10 Worst Performing Defense Stocks So Far in 2025

3. ParaZero Technologies Ltd. (NASDAQ:PRZO)

YTD Decline in Share Price: -58.16%

ParaZero Technologies Ltd. (NASDAQ:PRZO) is an Israel-based aerospace company that provides safety systems for defense counter-UAS systems and commercial unmanned aircraft.

On March 27, the company announced that it had signed a non-binding letter of intent to acquire Lulav Space Ltd., which specializes in counter-drone systems and autonomous drone technologies. The proposed acquisition is likely to close during the second quarter of the year and would add advanced space technologies and deep-space navigation expertise to ParaZero Technologies Ltd. (NASDAQ:PRZO)’s portfolio.

Earlier in the month, the company declared financial results for the fiscal 2024. ParaZero Technologies Ltd. (NASDAQ:PRZO) reported a 50.2% increase in its sales to $0.93 million, driven by a shift toward OEMs integrations that contributed a higher volume of sales compared to the aftermarket segment.

Cost of sales increased by 83.3% from last year due to an inventory write-off and a surge in the volume of sales during the year. Research and development expenses were up by 237% year-over-year, while sales and marketing expenses grew 121.6% from last year. ParaZero Technologies Ltd. (NASDAQ:PRZO)’s net loss was recorded at $11 million, worsening significantly from a loss of $3.77 million in 2023.

ParaZero Technologies Ltd. (NASDAQ:PRZO)’s shares have slumped by over 58% year-to-date, earning it a place in the list of the worst performing stocks this year. The stock risks another non-compliance notice from NASDAQ with a potential delisting warning, as its minimum bid price has again fallen below the $1 mark after regaining compliance in December.