ParaZero Technologies

PRZO

Aerospace & Defense · Industrials

Price

$0.51

-0.00 (-0.76%)

Market Cap

$10.8M

Exchange

NASDAQ

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Share count rising — dilution

+193.6% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 6.0M (2021) → 17.5M (2025)

ParaZero Technologies is a small Israeli company that makes safety parachute systems for commercial drones. When a drone loses power or malfunctions mid-flight, ParaZero's system automatically deploys a parachute to bring it down safely instead of crashing. Its main customers are drone operators, delivery companies, and defense users who need to fly drones over people or populated areas legally and safely.

The company sells its parachute hardware and related software, earning revenue from product sales rather than subscriptions. ParaZero operates primarily in Israel but sells internationally, targeting markets in North America, Europe, and Asia where drone regulations are tightening. Its competitive position rests on regulatory approvals — its systems help drone operators meet safety rules required by aviation authorities like the FAA. However, the company is very small, currently losing far more money than it earns, as shown by its deeply negative operating margin, and its main challenge is scaling revenue fast enough to survive before cash runs out.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+18.9% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+77.1% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$677,897/ year

↓ Declining (-68% vs prior year)

223.4% of revenue

55.8x the sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

28.2%ownership

Insiders own a meaningful stake in the company

Cash Runway

~4 months

$1M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Short runway — potential dilution ahead through share issuance

Cash watch

ParaZero Technologies has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

18.0%

Thin — 18.0% gross margin

Operating Margin

-565.6%

Losing money on operations — -565.6%

ROCE

-110.3%

Weak — -110.3% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

-61.2%

Shrinking sales (-61.2% YoY)

EPS YoY

N/A

—

Data not available

EPS Consistency

0/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

-1767.9%

Burning cash (-1767.9%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

0.08

Conservative — low debt load (0.08)

Interest Cover

N/A

—

Data not available

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Valuation

P/E Ratio (TTM)

N/M

—

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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