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ParaZero Technologies Ltd. (PRZO)
NASDAQ:PRZO
US Market

ParaZero Technologies Ltd. (PRZO) AI Stock Analysis

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PRZO

ParaZero Technologies Ltd.

(NASDAQ:PRZO)

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Neutral 42 (OpenAI - 5.2)
Rating:42Neutral
Price Target:
$1.50
▲(2.04% Upside)
The score is primarily held down by weak financial health—continued losses, negative equity, and negative operating/free cash flow. Technicals are comparatively better with the price above major moving averages, but mixed momentum signals reduce confidence. Valuation is also constrained by unprofitability (negative P/E) and no dividend yield.
Positive Factors
Proven counter‑UAS performance
Repeated 100% interception results in realistic trials establish a durable product-level competitive advantage for mission-critical customers. Demonstrated effectiveness shortens procurement validation, supports certifications, and boosts the system's credibility for long-term military and infrastructure adoption.
NATO market expansion via distributor
An exclusive Western European distribution deal provides structural access to NATO procurement channels and field-level partners. The distributor's network and training capabilities materially increase go-to-market scale and recurring integration/service opportunities over multiple procurement cycles.
Early defense customer traction
Securing government purchase orders validates product fit in high‑barrier defense markets and creates reference contracts that support follow‑on tenders. Such institutional customers typically enable multi‑year service, integration revenues and strengthen long‑term market credibility.
Negative Factors
Negative equity and high leverage
Persistent negative equity and elevated leverage materially weaken financial flexibility, raising solvency and covenant risk. This structure increases reliance on external capital or dilutive financings, constraining strategic investments and potentially impairing long‑term operational stability.
Persistent negative operating and free cash flow
Ongoing operating cash burn indicates the business cannot self‑fund growth or working capital needs, forcing dependence on financing. That limits ability to scale production, fulfill large defense contracts promptly, and invest in R&D without accelerating external funding or partnership dilution.
Continued losses and margin pressure
Revenue growth alongside worsening net income signals structural margin issues—high fixed costs, sales/R&D spend, or low pricing power. Without sustained cost discipline or higher‑margin product mix, profitability may remain out of reach, reducing long‑term free cash generation prospects.

ParaZero Technologies Ltd. (PRZO) vs. SPDR S&P 500 ETF (SPY)

ParaZero Technologies Ltd. Business Overview & Revenue Model

Company DescriptionParaZero 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 internationally. The company offers SafeAir system, a smart parachute system that monitors unmanned aerial systems flight in real-time, as well as identifies critical failures and autonomously triggers a parachute in the event of an emergency. Its autonomous parachute system portfolio includes SafeAir Phantom, SafeAir Mavic, SafeAir M-200 Pro, SafeAir M-300 Pro, SafeAir M-600 Pro, SafeAir V1EX, SafeAir 350, and Custom Integrations. The company serves system manufacturers, resellers, and online stores. ParaZero Technologies Ltd. was incorporated in 2013 and is based in Kiryat Ono, Israel.
How the Company Makes MoneyParaZero generates revenue through the sale of its safety systems and solutions to commercial drone manufacturers and operators. Key revenue streams include direct sales of hardware and software products, licensing agreements for its technology, and maintenance contracts for ongoing support and updates. The company has formed strategic partnerships with major drone manufacturers and industry stakeholders, which enhances its market reach and credibility. Additionally, government contracts and collaborations with regulatory bodies contribute to its earnings, as increasing drone regulations worldwide create a demand for safety solutions.

ParaZero Technologies Ltd. Financial Statement Overview

Summary
ParaZero Technologies Ltd. faces significant financial challenges, with consistent losses, high leverage, and negative equity. Despite revenue growth, profitability and cash flow remain weak, indicating a need for improved operational efficiency and financial restructuring.
Income Statement
ParaZero Technologies Ltd. has experienced a volatile financial performance with significant losses, as reflected by the negative net profit and EBIT margins over the years. Although there was a substantial increase in revenue from 2022 to 2024, the net income has continued to decline, indicating challenges in managing operational costs. The company needs to improve cost management and profitability to strengthen its financial position.
Balance Sheet
The balance sheet indicates a concerning financial structure with negative stockholders' equity and a high debt load relative to assets. The debt-to-equity ratio is unfavorable due to negative equity, suggesting high financial risk. This structure reflects potential solvency issues, requiring strategic actions to stabilize the balance sheet.
Cash Flow
The cash flow analysis shows persistent negative free cash flow and operating cash flow, indicating cash challenges. Despite significant financing inflows in recent years, the company has not yet achieved positive cash flow from operations, pointing to a need for better operational efficiency and cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue857.88K932.15K620.51K560.12K724.39K762.41K
Gross Profit-85.36K58.29K143.90K222.55K259.68K-86.52K
EBITDA-7.73M-5.54M-3.60M-1.43M-969.80K-1.30M
Net Income-9.25M-11.05M-3.77M-1.65M-615.38K-1.94M
Balance Sheet
Total Assets6.33M5.74M8.42M1.15M532.74K763.07K
Cash, Cash Equivalents and Short-Term Investments4.87M4.18M7.43M89.81K33.02K144.74K
Total Debt425.18K419.48K7.54K1.97M6.65M6.23M
Total Liabilities2.80M6.05M2.32M2.79M7.15M6.76M
Stockholders Equity3.53M-311.64K6.11M-1.64M-6.62M-6.00M
Cash Flow
Free Cash Flow-5.32M-4.97M-2.96M-1.98M-991.47K-830.05K
Operating Cash Flow-5.29M-4.89M-2.94M-1.97M-985.90K-829.35K
Investing Cash Flow-1.98M-148.74K-25.76K-9.72K-5.57K-695.00
Financing Cash Flow4.35M1.82M10.30M2.04M910.56K868.74K

ParaZero Technologies Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.47
Price Trends
50DMA
1.26
Positive
100DMA
1.40
Negative
200DMA
1.27
Positive
Market Momentum
MACD
0.02
Negative
RSI
56.56
Neutral
STOCH
80.78
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRZO, the sentiment is Positive. The current price of 1.47 is above the 20-day moving average (MA) of 1.15, above the 50-day MA of 1.26, and above the 200-day MA of 1.27, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 56.56 is Neutral, neither overbought nor oversold. The STOCH value of 80.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
50
Neutral
$53.27M-88.89-2.26%-13.52%-103.42%
49
Neutral
$222.60M-2.42-142.81%-30.18%80.43%
48
Neutral
$15.76M-6.02-11.98%-6.77%-192.82%
44
Neutral
$25.16M>-0.0195.38%45.87%
42
Neutral
$26.88M-5.35-287.53%83.92%-87.22%
41
Neutral
$14.45M-0.06-63.81%81.84%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PRZO
ParaZero Technologies Ltd.
1.38
-0.47
-25.41%
CVU
CPI Aerostructures
4.08
-0.59
-12.63%
AIRI
Air Industries Group
3.34
-0.96
-22.33%
MNTS
Momentus
9.50
-112.95
-92.24%
KITT
Nauticus Robotics
0.89
-27.01
-96.81%
SIDU
Sidus Space, Inc. Class A
3.11
0.83
36.40%

ParaZero Technologies Ltd. Corporate Events

ParaZero Technologies Launches $2 Million Registered Direct Offering of Shares and Pre-Funded Warrants
Jan 12, 2026

On January 12, 2026, ParaZero Technologies Ltd. entered into a securities purchase agreement with institutional investors for a registered direct offering of 1,000,000 ordinary shares and pre-funded warrants to purchase up to an additional 1,000,000 ordinary shares, priced at $1.00 per share and $0.99999 per pre-funded warrant. The pre-funded warrants are immediately exercisable at a nominal exercise price, subject to a 4.99% beneficial ownership cap, and the deal is expected to close around January 13, 2026, generating approximately $2 million in gross proceeds. ParaZero plans to use the net proceeds, together with existing cash, for general corporate purposes and working capital, underscoring its continued use of the U.S. capital markets and its shelf registration on Form F-3 to secure flexible funding for its operations.

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

ParaZero’s DefendAir Scores 100% Success in Live Counter-Drone Trials
Jan 8, 2026

On January 8, 2026, ParaZero Technologies announced that its DefendAir counter-unmanned aerial system achieved a 100% interception rate in recent live field demonstrations against two of the most problematic drone threats facing security forces: FPV kamikaze attack drones and DJI FlyCart heavy-lift smuggling drones. Conducted in controlled real-world conditions, the trials showed DefendAir’s patented net-based, non-explosive technology reliably neutralizing fast, low-cost FPV attack platforms as well as capturing a DJI FlyCart and its payload intact, underscoring the system’s value for military bases, border protection, and critical infrastructure. Offered in handheld, turret, and drone-mounted configurations and integrating with existing detection and command systems as a terminal C-UAS layer, DefendAir’s performance builds on earlier 100% interception trials, follows an initial purchase order from a major Israeli defense entity, and comes after demonstrations for senior NATO officers, reinforcing ParaZero’s positioning in the rapidly expanding counter-drone defense market.

The most recent analyst rating on (PRZO) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on ParaZero Technologies Ltd. stock, see the PRZO Stock Forecast page.

ParaZero Wins First Israeli Defense Order for DefendAir Counter-Drone Systems
Jan 2, 2026

On January 2, 2026, ParaZero Technologies announced it had secured its first purchase order from a major Israeli defense entity for its DefendAir counter‑unmanned aerial systems (CUAS), marking the company’s first direct contract with this customer for its anti‑drone technology. The order, which includes DefendAir units plus integration and training support, comes amid heightened drone threats identified in recent conflicts and underscores growing demand for multi‑layered, non‑kinetic counter‑drone solutions; DefendAir has demonstrated 100% interception success in field trials and is positioned to enhance protection of troops, critical infrastructure and urban environments, strengthening ParaZero’s standing in the rapidly expanding counter‑UAS market.

The most recent analyst rating on (PRZO) stock is a Hold with a $0.87 price target. To see the full list of analyst forecasts on ParaZero Technologies Ltd. stock, see the PRZO Stock Forecast page.

ParaZero’s DefendAir Impresses German Police in Recent Demonstration
Dec 15, 2025

ParaZero Technologies Ltd. recently demonstrated its DefendAir counter-UAS system to German Bundesländer police leadership at an event organized by the Israeli Ministry of Defense on December 12, 2025. The demonstration highlighted the system’s capabilities in capturing and neutralizing hostile drones, showcasing its potential for adoption by European law enforcement amid rising concerns over drone threats. This event underscores ParaZero’s expanding influence in the European defense market and its commitment to enhancing public safety through strategic partnerships and technological innovation.

The most recent analyst rating on (PRZO) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on ParaZero Technologies Ltd. stock, see the PRZO Stock Forecast page.

ParaZero Expands into Western European NATO Markets with New Distribution Deal
Dec 5, 2025

On December 5, 2025, ParaZero Technologies Ltd. announced a strategic distribution agreement with a leading Western European distributor, granting exclusive rights to distribute its DefendAir counter-unmanned aerial systems across multiple Western European NATO countries. This partnership is expected to enhance ParaZero’s market presence in NATO-aligned regions, facilitating faster deployment of its technologies to protect critical infrastructure and military operations from unauthorized drone incursions. The agreement is seen as a pivotal step for ParaZero, potentially driving revenue growth and strengthening regional security against evolving aerial threats.

The most recent analyst rating on (PRZO) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on ParaZero Technologies Ltd. stock, see the PRZO Stock Forecast page.

ParaZero Technologies Appoints New VP of R&D
Nov 24, 2025

ParaZero Technologies Ltd. has announced the appointment of Mr. Alon Yasovsky as the new Vice President of Research and Development, effective December 1, 2025. Mr. Yasovsky brings over 20 years of experience in R&D leadership across various high-tech sectors, having previously worked with companies like Samsung Electronics and Intel Corporation. This strategic appointment is expected to bolster ParaZero’s innovation capabilities and enhance its competitive position in the tech industry.

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

ParaZero Expands European Market with Major DefendAir Order
Nov 18, 2025

On November 17, 2025, ParaZero Technologies announced a significant purchase order for its DefendAir anti-drone defense systems from a leading Dutch distributor. This order marks a strategic expansion into the Western European market, leveraging the distributor’s extensive network to meet the growing demand for robust anti-drone solutions. The DefendAir system, known for its 100% success rate in field trials, will enhance ParaZero’s market presence and support the distributor’s efforts to broaden its customer base in defense and homeland security applications.

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

ParaZero Technologies Announces CTO Departure Amid Leadership Transition
Oct 31, 2025

On October 29, 2025, ParaZero Technologies Ltd. announced the upcoming departure of its Chief Technology Officer, Mr. Yuval Gilad, effective December 25, 2025. Mr. Gilad’s departure is amicable and not due to any disagreements with the company. During the interim period, he will continue in his role while the company searches for a suitable replacement. This transition marks a significant change in the company’s leadership, potentially impacting its technological direction and innovation strategy.

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

ParaZero Secures Major Order for Anti-Drone Systems
Oct 24, 2025

On October 24, 2025, ParaZero Technologies Ltd. announced securing a significant order for its DefendAir counter-UAS solutions from a major global defense corporation. This order highlights the importance of ParaZero’s DefendAir system in the anti-drone defense market, showcasing its capabilities with a 100% interception success rate in previous trials. The partnership with a leading Israeli defense corporation underscores ParaZero’s growing role in the global Counter-UAS market, positioning the company for further expansion.

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

ParaZero Secures Major Order for Defense Drones
Oct 22, 2025

On October 22, 2025, ParaZero Technologies Ltd. announced a significant purchase order with Airobotics Ltd. for its advanced safety systems, marking an expansion of their ongoing collaboration. This order underscores the growing acceptance of ParaZero’s safety solutions in the defense and homeland security sectors, enhancing the company’s position in the booming drone defense market.

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

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.Date of analysis: Jan 09, 2026