ParaZero Technologies Ltd. (PRZO)
NASDAQ:PRZO
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ParaZero Technologies Ltd.
(NASDAQ:PRZO)
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Rating:40Underperform
Price Target:
$0.57
▼(-61.22% Downside)
Action:Downgraded
Date:05/19/26
The score is driven primarily by weak financial performance—ongoing losses, recurring cash burn, and prior negative equity—despite some improvement in 2025 and low recent leverage. Technicals add pressure given a broad downtrend, while oversold indicators provide only limited near-term support. Valuation is constrained by negative earnings and no dividend support.
Positive Factors
Proven Product Effectiveness
Field-proven interception performance reduces technical adoption risk for defense buyers. Demonstrated 100% success in live trials strengthens ParaZero’s product credibility, easing procurement, accelerating integrations and supporting repeated orders across government and integrator channels over the medium term.
Negative Factors
Persistent Negative Cash Flow
Chronic negative operating and free cash flow means the business cannot self-fund growth or absorb shocks, forcing ongoing external financings. This structural cash burn constrains long-term investment, increases dilution risk and heightens vulnerability if capital markets tighten over 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Proven Product Effectiveness
Field-proven interception performance reduces technical adoption risk for defense buyers. Demonstrated 100% success in live trials strengthens ParaZero’s product credibility, easing procurement, accelerating integrations and supporting repeated orders across government and integrator channels over the medium term.
Read all positive factors
ParaZero Technologies Ltd. (PRZO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.56M
Dividend YieldN/A
Average Volume (3M)1.11M
Price to Earnings (P/E)―
Beta (1Y)1.60
Revenue Growth22.30%
EPS Growth66.34%
CountryUS
Employees22
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-0.19
Shares Outstanding25,928,572
10 Day Avg. Volume1,109,202
30 Day Avg. Volume1,106,968
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)14.38
Price to Sales (P/S)46.93
P/FCF Ratio-8.42
Enterprise Value/Market Cap0.78
Enterprise Value/Revenue21.41
Enterprise Value/Gross Profit-332.52
Enterprise Value/Ebitda-2.52
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
ParaZero Technologies Ltd. Business Overview & Revenue Model
Company Description
ParaZero Technologies Ltd., an aerospace company, engages in the design, development, manufacturing, distribution, and sale of autonomous parachute safety systems for commercial drones in the United States, Israel, Canada, Europe, and internationa...
How the Company Makes Money
ParaZero primarily makes money by selling drone safety products and related solutions. Key revenue streams include: (1) Hardware product sales: revenue from parachute recovery systems and associated safety modules sold to drone manufacturers (OEMs...
ParaZero Technologies Ltd. Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
32
Negative
Cash Flow
14
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 303.45K | 932.15K | 620.51K | 560.12K | 724.39K |
| Gross Profit | 14.48K | 58.29K | 143.90K | 222.55K | 259.68K |
| EBITDA | -2.18M | -5.54M | -3.60M | -1.43M | -969.80K |
| Net Income | -1.57M | -11.05M | -3.77M | -1.65M | -615.38K |
Balance Sheet | |||||
| Total Assets | 1.66M | 5.74M | 8.42M | 1.15M | 532.74K |
| Cash, Cash Equivalents and Short-Term Investments | 1.31M | 4.18M | 7.43M | 89.81K | 33.02K |
| Total Debt | 96.23K | 419.48K | 7.54K | 1.97M | 6.65M |
| Total Liabilities | 674.17K | 6.05M | 2.32M | 2.79M | 7.15M |
| Stockholders Equity | 990.45K | -311.64K | 6.11M | -1.64M | -6.62M |
Cash Flow | |||||
| Free Cash Flow | -1.69M | -4.97M | -2.96M | -1.98M | -991.47K |
| Operating Cash Flow | -1.68M | -4.89M | -2.94M | -1.97M | -985.90K |
| Investing Cash Flow | -591.59K | -148.74K | -25.76K | -9.72K | -5.57K |
| Financing Cash Flow | 1.69M | 1.82M | 10.30M | 2.04M | 910.56K |
ParaZero Technologies Ltd. Technical Analysis
Negative
1.47
Price Trends
0.74
Negative
0.97
Negative
1.20
Negative
Market Momentum
-0.07
Negative
45.96
Neutral
46.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRZO, the sentiment is Negative. The current price of 1.47 is above the 20-day moving average (MA) of 0.61, above the 50-day MA of 0.74, and above the 200-day MA of 1.20, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 45.96 is Neutral, neither overbought nor oversold. The STOCH value of 46.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRZO.
ParaZero Technologies Ltd. Risk Analysis
ParaZero Technologies Ltd. disclosed 70 risk factors in its most recent earnings report. ParaZero Technologies 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
ParaZero Technologies Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
53 Neutral | $414.03M | -7.41 | -82.97% | ― | -9.23% | 64.77% | |
52 Neutral | $59.18M | 10.19 | 6.74% | ― | -7.98% | -7.88% | |
44 Neutral | $73.74M | -0.43 | -401.62% | ― | 108.16% | 85.58% | |
42 Neutral | $8.45M | -0.41 | 9999.00% | ― | 249.33% | 97.72% | |
41 Neutral | $14.89M | -3.78 | -11.98% | ― | -10.90% | 33.80% | |
40 Underperform | $15.56M | -4.05 | -574.54% | ― | 22.30% | 66.34% |
* Industrials Sector Average
PRZO
ParaZero Technologies Ltd.
0.60
-0.28
-31.82%
CVU
CPI Aerostructures
4.48
1.48
49.33%
AIRI
Air Industries Group
3.07
-0.51
-14.25%
MNTS
Momentus
7.38
-23.68
-76.24%
KITT
Nauticus Robotics
1.69
-65.23
-97.47%
SIDU
Sidus Space, Inc. Class A
5.12
3.61
239.07%
ParaZero Technologies Ltd. Corporate Events
ParaZero Stages First U.S. Live Demo of DefendAir Counter-Drone System After SOF Week 2026
May 21, 2026
ParaZero Technologies showcased its DefendAir non-explosive net-based counter-drone system in its first live U.S. demonstration on May 21, 2026, in Tampa, Florida, following the company’s participation at SOF Week 2026. The event, attended b...
ParaZero Showcases DefendAir Counter‑Drone System to NATO Leaders at Romania’s BSDA
May 13, 2026
On May 13, 2026, ParaZero Technologies demonstrated its DefendAir counter‑drone solution during the Black Sea Defense, Aerospace and Security exhibition in Romania. The live trial, held within a “Modern Battlefield Simulation” al...
ParaZero Warned by Nasdaq Over Minimum Bid Price Compliance
May 8, 2026
On May 8, 2026, ParaZero Technologies Ltd. disclosed that it received a written notice from Nasdaq stating the company is no longer in compliance with the exchange’s minimum bid price requirement of $1.00 per share for continued listing. The...
ParaZero Sets June 1, 2026 Shareholder Meeting to Vote on Reverse Split, Board and Pay Changes
Apr 24, 2026
On April 24, 2026, ParaZero Technologies announced it will hold its 2026 Annual General Meeting of Shareholders on June 1, 2026, in Tel Aviv, with shareholders of record as of May 1 eligible to vote. The agenda includes re-electing two Class III d...
ParaZero Signs Romanian Reseller Deal to Deepen European Counter-Drone Reach
Apr 23, 2026
On April 23, 2026, ParaZero Technologies announced a new reseller agreement with Romania-based defense and homeland security integrator New Akord Security, expanding its European footprint, especially among NATO states near the Russia-Ukraine conf...
ParaZero Wins Repeat Defense Order for DefendAir Counter-Drone System
Apr 13, 2026
On April 13, 2026, ParaZero Technologies Ltd., an Israeli aerospace defense specialist in smart systems for manned and unmanned aerial platforms, reported a new purchase order for its DefendAir Counter‑UAS solution from an existing defense c...
ParaZero Wins Follow-On Israeli Defense Order for DefendAir Counter-Drone Systems
Apr 6, 2026
On April 6, 2026, ParaZero Technologies announced it had secured a follow-on purchase order from an Israeli defense entity for its DefendAir counter-unmanned aerial systems. The order, made under an existing direct contract, reflects rising demand...
ParaZero Wins $650,000 Counter-Drone Order From Tier-1 Interception Partner
Apr 1, 2026
On April 1, 2026, ParaZero Technologies announced it had secured a framework agreement with a Tier-1 international company specializing in autonomous drone interception, valued at more than $650,000. Under the deal, ParaZero will fully integrate i...
ParaZero Highlights 2025 Revenue Growth and Surging 2026 Orders Amid Pivot to Tier 1 Defense
Mar 27, 2026
ParaZero reported that 2025 marked a major strategic shift as it evolved from a drone safety component pioneer into a Tier 1 defense provider offering multi-layered autonomous counter-UAS systems, including its DefendAir solution. The company said...
ParaZero Technologies, XTEND Forge Strategic Drone Interception Partnership
Mar 26, 2026
On March 26, 2026, Israel-based ParaZero Technologies announced a strategic partnership with XTEND, an AI-driven tactical drone specialist, to integrate ParaZero’s DefendAir net-launching system with XTEND’s Scorpio 1000 drone. The com...
ParaZero Posts 2025 Sales Growth and Expands Global Defense Footprint
Mar 26, 2026
On March 26, 2026, ParaZero reported its 2025 results, highlighting a 12.3% rise in sales to about $1.05 million, driven by a strategic shift toward new defense-sector products and OEM integrations. Despite higher RD, marketing, and administrative...
ParaZero Technologies Secures $4 Million in Registered Direct Offering to Bolster UAS Growth
Mar 24, 2026
On March 23, 2026, ParaZero Technologies Ltd. entered into a definitive agreement for a registered direct offering with a single institutional investor, involving 5,333,333 ordinary shares or pre‑funded warrants priced at $0.75 per share or ...
ParaZero Signs Strategic Cooperation Deal With India’s BonV Aero to Push DefendAir in Key Defense Market
Mar 20, 2026
On March 20, 2026, Israel-based ParaZero announced a strategic cooperation agreement with Indian aerospace and defense manufacturer BonV Aero to expand its presence in India and selected global markets. Under the deal, BonV Aero will market ParaZe...
ParaZero Wins New Israeli Defense Order for DefendAir Counter-Drone System
Mar 13, 2026
On March 13, 2026, ParaZero Technologies announced a new purchase order from an Israeli defense entity for its DefendAir Counter-Unmanned Aerial Systems solution. The agreement includes delivery of an evaluation kit featuring DefendAir’s net...
ParaZero Names Bat-Sheva Noy VP of Global Sales to Drive Drone Safety Growth
Mar 4, 2026
On March 4, 2026, ParaZero Technologies announced the appointment of Bat-Sheva Noy as Vice President of Global Sales, reinforcing its commercial leadership as it targets growth in drone safety and aerospace markets. Noy, a veteran executive with m...
ParaZero Technologies Names Bat-Sheva Noy Vice President of Global Sales
Mar 2, 2026
On March 1, 2026, ParaZero Technologies Ltd. appointed Bat-Sheva Noy as Vice President of Global Sales, with the role becoming effective on March 8, 2026. The move marks a significant reinforcement of the company’s commercial leadership as i...
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.