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Wrap Technologies
(NASDAQ:WRAP)
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Rating:50Neutral
Price Target:
$1.50
▼(-1.96% Downside)
Action:Reiterated
Date:08/19/26
WRAP scores around the middle primarily because financials are still weak (large losses and persistent negative free cash flow) despite improving revenue and gross margins and low leverage. The earnings call added support via strong Q2 momentum and notable strategic/regulatory progress, while technicals are mixed and valuation remains constrained by losses and the lack of a dividend.
Positive Factors
Improving Revenue and Gross Margins
Rapid revenue growth alongside materially higher gross margins indicates improving product economics and potential operating leverage as adoption expands, although profitability remains unproven.
Negative Factors
Persistent Losses and Cash Burn
Large operating losses and negative free cash flow show that current revenue does not support the cost base, leaving the company dependent on substantial growth or expense reductions to become self-funding.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Revenue and Gross Margins
Rapid revenue growth alongside materially higher gross margins indicates improving product economics and potential operating leverage as adoption expands, although profitability remains unproven.
Read all positive factors
Wrap Technologies (WRAP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$104.40M
Dividend YieldN/A
Average Volume (3M)760.85K
Price to Earnings (P/E)―
Beta (1Y)1.84
Revenue Growth87.26%
EPS Growth-32.16%
CountryUS
Employees25
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.27
Shares Outstanding61,776,480
10 Day Avg. Volume797,455
30 Day Avg. Volume760,854
Financial Highlights & Ratios
PEG Ratio-0.29
Price to Book (P/B)10.44
Price to Sales (P/S)25.67
P/FCF Ratio-11.54
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Wrap Technologies Business Overview & Revenue Model
Company Description
Wrap Technologies, Inc. is an enterprise dedicated to public safety technology and services, engineering advanced solutions for security personnel and law enforcement agencies. Its flagship offering is the BolaWrap 150, a portable, remote restrain...
How the Company Makes Money
Wrap Technologies makes money primarily by selling its less-lethal devices and associated consumables and services to public safety customers. Key revenue streams include: (1) Product sales of the BolaWrap device and related hardware/accessories t...
Wrap Technologies Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
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.Positive Updates
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.
Negative Updates
Ongoing Net Losses and Unprofitable Operations
Despite improvements, the company remains unprofitable with a net loss of $2.3 million in Q2 2026; management did not provide a precise revenue level required to achieve sustained profitability and indicated unpredictability depending on order timing and potential accelerated investment.
Read all updates
Q2-2026 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
The company reaffirmed its prior guidance (targeting ~100% year‑over‑year revenue growth) but said it has no new information today to update that target and warned that one or two large orders could move the full‑year outcome; Q2 results underpinning that guidance were: revenue $2.1M (up 103% YoY), gross profit $1.5M (up 217%) with gross margin ~75% vs ~48% a year ago, loss from operations $2.3M (improved 21%), and net loss $2.3M (improved 39% — prior year included a $0.9M noncash warrant loss that did not recur); liquidity and balance‑sheet metrics reported were $4.8M cash vs $3.5M at year‑end 2025 and total liabilities reduced to $2.0M from $3.9M, management said the business is operating around a ~$3M breakeven run‑rate, they may accelerate spending (and access capital markets) to capture opportunities, and noted that certain items (e.g., Chile and prospective federal awards) are not included in 2026 guidance.Wrap Technologies Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
58
Neutral
Cash Flow
18
Very Negative
| Breakdown | TTM | Dec 2025 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.06M | 4.67M | 4.51M | 6.13M | 8.05M | 7.73M |
| Gross Profit | 3.85M | 2.70M | 2.46M | 2.91M | 3.73M | 2.74M |
| EBITDA | -12.53M | -9.74M | -13.11M | -29.40M | -16.86M | -23.27M |
| Net Income | -13.51M | -10.34M | -5.88M | -30.22M | -17.62M | -24.45M |
Balance Sheet | ||||||
| Total Assets | 15.34M | 15.97M | 15.12M | 28.50M | 30.57M | 44.23M |
| Cash, Cash Equivalents and Short-Term Investments | 4.78M | 3.47M | 3.61M | 11.46M | 19.28M | 34.92M |
| Total Debt | 436.00K | 2.42M | 2.20M | 2.29M | 301.00K | 56.00K |
| Total Liabilities | 1.99M | 4.48M | 14.87M | 25.34M | 3.52M | 2.97M |
| Stockholders Equity | 13.35M | 11.49M | 250.00K | 3.16M | 27.05M | 41.26M |
Cash Flow | ||||||
| Free Cash Flow | -9.36M | -10.39M | -8.14M | -16.93M | -14.86M | -19.22M |
| Operating Cash Flow | -9.25M | -10.29M | -8.13M | -16.70M | -14.60M | -18.22M |
| Investing Cash Flow | -342.00K | -387.00K | 7.31M | 5.18M | 14.91M | -6.94M |
| Financing Cash Flow | 10.20M | 10.53M | 468.00K | 10.15M | 83.00K | 13.45M |
Wrap Technologies Technical Analysis
Positive
1.53
Price Trends
1.74
Negative
1.58
Positive
1.81
Negative
Market Momentum
-0.03
Negative
50.23
Neutral
56.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRAP, the sentiment is Positive. The current price of 1.53 is below the 20-day moving average (MA) of 1.66, below the 50-day MA of 1.74, and below the 200-day MA of 1.81, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 50.23 is Neutral, neither overbought nor oversold. The STOCH value of 56.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WRAP.
Wrap Technologies Risk Analysis
Wrap Technologies disclosed 63 risk factors in its most recent earnings report. Wrap Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Wrap Technologies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $317.34M | 24.66 | 13.03% | ― | 11.85% | 10.33% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $246.17M | 37.54 | 3.98% | 1.30% | 9.41% | ― | |
56 Neutral | $85.38M | -73.08 | -10.92% | ― | 7.85% | 45.80% | |
50 Neutral | $104.40M | -6.18 | -101.24% | ― | 87.26% | -32.16% | |
49 Neutral | $64.90M | -10.73 | -435.06% | ― | 86.71% | 78.28% | |
44 Neutral | $115.24M | -1.15 | -92.81% | ― | 28.49% | -296.38% |
* Technology Sector Average
WRAP
Wrap Technologies
1.68
-0.03
-1.75%
GNSS
Genasys
1.43
-0.55
-27.78%
RELL
Richardson Electronics
16.98
7.39
77.02%
LINK
Interlink Electronics
5.70
-0.11
-1.89%
KULR
KULR Technology Group
2.55
-1.50
-37.04%
MPTI
M-tron Industries Inc
72.51
27.59
61.42%
Wrap Technologies Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Wrap Technologies completes $12M registered direct offering
Positive
Aug 18, 2026
On August 16, 2026, Wrap Technologies entered into a securities purchase agreement with an institutional investor and an existing shareholder for a registered direct offering of common stock and pre-funded warrants. The transaction involved a tota...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Wrap Technologies Announces $12 Million Direct Offering
Positive
Aug 18, 2026
On August 16 and 17, 2026, Wrap Technologies, Inc. priced a registered direct offering of 8,571,609 shares of common stock, or pre-funded warrants in lieu thereof, at $1.40 per share to a fundamental institutional investor and an existing investor...
Business Operations and StrategyPrivate Placements and FinancingProduct-Related Announcements
Wrap Technologies deepens defense focus with Frenel deal
Positive
Jul 13, 2026
On July 7–8, 2026, Wrap Technologies invested $2 million in Israeli advanced-sensing firm Frenel Imaging, acquiring 74,918 Series A preferred shares with rights to participate in up to $2.5 million in additional funding and securing governan...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.