Gauzy Ltd. announced a $12 million debt financing on December 2, 2025, raising cash through a privately negotiated transaction with existing investors led by Chutzpah Holdings and Orion Infrastructure Capital. The non‑dilutive capital infusion is intended to shore up liquidity, support ongoing product development, and provide a buffer against the company’s high debt burden and low current ratio.
The financing comes as Gauzy grapples with a $63 million debt load and a current ratio of 0.66, placing the company in a precarious liquidity position. The $12 million will be used to pay down short‑term obligations, fund manufacturing capacity expansion, and pursue strategic acquisitions, according to management. The move is a short‑term lifeline while the company seeks additional funding to stabilize its balance sheet.
Gauzy’s financial performance in 2024 and 2025 underscores the urgency of the financing. Full‑year 2024 revenue rose 32.8% to $103.5 million, but the company posted net losses of $10.8 million in Q1 and $10.7 million in Q2 2025. Gross margin slipped from 27.0% in Q2 2024 to 21.4% in Q2 2025, reflecting higher raw‑material costs and a shift toward lower‑margin product lines. The debt raise is aimed at mitigating these margin pressures while the company continues to invest in high‑margin vision and light‑control technologies for aerospace, automotive, and architecture markets.
Management highlighted the financing as a “pivotal milestone” that will reinforce the balance sheet and restore confidence among employees, customers, and stakeholders. CEO Eyal Peso noted that the capital injection “provides a critical buffer as we navigate the insolvency proceedings of our French subsidiaries and the associated cash outflows.” The company has already committed nearly $8 million to the French entities and is appealing the insolvency decision, which has delayed the release of Q3 2025 results.
Analysts view the debt raise as a necessary but temporary measure. While the company remains in a distress zone—current ratio 0.66, quick ratio 0.41, debt‑to‑equity 3.54, Altman Z‑Score –2.53—the infusion will help maintain operations and give management time to address the French subsidiary issue and pursue growth opportunities. Gauzy’s next steps will involve securing additional funding, resolving the insolvency proceedings, and focusing on high‑margin product segments to improve profitability.
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