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EarningsQ2 2026 Earnings Report
WRAP Q2 2026 EPS Results
Actual EPS-$0.04
Consensus EPS―
Beat/Miss―
One Year Ago EPS-$0.08
WRAP Q2 2026 Revenue Results
Actual Revenue$2.05M
Expected Revenue―
Beat/Miss―
YoY Revenue Growth+102.77%
Earnings Announcement Details
QuarterQ2 2026
Date08/11/2026
TimeAfter Close
Conference CallTuesday, August 11, 2026
WRAP Upcoming Earnings
Wrap Technologies's next earnings date is estimated for November 5, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
WRAP Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed meaningful operational and strategic progress: strong revenue and margin improvement, improved losses, cash and liability reductions, a critical regulatory win (ATF declassification) unlocking private security/insurance markets, an exclusive technology rights deal (Frenel) providing differentiated detection capability, initial federal traction (DHS order), and a shift toward productized training and recurring revenue. Key risks include continued net losses, modest absolute revenue, limited cash runway if pursuing accelerated growth, Chile funding delays, the narrow scope of the ATF ruling (only BolaWrap 150), delivery/scale challenges, and dependence on the timing of large orders and grant funding. Overall, the positive operational momentum and strategic developments materially outweigh the near-term financial and execution risks.Company Guidance
Revenue Doubled Year-over-Year and Quarter-over-Quarter
Total revenue increased 103% to $2.1 million in Q2 2026 versus $1.0 million in Q2 2025; management described this as the company's best quarter in years and noted quarter-over-quarter revenue also doubled.
Significant Gross Profit and Margin Improvement
Gross profit rose 217% to $1.5 million (from $0.5 million prior year) and gross margin expanded to ~75% from ~48% year-over-year, indicating markedly improved unit economics and operational leverage.
Progress on Loss Reduction and Operating Efficiency
Loss from operations improved 21%, narrowing to a $2.3 million loss from $2.9 million a year earlier; net loss improved 39% to a $2.3 million loss versus a $3.7 million loss in the prior-year quarter (prior year included a $0.9 million noncash warrant fair value loss that did not recur).
Stronger Balance Sheet Metrics
Cash and cash equivalents increased to $4.8 million as of June 30, 2026 compared with $3.5 million at December 31, 2025; total liabilities were reduced to $2.0 million from $3.9 million over the same period (reflecting lease termination and liability reduction).
Regulatory Milestone — ATF Declassification of BolaWrap 150
In early July 2026 the ATF determined the BolaWrap 150 is not classified as a firearm or weapon. Management highlighted this as a structural development opening large private security and insurance-driven markets that were previously inaccessible.
Strategic Technology Acquisition — Frenel (TriCore Polarimetric Sensing)
Wrap secured exclusive U.S. and NATO rights to TriCore by Frenel, a polarimetric sensing technology able to detect/classify material- and shape-based threats (including RF-silent and camouflaged drones). Management cited this as a durable, hard-to-replicate competitive advantage for detection and counter-UAS applications.
Productization of Training and Move to Recurring Revenue
Launched a productized training offering (Wrap Tactics) and a learning management system enabling blended digital, in-person and VR training. Management explicitly described a strategic shift from device sales to selling readiness via subscription/recurring revenue.
Federal and Homeland Traction (DHS Purchase Order and Training Delivered)
The company received a purchase order from the Department of Homeland Security and delivered training in Q2, indicating initial federal customer engagement; management is actively pursuing additional federal requirements and funding.
Return of Grant Funding Opportunities
Management identified 11 active DOJ/public-safety programs that could fund BolaWrap, body cameras, de-escalation and virtual training — signaling a reopening of grant funding channels important for small/mid-sized departments.
Virtual Reality and Product Line Enhancements
VR training (Wrap Reality) continues to be developed and integrated into the blended training stack with new scenarios and hardware/software updates; management emphasized it remains core to de-escalation and readiness offerings.
Initial Insurance Market Engagement
Following ATF declassification, management reported renewed conversations with insurance companies (public safety and private security lines) and views insurers as central partners for scaling adoption in the private security market.
WRAP Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed