ParaZero Technologies Ltd. (PRZO) AI Stock Analysis

• Market Cap: $24.58M
• Dividend Yield: N/A
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: 83.92%
• EPS Growth: -87.22%
• Country: US
• Employees: 22
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): -0.04
• Shares Outstanding: 18,763,632
• 10 Day Avg. Volume: 1,109,202
• 30 Day Avg. Volume: 1,106,968
• PEG Ratio: -0.07
• Price to Book (P/B): -72.50
• Price to Sales (P/S): 24.24
• P/FCF Ratio: -4.55
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 21.78
• Enterprise Value/Gross Profit: -218.91
• Enterprise Value/Ebitda: -2.42
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: $1.00 ▼(-20.63% Downside)

The overall stock score is primarily impacted by significant financial challenges, including consistent losses and high leverage. Technical indicators suggest weak momentum, and the negative valuation metrics further highlight the company's financial risks. Improvements in operational efficiency and financial restructuring are critical for enhancing the stock's outlook.

Positive Factors

Market Expansion

The strategic expansion into Western Europe via a major distributor enhances ParaZero's market reach and positions it for growth in the defense sector.

Innovation Leadership

The appointment of an experienced VP of R&D is likely to drive innovation, strengthening ParaZero's competitive position in the tech industry.

Product Demand

Securing major orders for DefendAir systems underscores strong demand and validates the product's effectiveness, supporting long-term growth.

Negative Factors

Financial Challenges

Persistent financial difficulties, including high leverage and negative equity, pose risks to operational stability and require strategic restructuring.

Cash Flow Issues

Negative cash flow from operations suggests poor cash management, which could hinder the company's ability to invest in growth and innovation.

Leadership Transition

The CTO's departure during a leadership transition may disrupt technological direction and innovation strategy, affecting long-term growth.

ParaZero Technologies Ltd. Business Overview & Revenue Model

Company Description

ParaZero Technologies Ltd. (PRZO) is a leading provider of drone safety solutions, primarily operating in the aerospace and technology sectors. The company specializes in developing autonomous safety systems for commercial drones, ensuring safe operation in complex environments. Core products include the SafeAir system, which enhances the safety of drone flights by providing automated emergency procedures and recovery solutions, thereby addressing regulatory compliance and operational risks associated with drone usage.

How the Company Makes Money

ParaZero 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, necessitating improvements in cost management and financial stability.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	857.88K	932.15K	620.51K	560.12K	724.39K	762.41K
Gross Profit	-85.36K	58.29K	143.90K	222.55K	259.68K	-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 Assets	6.33M	5.74M	8.42M	1.15M	532.74K	763.07K
Cash, Cash Equivalents and Short-Term Investments	4.87M	4.18M	7.43M	89.81K	33.02K	144.74K
Total Debt	425.18K	419.48K	7.54K	1.97M	6.65M	6.23M
Total Liabilities	2.80M	6.05M	2.32M	2.79M	7.15M	6.76M
Stockholders Equity	3.53M	-311.64K	6.11M	-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 Flow	4.35M	1.82M	10.30M	2.04M	910.56K	868.74K

ParaZero Technologies Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.26 is below the 20-day moving average (MA) of 1.36, below the 50-day MA of 1.44, and above the 200-day MA of 1.24, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 42.31 is Neutral, neither overbought nor oversold. The STOCH value of 14.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRZO.

ParaZero Technologies Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CVU	56 Neutral	$28.80M	-29.78	-2.26%	―	-13.52%	-103.42%
AIRI	45 Neutral	$14.70M	-4.63	-11.98%	―	-6.77%	-192.82%
KITT	44 Neutral	$8.33M	>-0.01	―	―	95.38%	45.87%
SIDU	42 Neutral	$26.11M	-0.57	-142.81%	―	-30.18%	80.43%
PRZO	42 Neutral	$24.58M	-5.08	-287.53%	―	83.92%	-87.22%
MNTS	41 Neutral	$20.28M	-0.10	―	―	-63.81%	81.84%

ParaZero Technologies Ltd. Corporate Events

ParaZero Expands into Western European NATO Markets with New Distribution Deal

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.

ParaZero Technologies Appoints New VP of R&D

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.

ParaZero Expands European Market with Major DefendAir Order

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.

ParaZero Technologies Announces CTO Departure Amid Leadership Transition

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.

ParaZero Secures Major Order for Anti-Drone Systems

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.

ParaZero Secures Major Order for Defense Drones

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.

ParaZero Successfully Demonstrates DefendAir System with Israeli Authorities

ParaZero Technologies Ltd. announced the successful demonstration of its DefendAir Stationary Turret system on September 15, 2025, in collaboration with Israel’s defense and national authorities and Trexmatic’s autonomous robot. The trial, conducted in real-life conditions, showcased the system’s ability to provide 360-degree perimeter protection against hostile drones, achieving a 100% interception success rate. This demonstration highlights a significant advancement in ParaZero’s defense capabilities, offering a compelling investment opportunity and enhancing its market positioning in defense and homeland security applications.

ParaZero’s DropAir Achieves Breakthrough in Blood Transfusion Delivery

ParaZero Technologies Ltd. announced a successful joint field trial of its DropAir system for precision delivery of blood units, conducted in collaboration with the Israeli Ministry of Defense, Ministry of Health, and Israel Defense Forces. The trial demonstrated DropAir’s potential as a life-saving capability in emergency scenarios, confirming the system’s ability to deliver undamaged blood transfusions from 200 meters altitude. This development positions ParaZero as a key player in providing reliable delivery solutions for military and civilian missions, enhancing its industry standing and offering significant implications for stakeholders involved in emergency medical logistics.