Wearable Devices Ltd. (WLDS) AI Stock Summary

Snapshot

Wearable Devices is a tiny micro-cap developing neural input technology, but the financial picture is strained. Revenue grew 24% to $647K in FY 2025, yet gross margin turned negative to -4.8%, meaning the company loses money on the hardware it sells. It burned through $6.6M in free cash flow last year and holds $18.4M in cash, which amounts to a tight runway of just 5.2 months. The share count exploded by over 2500% due to dilution, and the company executed two reverse splits in the last year to stay listed.

What's Happening Right Now

• Wed 17th Jun '26 · Corporate Action: Wearable Devices executed a 1-for-3 reverse stock split effective June 22, 2026, to regain compliance with Nasdaq's minimum bid price requirement.
• Fri 24th Apr '26 · Patent: Wearable Devices received a U.S. Patent Notice of Allowance for biometric user authentication technology in gesture and voice-controlled devices.
• Mon 20th Apr '26 · Financing: The company entered a warrant inducement agreement, raising approximately $5.0 million in gross proceeds from an existing institutional investor for working capital.

Ownership

Institutions hold 0.0%, insiders hold 1.0%.

Bottom Line

Wearable Devices is a financially strained micro-cap operating with broken unit economics. While revenue is growing, the negative gross margin and heavy operating losses resulted in a net loss over 12 times revenue. With only five months of cash left and two recent reverse splits to avoid delisting, the stock carries significant distress signals.