Vuzix (VUZI) AI Stock Analysis

• Market Cap: $157.78M
• Dividend Yield: N/A
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.84
• Revenue Growth: -12.75%
• EPS Growth: 57.64%
• Country: US
• Employees: 76
• Sector: Technology
• Sector Strength: 86
• Industry: Consumer Electronics
• EPS (TTM): -0.10
• Shares Outstanding: 77,341,690
• 10 Day Avg. Volume: 1,383,295
• 30 Day Avg. Volume: 1,420,903
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 38.13
• Enterprise Value/Gross Profit: -33.83
• Enterprise Value/Ebitda: -5.74
• 1Y Price Target: $2.50
• Price Target Upside: 19.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 43 Neutral
• Price Target: $2.00 ▼(-4.31% Downside)

Vuzix's overall stock score is primarily impacted by its precarious financial position, characterized by persistent losses and cash flow issues. Technical indicators suggest bearish momentum, and valuation metrics reflect ongoing financial challenges. Despite these issues, strategic partnerships and product launches provide some potential for future growth.

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 Business Overview & Revenue Model

Company Description

Vuzix Corporation (NASDAQ: VUZI) is a leading supplier of Smart Glasses and Augmented Reality (AR) technology, primarily focusing on the enterprise sector. The company designs and manufactures wearable display technology that enhances productivity and operational efficiency in various industries, including manufacturing, logistics, and healthcare. Core products include the Vuzix Blade and M400 Smart Glasses, which provide users with hands-free access to information and applications directly in their line of sight.

How the Company Makes Money

Vuzix generates revenue primarily through the sale of its Smart Glasses and AR technology solutions. The company's revenue model is based on direct product sales, software licensing, and service agreements. Key revenue streams include sales of hardware, recurring software subscriptions, and maintenance services for enterprise clients. Vuzix also enters into partnerships with other technology firms and systems integrators, which can enhance its distribution capabilities and expand its market reach. Additionally, the company may engage in collaborative projects, providing customized solutions that generate further revenue from specific industry applications.

Vuzix Financial Statement Overview

Summary

Vuzix faces significant financial challenges with persistent losses, high operational costs, and inadequate revenue growth. Despite a strong equity base and low debt, profitability and cash flow issues make its financial position precarious.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.53M	5.75M	12.13M	11.84M	13.16M	11.58M
Gross Profit	-6.24M	-5.60M	-1.75M	1.48M	2.45M	1.93M
EBITDA	-36.77M	-39.65M	-45.42M	-39.89M	-37.59M	-14.92M
Net Income	-39.18M	-73.54M	-50.15M	-39.30M	-40.64M	-18.03M
Balance Sheet
Total Assets	36.90M	39.41M	86.15M	132.31M	148.47M	52.47M
Cash, Cash Equivalents and Short-Term Investments	17.45M	18.19M	26.56M	72.56M	120.20M	36.07M
Total Debt	224.65K	494.24K	301.19K	956.16K	1.12M	1.52M
Total Liabilities	3.04M	2.11M	5.35M	15.58M	4.74M	4.17M
Stockholders Equity	33.86M	37.29M	80.79M	116.73M	143.73M	48.30M
Cash Flow
Free Cash Flow	-19.81M	-26.66M	-42.86M	-43.39M	-31.83M	-15.45M
Operating Cash Flow	-17.54M	-23.74M	-26.28M	-24.52M	-26.98M	-13.96M
Investing Cash Flow	-2.32M	-2.92M	-19.28M	-21.17M	-4.85M	-1.49M
Financing Cash Flow	27.43M	18.29M	-449.56K	-1.95M	115.97M	40.91M

Vuzix Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VUZI, the sentiment is Neutral. The current price of 2.09 is above the 20-day moving average (MA) of 2.06, below the 50-day MA of 2.39, and below the 200-day MA of 2.66, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 47.39 is Neutral, neither overbought nor oversold. The STOCH value of 51.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VUZI.

Vuzix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBCH	74 Outperform	$305.81M	16.47	17.97%	―	24.09%	―
Sector *	61 Neutral	$35.62B	8.22	-10.94%	1.88%	8.86%	-10.36%
GPRO	61 Neutral	$289.48M	―	-76.81%	―	-19.83%	73.22%
ZEPP	54 Neutral	$579.46M	―	-28.36%	―	-18.94%	-197.82%
FEBO	44 Neutral	$8.19M	―	-29.41%	―	11.95%	-956.47%
VUZI	43 Neutral	$157.78M	―	-113.13%	―	-12.75%	57.64%
WLDS	42 Neutral	$1.14M	―	-167.89%	―	536.59%	-5.05%

Vuzix Corporate Events

Vuzix Appoints Alasdair MacKinnon to Board of Directors

On August 5, 2025, Alasdair MacKinnon was elected to the board of directors of Vuzix Corporation, where he will also serve on the nominating, audit (as Chairperson), and compensation committees. This appointment follows the passing of Edward Kay, a board member since April 2016, on July 23, 2025.

Vuzix Holds Annual Stockholders Meeting with Key Decisions

On June 17, 2025, Vuzix Corporation held its annual stockholders meeting where several key decisions were made. The stockholders elected directors, ratified the appointment of Freed Maxick P.C. as the independent accounting firm for 2025, approved executive compensation, recommended annual advisory votes on executive compensation, and approved an amendment to increase authorized shares. Additionally, they approved the grant of restricted stock units to executives and employees, while canceling previously granted options.

Vuzix Secures $5 Million Investment from Quanta

On June 13, 2025, Vuzix Corporation completed the second tranche of its securities purchase agreement with Quanta Computer Inc., securing a $5 million investment. This transaction, part of a larger $20 million investment plan, aims to enhance Vuzix’s waveguide manufacturing capabilities, positioning the company to deliver affordable and high-performance AI smart glasses for mass-market adoption. The investment strengthens Vuzix’s partnership with Quanta, a strategic global ODM partner, and supports the company’s goal of expanding its market presence in the smart glasses and AR display industry.