Revenue growth of 175.8% in 2025Q4 remains highly volatile and insufficient to offset the $4.6 million quarterly operating loss, indicating a lack of operational leverage.
| Sales/Revenue | 647K | 522K | 82K | 45K | 142K | 57K | 242K |
| Revenue Growth % | 23.95% | 536.59% | 82.22% | -68.31% | 149.12% | -76.45% | - |
| Cost of Goods Sold | 678K | 437K | 62K | 25.33K | 15.5K | 9K | 21K |
| COGS % of Revenue | 104.79% | 83.72% | 75.61% | 56.3% | 10.92% | 15.79% | 8.68% |
| Gross Profit | -31K | 85K | 20K | 19.67K | 126.5K | 48K | 221K |
| Gross Margin % | -4.79% | 16.28% | 24.39% | 43.7% | 89.08% | 84.21% | 91.32% |
| Gross Profit Growth % | -136.47% | 325% | 1.69% | -84.45% | 163.54% | -78.28% | - |
| Operating Expenses | 8.3M | 7.91M | 8.21M | 5.57M | 2.7M | 1.2M | 1.17M |
| OpEx % of Revenue | 1283% | 1514.37% | 10007.32% | 12385.92% | 1900.35% | 2112.28% | 483.47% |
| Selling, General & Admin | 4.68M | 4.94M | 4.89M | 3.31M | 1.29M | 461K | 383K |
| SG&A % of Revenue | 723.34% | 946.55% | 5963.41% | 7356.3% | 906.69% | 808.77% | 158.26% |
| Research & Development | 3.5M | 2.96M | 3.32M | 2.26M | 1.41M | 743K | 787K |
| R&D % of Revenue | 541.58% | 567.82% | 4043.9% | 5029.63% | 993.66% | 1303.51% | 325.21% |
| Other Operating Expenses | 117K | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -8.33M | -7.82M | -8.19M | -5.55M | -2.57M | -1.16M | -949K |
| Operating Margin % | -1287.79% | -1498.08% | -9982.93% | -12342.22% | -1811.27% | -2028.07% | -392.15% |
| Operating Income Growth % | -6.55% | 4.47% | -47.39% | -115.94% | -122.49% | -21.81% | - |
| EBITDA | -8.25M | -7.71M | -8.12M | -5.53M | -2.56M | -1.15M | -942K |
| EBITDA Margin % | -1274.81% | -1477.59% | -9900% | -12291.11% | -1803.52% | -2015.79% | -389.26% |
| EBITDA Growth % | -6.94% | 4.99% | -46.77% | -115.97% | -122.89% | -21.97% | - |
| D&A (Non-Cash Add-back) | 84K | 107K | 68K | 23K | 11K | 7K | 7K |
| EBIT | -8.33M | -7.82M | -8.19M | -6.46M | -2.61M | -1.16M | -949K |
| Net Interest Income | 230K | -52K | 372K | -38K | 55K | -102K | -28K |
| Interest Income | 230K | 0 | 372K | 0 | 55K | 0 | 0 |
| Interest Expense | 0 | 52K | 0 | 38K | 0 | 102K | 28K |
| Other Income/Expense | 230K | -52K | 372K | -38K | 55K | -102K | -28K |
| Pretax Income | -8.1M | -7.87M | -7.81M | -6.5M | -2.61M | -1.26M | -977K |
| Pretax Margin % | -1252.24% | -1508.05% | -9529.27% | -14435.56% | -1840.85% | -2207.02% | -403.72% |
| Income Tax | 5K | 7K | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | -0.06% | -0.09% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -8.11M | -7.88M | -7.81M | -6.5M | -2.61M | -1.26M | -977K |
| Net Margin % | -1253.01% | -1509.39% | -9529.27% | -14435.56% | -1840.85% | -2207.02% | -403.72% |
| Net Income Growth % | -2.89% | -0.83% | -20.29% | -148.51% | -107.79% | -28.76% | - |
| Net Income (Continuing) | -8.11M | -7.88M | -7.81M | -6.5M | -2.61M | -1.26M | -977K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -80.97 | -2091.35 | -3335.27 | -2984.88 | -1623.12 | -781.16 | -606.83 |
| EPS Growth % | 96.13% | 37.3% | -11.74% | -83.9% | -107.78% | -28.73% | - |
| EPS (Basic) | -80.97 | -2091.35 | -3335.27 | -2984.88 | -1623.12 | -781.16 | -606.83 |
| Diluted Shares Outstanding | 100.05K | 3.77K | 2.34K | 2.18K | 1.61K | 1.61K | 1.61K |
| Basic Shares Outstanding | 100.05K | 3.77K | 2.34K | 2.18K | 1.61K | 1.61K | 1.61K |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Liquidity and capital exhaustion
According to recent financial disclosures, WLDS experienced a 175.8% revenue surge in 2025Q4, yet this follows a highly inconsistent historical pattern where quarterly revenue fluctuated between $12,000 and $394,000, suggesting that current growth is driven by lumpy, non-recurring hardware shipments rather than a predictable, recurring subscription model.
The extreme volatility in top-line growth indicates that the company has not yet achieved a repeatable sales motion for its Mudra Band. Investors should monitor whether these revenue spikes represent genuine market adoption or merely the timing of initial B2B development kit deliveries.
As reported in the company's income statements, the gross margin has deteriorated to -1.4% in 2025Q4, reflecting a fundamental inability to cover direct manufacturing costs, which stands in stark contrast to the 93.5% gross margin achieved in 2021Q2 when the business model was significantly less complex.
The transition to negative gross margins suggests that the current hardware production process is inefficient and lacks the necessary scale to dilute fixed component costs. This margin compression implies that every incremental unit sold currently serves to erode, rather than contribute to, the company's bottom line.
Based on the provided quarterly data, WLDS maintains a massive operating loss of $4.6 million as of 2025Q4, demonstrating that the company's R&D and SG&A expenditures are scaling independently of revenue, which highlights a lack of operational leverage in the current business model.
The persistent gap between operating expenses and revenue suggests that management is prioritizing aggressive R&D investment over near-term profitability. This structure warrants further investigation into whether the current level of spending is sustainable given the company's limited cash reserves.
As indicated by the TTM operating loss of over $15 million against a cash balance of $6.5 million, the company faces a severe liquidity risk that may necessitate dilutive financing, potentially undermining the equity value for existing shareholders in the near term.
Short-sellers would likely focus on the widening gap between cash burn and revenue generation, which suggests that the current trajectory is unsustainable without a significant pivot. The reliance on external capital to fund ongoing operations remains the most critical threat to the company's long-term viability.
Quick answers to the most common questions about buying WLDS stock.
For fiscal year 2025, Wearable Devices Ltd. (WLDS) reported total revenue of $0.6M. This represents a 167.4% increase compared to $0.2M in 2019.
Wearable Devices Ltd. (WLDS) reported a net loss of $8.1M for the fiscal year ending 2025.
Wearable Devices Ltd. (WLDS) reported an operating income of $-8.3M, resulting in an operating profit margin of -1287.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Wearable Devices Ltd. (WLDS) generated $-0.0M in gross profit for the year, representing a gross profit margin of -4.8%. This demonstrates the company's core pricing power and production efficiency.