Wrap Technologies (WRAP) AI Stock Analysis

• Market Cap: $97.07M
• Dividend Yield: N/A
• Average Volume (3M): 284.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.90
• Revenue Growth: -55.50%
• EPS Growth: 59.81%
• Country: US
• Employees: 19
• Sector: Technology
• Sector Strength: 85
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.08
• Shares Outstanding: 50,820,698
• 10 Day Avg. Volume: 470,743
• 30 Day Avg. Volume: 284,885
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 23.75
• Enterprise Value/Gross Profit: 44.48
• Enterprise Value/Ebitda: -5.96
• 1Y Price Target: $2.00
• Price Target Upside: -2.44% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: $2.00 ▼(-2.44% Downside)

Wrap Technologies' overall stock score is driven by significant financial challenges, despite positive technical indicators and strategic initiatives. The earnings call and corporate events provide optimism for future growth, but financial risks and valuation concerns weigh heavily on the score.

Positive Factors

Strategic Partnerships

The partnership with STORM Training Group enhances Wrap's product offering by integrating proven defensive tactics, potentially increasing product adoption and customer satisfaction in the law enforcement sector.

Product Innovation

The introduction of the 1KC Anti-Drone Cassette showcases Wrap's innovation capabilities and expands its product line, potentially opening new market opportunities in counter-UAS applications.

Cost Management

Effective cost management and expense reduction demonstrate Wrap's commitment to financial discipline, potentially improving profitability and cash flow sustainability in the long term.

Negative Factors

Declining Revenues

Persistent revenue decline indicates challenges in market penetration and product demand, which could hinder long-term growth prospects and financial stability.

High Debt Levels

Elevated debt levels pose financial risks, potentially limiting Wrap's ability to invest in growth initiatives and affecting its long-term financial health.

Negative Cash Flow

Consistently negative cash flow reflects inefficiencies in operations and challenges in generating cash, which could impact liquidity and operational flexibility.

Wrap Technologies Business Overview & Revenue Model

Company Description

Wrap Technologies, Inc. (WRAP) is an innovative technology company that specializes in developing advanced non-lethal policing solutions. The company operates primarily in the public safety sector, focusing on the design and manufacture of products that enhance law enforcement capabilities while promoting safer community interactions. Wrap Technologies is best known for its flagship product, the BolaWrap, a remote restraint device that allows law enforcement to safely detain individuals from a distance, reducing the need for physical confrontation. The company aims to provide tools that improve the safety of both officers and civilians through effective and humane restraint techniques.

How the Company Makes Money

Wrap Technologies generates revenue primarily through the sale of its products, particularly the BolaWrap device and related accessories. The company engages in direct sales to law enforcement agencies, which form a significant portion of its customer base. Additionally, WRAP may also generate income through training programs and support services for law enforcement personnel to ensure effective use of their products. Key revenue streams include direct product sales, recurring revenue from ongoing contracts and partnerships with law enforcement agencies, and potential collaborations with governmental organizations focused on public safety. The company may also explore international markets, expanding its reach and generating additional sales opportunities.

Wrap Technologies Financial Statement Overview

Summary

Wrap Technologies faces significant financial challenges with declining revenues, persistent net losses, and negative cash flows. The balance sheet shows high financial risk due to a high debt-to-equity ratio and reduced financial stability.

Income Statement

Wrap Technologies has experienced declining revenues and persistent net losses over recent years. Gross profit margin remains positive, but significant negative EBIT and EBITDA margins indicate operational inefficiencies. The revenue growth rate is negative, highlighting a downturn in business performance.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio due to declining stockholders' equity, which poses financial risk. The equity ratio has decreased, indicating reduced financial stability. Although the company has managed to maintain some liquidity, overall balance sheet health is concerning.

Cash Flow

Operating cash flow has been consistently negative, reflecting challenges in generating cash from core operations. Free cash flow is also negative, indicating potential liquidity issues. The ratio of operating cash flow to net income suggests inefficiencies in converting income into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.23M	4.51M	6.13M	8.05M	7.73M	3.94M
Gross Profit	1.73M	2.46M	2.91M	3.73M	2.00M	1.34M
EBITDA	-12.88M	-14.74M	-17.90M	-16.97M	-23.88M	-12.91M
Net Income	-9.39M	-5.88M	-30.22M	-17.28M	-24.42M	-12.50M
Balance Sheet
Total Assets	15.61M	15.12M	28.50M	30.57M	44.23M	48.83M
Cash, Cash Equivalents and Short-Term Investments	4.18M	3.61M	11.46M	19.28M	34.92M	41.64M
Total Debt	2.21M	2.20M	2.29M	301.00K	56.00K	369.00K
Total Liabilities	3.85M	14.87M	25.34M	3.52M	2.97M	2.42M
Stockholders Equity	11.76M	250.00K	3.16M	27.05M	41.26M	46.41M
Cash Flow
Free Cash Flow	-5.91M	-8.29M	-17.33M	-15.03M	-20.16M	-13.11M
Operating Cash Flow	-5.88M	-8.13M	-16.70M	-14.60M	-18.22M	-12.19M
Investing Cash Flow	2.27M	7.31M	5.18M	14.91M	-6.94M	-26.11M
Financing Cash Flow	5.73M	468.00K	10.15M	83.00K	13.45M	37.96M

Wrap Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2.05 is above the 20-day moving average (MA) of 1.54, above the 50-day MA of 1.45, and above the 200-day MA of 1.69, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 72.82 is Negative, neither overbought nor oversold. The STOCH value of 88.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WRAP.

Wrap Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$36.69B	12.42	-10.20%	1.85%	8.50%	-7.32%
WRAP	57 Neutral	$97.07M	―	-118.25%	―	-55.50%	59.81%
LINK	51 Neutral	$93.12M	―	-15.12%	―	-7.12%	-11.00%
LPTH	47 Neutral	$227.36M	―	-24.86%	―	2.59%	-48.02%
GNSS	46 Neutral	$97.53M	―	-177.60%	―	8.95%	14.34%
ODYS	45 Neutral	$65.16M	―	-64.15%	―	46.70%	-19.78%
HOLO	―	$26.61M	0.41	16.33%	―	―	―

Wrap Technologies Corporate Events

Wrap Technologies Files Certificate for Series B Stock

On August 18, 2025, Wrap Technologies entered into a Securities Purchase Agreement with accredited investors to sell Series B Convertible Preferred Stock and accompanying warrants in a private placement. The company filed the Certificate of Designations for the Series B Preferred Stock on August 20, 2025, with the Secretary of State of Delaware, marking a significant step in its capital-raising efforts.

Wrap Technologies Secures $4.5M for Tech Expansion

On August 18, 2025, Wrap Technologies announced a securities purchase agreement with accredited investors for a private placement, raising $4.5 million through the sale of Series B Convertible Preferred Stock and accompanying warrants. The proceeds are intended to accelerate the development of Wrap’s counter-drone technologies and expand its market execution in law enforcement and federal sales, enhancing its positioning in the public safety technology sector.

Wrap Technologies Amends Series A and 2025 Warrants

On June 30, 2025, Wrap Technologies, Inc. announced amendments to its Series A Warrants and 2025 Warrants, which involved adjustments to the calculation of ‘Black Scholes Value’ and extensions of the warrant terms. These changes reflect the company’s strategic efforts to optimize its financial instruments and potentially enhance its market positioning, impacting stakeholders by altering the terms of investment agreements.

Wrap Technologies Appoints New CFO Jerry Ratigan

On June 23, 2025, Wrap Technologies appointed Gerald ‘Jerry’ Ratigan as Chief Financial Officer, effective immediately. With over 20 years of experience in financial strategy and operations, Ratigan brings a wealth of expertise to the company, having previously held significant roles in various sectors, including gaming and fintech. His appointment is seen as a strategic move to align Wrap’s financial operations with its long-term strategy and to drive product scale and market interest. Additionally, Louis Springer was promoted to Vice President of Finance, highlighting Wrap’s focus on scaling operations and enhancing financial strategy under Ratigan’s leadership.