Wearable Devices Ltd. (WLDS) AI Stock Analysis

Wearable Devices Ltd. specializes in developing non-invasive neural input interfaces designed to control digital devices through subtle finger movements. Its flagship Mudra Inspire development kit allows users to interact with consumer electronics, smart watches, smartphones, augmented reality glasses, virtual reality headsets, televisions, PCs, laptops, drones, and robots using hand gestures. Founded in 2014 and based in Yokneam Illit, Israel, the company serves both business-to-business and business-to-consumer markets, including industrial firms, software solution providers, development studios, and academic research universities.

Revenue grew from $142,000 in FY2021 to $647,000 in FY2025, reflecting a 5-year revenue CAGR of 62.6% from FY2020 to FY2025. Annual growth accelerated significantly in FY2024 at 536.6% before moderating to 23.9% in FY2025. However, gross margin deteriorated from 89.1% in FY2021 to -4.8% in FY2025. Net income was -$8.1M in FY2025, worsening from -$2.6M in FY2021, as research and development expenses expanded to $3.5M. In the latest quarter ended June 30, 2026, quarterly revenue grew 19.0% year-over-year, while trailing twelve month revenue reached $703,000 with an operating margin of -1676.3% and diluted earnings per share of -$41.57.

As of June 30, 2026, the company held $18.8M in cash and short-term investments against $248,000 in total debt, resulting in net cash of $18.6M. Liquidity remains strong with a current ratio of 13.68 and a debt-to-equity ratio of 0.01 on shareholders' equity of $18.6M. Free cash flow was negative at -$6.6M in FY2025, matching an operating cash flow of -$6.6M, while capital expenditures totaled $20,000. Over the past five years, the company's share count increased by 98400.0%.

WLDS trades at a price-to-sales multiple of 4.4x, above the 2.8x median of its US-listed Technology peers. Its enterprise value stands at -$14.6M, with an EV-to-revenue ratio of 0.3x and a price-to-book ratio of 0.2x. Over the past year, the stock fell 95.9% compared to a 16.8% gain for the S&P 500 (SPY). Year-to-date, shares have declined 87.8%, closing at $1.25 on October 16, 2026, which is 69.4% below its 200-day average and near its 52-week low of $1.15.

The company has zero EPS beats over the last 4 quarters, with earnings per share reported at -$41.57 for the trailing twelve months. Institutional investors hold 18.5% of the shares, insiders hold 0.3%, and short interest represents 1.6% of the float.

This page is an AI-written research summary of Wearable Devices Ltd. (WLDS). 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.

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