A deeply discounted micro-cap roll-up trying to turn AI sizing + logistics + EU-driven resale compliance into a defensible retail platform—before dilution and delisting risks win.
My Size, Inc. (MYSZ) stands at a pivotal intersection of retail technology, logistics, and the circular economy as of early 2026. Historically characterized by its proprietary smartphone-based measurement technology, the company has undergone a profound strategic metamorphosis over the trailing twenty-four months. No longer operating solely as a developer of point-solution sizing applications, My Size has repositioned itself as a diversified, omnichannel e-commerce platform. This transformation is driven by a series of targeted acquisitions—specifically of Naiz Fit, ShoeSize.Me, Orgad, and Percentil—that have collectively expanded the company's operational footprint from a pure technology licensor to an integrated operator handling the entire lifecycle of apparel retail: from pre-purchase sizing and fit prediction to logistics fulfillment and post-purchase resale.
The company currently operates against a macroeconomic backdrop defined by the "Returns Crisis" in digital fashion retail. Industry data indicates that return rates for online apparel frequently exceed 30%, creating a margin-crushing burden for retailers through reverse logistics costs, inventory depreciation, and environmental waste. My Size addresses this structural inefficiency through a multi-layered ecosystem. Its SaaS division, comprising MySizeID, Naiz Fit, and ShoeSize.Me, leverages Artificial Intelligence (AI) and inertial sensor technology to reduce size uncertainty, thereby mitigating return rates at the source. Simultaneously, its operational division, Orgad, functions as an e-commerce aggregator managing third-party inventory and fulfillment, providing the company with direct exposure to transactional revenue streams. The most recent strategic wedge, the acquisition of Percentil, positions My Size to capitalize on the burgeoning European resale market, a sector currently being reshaped by aggressive European Union regulations regarding textile sustainability and producer responsibility.
Financially, the company is in a phase of aggressive revenue scaling amidst persistent profitability challenges. For the fiscal year 2025, management has guided toward total revenues of approximately $10 million, a figure that validates the initial success of its roll-up strategy. Looking ahead, the company has established a trajectory targeting $15 million in revenue for 2026, driven by cross-selling synergies across its platform and the maturation of its circular economy marketplace.
The investment narrative for My Size is thus one of high-risk operational turnaround. The market currently values the enterprise with deep skepticism, assigning it a market capitalization of approximately $3.0 million—trading at a fraction of its annual revenue and below the value of its cash on hand ($4.5 million as of September 30, 2025).
My Size has transitioned from a single-product technology company to a conglomerate-style platform serving the fashion retail industry. This section provides a granular analysis of the distinct business units, the revenue mechanics driving the $10 million 2025 performance, and the strategic rationale binding these disparate assets into a coherent ecosystem.
The intellectual property core of My Size resides in its suite of sizing technologies: MySizeID, Naiz Fit, and ShoeSize.Me. This segment represents the company's highest-margin revenue stream and its primary differentiator in the crowded retail-tech landscape.
The Technological Mechanism & Competitive Differentiation: Unlike competitors such as True Fit, which rely heavily on collaborative filtering (analyzing massive datasets of purchase history to infer fit), or 3DLOOK, which utilizes computer vision requiring users to upload photos, My Size employs a hybrid technological approach.
Inertial Measurement (MySizeID): This patented technology utilizes the accelerometer and gyroscope sensors native to all modern smartphones. By moving the device across the body, the user generates a precise linear measurement. This method offers a distinct privacy advantage: because no images are captured or transmitted, it circumvents the significant consumer friction associated with uploading photos of oneself in tight clothing.
Visual & Statistical AI (Naiz Fit): Acquired to complement the sensor-based approach, Naiz Fit utilizes statistical morphology. Users answer a brief set of questions regarding their body shape and fit preferences. The AI then correlates these inputs against a database of tens of thousands of body scans and garment specifications to predict the optimal size. This lowers the barrier to entry for the consumer, offering a "quick fix" alternative to the more precise sensor measurement.
Footwear Specialization (ShoeSize.Me): The acquisition of ShoeSize.Me added a critical vertical to the platform. Footwear returns are notoriously complex due to the lack of standardization between brands (e.g., a Nike size 10 differs from an Adidas size 10). ShoeSize.Me aggregates internal dimension data from footwear manufacturers to provide brand-specific recommendations. This integration allows My Size to offer a "head-to-toe" solution, significantly increasing the potential Average Revenue Per Account (ARPA) for department stores and multi-category retailers.
Revenue Dynamics & Growth:
This segment operates on a Software-as-a-Service (SaaS) model, generating recurring revenue through licensing fees and volume-based usage tiers. The scalability of this model is evidenced by Naiz Fit's performance, which reported over 25% year-to-date SaaS revenue growth in 2025.
Orgad, acquired in 2022, serves as the operational ballast for the company. It functions as an e-commerce aggregator, operating primarily on Amazon via the Fulfillment by Amazon (FBA) network.
The Aggregator Model:
Orgad manages the inventory, logistics, marketing, and fulfillment for various apparel and consumer goods brands. It acts effectively as a third-party seller, recognizing the full Gross Merchandise Value (GMV) of sold items as revenue. This accounting treatment explains why Orgad has been the primary driver of My Size's revenue jump to the $10 million range. However, this revenue comes with significantly lower gross margins (typically 20-30%) compared to the SaaS business, as it carries the cost of goods sold (COGS) and Amazon's fulfillment fees.
Strategic Restructuring & Efficiency:
In the first half of 2025, Orgad's revenue faced headwinds, declining year-over-year. This was not a failure of execution but rather a deliberate strategic pivot. Management restructured the Orgad portfolio to eliminate low-margin, high-return Stock Keeping Units (SKUs) and transitioned its operating model to optimize for logistics costs. The fruits of this restructuring were visible in Q3 2025, where the company reported a sequential revenue increase of 26%, attributed largely to the stabilized and more efficient Orgad operations. By controlling its own inventory, Orgad also serves as a "sandbox" for My Size's technology, allowing the company to test Naiz Fit and MySizeID algorithms on real-world transactions before rolling them out to enterprise clients.
The acquisition of Percentil in May 2025 represents the most significant strategic bet on the future direction of the fashion industry. Percentil is a European resale marketplace operating in Spain, France, Italy, and Germany, facilitating the buying and selling of second-hand apparel.
The Regulatory Catalyst:
The strategic logic behind this acquisition is inextricably predicted on the European Union's regulatory landscape. The EU's Strategy for Sustainable and Circular Textiles and the Ecodesign for Sustainable Products Regulation (ESPR) are fundamentally altering the economics of fashion. These regulations mandate that brands take responsibility for the end-of-life of their products, banning the destruction of unsold goods and requiring the implementation of Digital Product Passports (DPP). This creates an urgent compliance need for major fashion brands: they must find a way to recirculate their used inventory.
The B2B Opportunity:
My Size is positioning Percentil not merely as a consumer-facing marketplace (competing with Vinted or Depop) but as a B2B infrastructure partner for brands. By offering a "Re-commerce as a Service" solution, My Size can help brands comply with EU laws by managing the intake, sizing (using MySizeID), and resale of their pre-owned inventory on the Percentil platform. This moves the business model from a transactional marketplace to an infrastructure service, potentially unlocking a massive Total Addressable Market (TAM) as every major European retailer seeks compliance solutions in 2026 and 2027.
The convergence of these three segments—SaaS, Logistics, and Resale—forms the core of My Size's investment thesis. CEO Ronen Luzon has explicitly articulated a strategy of "Platform, Not Point Solution".
Synergy Realization: The integration hypothesis is that each unit reinforces the others:
Data Synergy: Sizing data from Naiz Fit improves the accuracy of listings on Percentil, reducing return rates in the second-hand market where margins are thin.
Customer Synergy: Apparel brands utilizing Orgad for logistics can be cross-sold Naiz Fit for their storefronts and Percentil for their circularity compliance.
Financial Synergy: Orgad provides the cash flow and revenue bulk to maintain listing status, while the SaaS division drives margin expansion, and Percentil offers the high-growth narrative required to attract growth-oriented investors.
This ecosystem approach aims to create high switching costs for clients. A retailer using My Size for sizing, logistics, and resale compliance is far less likely to churn than a retailer using a standalone sizing plugin.
This section provides a rigorous examination of My Size’s financial trajectory, analyzing the quality of its revenue growth, the sustainability of its cost structure, and the implications of its current valuation multiples.
Revenue Growth: My Size has demonstrated a consistent topline expansion, driven largely by its M&A activity.
FY 2024 Revenue: $8.26 million (Audited).
FY 2025 Guidance: Approximately $10 million.
FY 2026 Trajectory: Management has guided toward a run-rate of $15 million, implying a year-over-year growth rate of roughly 50%.
Quarterly Granularity (Q3 2025): The third quarter of 2025 serves as a critical bellwether for the company's operational health.
Revenue: $2.6 million, representing a 26% sequential increase from Q2 2025. This acceleration suggests that the integration of Percentil and the restructuring of Orgad are beginning to yield results.
Gross Profit: $1.0 million, translating to a gross margin of approximately 38.5%.
Profitability & Operating Leverage: Despite the topline growth, the company remains unprofitable on a GAAP basis.
Operating Loss: $3.0 million for Q3 2025.
Net Loss: $2.8 million for Q3 2025.
Liquidity represents the single most acute risk factor for equity holders in micro-cap turnaround situations.
Cash Position: As of September 30, 2025, the company reported cash and cash equivalents of $4.5 million.
Projected Year-End Cash: Management estimates closing 2025 with approximately $4.0 million in cash.
Burn Rate Analysis: The implied cash consumption for Q4 2025 is approximately $0.5 million. This figure is starkly lower than the reported operating loss of $3.0 million. This discrepancy implies one of two things:
Non-Cash Expenses: A significant portion of the operating expenses comprises stock-based compensation and depreciation/amortization of acquired intangibles.
Financing Activities: The company is actively utilizing its At-The-Market (ATM) offering facility to replenish cash reserves.
The ATM Mechanism:
My Size entered into an ATM offering agreement with H.C. Wainwright, allowing it to sell shares directly into the market.
Valuing My Size requires looking beyond traditional earnings multiples due to its lack of profitability.
Market Capitalization: Approximately $3.02 million (at a share price of ~$0.81).
Enterprise Value (EV): With a market cap of $3.0 million and cash of $4.5 million (assuming minimal interest-bearing debt), the company trades at a Negative Enterprise Value of roughly -$1.5 million.
EV/Revenue Multiple: Trading at negative EV, or roughly 0.3x Sales based on market cap alone.
Peer Comparison:
SaaS Peers: Publicly traded SaaS companies typically trade at 4x-8x forward revenue.
E-commerce Logistics Peers: Trade at 0.5x-1.5x revenue.
The Disconnect: My Size is priced as if it were a distressed asset facing imminent liquidation. The market is assigning zero value to the $10 million revenue stream, the proprietary technology stack, or the growth potential of Percentil. This extreme discount reflects the market's fear of the "dilution spiral" and the Nasdaq delisting risk. If the company can prove viability, the re-rating potential is immense—simply trading at 1x sales would imply a tripling of the share price.
The investment profile of My Size is characterized by binary outcomes. This section details the existential risks that balance the potential for high returns.
The most immediate threat to the company's equity value is its listing status on the Nasdaq Capital Market.
The Deficiency Mechanism: Nasdaq Listing Rule 5550(a)(2) requires a minimum bid price of $1.00 per share. As of late 2025/early 2026, MYSZ stock is trading in the $0.75-$0.85 range.
The Reverse Split Cycle: The company has a history of executing reverse stock splits to regain compliance (1-for-8 in 2024, 1-for-25 in 2022).
Delisting Consequence: If the company fails to maintain its listing and is relegated to the OTC markets, institutional investment mandates would force a sell-off, and the ATM facility—vital for liquidity—would likely become inaccessible.
The company's survival strategy relies heavily on equity financing.
Warrant Overhang: The company has significant outstanding warrants from previous capital raises, with exercise prices ranging from $3.83 to over $300.
The "Death Spiral" Dynamic: As the share price drops, the company must sell more shares to raise the same amount of operational cash via the ATM. This accelerates dilution, which further depresses the share price, creating a vicious cycle that can wipe out equity value even as the business grows revenue.
Managing four distinct business units (Orgad, Naiz, ShoeSize, Percentil) introduces significant complexity for a micro-cap management team.
Focus Risk: There is a danger that management spreads itself too thin. The operational demands of running a logistics provider (Orgad) are vastly different from those of an enterprise SaaS sales organization (Naiz Fit).
Geopolitical Exposure: Headquartered in Airport City, Israel, My Size is exposed to regional geopolitical instability. While its subsidiaries are European and its operations cloud-based, key R&D and management personnel remain in a conflict zone. Escalation could disrupt operations or dampen investor sentiment regarding the company's continuity.
The retail-tech sector is fiercely competitive.
Well-Funded Incumbents: Competitors like True Fit have raised over $100 million in venture capital and hold dominant market share with major retailers.
Technological Commoditization: As Amazon and Google continue to develop their own AI-based fit solutions (e.g., Amazon Fit Insights), there is a risk that basic sizing technology becomes a commodity feature offered for free by the platform giants, eroding the pricing power of independent SaaS providers like Naiz Fit.
The following scenarios model the potential total return over a 5-year horizon (2026-2030). These projections are grounded in the company's current financial trajectory, the $15 million 2026 revenue guidance, and the existential risks of dilution and delisting.
Baseline Assumptions:
Current Share Price: $0.81 (Jan 2026)
Current Shares Outstanding: ~3.85 Million (Note: This is highly dynamic due to ATM usage).
Current Market Cap: ~$3.0 Million.
Probability: 20%
Fundamental Drivers: My Size successfully integrates Percentil, positioning it as the premier B2B partner for European fashion brands complying with the new ESPR regulations. Revenue meets the $15M target in 2026 and accelerates to $35M by 2030 (20% CAGR). The revenue mix shifts toward high-margin SaaS and Marketplace fees, expanding gross margins to 55%. The company achieves cash flow neutrality in late 2026, halting the dilution engine.
Valuation Logic: As profitability is proven, the market re-rates the stock from a distress multiple (0.3x Sales) to a growth micro-cap multiple (2.0x Sales).
Quantitative Outcome:
2030 Revenue: $35 Million.
2030 Valuation (2.0x Sales): $70 Million Market Cap.
Shares Outstanding (Controlled Dilution): 6.0 Million.
Implied Share Price: ~$11.66.
Probability: 50%
Fundamental Drivers: The company grows revenue to $20M by 2030 but struggles to achieve meaningful profitability due to the high operational costs of Orgad and Percentil. The "Platform" thesis works partially, but competition from True Fit limits SaaS pricing power. The company remains dependent on the ATM facility to fund a $1-2M annual deficit.
Valuation Logic: The market continues to apply a conglomerate discount. The multiple expands slightly to 0.8x Sales as the business stabilizes.
Quantitative Outcome:
2030 Revenue: $20 Million.
2030 Valuation (0.8x Sales): $16 Million Market Cap.
Shares Outstanding (High Dilution): 12.0 Million (Due to continued capital raising and potential splits).
Implied Share Price: ~$1.33.
Probability: 30%
Fundamental Drivers: My Size misses its 2026 guidance. The Nasdaq bid price deficiency is not cured organically, forcing a reverse split that is sold off heavily. Liquidity dries up, and the ATM becomes unusable. The company is forced to liquidate assets or go private at a distressed valuation.
Valuation Logic: Valuation reverts to the liquidation value of the remaining inventory and IP.
Quantitative Outcome:
2030 Valuation: $1.0 Million (Shell value).
Shares Outstanding: Massive dilution prior to collapse.
Implied Share Price: ~$0.05.
5-Year Share Price Trajectory Table:
Probability Weighted Price Target: ($11.66 0.20) + ($1.33 0.50) + ($0.05 * 0.30) = $3.01
Note: The weighted target suggests significant upside (~270%), aligning with analyst targets, but this is heavily skewed by the asymmetric payout of the High Case. The median outcome (Base Case) offers a modest but risky return.
Summary: High Asymmetric Upside
This scorecard evaluates My Size, Inc. on a 1-10 scale relative to its micro-cap software and retail peers.
Management Alignment (7/10):
CEO Ronen Luzon and insiders hold approximately 32% of the company, with Luzon personally holding ~9%.
Revenue Quality (6/10): Improving. The shift toward SaaS (Naiz Fit) and recurring marketplace fees enhances quality. However, a significant portion of revenue (Orgad) remains tied to lower-margin gross merchandise value (GMV), which is less valuable than pure software revenue.
Market Position (5/10): Niche challenger. My Size is a small fish in a big pond, competing against well-capitalized giants like True Fit. Its position in the European circular economy (Percentil) is stronger but regionally limited.
Growth Outlook (8/10): Strong. The $15 million guidance for 2026 implies 50% growth. The external catalyst of EU textile regulations provides a genuine tailwind that many peers lack.
Financial Health (3/10): Weak. The negative enterprise value and reliance on ATM financing indicate a fragile balance sheet. Working capital deficits are a persistent concern.
Business Viability (5/10): The core business model is sound, but the scale is currently sub-critical. The company must double its revenue to prove long-term viability without external life support.
Capital Allocation (6/10): The M&A strategy has been coherent, assembling a logical ecosystem (Sizing + Logistics + Resale). The acquisition costs appear reasonable relative to the revenue acquired, though the integration execution is still unproven.
Analyst Sentiment (8/10):
Analyst firms like H.C. Wainwright maintain "Buy" ratings with price targets ($3.00) significantly above current trading levels.
Profitability (2/10): Currently unprofitable with deep operating losses. While gross margins are expanding, the SG&A load is heavy for a company of this size.
Track Record (3/10): Shareholder value destruction has been significant over the last 5 years, with the stock down >90% on a split-adjusted basis. The company has survived, but early investors have been diluted heavily.
Blended Score: 5.3 / 10
Summary: Speculative Turnaround Play
My Size, Inc. represents a classic "distressed value" opportunity within the micro-cap universe. The market has priced the equity for failure, assigning it a valuation that effectively ignores the intrinsic value of its technology stack, its $10 million revenue base, and its cash reserves. This dislocation creates an asymmetric risk/reward profile.
The Bull Thesis is contingent on execution in 2026. If the company can leverage the new EU circular economy regulations to scale Percentil and successfully cross-sell its Naiz Fit SaaS solution, it can achieve a revenue scale ($15M+) that covers its fixed costs. In this scenario, the stock is fundamentally mispriced and could re-rate 300-400% to align with peer multiples.
The Bear Thesis is grounded in the mechanics of micro-cap survival. The constant need for capital to fund the operating deficit creates a "dilution headwinds" that make it difficult for the share price to sustain momentum. The risk of a Nasdaq delisting acts as a Sword of Damocles, threatening to sever the company's access to capital.
Investment Verdict: My Size is undervalued relative to its assets and growth trajectory, but it is highly speculative. It is an appropriate consideration only for risk-tolerant portfolios seeking exposure to the European circular economy or retail-AI themes, provided the position size reflects the potential for total capital loss.
Summary: Show Me Cash
As of January 2026, MYSZ is trading at approximately $0.81, lingering below its 200-day moving average of $0.88, which signals a prevailing long-term downtrend.
Summary: Bearish Trend Consolidation
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