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: 40 Underperform
• Price Target: $1.50 ▲(20.97% Upside)

ParaZero Technologies Ltd. has a low overall stock score due to significant financial challenges, weak technical indicators, and poor valuation metrics. The company's financial instability and lack of profitability are the most significant factors impacting the score.

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: 1.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1.24 is below the 20-day moving average (MA) of 1.38, below the 50-day MA of 1.51, and below the 200-day MA of 1.24, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 39.14 is Neutral, neither overbought nor oversold. The STOCH value of 43.38 is Neutral, 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	45 Neutral	$28.80M	-29.78	-2.26%	―	-13.52%	-103.42%
AIRI	43 Neutral	$14.70M	-4.63	-11.98%	―	-6.77%	-192.82%
KITT	43 Neutral	$8.33M	>-0.01	―	―	95.38%	45.87%
SIDU	42 Neutral	$30.20M	―	-142.81%	―	-30.18%	80.43%
MNTS	41 Neutral	$12.22M	-0.08	―	―	-70.65%	90.41%
PRZO	40 Underperform	$24.58M	-5.08	-287.53%	―	83.92%	-87.22%

ParaZero Technologies Ltd. Corporate Events

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.

ParaZero Successfully Trials Counter-Drone System in Israel

On September 4, 2025, ParaZero Technologies Ltd. announced the successful completion of a field trial of its DefendAir Stationary Turret system in collaboration with Israel’s homeland security authority. The trial, conducted in real-life conditions, demonstrated the system’s ability to protect critical infrastructure by achieving a 100% interception success rate against hostile drones. This success validates DefendAir as a critical defense solution, particularly in environments where traditional methods are unsuitable, thereby enhancing ParaZero’s market positioning in defense and homeland security applications.

ParaZero Technologies Reports First Half 2025 Financial Results

ParaZero Technologies Ltd. released its financial results for the first half of 2025 on August 28, 2025. The company reported a decline in gross profit, with a loss of $73,909 compared to a profit of $73,164 in the same period last year. Despite increased sales, the cost of sales rose significantly, impacting profitability. The financial results reflect challenges in managing operational costs, particularly in research and development, which saw a substantial increase in expenses. This announcement may influence stakeholders’ perceptions of the company’s financial health and its ability to manage expenses effectively.

ParaZero Achieves 100% Success in Latest Drone Defense Test

On August 25, 2025, ParaZero Technologies Ltd. announced the successful completion of a field trial for its DefendAir Hand-Held Net Gun System, achieving a 100% success rate in intercepting hostile drones. This demonstration, ordered by Israel’s defense sector, underscores the system’s effectiveness in protecting critical infrastructure and sensitive facilities. The trial follows a previous successful demonstration in July 2025, reinforcing DefendAir’s reliability as a defense solution amid the growing global drone threat. The anti-drone market is projected to grow significantly, highlighting the importance of such innovative solutions.

ParaZero Secures Defense Order for Counter-Drone Technology

On August 18, 2025, ParaZero Technologies Ltd. announced it received a purchase order for its advanced Counter-Unmanned Aerial Systems (C-UAS) solution from a defense entity. This order marks a significant achievement for ParaZero as it continues to expand into the defense market and the rapidly growing counter-drone market. The global anti-drone market is projected to grow significantly, with ParaZero’s technology offering essential protection for critical infrastructure and sensitive operations. The order reflects the trust in ParaZero’s technology and its commitment to providing high levels of safety and security.