Gauzy Ltd. (GAUZ) AI Stock Analysis

• Market Cap: $19.12M
• Dividend Yield: N/A
• Average Volume (3M): 352.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• 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: 413,077
• 30 Day Avg. Volume: 352,024
• 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: 4.25
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 3.01
• Enterprise Value/Ebitda: -3.64
• 1Y Price Target: $2.38
• Price Target Upside: 133.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.45
• Revenue Forecast (FY): $197.90M

• Rating: 38 Underperform
• Price Target: $0.83 ▼(-18.92% Downside)

The score is driven primarily by weak financial performance, including declining revenue, very negative margins, high leverage with negative ROE, and negative operating/free cash flow. Technicals also weigh on the score with the stock trading below all major moving averages and a negative MACD. Valuation offers limited support due to a negative P/E and no dividend yield data.

Positive Factors

Diversified End Markets

Serving buildings, automotive and aerospace provides multiple long-term demand channels and reduces concentration risk. Structural adoption across construction, mobility and interiors supports steadier revenue opportunities as projects and OEM programs mature over multi-year cycles.

Proprietary Product Offering

Electronically controlled smart glass and integrated controllers create product differentiation and higher integration barriers. OEM/system integrations and controller/software value-add increase switching costs and raise potential for recurring systems and project revenues over the medium term.

Underlying Unit Economics (Gross Margin)

A near-28% gross margin indicates the core product can generate positive unit economics even if operating losses exist today. Durable gross margins offer a pathway to profitability with scale, better manufacturing efficiency, or SG&A discipline over the next several quarters.

Negative Factors

Declining Revenue and Deep Losses

Sustained revenue declines and steep operating losses materially weaken reinvestment capacity and strategic optionality. Over multiple quarters, this erodes cash reserves, complicates program support for OEMs and distributors, and makes scaling commercial deployments harder without corrective action.

High Leverage and Negative Returns

Elevated leverage combined with severely negative ROE signals shareholder capital erosion and limited financial flexibility. Debt-servicing constraints increase risk of covenant breaches and limit ability to fund working capital or capital expenditures as the business attempts to stabilize and pursue growth.

Subsidiary Insolvency and Governance/Liquidity Risk

Insolvency proceedings for subsidiaries, board resignations and Nasdaq non-compliance risks create structural operational and credibility damage. Liquidity support is conditional and uncertain, so customer, supplier and lender confidence and long-term access to capital could be impaired without rapid governance and balance sheet fixes.

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

Financial statements indicate significant weakness: revenue declined (-4.31% TTM) with deeply negative profitability (net margin -50.13%, EBIT margin -41.23%). Leverage is elevated (debt-to-equity 1.21) with very poor equity returns (ROE -97.09%). Cash generation is also pressured with negative operating cash flow and free cash flow, and declining FCF growth (-17.12% TTM).

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: 1.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 1.02 is below the 20-day moving average (MA) of 1.06, below the 50-day MA of 1.36, and below the 200-day MA of 5.63, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 45.23 is Neutral, neither overbought nor oversold. The STOCH value of 13.46 is Positive, 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
CPSH	64 Neutral	$96.01M	-131.53	-3.84%	―	38.22%	70.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NEON	56 Neutral	$30.38M	3.38	38.72%	―	-48.54%	―
REFR	44 Neutral	$40.38M	-21.35	-87.36%	―	-16.49%	-59.21%
LINK	41 Neutral	$55.60M	-28.17	-13.78%	―	-1.70%	17.13%
GAUZ	38 Underperform	$19.12M	-0.50	―	―	7.87%	50.42%

Gauzy Ltd. Corporate Events

Gauzy Faces Leadership Shake-Up, Nasdaq Compliance Risk and Pursues $50 Million Equity Line

On January 26, 2026, Gauzy Ltd. reported a series of leadership and governance changes alongside a proposed financing lifeline, underscoring mounting operational and liquidity pressures at the light and vision control technology specialist. Long‑serving Chief Financial Officer Meir Peleg has tendered his resignation but will remain in post until no later than April 10, 2026, to support stabilization efforts and hand over to interim CFO Dan Oshri, the company’s executive vice president of finance and a former finance manager at Chevron Mediterranean. The same day, directors Lilach Payorski and Alexander Babitsky resigned from the board and its committees with immediate effect, leaving Gauzy temporarily out of compliance with Nasdaq requirements for a majority‑independent board and fully independent audit and compensation committees and raising the risk of potential delisting if suitable replacements are not appointed in time. In a move to address recent liquidity constraints and support ongoing operations, Gauzy disclosed that on January 23, 2026, it entered into a term sheet with an existing shareholder for a proposed $50 million equity line of credit, giving the company discretion to draw funds over 36 months following SEC effectiveness of a planned Form F‑1 registration statement, though the facility remains subject to definitive documentation and regulatory and closing conditions, and there is no assurance it will be completed.

The most recent analyst rating on (GAUZ) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Gauzy Ltd. stock, see the GAUZ Stock Forecast page.

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.