Razor Labs (RZR) AI Stock Analysis

• Market Cap: ₪227.22M
• Dividend Yield: N/A
• Average Volume (3M): 28.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: 238.35%
• EPS Growth: -0.43%
• Country: IL
• Employees: 41
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.39
• Shares Outstanding: 39,413,180
• 10 Day Avg. Volume: 34,929
• 30 Day Avg. Volume: 28,252
• PEG Ratio: 0.82
• Price to Book (P/B): 19.42
• Price to Sales (P/S): 12.57
• P/FCF Ratio: -381.66
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: 516.00 ▼(-11.20% Downside)

The score is held back primarily by weak financial performance—ongoing losses, negative operating cash flow, and relatively high leverage—despite strong revenue growth and improving free cash flow. Technicals are currently a positive, with the stock well above major moving averages and positive MACD, but the very high RSI indicates overbought risk. Valuation remains constrained by negative earnings and no dividend yield data.

Positive Factors

Revenue Growth

Sustained TTM revenue growth indicates successful market penetration and product demand across clients and industries. Over 2-6 months this supports scaling potential, bolsters recurring contract negotiations, and provides a foundation to invest in product development and sales expansion while customer traction builds.

Free Cash Flow Improvement

A large improvement in free cash flow signals the business is improving cash conversion from operations and investments. This durable improvement reduces immediate funding pressure, enhances the ability to fund R&D or pay down debt, and strengthens liquidity over the medium term.

Diversified Revenue Model

Multiple revenue streams — project fees, subscriptions, maintenance, partnership co-development and licensing — lower customer concentration and seasonality risk. Structurally, recurring subscription and maintenance income can stabilize cash flow and support higher lifetime value customers.

Negative Factors

Persistent Negative Profitability

Ongoing negative margins indicate core operations are not yet profitable, limiting internal reinvestment and forcing reliance on external capital. Over several months this constrains margin expansion potential, increases sensitivity to revenue slowdowns, and delays sustainable earnings generation.

Negative Operating Cash Flow

Negative operating cash flow despite improved free cash flow suggests core operations still consume cash. This structural cash burn necessitates external financing or asset sales to fund growth, increasing execution risk and potentially diluting shareholders or raising leverage over the medium term.

Elevated Leverage and Negative ROE

Relatively high debt-to-equity and negative return on equity increase solvency and interest-cost risks. Structurally, leverage limits financial flexibility for acquisitions or R&D, raises fixed costs, and magnifies downside in cyclical revenue periods, prolonging recovery to positive shareholder returns.

Razor Labs Business Overview & Revenue Model

Company Description

Razor Labs operates in the artificial intelligence (AI) industry in Israel. It offers DataMind, an industrial optimization platform to take manufacturing process into a virtual world; and AI pipeline, a video analytics platform to chain together various AI applications into one solution that fit corporate objectives. The company is based in Tel Aviv, Israel.

How the Company Makes Money

Razor Labs generates revenue through a diversified model that includes project-based consulting fees, subscription services for its proprietary software platforms, and ongoing maintenance contracts with clients. The company also engages in strategic partnerships with industry leaders to co-develop AI solutions, which provides additional revenue opportunities through collaborative projects. Furthermore, Razor Labs may capitalize on licensing its technology to other businesses, creating a steady stream of income from intellectual property. The combination of these revenue streams, along with a focus on expanding its client base and enhancing service offerings, contributes significantly to its earnings.

Razor Labs Financial Statement Overview

Summary

Strong TTM revenue growth (23.62%) and sharply improved free cash flow growth (84.50%), but overall fundamentals are pressured by persistent negative profitability (net profit/EBIT/EBITDA margins), negative operating cash flow, and elevated leverage (debt-to-equity 1.56) with negative ROE.

Income Statement

Razor Labs shows a strong revenue growth rate of 23.62% in the TTM, indicating potential for future expansion. However, the company struggles with profitability, as evidenced by negative net profit, EBIT, and EBITDA margins. The gross profit margin has improved slightly over time, but the persistent losses highlight significant operational challenges.

Balance Sheet

The company's debt-to-equity ratio has improved from previous years but remains relatively high at 1.56 in the TTM, indicating a leveraged position. Return on equity is negative, reflecting ongoing losses. The equity ratio is not explicitly provided, but the high leverage suggests a need for careful financial management to avoid solvency risks.

Cash Flow

Razor Labs has shown a significant improvement in free cash flow growth, with an 84.50% increase in the TTM. However, operating cash flow remains negative, and the operating cash flow to net income ratio is unfavorable. The free cash flow to net income ratio is positive, indicating some ability to generate cash relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.87M	17.22M	5.29M	5.14M	14.20M	22.30M
Gross Profit	12.17M	7.14M	648.00K	1.60M	1.91M	11.23M
EBITDA	-13.84M	-10.81M	-13.70M	-23.32M	-36.45M	1.50M
Net Income	-16.60M	-15.48M	-18.33M	-27.56M	-41.57M	-7.00K
Balance Sheet
Total Assets	55.60M	79.93M	82.82M	71.30M	101.22M	23.48M
Cash, Cash Equivalents and Short-Term Investments	38.22M	55.29M	58.63M	44.52M	71.12M	2.04M
Total Debt	4.89M	18.28M	20.68M	23.23M	22.71M	11.90M
Total Liabilities	52.44M	68.77M	57.23M	28.49M	31.34M	18.86M
Stockholders Equity	3.14M	11.14M	25.57M	42.80M	69.88M	4.61M
Cash Flow
Free Cash Flow	-6.75M	-567.00K	17.11M	-23.98M	-36.43M	1.27M
Operating Cash Flow	-6.51M	-308.00K	17.25M	-23.84M	-32.78M	1.53M
Investing Cash Flow	-15.02M	6.96M	-7.47M	42.34M	-45.22M	812.00K
Financing Cash Flow	-2.83M	-2.83M	-2.38M	-3.17M	105.08M	-1.19M

Razor Labs Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 581.10
• 50DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:RZR, the sentiment is Positive. The current price of 581.1 is above the 20-day moving average (MA) of 399.56, above the 50-day MA of 380.13, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of 4.61 indicates Positive momentum. The RSI at 55.12 is Neutral, neither overbought nor oversold. The STOCH value of 40.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:RZR.

Razor Labs 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%
RZR	48 Neutral	₪227.22M	-14.11	―	―	238.35%	-0.43%