Wrap Technologies, Inc. Earnings Recaps
Q1 2026
May 14, 2026
The stock rose modestly by 0.7% after reporting first quarter revenue growth driven by increased product sales, while gross margin compression and a cautious outlook on margin improvement kept gains in check.
Key takeaways
- Total revenue increased 45% year-over-year to $1.1 million, lifted by a 186% increase in product sales to $0.9 million.
- Technology-enabled services revenue declined to $0.2 million from $0.5 million a year ago, due to the wind down of advisory services offset by subscription growth.
- Gross margin contracted to 62% from 78% last year, reflecting a higher mix of lower-margin hardware sales.
- Operating expenses rose to $5.5 million from $4.5 million, driven by higher share-based compensation and investments in sales expansion.
- Cash used in operations improved 59% to $1.2 million, indicating tighter cost control amid ongoing growth investments.
Q3 2025
Nov 13, 2025
Wrap Technologies delivered a strong Q3 2025, reporting $2 million in gross revenue, a 12% increase from subscription sales, marking a significant step in its transition to a comprehensive nonlethal response solutions provider.
Key takeaways
- The company's revenue growth highlights a strategic pivot from device manufacturing to subscription-based solutions for law enforcement.
- The BolaWrap 150 achieved a remarkable 92% field success rate with zero fatalities, reflecting growing adoption and effectiveness in the field.
- New subscription models for training and policy support are enhancing customer relationships and positioning Wrap for long-term profitability.
- Recent product launches, including WrapVision and WrapReality, are expanding Wrap's ecosystem, promoting the transition to a high-margin recurring revenue model.
- Wrap's commitment to integrating nonlethal responses with emerging technologies positions the company to capture significant market opportunities within the law enforcement sector.