Wrap Technologies (NASDAQ:WRAP) Announces Earnings Results

Key Points

• Wrap Technologies beat earnings expectations, reporting a quarterly loss of $0.04 per share versus the consensus estimate of a $0.10 loss. Revenue doubled year over year to $2.1 million, while gross margin expanded to approximately 75%.
• The ATF classified the BolaWrap 150 as neither a firearm nor a weapon, potentially broadening its market to private security and supporting discussions with insurers. The company is also pursuing government grants, border-security opportunities and new drone-detection technology.
• Management is shifting toward recurring revenue through training and readiness subscriptions but cautioned that large-order timing may create volatility, additional spending could be required, and analysts maintain an overall Sell rating on the stock.

Wrap Technologies (NASDAQ:WRAP - Get Free Report) posted its quarterly earnings results on Tuesday. The company reported ($0.04) earnings per share for the quarter, topping analysts' consensus estimates of ($0.10) by $0.06, Zacks reports. Wrap Technologies had a negative net margin of 270.03% and a negative return on equity of 115.68%.

Here are the key takeaways from Wrap Technologies' conference call:

• Q2 revenue doubled year over year to $2.1 million, while gross margin expanded to approximately 75% from 48%; operating and net losses also narrowed.
• The ATF determined that BolaWrap 150 is neither a firearm nor a weapon, which management says materially expands its addressable market to private security and strengthens discussions with insurers.
• Wrap is pursuing a broader set of opportunities, including 11 DOJ grant programs, DHS and border-related initiatives, and an exclusive U.S. and NATO right to Frenel’s TPiCore sensing technology for detecting difficult-to-identify threats such as RF-silent drones.
• The company is shifting from one-time device sales toward recurring “readiness” revenue through WrapTactics, its learning-management system, virtual reality, and ongoing training subscriptions.
• Management maintained its growth outlook but warned that the timing of one or two large orders could cause results to move materially up or down; Chilean revenue is excluded from the 2026 forecast, and accelerated spending or future capital raises may be needed to pursue new opportunities.

Wrap Technologies Stock Performance

WRAP traded up $0.04 on Tuesday, reaching $1.87. 1,208,051 shares of the company's stock were exchanged, compared to its average volume of 905,247. The company's 50 day moving average is $1.61 and its 200-day moving average is $1.63. The company has a market cap of $104.23 million, a price-to-earnings ratio of -6.23 and a beta of 1.34. Wrap Technologies has a twelve month low of $1.04 and a twelve month high of $3.23.

Wall Street Analysts Forecast Growth

WRAP has been the subject of a number of research analyst reports. Weiss Ratings downgraded Wrap Technologies from a "sell (d-)" rating to a "sell (e+)" rating in a report on Monday, May 18th. Wall Street Zen cut Wrap Technologies from a "hold" rating to a "sell" rating in a report on Saturday, May 16th. One equities research analyst has rated the stock with a Sell rating, Based on data from MarketBeat, the stock has an average rating of "Sell".

Insider Buying and Selling

In other Wrap Technologies news, Director John D. Shulman purchased 100,000 shares of Wrap Technologies stock in a transaction on Wednesday, July 8th. The shares were purchased at an average cost of $1.10 per share, with a total value of $110,000.00. Following the completion of the transaction, the director directly owned 199,037 shares in the company, valued at approximately $218,940.70. This represents a 100.97% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 33.26% of the company's stock.

Institutional Investors Weigh In On Wrap Technologies

Several large investors have recently made changes to their positions in WRAP. XTX Topco Ltd purchased a new position in shares of Wrap Technologies in the 2nd quarter valued at $32,000. Osaic Holdings Inc. lifted its holdings in shares of Wrap Technologies by 13.6% during the 2nd quarter. Osaic Holdings Inc. now owns 53,708 shares of the company's stock valued at $84,000 after acquiring an additional 6,442 shares in the last quarter. Vanguard Group Inc. boosted its position in Wrap Technologies by 6.3% during the 3rd quarter. Vanguard Group Inc. now owns 1,660,908 shares of the company's stock worth $3,604,000 after purchasing an additional 98,782 shares during the period. Squarepoint Ops LLC boosted its position in Wrap Technologies by 45.3% during the 3rd quarter. Squarepoint Ops LLC now owns 50,209 shares of the company's stock worth $109,000 after purchasing an additional 15,650 shares during the period. Finally, Raymond James Financial Inc. boosted its position in Wrap Technologies by 6.0% during the 3rd quarter. Raymond James Financial Inc. now owns 646,853 shares of the company's stock worth $1,404,000 after purchasing an additional 36,429 shares during the period. Institutional investors and hedge funds own 8.82% of the company's stock.

Wrap Technologies Company Profile

Wrap Technologies, Inc NASDAQ: WRAP is a designer and manufacturer of less-lethal restraint devices aimed at law enforcement and security professionals. Its flagship product, the BolaWrap®, is a handheld remote restraint tool that deploys a Kevlar-reinforced cord to safely immobilize individuals from a distance of up to 25 feet. The system is engineered to support de-escalation tactics and reduce reliance on physical force in high-risk encounters.

Based in Scottsdale, Arizona, Wrap Technologies oversees product development, testing and training at its headquarters.

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