0001213900-26-026977
SEC filingWearable Devices Ltd. (WLDS) reported FY 2025 revenues of $647K, up 24% from $522K in FY 2024, driven by B2C sales of Mudra Link and Mudra Band products. Gross loss widened to -$148K from a $85K profit, due to $594K cost of revenues (up 64%) and $201K inventory impairment. Operating loss increased to -$8.3M from -$7.8M, with R&D expenses rising 18% to $3.5M amid share-based compensation growth. Net loss was -$8.1M, or -$7 per share (basic/diluted), on 1.2M weighted average shares. Balance sheet strengthened with $20.0M total assets (up from $6.0M), including $6.5M cash and $19.5M current assets, supported by $20.9M financing inflows from equity offerings. Shareholders' equity rose to $18.6M. Operating cash burn improved to -$6.6M from -$7.6M, with net cash increase of $3.4M. The company remains pre-profitability, funding operations via equity raises amid ongoing R&D and commercialization efforts.
Wearable Devices Ltd. reported FY 2025 revenues of $647K, a 24% increase from $522K in FY 2024, primarily from B2C Mudra Link and Mudra Band sales. However, gross loss expanded to -$148K from a $85K profit, driven by 64% higher cost of revenues ($594K) and $201K inventory impairment (up from $75K). Operating loss grew to -$8.3M (from -$7.8M), with R&D up 18% to $3.5M due to $490K higher share-based compensation. Net loss reached -$8.1M, or -$7 EPS (flat YoY), on 1.2M weighted shares. Balance sheet improved significantly: total assets $20.0M (vs $6.0M), cash $6.5M (vs $3.1M), equity $18.6M (vs $3.9M). Cash burn eased to -$6.6M operating (vs -$7.6M), with $20.9M financing inflows funding growth.
Revenues grew 24% YoY to $647K, led by B2C products amid early commercialization. Geographic mix: North America 59% ($385K, +39% YoY), Asia 18% ($118K, +36% YoY), EMEA 23% ($144K, -9% YoY). B2B development kits and pilots contributed modestly. No segment-level P&L disclosed; growth reflects Mudra Link shipments starting Q1 2025 and Mudra Band deliveries.
Gross margin deteriorated to -22.9% from 16.3%, pressured by inventory write-offs ($201K) and logistics costs. Operating margin -1282% (vs -1498%). R&D 541% of revenue (up from 568%), sales/marketing 286% (down from 402%), G&A 437% (up from 545%). Financing income $230K offset some losses. Persistent unprofitability tied to scaling production and R&D investment.
Operating cash use -$6.6M (improved from -$7.6M), aided by $1.1M non-cash share comp and inventory reduction. Investing -$10.9M (deposits), financing +$20.9M (equity raises). Net cash up $3.4M to $6.5M. Balance sheet: current assets $19.5M (cash/deposits $18.4M, inventory $778K), liabilities $1.4M (mostly accruals). Equity $18.6M reflects $22.8M paid-in capital. Runway supports operations through 2027 per management.
Management expects continued losses, funding via equity and grants. Cash sufficient through 2027. Strategic focus: B2B licensing (3-5 year horizon), B2C expansion (Mudra Experience Studio), new verticals (Industry 4.0, digital health). Risks: Nasdaq compliance, geopolitical tensions in Israel, supply chain reliance, no profitability timeline. Multiple reverse splits (1:20 Oct 2024, 1:4 Mar 2025, 1:3 Mar 2026) addressed listing issues.