Wearable Devices Ltd. (WLDS) AI Stock Analysis

• Market Cap: $8.14M
• Dividend Yield: N/A
• Average Volume (3M): 16.66M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.55
• 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: -0.15
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: $1.00 ▼(-13.79% Downside)

Wearable Devices Ltd. faces significant financial and technical challenges. Strong revenue growth is overshadowed by negative profitability and cash flow issues. The technical indicators suggest bearish momentum, and the valuation is unattractive due to negative earnings and lack of dividends.

Positive Factors

Revenue Growth

Very strong year-over-year revenue growth indicates rapid adoption of the company’s products and meaningful market traction. Sustained top-line expansion provides a foundation to scale operations, invest in R&D and distribution, and eventually improve unit economics if management controls costs.

Balance Sheet Leverage

Manageable leverage and a high equity ratio give the company financial flexibility despite losses. Lower debt levels reduce near-term bankruptcy risk and allow the firm to raise capital or invest in commercialization without an excessive fixed-cost debt burden.

Clinical Validation & Grant

A funded clinical pilot validates the Mudra Link product in a clinical setting, supporting potential medical adoption, reimbursement pathways and differentiation versus consumer wearables. Clinical validation can create durable commercial channels and strengthen intellectual property value.

Negative Factors

Deep Negative Profitability

Extremely negative margins reflect poor unit economics and operational inefficiency. Without structural margin improvement or pricing power, losses will persist, eroding retained capital and making it difficult to reach sustainable profitability even if revenue growth continues.

Negative Operating Cash Flow

Persistent negative operating cash flow depletes liquidity and forces reliance on external funding. Even with improved revenues, inability to generate operating cash undermines self-sufficiency, raises execution risk for scaling, and increases probability of future dilutive financings.

Frequent Equity Financing & Dilution Risk

Repeated equity raises, warrant inducements and governance actions (authorized share increases, reverse-split authority) signal structural reliance on dilution to fund operations. This reduces long-term shareholder equity and may constrain incentivization and capital structure stability.

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: 1.16
• 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 WLDS, the sentiment is Negative. The current price of 1.16 is below the 20-day moving average (MA) of 1.28, below the 50-day MA of 1.66, and below the 200-day MA of 2.14, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 36.63 is Neutral, neither overbought nor oversold. The STOCH value of 23.53 is Neutral, 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%
GPRO	50 Neutral	$225.69M	-1.80	-91.95%	―	-27.37%	70.46%
VUZI	50 Neutral	$268.42M	-6.76	-96.37%	―	-4.31%	59.68%
KOSS	48 Neutral	$41.04M	-189.22	-0.69%	―	11.58%	81.08%
UEIC	48 Neutral	$51.06M	-2.39	-14.35%	―	2.35%	18.83%
ZEPP	44 Neutral	$296.70M	-5.47	-24.39%	―	13.27%	-66.48%
WLDS	39 Underperform	$8.14M	-0.15	-268.12%	―	-9.05%	77.41%

Wearable Devices Ltd. Corporate Events

Wearable Devices Calls February 19 Special Meeting to Vote on Warrant Placements, Executive Pay and Reverse Share Split

On January 15, 2026, Wearable Devices Ltd. filed a Form 6-K announcing that it will hold a special general meeting of shareholders on February 19, 2026, in Israel, with a January 22, 2026 record date for voting eligibility. Shareholders will be asked to approve two private placements of warrants to purchase ordinary shares and amendments to existing warrants, several equity-based compensation grants and a revised compensation policy for executives and directors, and authority for the board to implement one or more reverse share splits at a ratio of up to 3-for-1. The package of proposals, unanimously backed by the board, is designed to provide additional financing flexibility through warrant issuances, adjust executive and director incentives, and give the company tools such as a reverse split that could support compliance with Nasdaq listing requirements and potentially improve the tradability of its stock, with the voting outcome to be disclosed after the meeting in a subsequent regulatory filing.

The most recent analyst rating on (WLDS) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Wearable Devices Ltd. stock, see the WLDS Stock Forecast page.

Wearable Devices Secures $750,000 Grant for Neurorehabilitation Pilot

On December 11, 2025, Wearable Devices Ltd. announced it received a $750,000 grant from the Israel Innovation Authority to fund a clinical pilot program with Soroka University Medical Center. The program aims to validate the Mudra Link neural wristband as a rehabilitation tool for patients with impaired grip-force control due to motor-cortex brain injuries. This initiative underscores the potential of Mudra technology in neurorehabilitation, offering a cost-effective and engaging therapy option that could become the standard of care. The pilot is expected to enhance clinical tools with objective performance metrics, improving treatment accessibility and accelerating recovery for patients with neurological motor deficits.

The most recent analyst rating on (WLDS) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Wearable Devices Ltd. stock, see the WLDS Stock Forecast page.

Wearable Devices Ltd. Secures $5.68 Million Through Warrant Inducement

On November 26, 2025, Wearable Devices Ltd. entered into a warrant inducement agreement with an existing institutional investor for the immediate exercise of warrants to purchase up to 3,322,000 ordinary shares, generating approximately $5.68 million in gross proceeds. The company plans to use the proceeds for working capital and general corporate purposes. In return, the company will issue new warrants to purchase up to 5,813,500 ordinary shares, with an exercise price of $1.86 per share, pending shareholder approval. The transaction is expected to close around December 1, 2025, and is facilitated by A.G.P./Alliance Global Partners as the financial advisor.

The most recent analyst rating on (WLDS) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Wearable Devices Ltd. stock, see the WLDS Stock Forecast page.

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.

The most recent analyst rating on (WLDS) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Wearable Devices Ltd. stock, see the WLDS Stock Forecast page.

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.

The most recent analyst rating on (WLDS) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Wearable Devices Ltd. stock, see the WLDS Stock Forecast page.