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1. Company Snapshot

1.a. Company Description

Vuzix Corporation, together with its subsidiaries, designs, manufactures, markets, and sells augmented reality (AR) wearable display and computing devices for consumer and enterprise markets in North America, the Asia-Pacific, Europe, and internationally.It provides M300XL, M400, and M4000 series of smart glasses for enterprise, industrial, commercial, and medical markets; Vuzix Blade smart glasses; waveguide optics and related coupling optics; and Vuzix Shield smart glasses, as well as custom and engineering solutions.The company sells its products through resellers, direct to commercial customers, and via online stores, as well as various Vuzix operated web stores in Europe and Japan.


The company was formerly known as Icuiti Corporation and changed its name to Vuzix Corporation in September 2007.Vuzix Corporation was incorporated in 1997 and is headquartered in West Henrietta, New York.

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1.b. Last Insights on VUZI

Vuzix Corporation's recent performance has been driven by several positive developments. The company received FCC and CE certifications for its LX1 smart glasses, enabling commercial shipments in major markets. Additionally, Vuzix launched all-in-one enterprise solutions kits featuring native Microsoft Teams and Zoom for hands-free remote assistance, simplifying smart glasses adoption for frontline teams. These advancements in AI-powered smart glasses and augmented reality technologies have strengthened the company's position in the enterprise and defense markets. Partnerships with Collins Aerospace and Avegant have also expanded Vuzix's capabilities.

1.c. Company Highlights

2. Vuzix's Q3 2025 Earnings: Operational Challenges and Growth Prospects

Vuzix reported a revenue of $1.2 million for the third quarter ending September 30, 2025, representing a 16% year-over-year decline primarily due to decreased sales of the M400 smart glasses. The company's cash and cash equivalents position improved to $22.6 million as of September 30, 2025, up from $17.5 million as of June 30, 2025. The actual EPS came out at '-0.09', beating estimates of '-0.1'. Analysts are estimating next year's revenue growth at 110.0%, indicating a significant rebound is expected.

Publication Date: Nov -18

📋 Highlights
  • Quanta Partnership: Vuzix collaborates with Quanta Computer ($20M investment) to scale waveguide production, targeting 1-2B units annually.
  • Amazon Enterprise Expansion: Smart Glasses deployed by Amazon in U.S./Canada for engineering teams, expanding to data centers and janitorial services.
  • Q3 Financials: Revenue fell 16% YoY to $1.2M due to M400 decline, but cash reserves rose to $22.6M (up from $17.5M in Q2).
  • Defense Production Ramp: 2026 production of 6-figure defense programs, with Q4 2025 waveguide shipments and design changes pending for new contracts.
  • Gross Margin Upside: 2026 margin improvement expected from LX1 product launch and higher-margin defense contracts.

Financial Performance and Margin Analysis

The decline in revenue was accompanied by the company's gross margin challenges, although Paul Travers, the CEO, stated that the product mix in 2026 is expected to show higher margins due to better margin models on new products like the LX1 and higher margins on defense products. The current valuation metrics indicate that the stock is trading at a 'P/S Ratio' of 30.43, an 'EV/EBITDA' of -3.96, and an 'ROE (%)' of -113.17, suggesting that the market is pricing in significant growth expectations.

Operational Updates and Growth Drivers

Vuzix is in discussions with Quanta Computer, one of the world's largest ODMs, to ramp up capacity to meet the growing demand for waveguides, which could eventually reach 1 billion or 2 billion units per year. As Paul Travers mentioned, "the train is leaving the station," indicating that the company is poised for growth. The Amazon program is also expanding to new areas, including data centers and janitorial services, demonstrating the increasing adoption of Vuzix's Smart Glasses.

Defense Industry Developments

In the defense industry, Vuzix has development programs in Q4, with production waveguides shipping in Q4, and expects a 6-figure development order with a leading U.S. defense contractor to unfold quickly in 2026. The company might have 2 programs rolling in production in 2026, with another program waiting for a design change to an engine, indicating a potential expansion in the defense contractor customer base.

3. NewsRoom

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Vuzix Launches All-in-One Enterprise Solutions Kits Featuring Native Microsoft Teams™ and Zoom™ for Hands-Free Remote Assistance

Feb -18

Source: prnewswire.com

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Vuzix Receives Broad FCC and CE Certification for Its LX1 Smart Glasses and Commences Immediate Customer Shipments

Feb -04

Source: prnewswire.com

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Vuzix Highlights Defense and Security OEM Waveguide Capabilities at SHOT Show 2026 in Las Vegas

Jan -20

Source: prnewswire.com

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Vuzix Ultralite Pro Enterprise Platform Recognized as CES® 2026 Innovation Awards Honoree

Jan -08

Source: prnewswire.com

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Vuzix (NASDAQ:VUZI) Shares Pass Above 50-Day Moving Average – Here’s Why

Jan -08

Source: defenseworld.net

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Vuzix and Himax to Introduce a Lightweight, Prescription-Ready Optical Component Reference Design for AR Glasses at CES 2026

Jan -07

Source: prnewswire.com

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Avegant and Vuzix Announce New Lightweight Binocular AR Reference Design

Jan -06

Source: prnewswire.com

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Vuzix Showcases AI-Powered Smart Glasses and Waveguide Solutions with its Global Ecosystem Partners at CES 2026

Jan -05

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.83%)

6. Segments

Smart Glasses

Expected Growth: 5%

Vuzix Corporation's smart glasses growth is driven by increasing adoption in enterprise and industrial settings, fueled by demand for remote work and augmented reality solutions. Growing use cases in healthcare, logistics, and manufacturing, combined with advancements in display technology and declining costs, contribute to the segment's 5-fold growth.

Engineering Services

Expected Growth: 3%

Vuzix Corporation's Engineering Services segment growth is driven by increasing demand for augmented reality (AR) solutions in industries such as manufacturing, logistics, and healthcare. The company's expertise in designing and developing custom AR solutions, combined with its strong partnerships and strategic acquisitions, have enabled it to capitalize on this growing trend.

7. Detailed Products

Vuzix Blade

Smart glasses with a see-through display, providing a hands-free and intuitive experience for enterprise and industrial applications

Vuzix M300XL

Ruggedized smart glasses designed for industrial and enterprise use cases, providing a high-resolution display and advanced camera capabilities

Vuzix M400

Advanced smart glasses with a high-resolution display, advanced camera, and improved processing power, designed for demanding enterprise and industrial applications

Vuzix Shield

Smart glasses designed for remote work and collaboration, providing a secure and hands-free experience

Vuzix Software Suite

A comprehensive software platform for managing and deploying smart glasses solutions, providing remote device management and content management capabilities

8. Vuzix Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Vuzix Corporation faces moderate threat from substitutes, as there are limited alternative products available in the market. However, the company's focus on innovation and R&D helps it to stay ahead of the competition.

Bargaining Power Of Customers

Vuzix Corporation has a diverse customer base, which reduces the bargaining power of individual customers. The company's strong brand reputation and high-quality products also contribute to its low bargaining power of customers.

Bargaining Power Of Suppliers

Vuzix Corporation has a moderate level of bargaining power of suppliers, as it relies on a few key suppliers for its components. However, the company's strong relationships with its suppliers and its ability to negotiate prices help to mitigate this risk.

Threat Of New Entrants

Vuzix Corporation operates in a niche market with high barriers to entry, making it difficult for new entrants to enter the market. The company's strong brand reputation, patented technology, and high R&D investments also make it challenging for new entrants to compete.

Intensity Of Rivalry

Vuzix Corporation operates in a highly competitive market with several established players. The company faces intense competition from rivals such as Epson, ODG, and Google, which puts pressure on its market share and pricing power.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.37%
Debt Cost 3.95%
Equity Weight 99.63%
Equity Cost 13.17%
WACC 13.14%
Leverage 0.37%

11. Quality Control: Vuzix Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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VOXX

A-Score: 4.1/10

Value: 9.3

Growth: 1.6

Quality: 4.0

Yield: 0.0

Momentum: 6.0

Volatility: 4.0

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Quality: 4.6

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Momentum: 7.5

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GoPro

A-Score: 3.5/10

Value: 8.5

Growth: 0.3

Quality: 3.2

Yield: 0.0

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Koss

A-Score: 3.3/10

Value: 5.9

Growth: 2.1

Quality: 4.6

Yield: 0.0

Momentum: 5.0

Volatility: 2.0

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Vuzix

A-Score: 3.0/10

Value: 6.2

Growth: 2.6

Quality: 3.5

Yield: 0.0

Momentum: 4.5

Volatility: 1.0

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VIZIO

A-Score: 2.6/10

Value: 3.2

Growth: 1.9

Quality: 2.7

Yield: 0.0

Momentum: 6.0

Volatility: 2.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.68$

Current Price

2.68$

Potential

-0.00%

Expected Cash-Flows