ParaZero Technologies Ltd. (PRZO) AI Stock Analysis
PRZO AI stock analysis summary
AI ResearchParaZero Technologies Ltd. (PRZO) develops autonomous parachute safety systems for commercial unmanned aerial systems. The micro-cap aerospace firm reported trailing twelve-month revenue of $1.7M along with an operating margin of -379.1%. As of June 30, 2026, the company held $2.6M in cash and short-term investments with total debt of $194,331.
- Market cap
- $15.3M
- Revenue (TTM)
- $1.7M
- P/E
- —
- 1Y return
- -66.6% S&P 500 16.8%
- Avg. target
- —
Bull case
- Quarterly revenue grew 195.3% year-over-year for the period ending June 30, 2026.
- The company holds a net cash balance of $2.4M with minimal debt of $194,331 as of June 30, 2026.
- Balance sheet liquidity remains solid with a current ratio of 5.10 as of June 30, 2026.
Bear case
- Annual revenue fell 67.4% in FY2025 to $303,448, contributing to a 5-year revenue CAGR of -16.8%.
- Operating margin remained deeply negative at -379.1% over the trailing twelve months.
- Free cash flow has been persistently negative, including -$1.7M generated in FY2025.
What ParaZero Technologies does
ParaZero Technologies Ltd., based in Kiryat Ono, Israel, specializes in the design, development, manufacturing, distribution, and sale of advanced autonomous parachute safety systems tailored for commercial drones. Established in 2013, the company operates globally across the United States, Israel, Canada, Europe, and other regions. Its flagship offering is the SafeAir system, which continuously monitors unmanned aerial systems during flight, detects critical malfunctions, and deploys parachutes autonomously. The product portfolio includes specialized models such as SafeAir Phantom, SafeAir Mavic, SafeAir M-200 Pro, SafeAir M-300 Pro, SafeAir M-600 Pro, SafeAir V1EX, SafeAir 350, and customized integrations for system manufacturers, resellers, and online stores.
Growth and profitability
ParaZero has experienced volatile top-line results, reflected in a 5-year revenue CAGR of -16.8% from FY2020 to FY2025. Annual revenue peaked at $932,154 in FY2024 before falling 67.4% to $303,448 in FY2025. Operating margins dropped from -136.3% in FY2021 to -721.1% in FY2025, while gross margin compressed from 35.8% to 4.8% over the same span. Net losses widened to -$11.1M in FY2024 before narrowing to -$1.6M in FY2025. For the trailing twelve months ending June 30, 2026, revenue stood at $1.7M with quarterly revenue growth of 195.3% year-over-year, alongside an operating margin of -379.1% and diluted EPS of -$0.34.
Balance sheet and cash flow
As of June 30, 2026, ParaZero held $2.6M in cash and short-term investments against total debt of $194,331, resulting in a net cash position of $2.4M. Shareholders' equity was $2.5M and total assets stood at $3.2M. The company maintains a current ratio of 5.10 and a debt-to-equity ratio of 0.08. Free cash flow was negative across all reported annual periods, totaling -$1.7M in FY2025 alongside operating cash flow of -$1.7M. Capital expenditures were $8,059 in FY2025.
Valuation and performance
ParaZero has a market capitalization of $15.3M and an enterprise value of $11.2M. The stock trades at a price-to-sales multiple of 8.8x and an enterprise value-to-revenue multiple of 6.4x, compared to the median price-to-sales of 1.5x for its US-listed Industrials peer group. Its price-to-book ratio is 2.4x. Over the past year, the stock declined 66.6%, while the S&P 500 (SPY) returned 16.8%. The stock traded at $0.53 on October 16, 2026, which is 33.4% below its 200-day moving average.
What analysts expect
ParaZero beat earnings per share estimates in 1 of the last 4 quarters. The stock had an EPS of -$0.34 over the trailing twelve months. Insiders hold 0.7% of shares, while institutional investors own 5.5% and short interest accounts for 5.2% of the float.
Key risks and what to watch
- The stock fell 66.6% over the trailing 12 months and trades 33.4% below its 200-day average.
- Gross margins compressed from 39.7% in FY2022 to 4.8% in FY2025.
- Ongoing cash burn of -$1.7M in FY2025 free cash flow compares against cash holdings of $2.6M as of June 30, 2026.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this PRZO AI stock analysis
This page is an AI-written research summary of ParaZero Technologies Ltd. (PRZO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: PRZO income statement, PRZO balance sheet, PRZO key metrics, PRZO chart. See the PRZO stock overview for the latest quote and news.
PRZO AI stock analysis FAQ
What products does ParaZero Technologies make?
ParaZero designs and manufactures autonomous parachute safety systems for commercial drones under its SafeAir product line, including models like SafeAir Phantom, Mavic, M-200 Pro, M-300 Pro, M-600 Pro, V1EX, and SafeAir 350.
Does ParaZero pay a dividend?
No, ParaZero does not pay a dividend.
What is ParaZero's cash and debt position?
As of June 30, 2026, ParaZero held $2.6M in cash and short-term investments, $194,331 in total debt, and a net cash position of $2.4M.
How has ParaZero stock performed over the last year?
Over the past 12 months, ParaZero's share price declined 66.6%, compared to a 16.8% gain for the S&P 500 (SPY).