Vuzix (VUZI) AI Stock Analysis

• Market Cap: $198.71M
• Dividend Yield: N/A
• Average Volume (3M): 1.53M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.15
• Revenue Growth: -4.31%
• EPS Growth: 59.68%
• Country: US
• Employees: 76
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): -0.09
• Shares Outstanding: 80,126,490
• 10 Day Avg. Volume: 1,175,077
• 30 Day Avg. Volume: 1,531,339
• PEG Ratio: -0.10
• Price to Book (P/B): 7.17
• Price to Sales (P/S): 46.45
• P/FCF Ratio: -10.03
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 30.51
• Enterprise Value/Gross Profit: -26.89
• Enterprise Value/Ebitda: -4.66
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $2.50 ▼(-27.11% Downside)

The score is held back primarily by very weak financial performance (shrinking revenue, negative gross profit, heavy losses, and ongoing cash burn). Technicals are modestly supportive with price above key moving averages and neutral momentum. Valuation provides limited support due to negative earnings and no dividend. Earnings-call updates add some optimism via strategic investment and partnership-driven growth opportunities, but near-term fundamentals remain challenged.

Positive Factors

Strategic Quanta investment

A $20M strategic investment from Quanta secures capital and a manufacturing partner focused on waveguides, lowering execution risk for scaling production. Structural manufacturing support and partner validation improve odds of meeting enterprise demand as AR adoption grows over the next 2–6 months.

Enterprise adoption (Amazon) expansion

Growing deployment with Amazon represents durable product-market fit in enterprise use cases, driving recurring purchase orders and referenceable scale. Enterprise programs tend to produce multi-quarter procurement cycles and integration-led renewals, supporting steadier revenue if adoption continues.

Low leverage and positive cash balance

A cash balance of $22.6M and no debt materially reduce near-term solvency risk and provide runway to execute partnerships and product ramps. Structurally this gives management flexibility to invest in production scale or R&D without immediate refinancing, assuming cash burn is controlled.

Negative Factors

Negative gross profit and shrinking revenue

A negative gross profit means product unit economics fail to cover direct costs, a structural issue that cannot be fixed by marketing alone. Persistent negative gross margins erode the path to sustainable profitability and require product redesign, pricing changes, or cheaper manufacturing to restore long-term viability.

Material operating and free cash flow burn

Deep negative operating and free cash flows indicate the business consumes cash to fund operations and growth. Over months this reduces runway, increases reliance on external funding, and can force dilutive financings or cutbacks that impair long-term growth and partner confidence if not reversed.

Eroding shareholders' equity from sustained losses

A decline in equity from >$100M to ~$38M signals cumulative operating losses that weaken the balance sheet. This structural erosion reduces financial flexibility for capex or working capital, raises financing risk, and can constrain strategic investments unless profitability or funding materially improves.

Vuzix Business Overview & Revenue Model

Company Description

Vuzix Corporation, together with its subsidiaries, designs, manufactures, markets, and sells augmented reality (AR) wearable display and computing devices for consumer and enterprise markets in North America, the Asia-Pacific, Europe, and internationally. It provides M300XL, M400, and M4000 series of smart glasses for enterprise, industrial, commercial, and medical markets; Vuzix Blade smart glasses; waveguide optics and related coupling optics; and Vuzix Shield smart glasses, as well as custom and engineering solutions. The company sells its products through resellers, direct to commercial customers, and via online stores, as well as various Vuzix operated web stores in Europe and Japan. The company was formerly known as Icuiti Corporation and changed its name to Vuzix Corporation in September 2007. Vuzix Corporation was incorporated in 1997 and is headquartered in West Henrietta, New York.

How the Company Makes Money

Vuzix generates revenue primarily through the sale of its smart glasses and augmented reality display systems to businesses and organizations. The company has established key revenue streams from direct product sales, software licensing, and service contracts related to its AR solutions. Additionally, Vuzix has formed strategic partnerships with major companies and technology providers to enhance its product offerings and expand its market reach, contributing to its earnings. The company also explores opportunities in government and defense contracts, which can provide significant revenue potential.

Vuzix Financial Statement Overview

Summary

Overall fundamentals are weak: TTM revenue declined, gross profit is negative, and losses are extremely large. Cash flow is a key risk with materially negative operating and free cash flow (ongoing cash burn). The main offset is a low-leverage balance sheet, but equity has been eroding due to sustained losses.

Income Statement

Profitability remains very weak. In TTM (Trailing-Twelve-Months), revenue fell about 4% and gross profit was negative, indicating the core product economics are not covering direct costs. Losses are substantial, with net margin deeply negative (roughly -703%), and operating losses remain large. While annual results show revenue was meaningfully higher in 2023 versus recent periods, the overall trajectory from 2023 to TTM reflects shrinking scale and continued heavy losses, which keeps the income statement score low.

Balance Sheet

Leverage is very low, with debt-to-equity around 0.03 in TTM (Trailing-Twelve-Months), which reduces solvency risk. Assets still exceed debt by a wide margin and equity remains positive. However, equity has declined sharply versus prior years (from over $100M in 2021–2022 to about $38M in TTM), reflecting sustained losses, and returns on equity are strongly negative. Overall, the balance sheet is not highly levered, but it is weakening as losses accumulate.

Cash Flow

Cash generation is poor. TTM (Trailing-Twelve-Months) operating cash flow is materially negative (about -$17.3M) and free cash flow is also negative (about -$19.7M), indicating ongoing cash burn to run the business. Free cash flow has also deteriorated versus the most recent annual period (negative growth). A partial positive is that free cash flow is not worse than net income (free cash flow-to-net income above 1), but it is still deeply negative in absolute dollars, which drives a low score.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.31M	5.75M	12.13M	11.84M	13.16M	11.58M
Gross Profit	-6.03M	-4.87M	-1.75M	2.28M	2.89M	2.11M
EBITDA	-34.75M	-39.82M	-45.42M	-39.89M	-37.95M	-16.70M
Net Income	-37.31M	-73.54M	-50.15M	-40.76M	-40.38M	-17.95M
Balance Sheet
Total Assets	42.47M	39.41M	86.15M	132.31M	148.47M	52.47M
Cash, Cash Equivalents and Short-Term Investments	22.61M	18.19M	26.56M	72.56M	120.20M	36.07M
Total Debt	1.13M	494.24K	301.19K	956.16K	1.12M	1.52M
Total Liabilities	4.59M	2.11M	5.35M	15.58M	4.74M	4.17M
Stockholders Equity	37.89M	37.29M	80.79M	116.73M	143.73M	48.30M
Cash Flow
Free Cash Flow	-19.65M	-26.66M	-42.86M	-43.39M	-31.83M	-15.45M
Operating Cash Flow	-17.26M	-23.74M	-26.28M	-24.52M	-26.98M	-13.96M
Investing Cash Flow	-2.44M	-2.92M	-19.28M	-21.17M	-4.85M	-1.49M
Financing Cash Flow	28.04M	18.29M	-449.56K	-1.95M	115.97M	40.91M

Vuzix Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VUZI, the sentiment is Negative. The current price of 3.43 is above the 20-day moving average (MA) of 2.95, above the 50-day MA of 3.00, and above the 200-day MA of 2.74, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 31.49 is Neutral, neither overbought nor oversold. The STOCH value of 12.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VUZI.

Vuzix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBCH	64 Neutral	$231.73M	13.69	17.19%	―	6.43%	196.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VUZI	50 Neutral	$198.71M	-4.67	-96.37%	―	-4.31%	59.68%
ZEPP	48 Neutral	$240.81M	―	-24.39%	―	13.27%	-66.48%
GPRO	47 Neutral	$172.11M	-1.27	-91.95%	―	-27.37%	70.46%
FEBO	44 Neutral	$12.17M	-5.35	―	―	11.95%	-956.47%
WLDS	41 Neutral	$5.95M	-0.11	-268.12%	―	-9.05%	77.41%