Wearable Devices Ltd. (WLDS) AI Stock Analysis

• Market Cap: $13.96M
• Dividend Yield: N/A
• Average Volume (3M): 16.66M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.20
• Revenue Growth: -9.05%
• EPS Growth: 77.41%
• Country: US
• Employees: 25
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): -2.65
• Shares Outstanding: 6,615,770
• 10 Day Avg. Volume: 714,624
• 30 Day Avg. Volume: 16,656,146
• PEG Ratio: <0.01
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 5.44
• P/FCF Ratio: -0.37
• Enterprise Value/Market Cap: -0.08
• Enterprise Value/Revenue: -2.81
• Enterprise Value/Gross Profit: 5.93
• Enterprise Value/Ebitda: 0.16
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $2.00 ▲(6.38% Upside)

Wearable Devices Ltd. faces significant challenges with profitability and cash flow, despite strong revenue growth. The technical indicators suggest bearish momentum, and the negative P/E ratio highlights valuation concerns. These factors collectively result in a low overall stock score.

Wearable Devices Ltd. Business Overview & Revenue Model

Company Description

Wearable Devices Ltd. engages in developing a non-invasive neural input interface for controlling digital devices using subtle finger movements. The company offers Mudra Inspire development kits that enables users to control digital devices through finger movements and hand gestures. These digital devices include consumer electronics, smart watches, smartphones, augmented reality glasses, virtual reality headsets, televisions, personal computers and laptop computers, drones, robots, etc. It serves consumer electronics companies, industrial companies, information technology and software solutions providers, software development studios, and academia and research universities, as well as consumers from B2C market. The company was incorporated in 2014 and is based in Yokneam Illit, Israel.

How the Company Makes Money

Wearable Devices Ltd. generates revenue through multiple streams, primarily from the sale of its wearable devices directly to consumers and through partnerships with health and fitness organizations. The company also earns income from subscription services that provide users with premium analytics and personalized health insights. Additionally, WLDS collaborates with corporate partners to develop tailored solutions for employee wellness programs, further diversifying its revenue sources. The combination of direct product sales, subscription models, and strategic partnerships significantly contributes to the company's overall earnings.

Wearable Devices Ltd. Financial Statement Overview

Summary

Wearable Devices Ltd. shows strong revenue growth but faces significant profitability and cash flow challenges. The balance sheet is stable with moderate debt, but negative margins and cash flows indicate operational and financial hurdles.

Income Statement

Wearable Devices Ltd. shows significant revenue growth over the last year, with a 536.6% increase from 2023 to 2024. However, profitability remains a concern as the company reported negative net and gross profit margins. The net profit margin for 2024 is -1509.0%, indicating high losses relative to revenue. Both EBIT and EBITDA margins are also deeply negative, suggesting operational inefficiencies.

Balance Sheet

The company's balance sheet reflects a relatively moderate debt-to-equity ratio of 0.28, which indicates manageable leverage. However, the return on equity is negative at -204.1%, reflecting net losses. The equity ratio is 64.6%, which is a positive sign of financial stability, showing a strong equity base relative to total assets.

Cash Flow

Free cash flow improved slightly but remains negative, and operating cash flow is also negative, indicating challenges in generating cash from operations. The free cash flow to net income ratio is 0.97, suggesting that free cash flow closely mirrors net income losses. These metrics highlight persistent cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	422.00K	522.00K	82.00K	45.00K	142.00K	57.00K
Gross Profit	-200.00K	85.00K	20.00K	19.67K	126.50K	48.00K
EBITDA	-7.26M	-7.71M	-8.12M	-6.43M	-2.60M	-1.15M
Net Income	-7.38M	-7.88M	-7.81M	-6.50M	-2.61M	-1.26M
Balance Sheet
Total Assets	4.79M	5.98M	7.59M	11.22M	1.45M	593.00K
Cash, Cash Equivalents and Short-Term Investments	3.46M	3.95M	4.86M	10.37M	1.27M	475.00K
Total Debt	163.00K	1.08M	575.00K	162.00K	0.00	3.05M
Total Liabilities	974.00K	2.12M	2.07M	1.24M	638.00K	3.47M
Stockholders Equity	3.81M	3.86M	5.53M	9.98M	807.00K	-2.88M
Cash Flow
Free Cash Flow	-6.73M	-7.66M	-8.63M	-5.76M	-2.14M	-1.10M
Operating Cash Flow	-6.72M	-7.61M	-8.43M	-5.71M	-2.10M	-1.09M
Investing Cash Flow	-1.30M	3.20M	-4.25M	-66.00K	-36.00K	-16.00K
Financing Cash Flow	6.98M	6.70M	3.12M	14.88M	2.94M	0.00

Wearable Devices Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WLDS, the sentiment is Negative. The current price of 1.88 is below the 20-day moving average (MA) of 2.20, below the 50-day MA of 3.55, and below the 200-day MA of 2.37, indicating a bearish trend. The MACD of -0.36 indicates Negative momentum. The RSI at 39.55 is Neutral, neither overbought nor oversold. The STOCH value of 11.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WLDS.

Wearable Devices Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KOSS	49 Neutral	$43.59M	-198.71	-0.69%	―	11.58%	81.08%
ZEPP	49 Neutral	$532.62M	-7.68	-24.39%	―	13.27%	-66.48%
UEIC	47 Neutral	$41.84M	―	-14.35%	―	2.35%	18.83%
VUZI	43 Neutral	$173.87M	-4.43	-96.37%	―	-4.31%	59.68%
WLDS	41 Neutral	$13.96M	-0.27	-268.12%	―	-9.05%	77.41%
GPRO	41 Neutral	$248.42M	―	-91.95%	―	-27.37%	70.46%

Wearable Devices Ltd. Corporate Events

Wearable Devices Secures $3.3 Million in Direct Offering

On October 29, 2025, Wearable Devices Ltd. announced a Securities Purchase Agreement with an institutional investor for a registered direct offering of ordinary shares and pre-funded warrants, expected to raise approximately $3.3 million. This strategic move aims to bolster the company’s working capital and general corporate purposes, potentially enhancing its market position in the AI-powered wearables industry. The offering includes a concurrent private placement of warrants, subject to shareholder approval, and reflects the company’s ongoing efforts to expand its financial resources and operational capabilities.

Wearable Devices Ltd. Approves Key Amendments at Annual Meeting

On October 24, 2025, Wearable Devices Ltd. held its Annual and Special General Meeting of Shareholders, which was initially delayed due to a lack of quorum but later successfully convened. During the meeting, shareholders approved several key proposals, including amendments to the company’s Compensation Policy and an increase in authorized share capital by 450 million ordinary shares. These changes are expected to impact the company’s governance and financial structure, potentially affecting its market positioning and stakeholder interests.

Wearable Devices Ltd. Signs $7.4 Million Sales Agreement with A.G.P./Alliance Global Partners

On September 25, 2025, Wearable Devices Ltd. announced the execution of a Sales Agreement with A.G.P./Alliance Global Partners, allowing the company to offer and sell up to $7.4 million of its ordinary shares. The proceeds from these sales are intended for working capital and general corporate purposes. This strategic move is expected to enhance the company’s financial flexibility and support its operational goals, potentially strengthening its position in the wearable technology market.

Wearable Devices Ltd. Announces Shareholders Meeting for Governance and Financial Proposals

Wearable Devices Ltd. has announced an Annual and Special General Meeting of Shareholders scheduled for October 24, 2025. The meeting’s agenda includes re-appointing auditors and directors, approving private placements of warrants, amendments to compensation policies, and discussing financial statements. These proposals, if approved, could impact the company’s governance and financial strategies, potentially influencing its market positioning and stakeholder interests.

Wearable Devices Secures $4 Million Through Direct Offering and Private Placement

On September 12, 2025, Wearable Devices Ltd. announced a Securities Purchase Agreement with an institutional investor for a registered direct offering and concurrent private placement, expected to raise approximately $4 million. The offering includes 440,000 ordinary shares and pre-funded warrants, with proceeds intended for working capital and corporate purposes. This move positions the company to strengthen its market presence and operational capabilities, potentially impacting stakeholders by enhancing its financial stability and capacity for innovation.

Wearable Devices Secures $4 Million in Direct Offering and Private Placement

On September 11, 2025, Wearable Devices Ltd. announced a securities purchase agreement with an institutional investor, involving the issuance of 1,000,000 ordinary shares at $4.00 each, expected to raise approximately $4 million. This offering, along with a concurrent private placement of warrants, aims to bolster the company’s working capital and general corporate purposes, potentially enhancing its market position in the AI-powered wearables industry.

Wearable Devices Secures U.S. Patent for AI Wearables Innovation

On September 10, 2025, Wearable Devices Ltd. announced that it has secured a U.S. patent for its innovative voice and gesture control technology, which integrates gesture recognition and voice control with biometric authentication. This development positions the company to capture significant market share in consumer electronics and enterprise applications by offering a more natural and intuitive user interaction with smart devices. The patent enhances the company’s intellectual property portfolio and strengthens its leadership in the AI wearables market, promising a more seamless and secure human-machine relationship.

Wearable Devices Ltd. Expands Equity Incentive Plan with Increased Share Issuance

On September 9, 2025, Wearable Devices Ltd. announced that its Board of Directors approved an increase in the number of ordinary shares reserved for issuance under the company’s 2024 Global Equity Incentive Plan. This move increases the share count by 653,760, bringing the total to 795,252 shares. This decision reflects the company’s commitment to expanding its equity incentive plan, which could potentially enhance its ability to attract and retain talent, thereby impacting its operational capabilities and market positioning.