to non-compliance with Nasdaq’s audit committee requirements. Gauzy intends to appoint an additional independent director to regain compliance within the allowed cure period.

The most recent analyst rating on (GAUZ) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on Gauzy Ltd. stock, see the GAUZ Stock Forecast page.

Gauzy Ltd. Faces Insolvency Proceedings for French Subsidiaries

On November 13, 2025, the Commercial Court of Lyon initiated insolvency proceedings for three French subsidiaries of Gauzy Ltd., which the company plans to appeal. Despite the court’s decision, Gauzy intends to maintain normal operations and meet customer demand while working with appointed administrators to resolve the issue. The proceedings have triggered a default under Gauzy’s senior secured debt facilities, prompting the company to engage with lenders to address the situation. Gauzy’s financial results release for the third quarter of 2025 has been postponed due to these developments.

The most recent analyst rating on (GAUZ) stock is a Sell with a $4.00 price target. To see the full list of analyst forecasts on Gauzy Ltd. stock, see the GAUZ Stock Forecast page.