WISeKey International Holding (WKEY) AI Stock Analysis

• Market Cap: $71.93M
• Dividend Yield: N/A
• Average Volume (3M): 108.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: -42.77%
• EPS Growth: 83.21%
• Country: US
• Employees: 109
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -3.28
• Shares Outstanding: 2,040,273
• 10 Day Avg. Volume: 210,644
• 30 Day Avg. Volume: 108,056
• PEG Ratio: <0.01
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 1.00
• P/FCF Ratio: -0.65
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 4.24
• Enterprise Value/Gross Profit: 11.49
• Enterprise Value/Ebitda: -1.86
• 1Y Price Target: $8.75
• Price Target Upside: 32.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 50 Neutral
• Price Target: $6.50 ▼(-1.52% Downside)

WISeKey's overall stock score is primarily impacted by its challenging financial performance, with declining revenues and negative profit margins. Despite positive technical indicators and strategic initiatives highlighted in the earnings call, the company's valuation remains weak due to unprofitability. The optimistic guidance for 2025 provides some hope, but immediate financial challenges and delayed revenue from new products are significant concerns.

Positive Factors

Strategic Convergence

The integration of semiconductors, satellites, blockchain, and digital identity into a unified ecosystem enhances innovation and resilience, potentially creating multiple revenue streams and reducing dependency on any single line of business.

Satellite Expansion

The expansion of satellite infrastructure supports WISeKey's strategic initiatives, enhancing its capabilities in secure data transmission and positioning it strongly in the growing satellite market.

Acquisition of IC’ALPS

The acquisition enhances WISeKey's semiconductor capabilities and market presence in Europe, leveraging IC’ALPS’ expertise to meet the growing demand for secure ASICs, which is crucial for long-term growth in high-stakes industries.

Negative Factors

Revenue Decline

The significant revenue decline highlights challenges in maintaining market share and sales momentum, which could impact the company's ability to invest in growth and innovation without a clear recovery strategy.

Delayed Revenue from New Products

The delay in revenue generation from new products indicates potential gaps in cash flow and profitability, affecting the company's ability to capitalize on new technologies in the short term.

Negative Cash Flow

Persistent negative cash flow reflects operational inefficiencies and reliance on external financing, which could limit WISeKey's financial flexibility and ability to invest in strategic initiatives.

WISeKey International Holding Business Overview & Revenue Model

Company Description

WISeKey International Holding AG, a cybersecurity company, provides integrated security solutions for the internet of things (IoT) and digital identity ecosystems in Switzerland, rest of Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. The company operates through three segments: IoT, Artificial Intelligence (AI), and Managed Public Key Infrastructure (mPKI). It offers microcontrollers that provides identity to various connected devices; and mPKI, which include digital identity, certificate management and signing solutions, and trust services, as well as offers digital certificates; software as a service, including cloud-based certificate life-cycle-management and signing and authentication solutions; software licenses; post-contract customer support for cybersecurity applications; and infrastructure hosting and monitoring services. The company also develops, markets, hosts, and supports a range of solutions that enable secure digital identification of people, content, and objects by generating digital identities through its products and services in cybersecurity services, IoT, digital brand management, and mobile security, which enable clients to monetize their existing user bases, as well as expand its eco-system. In addition, the company operates ISTANA platform to manage components in an intelligent car by providing digital identities based on PKI technology.; and engages in financing, sales, and distribution activities. Further, it provides AI solutions through knowledge automation. The company was founded in 1999 and is headquartered in Zug, Switzerland.

How the Company Makes Money

WISeKey International Holding makes money primarily through the sale of its cybersecurity products and services. Key revenue streams include licensing fees for its digital certificates and identity management solutions, sales of hardware security modules and secure microcontrollers, and subscription fees for managed services. The company also engages in strategic partnerships and collaborations, enhancing its offerings and expanding its market reach, which contributes to its revenue growth.

WISeKey International Holding Financial Statement Overview

Summary

WISeKey International Holding faces substantial financial challenges with declining revenues, negative profit margins, and weakening equity. The company struggles with profitability and cash flow generation, relying heavily on external financing. While cash reserves are robust, operational and financial stability remain concerns without a clear path to revenue recovery or margin improvement.

Income Statement

WISeKey International Holding shows a challenging income statement with declining total revenue from 2023 to 2024 and consistently negative net income. The gross profit margin decreased significantly from 47.7% in 2023 to 36.2% in 2024, indicating lower profitability. The net profit margin is deeply negative, and there is no positive EBIT margin. The company faces revenue contraction, deteriorating margins, and significant operational losses.

Balance Sheet

The balance sheet reflects a mixed picture. While the company maintains a strong cash position with cash and short-term investments exceeding total debt, the total debt-to-equity ratio has increased due to declining equity. Stockholders' equity decreased, suggesting potential financial instability. The equity ratio is moderate but weakened over the years, pointing towards financial leverage increase.

Cash Flow

Cash flows are under pressure with negative operating cash flow and free cash flow in 2024. The free cash flow deteriorated compared to 2023, and both the operating cash flow to net income and free cash flow to net income ratios indicate poor conversion of income to cash. Despite a significant inflow from financing activities, the company struggles with cash generation from its core operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.88M	30.92M	23.20M	22.26M	14.78M
Gross Profit	4.29M	14.74M	9.80M	9.09M	5.46M
EBITDA	-26.28M	-13.27M	-12.04M	-20.40M	-27.67M
Net Income	-13.45M	-15.36M	5.77M	-24.09M	-28.91M
Balance Sheet
Total Assets	114.69M	47.80M	21.66M	88.81M	52.88M
Cash, Cash Equivalents and Short-Term Investments	90.60M	15.32M	4.06M	34.25M	28.84M
Total Debt	8.94M	9.77M	14.12M	22.06M	16.97M
Total Liabilities	27.56M	26.72M	21.45M	47.43M	38.45M
Stockholders Equity	25.05M	26.68M	212.00K	35.90M	16.27M
Cash Flow
Free Cash Flow	-18.34M	-17.23M	-17.45M	-21.83M	-12.60M
Operating Cash Flow	-17.77M	-14.21M	-17.14M	-21.79M	-12.55M
Investing Cash Flow	179.00K	-3.02M	-484.00K	-2.52M	-3.90M
Financing Cash Flow	92.92M	11.85M	4.18M	36.98M	21.48M

WISeKey International Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WKEY, the sentiment is Positive. The current price of 6.6 is above the 20-day moving average (MA) of 5.86, above the 50-day MA of 5.67, and above the 200-day MA of 5.95, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 64.78 is Neutral, neither overbought nor oversold. The STOCH value of 76.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WKEY.

WISeKey International Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PXLW	55 Neutral	$51.27M	-1.73	271.75%	―	-44.05%	-2.33%
GSIT	53 Neutral	$111.71M	-7.09	-37.69%	―	6.14%	1.71%
WKEY	50 Neutral	$71.93M	―	-24.81%	―	-42.77%	83.21%
SQNS	49 Neutral	$23.22M	―	128.13%	―	32.23%	―
VLN	49 Neutral	$189.24M	-5.69	-28.47%	―	8.70%	-13.95%
GCTS	44 Neutral	$84.91M	-2.28	20.87%	―	28.31%	-239.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

WISeKey International Holding Corporate Events

WISeKey’s SEALSQ Completes Acquisition of IC’ALPS, Boosting European Semiconductor Presence

On August 4, 2025, WISeKey’s subsidiary, SEALSQ Corp, completed the acquisition of IC’ALPS SAS, a French ASIC design services provider, after receiving approval from the French Ministry of the Economy. This acquisition, valued at EUR 12.5 million, significantly enhances SEALSQ’s presence in the European semiconductor sector by adding 90 employees from IC’ALPS. The strategic move aims to leverage SEALSQ’s quantum-resistant chip technology and IC’ALPS’ expertise in ASIC design to develop secure, tailor-made ASICs for high-stakes industries such as automotive, healthcare, and IoT. The collaboration is expected to address the growing demand for secure ASICs in a market projected to reach $36.8 billion by 2032.

SEALSQ Corp Announces $60 Million Direct Offering to Boost Quantum Tech Expansion

On July 14, 2025, SEALSQ Corp announced a $60 million registered direct offering, led by Heights Capital Management, involving the sale of ordinary shares and warrants. The proceeds will support SEALSQ’s expansion in Post-Quantum and Quantum technologies, strategic acquisitions, and general corporate purposes. This move is expected to strengthen SEALSQ’s financial position, enabling further growth and development in the U.S. market.

SEALSQ Corp Reports H1 2025 Financials and Strategic Growth Plans

On July 3, 2025, SEALSQ Corp announced its preliminary unaudited financial metrics for H1 2025, reporting a revenue of $4.8 million, consistent with the same period in 2024. The company is in a transitional phase, shifting from legacy products to next-generation post-quantum solutions. SEALSQ anticipates a significant revenue increase in the second half of 2025, driven by major commercial projects and the consolidation of revenues from the IC’ALPS acquisition, which was signed in May 2025. The company also provided a revenue guidance for FY 2025, expecting growth between 45% and 82%, and outlined strategic plans for 2026, including the Quantix Edge project and the launch of the TPM Post-Quantum resistant chip. SEALSQ’s robust cash reserves and strategic investments position it well for future growth in the quantum technology sector.

SEALSQ Invests in Quantum-Ready Satellite Network with WISeSat

On June 17, 2025, SEALSQ Corp announced a $10 million investment in WISeSat.Space AG to accelerate the deployment of a secure, quantum-ready satellite constellation. This investment, which gives SEALSQ a 9% equity stake in WISeSat, aims to enhance the company’s capabilities in space-based Quantum Key Distribution (QKD) communications and decentralized IoT transactions. The funding will support the launch of WISeSat 3.0, a next-generation satellite enabling quantum-secure communications, and expand satellite launch operations with partners in Spain and India. This move positions SEALSQ to build the first quantum-resilient satellite network, securing communications and IoT services globally, and is expected to have significant implications for industries requiring ultra-secure data exchange.