WISeKey International Holding (WKEY) AI Stock Analysis

• Market Cap: $94.03M
• Dividend Yield: N/A
• Average Volume (3M): 333.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: -42.77%
• EPS Growth: 83.21%
• Country: US
• Employees: 109
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -1.06
• Shares Outstanding: 2,040,273
• 10 Day Avg. Volume: 663,877
• 30 Day Avg. Volume: 333,363
• PEG Ratio: 0.03
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 1.00
• P/FCF Ratio: -0.65
• Enterprise Value/Market Cap: 0.52
• Enterprise Value/Revenue: 4.11
• Enterprise Value/Gross Profit: 9.72
• Enterprise Value/Ebitda: -1.24
• 1Y Price Target: $10.50
• Price Target Upside: -38.24% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 56 Neutral
• Price Target: $14.00 ▼(-17.65% Downside)

WISeKey International Holding's stock score is primarily impacted by its weak financial performance, characterized by declining revenues and negative profit margins. Despite robust technical indicators suggesting positive market momentum, the company's valuation remains unattractive due to its negative P/E ratio. The earnings call provided some optimism with strategic initiatives and future revenue potential, but current financial challenges weigh heavily on the overall score.

Positive Factors

Strategic Partnerships

The ongoing partnership with the Swiss Armed Forces enhances WISeKey's credibility and market position in cybersecurity, potentially leading to more government contracts and long-term revenue growth.

Quantum-Resilient Technology

The development of quantum-resilient technology positions WISeKey as a leader in securing applications against future threats, potentially driving demand and revenue growth in the cybersecurity sector.

Revenue Pipeline

A strong revenue pipeline indicates expected growth and demand for WISeKey's technologies, supporting long-term financial stability and market expansion.

Negative Factors

Declining Revenue

Significant revenue decline highlights challenges in maintaining market share and competitiveness, potentially impacting long-term financial health and operational sustainability.

Negative Profit Margins

Deteriorating profit margins suggest inefficiencies and increased costs, which could hinder profitability and limit reinvestment in growth opportunities.

Cash Flow Challenges

Poor cash flow conversion indicates difficulty in generating cash from operations, potentially affecting liquidity and the ability to fund strategic initiatives.

WISeKey International Holding Business Overview & Revenue Model

Company Description

WISeKey International Holding (WKEY) is a global cybersecurity and IoT company that specializes in providing secure digital identity solutions and data protection services. Operating primarily in the cybersecurity sector, WISeKey offers a range of products including secure authentication, digital certificates, and cryptographic solutions. The company serves various industries such as finance, healthcare, and telecommunications, leveraging its expertise in digital identity management and IoT security to enhance the safety and privacy of online transactions and communications.

How the Company Makes Money

WISeKey generates revenue through multiple streams, including the sale of cybersecurity solutions, subscription services for digital identity management, and licensing fees for its technology. The company capitalizes on partnerships with organizations in various sectors, which enhances its market reach and customer base. Additionally, WISeKey benefits from government contracts and collaborations aimed at enhancing national cybersecurity infrastructures. The growing demand for secure IoT solutions and digital identities also contributes significantly to its earnings, as more businesses seek to protect their data and comply with regulatory standards.

WISeKey International Holding Financial Statement Overview

Summary

WISeKey International Holding faces substantial financial challenges with declining revenues, negative profit margins, and weakening equity. The company struggles with profitability and cash flow generation, relying heavily on external financing. While cash reserves are robust, operational and financial stability remain concerns without a clear path to revenue recovery or margin improvement.

Income Statement

WISeKey International Holding shows a challenging income statement with declining total revenue from 2023 to 2024 and consistently negative net income. The gross profit margin decreased significantly from 47.7% in 2023 to 36.2% in 2024, indicating lower profitability. The net profit margin is deeply negative, and there is no positive EBIT margin. The company faces revenue contraction, deteriorating margins, and significant operational losses.

Balance Sheet

The balance sheet reflects a mixed picture. While the company maintains a strong cash position with cash and short-term investments exceeding total debt, the total debt-to-equity ratio has increased due to declining equity. Stockholders' equity decreased, suggesting potential financial instability. The equity ratio is moderate but weakened over the years, pointing towards financial leverage increase.

Cash Flow

Cash flows are under pressure with negative operating cash flow and free cash flow in 2024. The free cash flow deteriorated compared to 2023, and both the operating cash flow to net income and free cash flow to net income ratios indicate poor conversion of income to cash. Despite a significant inflow from financing activities, the company struggles with cash generation from its core operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.99M	11.88M	30.92M	23.81M	17.65M	14.78M
Gross Profit	5.07M	4.29M	14.74M	9.80M	9.09M	5.46M
EBITDA	-39.63M	-26.28M	-13.27M	-12.93M	-20.09M	-17.19M
Net Income	-8.27M	-13.45M	-15.36M	-27.48M	-20.34M	-28.66M
Balance Sheet
Total Assets	154.99M	114.69M	47.80M	49.50M	88.81M	52.88M
Cash, Cash Equivalents and Short-Term Investments	124.60M	90.60M	15.32M	20.71M	34.25M	28.84M
Total Debt	4.97M	8.94M	9.77M	9.63M	16.86M	16.97M
Total Liabilities	28.43M	27.56M	26.72M	25.47M	47.43M	38.45M
Stockholders Equity	31.47M	25.05M	26.68M	26.26M	35.90M	16.27M
Cash Flow
Free Cash Flow	-25.06M	-18.34M	-17.23M	-17.45M	-21.83M	-12.60M
Operating Cash Flow	-24.44M	-17.77M	-14.21M	-17.14M	-21.79M	-12.55M
Investing Cash Flow	-2.15M	179.00K	-3.02M	-484.00K	-2.52M	-3.90M
Financing Cash Flow	126.25M	92.92M	11.85M	4.18M	36.98M	21.48M

WISeKey International Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WKEY, the sentiment is Positive. The current price of 17 is above the 20-day moving average (MA) of 9.88, above the 50-day MA of 7.49, and above the 200-day MA of 6.07, indicating a bullish trend. The MACD of 2.32 indicates Negative momentum. The RSI at 78.78 is Negative, neither overbought nor oversold. The STOCH value of 82.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WKEY.

WISeKey International Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
QUIK	―	$124.52M	-15.93	-28.91%	―	-25.90%	-459.91%
WKEY	―	$94.03M	―	-24.81%	―	-42.77%	83.21%
SQNS	―	$18.12M	―	416.14%	―	31.78%	―
GCTS	―	$82.11M	-2.20	―	―	28.31%	-239.16%
PXLW	―	$39.90M	-1.14	―	―	-44.05%	-2.33%
MOBX	―	$50.13M	―	-936.03%	―	―	―

WISeKey International Holding Corporate Events

SEALSQ Corp Reports Strong 9M 2025 Growth and Prepares for Quantum-Resilient Future

On October 8, 2025, SEALSQ Corp, a subsidiary of WISeKey International Holding, announced its preliminary financial metrics for the first nine months of 2025, revealing a 41% year-on-year revenue growth. This growth is attributed to increased demand for traditional products and the acquisition of IC’ALPS, a French ASIC design firm. The company reaffirmed its full-year 2025 revenue guidance of $17.5 million to $20.0 million, representing a 59%–82% growth over 2024. SEALSQ is also preparing for significant growth in 2026, driven by new quantum-resistant offerings, partnerships, and acquisitions. The company is advancing its quantum-resilient security infrastructure, aligning with U.S. government timelines for adopting quantum-resistant cryptography, and is developing secure space communications through its investment in WISeSat.Space.

SEALSQ Partners with Quantix for Spain’s First Post-Quantum Center

On September 26, 2025, SEALSQ Corp announced a significant agreement with Quantix Edge Security to establish Spain’s first post-quantum semiconductor personalization center in the Region of Murcia. This project, aligned with Spain’s national strategy to enhance sovereignty in critical sectors, is expected to generate $25 million in revenue over three years and contribute to a projected €793 million economic impact in the region. The initiative will also accelerate the commercialization of SEALSQ’s post-quantum semiconductors, supporting the company’s $170 million revenue pipeline. Additionally, SEALSQ plans to launch the Quantum Shield ‘QS7001’ in November 2025, a secure chip embedding quantum-resistant algorithms, enhancing protection for critical applications like cryptocurrency and IoT ecosystems.

WISeKey Reports H1 2025 Results and Advances Convergence Strategy

On September 23, 2025, WISeKey International Holding Ltd announced its unaudited financial results for the first half of 2025, reporting a slight revenue increase to $5.3 million and a net loss of $22.3 million. The company is advancing its Convergence strategy by integrating semiconductors, trust services, satellites, blockchain, and digital identity into a unified ecosystem, aiming to generate multiple revenue streams and reduce dependency on any single line of business. WISeKey is preparing for the commercial launch of SEALSQ’s QVault-TPM in Q4 2025, which is expected to drive significant growth in 2026 and beyond. The company is also expanding its satellite constellation and commercializing its SEALCOIN and WISe.ART platforms.

WISeKey Releases SEALSQ Corp Half Year Report

On September 9, 2025, WISeKey International Holding released the Half Year Report of SEALSQ Corp, which includes a detailed management discussion and analysis of the company’s financial condition and operational results. This report is significant as it provides stakeholders with insights into the company’s financial health and strategic direction, potentially impacting investor confidence and market positioning.

WISeKey’s SEALSQ Completes Acquisition of IC’ALPS, Boosting European Semiconductor Presence

On August 4, 2025, WISeKey’s subsidiary, SEALSQ Corp, completed the acquisition of IC’ALPS SAS, a French ASIC design services provider, after receiving approval from the French Ministry of the Economy. This acquisition, valued at EUR 12.5 million, significantly enhances SEALSQ’s presence in the European semiconductor sector by adding 90 employees from IC’ALPS. The strategic move aims to leverage SEALSQ’s quantum-resistant chip technology and IC’ALPS’ expertise in ASIC design to develop secure, tailor-made ASICs for high-stakes industries such as automotive, healthcare, and IoT. The collaboration is expected to address the growing demand for secure ASICs in a market projected to reach $36.8 billion by 2032.