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Vuzix Corporation (VUZI)
NASDAQ:VUZI

Vuzix (VUZI) AI Stock Analysis

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Vuzix

(NASDAQ:VUZI)

Rating:55Neutral
Price Target:
$3.00
▲(3.81%Upside)
Vuzix's overall stock score reflects significant financial challenges, despite technical indicators showing positive momentum. The balanced sentiment from the earnings call suggests potential growth, but current financial metrics and valuation concerns weigh heavily on the score.
Positive Factors
Growth Opportunities
Upside scenarios over the next several quarters include a major consumer electronics manufacturing OEM agreement(s), significant defense & aerospace potential, and other engineering services opportunities materializing.
Investment and Development
The investment is planned to be used to support the expansion of Vuzix's waveguide production capabilities and joint development of new AR smart glasses technologies.
Strategic Partnerships
The infusion of investment capital from Quanta provides much needed balance sheet support for the company and expands the strategic partnership with a key global manufacturer that could likely drive exponential growth in demand for waveguides as the market matures and Quanta develops new products.
Negative Factors
Financial Health
The cash burn is becoming a serious issue with the company experiencing a cash burn of $(5.6)mn against a cash balance at the end of the quarter of $9.9mn.
Potential Risks
Downside scenarios include a lack of big contract manufacturing arrangements, below-cost liquidation of inventory, and solvency issues that could force less than ideal capital raising via the ATM or high yield debt.
Revenue Performance
Revenue was well below expectations due to significantly slower glasses sales as the company is now more focused on the OEM opportunities.

Vuzix (VUZI) vs. SPDR S&P 500 ETF (SPY)

Vuzix Business Overview & Revenue Model

Company DescriptionVuzix Corporation is a leading supplier of Smart Glasses and Augmented Reality (AR) technologies and products for the consumer and enterprise markets. The company, headquartered in Rochester, New York, designs, manufactures, and markets wearable display devices that offer portable, high-quality viewing solutions and are used in a variety of applications, including training, field service, manufacturing, and logistics. Vuzix's core products include personal display and wearable computing devices such as the Vuzix Blade AR Smart Glasses and the Vuzix M-Series, which provide hands-free access to digital information and interactive content.
How the Company Makes MoneyVuzix makes money primarily through the sale of its smart glasses and augmented reality products to both individual consumers and enterprise customers. Key revenue streams include direct sales of hardware, software development kits (SDKs), and licensing fees from technology partnerships. The company also generates income through custom solutions and services, which involve creating tailored AR applications for specific business needs. Additionally, Vuzix has established partnerships and collaborations with major companies in technology and industry sectors, enhancing its market reach and contributing to its earnings. The firm's focus on innovation and expanding its product lineup continues to support its revenue growth.

Vuzix Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q1-2025)
|
% Change Since: 37.62%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant advancements in collaborations and product developments, particularly in the OEM and enterprise domains, and improvements in financial management. However, the decline in smart glasses sales and increased gross loss pose challenges for the company. Overall, the sentiment is balanced, with optimism for future growth tempered by current financial setbacks.
Q1-2025 Updates
Positive Updates
OEM and Enterprise Engagement Growth
Vuzix is actively engaged with a growing number of OEM and enterprise partners, with significant developments in relationships, technologies, and solutions, positioning the company for sustained revenue growth.
Strategic Collaboration with Quanta
Vuzix's collaboration with Quanta is expanding, with ongoing development around smart glasses and OEM reference platforms. Vuzix is on track to meet performance milestones required for further investment from Quanta.
Waveguide R&D and Tooling Facility Acquisition
Vuzix acquired a state-of-the-art waveguide R&D and tooling facility in Milpitas, California, which enhances their capability to support customers with high-quality waveguide solutions.
AI-Driven Smart Glasses Designs
Vuzix introduced new AI-driven smart glasses designs at CES 2025, offering advanced functionalities and building on their core strengths in waveguide optics and AI-enhanced wearable computing.
Enterprise Market Success
Vuzix's smart glasses helped Nadro realize over 30% improvements in order picking efficiency, and Moviynt's software showed productivity improvements of up to 250% in certain warehouse applications.
Financial Position and Cash Flow Improvement
Vuzix reported a net loss reduction from $10 million to $8.6 million year-over-year, with cash flows used for operating activities significantly improved from $8.8 million to $3.5 million.
Negative Updates
Decline in Smart Glasses Sales
First quarter 2025 total revenue was $1.6 million, down 21% year-over-year due to decreased sales of smart glasses, particularly the M400 model.
Gross Loss Increase
Vuzix reported an overall gross loss of $0.3 million for the first quarter of 2025, compared to a gross loss of $0.1 million in the same period in 2024.
Company Guidance
During the Vuzix Q1 2025 conference call, the company provided several key metrics and forward-looking guidance. Total revenue for the quarter was reported at $1.6 million, reflecting a 21% year-over-year decline but a 24% sequential increase. The company experienced an overall gross loss of $0.3 million for the quarter. Vuzix's cash position was robust with cash and cash equivalents of $15.2 million and a networking capital of $19.5 million as of March 31, 2025. Operating cash flow usage was significantly reduced to $3.5 million compared to $8.8 million in the prior year. Vuzix anticipates significant revenue growth, driven by expanding collaborations, such as with Quanta, which could bring an additional $10 million in capital upon meeting certain milestones. The company also highlighted ongoing strategic initiatives in waveguide manufacturing and AI-driven smart glasses, projecting further advancements and product releases later in 2025.

Vuzix Financial Statement Overview

Summary
Vuzix is facing significant financial challenges with persistent losses, high operational costs, and inadequate revenue growth. Despite having a strong equity base and low debt, the company struggles with profitability and cash flow issues, making its financial position precarious.
Income Statement
15
Very Negative
Vuzix has been experiencing significant financial challenges with consistently negative gross profit margins and net income. The gross profit has been negative for the latest year, and the company is incurring substantial losses at the EBIT and EBITDA levels. Revenue growth is minimal with a significant drop in profitability indicators, suggesting operational inefficiencies and high costs relative to revenues.
Balance Sheet
35
Negative
The balance sheet indicates a relatively strong equity position, with a high equity ratio of 94.6% and low debt levels, resulting in a low debt-to-equity ratio. However, the company has been unable to translate this into profitability, as indicated by the negative return on equity (ROE) due to substantial losses.
Cash Flow
20
Very Negative
Vuzix's cash flow situation is concerning, with negative operating cash flow and free cash flow. The free cash flow growth rate is trending negatively, and both operating and free cash flow to net income ratios are unfavorable, highlighting continued cash burn and insufficient cash generation to cover operational needs.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
5.75M12.13M11.84M13.16M11.58M
Gross Profit
-5.60M-1.75M1.48M2.45M1.93M
EBIT
-73.97M-52.30M-42.10M-39.72M-19.05M
EBITDA
-69.61M-45.42M-39.89M-37.59M-14.92M
Net Income Common Stockholders
-73.54M-50.15M-39.30M-40.64M-18.03M
Balance SheetCash, Cash Equivalents and Short-Term Investments
18.19M26.56M72.56M120.20M36.07M
Total Assets
39.41M86.15M132.31M148.47M52.47M
Total Debt
494.24K301.19K956.16K1.12M1.52M
Net Debt
-17.69M-26.25M-71.61M-119.09M-34.55M
Total Liabilities
2.11M5.35M15.58M4.74M4.17M
Stockholders Equity
37.29B80.79M116.73M143.73M48.30M
Cash FlowFree Cash Flow
-26.66M-42.86M-43.39M-31.83M-15.45M
Operating Cash Flow
-23.74M-26.28M-24.52M-26.98M-13.96M
Investing Cash Flow
-2.92M-19.28M-21.17M-4.85M-1.49M
Financing Cash Flow
18.29M-449.56K-1.95M115.97M40.91M

Vuzix Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.89
Price Trends
50DMA
2.12
Positive
100DMA
2.71
Positive
200DMA
2.26
Positive
Market Momentum
MACD
0.25
Negative
RSI
68.65
Neutral
STOCH
70.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VUZI, the sentiment is Positive. The current price of 2.89 is above the 20-day moving average (MA) of 2.49, above the 50-day MA of 2.12, and above the 200-day MA of 2.26, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 68.65 is Neutral, neither overbought nor oversold. The STOCH value of 70.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VUZI.

Vuzix Risk Analysis

Vuzix disclosed 35 risk factors in its most recent earnings report. Vuzix reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Vuzix Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$267.33M1.49-10.56%4.90%-11.07%953.01%
61
Neutral
$11.55B10.41-6.86%2.93%7.50%-8.30%
55
Neutral
$220.34M-136.11%-46.37%-34.50%
50
Neutral
$206.75M-112.75%28.16%74.88%
TLTLS
47
Neutral
$193.26M-38.32%-21.83%-67.07%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VUZI
Vuzix
3.18
1.70
114.86%
KOPN
Kopin
1.36
0.56
70.00%
MKTW
MarketWise
17.73
-5.95
-25.13%
TLS
Telos
2.66
-1.44
-35.12%

Vuzix Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Vuzix Announces 2023 Equity Incentive Plan Changes
Neutral
Jan 8, 2025

Vuzix Corporation announced the granting of restricted stock units (RSUs) to its top executives and management employees as part of its 2023 Equity Incentive Plan. This move, pending shareholder approval, involves surrendering previously granted unvested options and aims to align management incentives with performance goals, potentially impacting the company’s operational strategy and shareholder value.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.