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Wearable Devices Ltd. (WLDS)
:WLDS
US Market
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Wearable Devices Ltd. (WLDS) AI Stock Analysis

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WLDS

Wearable Devices Ltd.

(NASDAQ:WLDS)

Rating:46Neutral
Price Target:
$1.50
▼(-0.66% Downside)
The overall score is primarily influenced by financial performance challenges, including significant profitability and cash flow issues. Technical analysis provides some positive short-term signals, but valuation remains a concern due to negative earnings and lack of dividends.

Wearable Devices Ltd. (WLDS) vs. SPDR S&P 500 ETF (SPY)

Wearable Devices Ltd. Business Overview & Revenue Model

Company DescriptionWearable Devices Ltd. (WLDS) is a technology company specializing in the development and production of advanced wearable devices. The company operates in the consumer electronics sector, focusing on integrating innovative technology into everyday accessories. Its core products include smartwatches, fitness trackers, and other wearable gadgets that enhance user connectivity, health monitoring, and lifestyle management.
How the Company Makes MoneyWearable Devices Ltd. generates revenue primarily through the sale of its wearable technology products. The company's key revenue streams include direct sales through its online platform and partnerships with major retail distributors. WLDS also engages in strategic collaborations with technology firms to integrate its products with other digital ecosystems, expanding its market reach. Additionally, the company explores subscription-based services and software updates that offer enhanced features and analytics for users, contributing to a recurring revenue model. Partnerships with fitness and health organizations further bolster its earnings by providing tailored solutions for health monitoring and data analysis.

Wearable Devices Ltd. Financial Statement Overview

Summary
Wearable Devices Ltd. demonstrates impressive revenue growth but suffers from severe profitability and cash flow issues, with deeply negative profit margins and ongoing cash flow challenges. Despite a moderate debt-to-equity ratio, the negative return on equity and free cash flow indicate significant financial hurdles.
Income Statement
35
Negative
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
45
Neutral
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
40
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue522.00K82.00K45.00K142.00K57.00K
Gross Profit85.00K20.00K19.67K126.50K48.00K
EBITDA-7.71M-8.12M-6.43M-2.60M-1.15M
Net Income-7.88M-7.81M-6.50M-2.61M-1.26M
Balance Sheet
Total Assets5.98M7.59M11.22M1.45M593.00K
Cash, Cash Equivalents and Short-Term Investments3.95M4.86M10.37M1.27M475.00K
Total Debt1.08M575.00K162.00K0.003.05M
Total Liabilities2.12M2.07M1.24M638.00K3.47M
Stockholders Equity3.86M5.53M9.98M807.00K-2.88M
Cash Flow
Free Cash Flow-7.66M-8.63M-5.76M-2.14M-1.10M
Operating Cash Flow-7.61M-8.43M-5.71M-2.10M-1.09M
Investing Cash Flow3.20M-4.25M-66.00K-36.00K-16.00K
Financing Cash Flow6.70M3.12M14.88M2.94M0.00

Wearable Devices Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.51
Price Trends
50DMA
1.57
Positive
100DMA
1.72
Negative
200DMA
4.30
Negative
Market Momentum
MACD
<0.01
Negative
RSI
56.80
Neutral
STOCH
35.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WLDS, the sentiment is Positive. The current price of 1.51 is below the 20-day moving average (MA) of 1.58, below the 50-day MA of 1.57, and below the 200-day MA of 4.30, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.80 is Neutral, neither overbought nor oversold. The STOCH value of 35.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WLDS.

Wearable Devices Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$34.80B4.90-10.42%2.08%6.50%-6.29%
59
Neutral
$345.70M-28.36%-18.94%-197.82%
54
Neutral
$211.45M-83.57%-20.88%62.21%
49
Neutral
$84.68M-13.55%-2.15%52.80%
46
Neutral
$1.75M-167.89%536.59%-5.05%
44
Neutral
$53.63M-2.44%-0.34%32.41%
44
Neutral
$155.53M-136.11%-46.37%-34.50%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WLDS
Wearable Devices Ltd.
1.70
-27.11
-94.10%
GPRO
GoPro
1.32
0.16
13.79%
KOSS
Koss
5.72
-1.50
-20.78%
UEIC
Universal Electronics
6.43
-4.47
-41.01%
VUZI
Vuzix
2.04
1.01
98.06%
ZEPP
Zepp Health
24.06
21.78
955.26%
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: Aug 06, 2025