Wearable Devices (Nasdaq: WLDS) grows 2025 revenue but posts $8.1M loss

Rhea-AI Filing Summary

Wearable Devices Ltd. reported full-year 2025 results showing early revenue growth but continued losses. Revenue rose to $647 thousand from $522 thousand, helped by a 28.5% increase in sales of its Mudra Link and Mudra Band gesture-control products.

The company remained unprofitable, with an operating loss of $8.3 million and a net loss of $8.1 million. During 2025 it raised approximately $24.4 million in gross proceeds from equity offerings, ending the year with a cash balance of $6.5 million and short-term deposits of $11.9 million, for total current assets of $19.5 million. Total liabilities fell to $1.4 million after repaying a convertible note, and shareholders’ equity increased to $18.6 million.

Insights

Equity research analyst

Small revenue base is growing, but losses remain significant.

Wearable Devices increased 2025 revenue to $647 thousand, reflecting stronger sales of Mudra Band and Mudra Link. However, gross margin was negative, and operating loss widened slightly to $8.3 million, underscoring the early-stage nature of the business.

The balance sheet strengthened materially: the company raised approximately $24.4 million via equity offerings, boosting cash and deposits to about $18.4 million and lifting shareholders’ equity to $18.6 million. Total liabilities dropped to $1.4 million after clearing a $770 thousand convertible note.

Cash used in operations improved versus 2023 but was still substantial at $6.6 million, and R&D remained the largest expense at $3.5 million. Future filings will clarify whether revenue growth from B2C wearables and new B2B initiatives is enough to narrow losses as the company invests in its AI-powered neural input platform.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

For the month of March 2026 (Report No. 3)

Commission file number: 001-41502

WEARABLE DEVICES Ltd.

(Translation of registrant’s name into English)

5 Ha-Tnufa Street

Yokne-am Illit, Israel 2066736

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒        Form 40-F ☐

CONTENTS

Attached hereto and incorporated herein is Wearable Devices Ltd.’s (the “Company”) press release issued on March 12, 2026, titled “Wearable Devices Reports Full Year 2025 Financial Results, Highlights Revenue Growth, $24.4 Million Raised in 2025 and $18.4 Million Cash Position”.

The sections titled “Full Year 2025 Financial Highlights”, “2025 and Recent Business Highlights” and “Forward-Looking Statement Disclaimer” and the financial statements in the press release attached hereto as Exhibit 99.1 are incorporated by reference into the registration statements on Form S-8 (File Nos. 333-291857, 333-290148, 333-284010, 333-269869, 333-274343 and 333-293968) and on Form F-3 (File No. 333-274841 and 333-291100) of the Company, filed with the Securities and Exchange Commission, to be a part thereof from the date on which this report is submitted, to the extent not superseded by documents or reports subsequently filed or furnished.

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EXHIBIT INDEX

Exhibit No.
99.1		Press Release issued by Wearable Devices Ltd., dated March 12, 2026, titled “Wearable Devices Reports Full Year 2025 Financial Results, Highlights Revenue Growth, $24.4 Million Raised in 2025 and $18.4 Million Cash Position.”

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Wearable Devices Ltd.
Date: March 12, 2026	By:	/s/ Asher Dahan
		Asher Dahan
		Chief Executive Officer

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Exhibit 99.1

Wearable Devices Reports Full Year 2025 Financial Results, Highlights Revenue Growth, $24.4 Million Raised in 2025 and $18.4 Million Cash Position

YOKNE’AM ILLIT, Israel, March 12, 2026 (GLOBE NEWSWIRE) -- Wearable Devices Ltd. (Nasdaq: WLDS, WLDSW) (“Wearable Devices” or the “Company”), a technology growth company specializing in artificial intelligence (“AI”)-powered touchless sensing wearables, today announced its financial results for the year ended December 31, 2025. The Company reported revenue growth for the year, driven in part by a 28.5% increase in sales of its Mudra Link and Mudra Band products, reflecting growing adoption of its gesture-control technology and continued expansion of its business-to-client (“B2C”) segment.

Management Commentary

“We are pleased to conclude 2025 with steady momentum in our B2C sector, driven by the Mudra Link and Mudra Band. This performance reflects our growing foothold in the global wearable tech market, a dynamic sector where demand for intuitive, touchless interfaces continues to expand,” said Asher Dahan, Chairman of the board of directors and Chief Executive Officer of Wearable Devices. “Our operational progress is supported by an exceptionally strong financial foundation. Throughout 2025, we raised approximately $24.4 million in gross proceeds from equity offerings, resulting in a cash balance of $18.4 million at year-end.

This financial strength is the engine that allows us to scale our B2C activities while investing in the innovation that will define the industry’s future, providing the capital needed to expand our development platform - an initiative we expect to drive significant business-to-business (“B2B”) transactions by making our neural technology easily accessible through AI-driven tools.

Throughout the full year of 2025, we achieved a significant milestone with the sustained delivery and commercial availability of the Mudra Link, our universal gesture control wearable, alongside continued revenue from the Mudra Band for Apple Watch. The transition from a pre-order phase to a fully operational commercial model has allowed us to capture steady customer interest and establish a solid baseline for our B2C products. We believe that this commercial traction serves as the real-world validation of our technology, providing the data and market presence necessary to fuel our broader ecosystem.

Building on this B2C success, we are proud to introduce the Mudra Experience Studio (“Studio”) - a critical milestone that transforms our neural technology into a universal language for extended reality (“XR”) and AI developers. By providing AI-assisted development tools and a single codebase, the Studio solves gesture fragmentation across major spatial computing and mobile platforms. This accessibility is our primary bridge to high-scale B2B opportunities, enabling original equipment manufacturers to integrate our technology into the next generation of smart glasses and digital environments without the need for platform-specific hardware adjustments.”

Mr. Dahan continued: “Our forward-looking vision is being realized through ai6 Labs, a synergistic ecosystem dedicated to bridging human intent with digital reality. Supported by the capital raised this year, ai6 Labs operates across three pillars: deepening foundational neural research, rapid product monetization, and an AI accelerator for bold concepts. Furthermore, we continue to protect our market leadership through a robust intellectual property portfolio. Our IP portfolio currently includes 12 patents: four registered U.S. patents, one registered Chinese patent and additional pending patents: one in the United States, five in China and one in South Korea. This combination of financial resources, AI-driven innovation, and patent protection positions us at the forefront of the next era in computing.”

Full Year 2025 Financial Highlights:

● Cash and Deposits: Cash and deposits were $18.4 million as of December 31, 2025, as compared to $4.0 million at the end of 2024. This strong cash position is mainly attributable to significant funds raised during 2025 in the gross amount of approximately $24.4 million (net amount of $21.7 million).

● Revenues: Revenues increased 23.9% from $522 thousand for the year ended December 31, 2024, to $647 thousand for the year ended December 31, 2025, marking a step forward in the Company’s transition from development toward a commercially driven business. This growth was primarily driven by increased sales of the Mudra Link, demonstrating early market adoption and growing demand for neural interface technology. Combined sales of the Mudra Link and Mudra Band increased by approximately 28.5% year-over-year, reflecting strengthening customer interest in the Company’s gesture-control wearables. While revenues are still at an early stage, the upward trend reflects positive momentum and a foundation for future expansion.

● Research and Development Expenses: Research and development expenses increased by 18% to $3.5 million for the year ended December 31, 2025, as compared to $3.0 million for the year ended December 31, 2024, reflecting the continuous investment and focus on creating disruptive, industry leading technology that leverages AI and proprietary algorithms, software and hardware.

● Sales and Marketing Expenses: Sales and marketing expenses decreased by 12% to $1.85 million for the year ended December 31, 2025, as compared to $2.1 million for the year ended December 31, 2024, related to a change in sales and marketing structure during this year.

● General and administrative expenses: General and administrative expenses were $2.8 million for the year ended December 31, 2025, as compared to $2.8 million for the year ended December 31, 2024.

● Net Loss: Net loss increased to $(8.1 million), or $(6.53) per diluted share, for the year ended December 31, 2025, as compared to a net loss of $(7.9 million), or $(72.6) per diluted share, for the year ended December 31, 2024. The per share information reflects the Company’s 1-for-20 reverse share split, which became effective on October 10, 2024, another 1-for-4 reverse share split, which became effective on March 17, 2025, and additional 1-for-3 reverse share split, which became effective on March 11, 2026.

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2025 and Recent Business Highlights:

● Strategic Collaborations & Expansion

○ South Korea Market Entry: Secured an exclusive distribution agreement with Sky Commerce Co., Ltd., securing a strategic foothold in South Korea—a global hub for wearable innovation.

○ B2B Presence in Asia: Showcased the Mudra Link at the XR Fair Tokyo 2025, engaging with the broader metaverse ecosystem including AR, virtual reality (“VR”), and mixed reality industries.

● Product and Technology Innovations

○ AI-Powered Personalization: Developed cutting-edge methods for gesture personalization using Large MUAP Models, enabling the wristband to adapt to individual user biopotential signals.

○ Gesture Mapper Update: Launched a revolutionary update allowing users to assign personalized input commands to specific gestures, transforming the Mudra Link into a fully customizable controller.

● Market Recognition and Sales Expansion

○ Award-Winning Technology: Won the “Best Wearable Debut” award at MWC Barcelona 2025, recognized by Laptop Magazine alongside global tech leaders Lenovo, Samsung, and Intel.

○ Commercial Scale-Up: Successfully transitioned from pre-orders to global shipping, with Mudra Link now supporting Android, iOS, Windows, and macOS.

● Strategic Deployments

○ Defense Sector Milestone: Announced the development of a touchless neural control system for advanced military tactical systems, designed to enhance soldier safety and tactical readiness.

○ Smart Glasses Integration: Positioned Mudra Link as a native input solution for leading smart glasses, providing a critical “hands-free” interface for the enterprise and consumer XR markets.

● Intellectual Property and Regulatory Progress

○ Enhanced Precision Patent: Granted a U.S. patent for a breakthrough method to extract precise “start” and “end” points from continuous gestures.

○ Physical Property Sensing: Secured a U.S. patent for neural measurement of weight, torque, and force, allowing the device to quantify real-world physical interactions from the wrist.

○ Multimodal Interaction: Received a significant U.S. patent for a “Gesture and Voice-Controlled Interface Device,” integrating gesture recognition, voice control, and biometric authentication.

○ Realistic Virtual Interaction: Granted a U.S. patent for modulating virtual objects based on physical characteristics (texture, weight, rigidity) to bridge the gap between digital action and physical sensation.

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About Wearable Devices Ltd.

Wearable Devices Ltd. (Nasdaq: WLDS, WLDSW) is a growth company pioneering human-computer interaction through its AI-powered neural input touchless technology. Leveraging proprietary sensors, software, and advanced AI algorithms, the Company’s consumer products - the Mudra Band and Mudra Link - are defining the neural input category both for wrist-worn devices and for brain-computer interfaces. These products enable touch-free, intuitive control of digital devices using gestures across multiple operating systems.

Operating through a dual-channel model of direct-to-consumer sales and enterprise licensing and collaborations, Wearable Devices empowers consumers with stylish, functional wearables for enhanced experiences in gaming, productivity, and XR. In the business sector, the Company provides enterprise partners with advanced input solutions for immersive and interactive environments, from augmented reality/VR/XR to smart environments. By setting the standard for neural input in the XR ecosystem, Wearable Devices is shaping the future of seamless, natural user experiences across some of the world’s fastest-growing tech markets. The newly launched ai6 Labs ecosystem accelerates this vision by integrating research, products, and AI breakthroughs. Wearable Devices’ ordinary shares and warrants trade on the Nasdaq Capital Market under the symbols “WLDS” and “WLDSW,” respectively.

Forward-Looking Statement Disclaimer

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the “safe harbor” created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “should,” “could,” “seek,” “intend,” “plan,” “goal,” “estimate,” “anticipate” or other comparable terms. For example, we are using forward-looking statements when we discuss the benefits, capabilities, advantages and expected demand, momentum, growth of and ability to expand our products and technology and our market leadership and that the combination of financial resources, AI-driven innovation, and patent protection positions us at the forefront of the next era in computing. All statements other than statements of historical facts included in this press release regarding our strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: our use of proceeds from the offering; the trading of our ordinary shares or warrants and the development of a liquid trading market; our ability to successfully market our products and services; the acceptance of our products and services by customers; our continued ability to pay operating costs and ability to meet demand for our products and services; the amount and nature of competition from other security and telecom products and services; the effects of changes in the cybersecurity and telecom markets; our ability to successfully develop new products and services; our success establishing and maintaining collaborative, strategic alliance agreements, licensing and supplier arrangements; our ability to comply with applicable regulations; and the other risks and uncertainties described in our annual report on Form 20-F for the year ended December 31, 2024, filed on March 20, 2025 and our other filings with the Securities and Exchange Commission. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Investor Contact:

Michal Efraty
IR@wearabledevices.co.il

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WEARABLE DEVICES LTD. AND ITS SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

		December 31
		2025				2024
		U.S. dollars in thousands
Assets
CURRENT ASSETS:
Cash and cash equivalents			6,500				3,089
Short-term bank deposits			11,922				862
Accounts receivable			37				-
Governmental grant receivable			-				17
Other receivables and prepaid expenses			293				322
Inventories			778				1,226
TOTAL CURRENT ASSETS			19,530				5,516
NON-CURRENT ASSETS:
Right-of-use assets			393				330
Property and equipment, net			67				130
TOTAL NON-CURRENT ASSETS			460				460
TOTAL ASSETS			19,990				5,976
Liabilities and Shareholders’ Equity
CURRENT LIABILITIES:
Accounts payable			62				157
Advance payments			47				83
Convertible promissory note			-				770
Accrued payroll and other employment related accruals			629				402
Accrued expenses			333				392
Lease liabilities			309				291
TOTAL CURRENT LIABILITIES			1,380				2,095
Lease liabilities			57				21
TOTAL LIABILITIES			1,437				2,116
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY
Ordinary shares no par value: Authorized 500,000,000 as of December 31, 2025 and 50,000,000 as of  December 31, 2024; Issued and outstanding 2,882,802 shares as of December 31, 2025 and 235,821 shares as of December 31, 2024			67				67
Additional paid-in capital			55,695				32,895
Accumulated losses			(37,209	)			(29,102	)
TOTAL SHAREHOLDERS’ EQUITY			18,553				3,860
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			19,990				5,976

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WEARABLE DEVICES LTD. AND ITS SUBSIDIARY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

		Year ended December 31
		2025				2024				2023
		U.S. dollars in thousands (except per share amounts)
Revenues			647				522				82
Cost of revenues			(594	)			**(362	)			(62	)
Impairment of product sales inventory			(201	)			**(75	)			-
GROSS PROFIT(LOSS)			(148	)			85				20
Research and development, net			(3,504	)			(2,964	)			(3,316	)
Sales and marketing expenses, net			(1,850	)			(2,096	)			(2,008	)
General and administrative expenses			(2,830	)			(2,845	)			(2,882	)
OPERATING LOSS			(8,332	)			(7,820	)			(8,186	)
Financing income (expenses), net			230				(52	)			372
LOSS BEFORE TAX EXPENSES			(8,102	)			(7,872	)			(7,814	)
Tax expenses			(5	)			(7	)			-
NET LOSS AND TOTAL COMPREHENSIVE LOSS			(8,107	)			(7,879	)			(7,814	)
Net loss per ordinary shares, basic and diluted			(6.53	)			(72.60	)			(115.20	)
Weighted average number of ordinary shares and pre-funded warrants outstanding basic and diluted *			1,238,719				108,563				67,505

* The share and per share information in these financial statements reflects the 1-for-20 reverse share split that became effective on October 10, 2024, a 1-for-4 reverse share split of the Company’s issued and outstanding ordinary shares that became effective on March 17, 2025 and an additional 1-for-3 reverse share split that became effective on March 11, 2026.

** Reclassified

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WEARABLE DEVICES LTD. AND ITS SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

		Year ended December 31
		2025				2024				2023
		U.S. dollars in thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss			(8,107	)			(7,879	)			(7,814	)
Adjustments required to reconcile net loss to net cash used in operating activities:
Depreciation			84				107				68
Interest expenses on convertible promissory note			-				4				-
Accrued interest on deposits			(150	)			(3	)			(45	)
Share-based compensation expenses			1,091				182				241
Unrealized gain from foreign currency derivative activities			-				68				(68	)
Marketing expenses paid in ordinary shares			-				100				-
Provision for inventory write-off			201				75				-
Changes in operating assets and liabilities items:
Increase in accounts receivable			(37	)			-				-
Decrease (increase) in inventories			247				(269	)			(1,026	)
Decrease (increase) in governmental grants receivables			17				91				(54	)
Decrease (increase) in other receivables and prepaid expenses			21				357				(136	)
Decrease in advance payments			(37	)			(228	)			(41	)
Decrease in deferred revenues			-				-				(12	)
Increase (decrease) in accounts payable			(95	)			(253	)			254
Increase (decrease) in accrued payroll and other employment related accruals			226				(177	)			163
Increase (decrease) in accrued expenses			(59	)			212				36
Net cash used in operating activities			(6,598	)			(7,613	)			(8,434	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment			(20	)			(43	)			(194	)
Decrease (increase) in deposits, net			(10,910	)			3,240				(4,054	)
Net cash provided by (used in) investing activities			(10,930	)			3,197				(4,248	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of ordinary shares issued in registered direct offerings, best-effort offering and ATM program, net of issuance cost			13,340				1,578				1,670
Proceeds from issuance of ordinary shares under inducement offer letter agreements			8,369				-				-
Proceeds from issuance of ordinary shares as a result of exercise of warrants			-				-				1,449
Proceeds from issuance of ordinary shares associated with the SEPA			-				4,353				-
Proceeds from issuance of convertible promissory note			-				1,920				-
Repayment of convertible promissory note			(770	)			(1,156	)			-
Net cash provided by financing activities			20,939				6,695				3,119
Net increase (decrease) in cash and cash equivalents			3,411				2,279				(9,563	)
Cash and cash equivalents at the beginning of year			3,089				810				10,373
Cash and cash equivalents at the end of year			6,500				3,089				810
Supplemental Disclosure:
Interest paid			-				49				-
Interest received from deposits			(134	)			(144	)			(305	)
Right-of-use asset recognized against lease liability			337				-				644

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FAQ

How did Wearable Devices (WLDS) perform financially in 2025?

Wearable Devices reported 2025 revenue of $647 thousand, up from $522 thousand in 2024, driven by Mudra Band and Mudra Link sales. The company remained unprofitable, posting a net loss of $8.1 million and an operating loss of $8.3 million.

What was Wearable Devices (WLDS) cash position at the end of 2025?

At December 31, 2025, Wearable Devices held $6.5 million in cash and cash equivalents and $11.9 million in short-term bank deposits. Together with other current assets, this resulted in $19.5 million of total current assets supporting ongoing operations.

How much capital did Wearable Devices (WLDS) raise in 2025?

In 2025, Wearable Devices raised approximately $24.4 million in gross proceeds from equity offerings, including registered direct, best-efforts and ATM programs and inducement share issuances. These financings significantly increased shareholders’ equity to $18.6 million and reduced reliance on debt.

What were Wearable Devices (WLDS) main expenses and losses in 2025?

The company recorded a gross loss of $148 thousand, with inventory impairment of $201 thousand. Operating expenses were led by $3.5 million in research and development, $1.9 million in sales and marketing, and $2.8 million in general and administrative costs, driving an $8.3 million operating loss.

How did Wearable Devices (WLDS) cash flows change in 2025?

Net cash used in operating activities improved to $6.6 million in 2025 from $7.6 million in 2024. Investing activities used $10.9 million, mainly from higher deposits, while financing activities provided $20.9 million from equity issuances, resulting in a $3.4 million increase in cash.

What is driving Wearable Devices (WLDS) revenue growth?

Revenue growth in 2025 was driven by increased sales of the Mudra Band and Mudra Link gesture-control products, which saw a 28.5% rise in sales. These B2C wearables leverage the company’s AI-powered neural input technology and are central to its consumer-focused strategy.

Filing Exhibits & Attachments

1 document

Press Releases

• EX-99.1 PRESS RELEASE ISSUED BY WEARABLE DEVICES LTD., DATED MARCH 12, 2026, TITLED "WEA 96.8 KB