SOBR Safe (SOBR) AI Stock Analysis

• Market Cap: $2.43M
• Dividend Yield: N/A
• Average Volume (3M): 28.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.84
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 14
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -1.44
• Shares Outstanding: 1,886,255
• 10 Day Avg. Volume: 39,237
• 30 Day Avg. Volume: 28,609
• PEG Ratio: <0.01
• Price to Book (P/B): 0.07
• Price to Sales (P/S): 3.34
• P/FCF Ratio: -0.11
• Enterprise Value/Market Cap: -0.99
• Enterprise Value/Revenue: -6.62
• Enterprise Value/Gross Profit: -23.76
• Enterprise Value/Ebitda: 0.31
• 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: 42 Neutral
• Price Target: $1.50 ▼(-28.57% Downside)

The score is weighed down primarily by very weak fundamentals—large ongoing losses and significant cash burn—despite some revenue growth and improving gross margin. Technicals also remain bearish with the stock below key moving averages and negative momentum. Valuation provides limited support due to negative earnings and no dividend yield data.

Positive Factors

Revenue Traction

Meaningful year-over-year top-line growth and expanding gross margin indicate early product-market fit for SOBR's device-plus-service offering. If sustained, this trajectory improves unit economics, supports scaling of recurring services, and reduces the need for frequent external financing over coming months.

Low Leverage

A low-debt capital structure lowers near-term solvency and interest-rate risk, giving management flexibility to prioritize growth or margin improvement. This durable balance-sheet advantage extends runway relative to highly leveraged peers, making execution risk more tied to operations than immediate liquidity.

Recurring Revenue Mix

A hybrid model combining device sales with subscription software and monitoring creates recurring revenue and customer lock-in. Over the medium term this supports predictable cash flow, higher lifetime value per deployment, and scalable margins as software/monitoring penetration grows across installed devices.

Negative Factors

Cash Burn

Sustained negative operating and free cash flow of roughly -$7M TTM represents pronounced structural cash burn relative to a very small revenue base. This pressure shortens runway, forces recurring reliance on external financing, and constrains the company's ability to invest in commercial scaling without dilution or cost cuts.

Weak Profitability

Deeply negative margins show the cost base is far too large for current sales volumes. Without durable margin expansion or material revenue scale, the company is unlikely to reach self-sustaining profitability, limiting returns on equity and increasing the risk that future growth will require additional capital.

Declining Equity / Funding Dependence

A meaningful decline in equity combined with a small asset and revenue base increases reliance on new capital to operate. Structural dependence on external funding elevates dilution and execution risk, restricting long-term strategic choices if capital access tightens or financing costs rise.

SOBR Safe Business Overview & Revenue Model

Company Description

SOBR Safe, Inc. develops a non-invasive alcohol detection and identity verification systems. It engages in the development of SOBRcheck, a stationary identification and alcohol monitoring product; SOBRsure, a transdermal, alcohol-detecting wearable band; and SOBRSafe software platform for non-invasive alcohol detection and identity verification. The company was formerly known as TransBiotec, Inc. and changed its name to SOBR Safe, Inc. in March 2020. The company was founded in 2004 and is based in Greenwood Village, Colorado.

How the Company Makes Money

SOBR Safe Financial Statement Overview

Summary

Revenue is showing early traction and gross margin improved, but the business remains dominated by extremely large operating/net losses and heavy cash burn (deeply negative operating and free cash flow). Low leverage helps reduce near-term balance sheet stress, yet declining equity and ongoing funding needs are key risks.

Income Statement

TTM (Trailing-Twelve-Months) revenue improved to ~$0.36M with strong growth versus the prior annual period, and gross margin expanded meaningfully versus 2024. However, profitability remains very weak: operating and net margins are deeply negative (roughly -20% to -23x revenue), reflecting a cost structure that is still far too large relative to the current sales base. Net losses remain substantial and have not yet shown a durable downtrend.

Balance Sheet

Leverage is low with modest total debt and a low debt-to-equity level in both the latest annual period and TTM (Trailing-Twelve-Months), which reduces near-term balance sheet risk. Total assets exceed debt by a wide margin. The key weakness is ongoing heavy losses translating into very poor returns on equity, and equity has declined meaningfully versus prior years—highlighting continued dependence on improving operating performance (or additional funding) to sustain the business.

Cash Flow

Cash generation remains a major concern: operating cash flow and free cash flow are deeply negative in TTM (Trailing-Twelve-Months) (about -$7.0M), indicating persistent cash burn. While free cash flow is roughly in line with net loss (suggesting losses are largely cash-backed rather than accounting-only), the magnitude of outflows versus the small revenue base underscores significant funding risk until revenue scales and/or costs are reduced.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	364.16K	212.74K	157.29K	35.32K	0.00	0.00
Gross Profit	101.50K	19.17K	62.35K	16.01K	0.00	-232.19K
EBITDA	-7.90M	-7.29M	-9.02M	-10.03M	-5.23M	-28.20M
Net Income	-8.25M	-8.61M	-10.21M	-12.35M	-7.87M	-29.98M
Balance Sheet
Total Assets	7.19M	11.17M	6.15M	11.91M	4.21M	3.99M
Cash, Cash Equivalents and Short-Term Investments	4.71M	8.38M	2.79M	8.58M	882.27K	232.84K
Total Debt	344.06K	342.70K	2.68M	1.81M	2.58M	115.99K
Total Liabilities	1.22M	1.37M	4.16M	2.82M	4.69M	947.09K
Stockholders Equity	6.02M	9.86M	2.04M	9.14M	-429.96K	3.09M
Cash Flow
Free Cash Flow	-6.98M	-6.52M	-5.93M	-6.16M	-3.69M	-2.19M
Operating Cash Flow	-6.94M	-6.52M	-5.93M	-6.16M	-3.69M	-2.19M
Investing Cash Flow	-38.17K	0.00	0.00	0.00	0.00	951.00
Financing Cash Flow	11.39M	12.12M	139.23K	13.85M	4.34M	1.74M

SOBR Safe 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%
ELSE	61 Neutral	$15.04M	37.15	2.81%	―	5.36%	-8.88%
WATT	45 Neutral	$17.18M	-0.48	-175.08%	―	599.15%	82.47%
SVRE	43 Neutral	$76.35M	>-0.01	-252.16%	―	16.11%	83.66%
SOBR	42 Neutral	$2.43M	-0.19	-203.38%	―	―	―

SOBR Safe Corporate Events

SOBR Safe Extends Executive Contracts and Modernizes Share Services

On December 30, 2025, SOBR Safe, Inc. amended the executive employment agreements of Chief Executive Officer David J. Gandini and Chief Financial Officer Christopher Whitaker, extending both executives’ contract terms through December 31, 2026, signaling a move to maintain continuity and stability in its senior leadership team. Effective December 26, 2025, the company also appointed Broadridge Financial as its transfer agent and migrated all directly held common shares from Equiniti to Broadridge’s platform, a change that may streamline shareholder services and modernize its equity administration infrastructure.