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Vuzix Corporation (VUZI)
NASDAQ:VUZI

Vuzix (VUZI) AI Stock Analysis

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Vuzix

(NASDAQ:VUZI)

Rating:57Neutral
Price Target:
$3.50
▲(23.67%Upside)
Vuzix's overall stock score reflects significant financial difficulties and valuation concerns, partially offset by positive technical indicators and potential growth from strategic partnerships. The earnings call suggests balanced sentiment with future optimism tempered by current challenges.
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, 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 MoneyVuzix makes money by selling its smart glasses and augmented reality devices to both enterprise and consumer markets. The primary revenue stream is the sale of hardware products, particularly its smart glasses, to businesses looking for solutions to improve workforce efficiency and communication. Additionally, Vuzix generates revenue through software licensing and support services, offering tailored solutions to integrate its AR technology with existing enterprise systems. Strategic partnerships with technology companies and industry leaders further bolster Vuzix's market presence and contribute to its revenue through co-development and distribution agreements.

Vuzix Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q1-2025)
|
% Change Since: 34.76%|
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 struggling with financial challenges, including persistent losses, negative cash flows, and minimal revenue growth. Despite a strong equity position, profitability and cash flow issues are significant concerns.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.33M5.75M12.13M11.84M13.16M11.58M
Gross Profit-5.81M-5.60M-1.75M1.48M2.45M1.93M
EBITDA-38.93M-39.65M-45.42M-39.89M-37.59M-14.92M
Net Income-72.13M-73.54M-50.15M-39.30M-40.64M-18.03M
Balance Sheet
Total Assets35.76M39.41M86.15M132.31M148.47M52.47M
Cash, Cash Equivalents and Short-Term Investments15.23M18.19M26.56M72.56M120.20M36.07M
Total Debt359.44K494.24K301.19K956.16K1.12M1.52M
Total Liabilities2.92M2.11M5.35M15.58M4.74M4.17M
Stockholders Equity32.85M37.29M80.79M116.73M143.73M48.30M
Cash Flow
Free Cash Flow-20.77M-26.66M-42.86M-43.39M-31.83M-15.45M
Operating Cash Flow-18.39M-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 Flow19.55M18.29M-449.56K-1.95M115.97M40.91M

Vuzix Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.83
Price Trends
50DMA
2.41
Positive
100DMA
2.66
Positive
200DMA
2.41
Positive
Market Momentum
MACD
0.12
Positive
RSI
50.52
Neutral
STOCH
16.75
Positive
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 2.83 is below the 20-day moving average (MA) of 3.00, above the 50-day MA of 2.41, and above the 200-day MA of 2.41, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 50.52 is Neutral, neither overbought nor oversold. The STOCH value of 16.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$296.98M1.65-10.56%4.41%-11.07%953.01%
64
Neutral
$168.96M-25.15%-20.10%-88.89%
63
Neutral
$32.30B6.54-12.31%1.93%5.64%-21.98%
57
Neutral
$212.72M-136.11%-46.37%-34.50%
54
Neutral
$265.36M-112.75%28.16%74.88%
TLTLS
48
Neutral
$184.45M-38.32%-21.83%-67.07%
DMDM
38
Underperform
$163.71M-152.96%-14.97%22.83%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VUZI
Vuzix
2.78
1.36
95.77%
VOXX
VOXX International
7.50
3.95
111.27%
KOPN
Kopin
1.63
0.84
106.33%
DM
Desktop Metal
4.96
0.88
21.57%
MKTW
MarketWise
18.74
-1.38
-6.86%
TLS
Telos
2.79
-0.80
-22.28%

Vuzix Corporate Events

Executive/Board ChangesShareholder Meetings
Vuzix Holds Annual Stockholders Meeting with Key Decisions
Neutral
Jun 20, 2025

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.

The most recent analyst rating on (VUZI) stock is a Buy with a $2.00 price target. To see the full list of analyst forecasts on Vuzix stock, see the VUZI Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Vuzix Secures $5 Million Investment from Quanta
Positive
Jun 16, 2025

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.

The most recent analyst rating on (VUZI) stock is a Buy with a $2.00 price target. To see the full list of analyst forecasts on Vuzix stock, see the VUZI Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 17, 2025