Wrap Technologies (WRAP) AI Stock Analysis

• Market Cap: $108.25M
• Dividend Yield: N/A
• Average Volume (3M): 323.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.61
• Revenue Growth: -2.32%
• EPS Growth: 26.38%
• Country: US
• Employees: 19
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.06
• Shares Outstanding: 51,549,095
• 10 Day Avg. Volume: 307,688
• 30 Day Avg. Volume: 323,051
• PEG Ratio: 0.21
• Price to Book (P/B): 386.87
• Price to Sales (P/S): 21.46
• P/FCF Ratio: -11.66
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 25.99
• Enterprise Value/Gross Profit: 45.22
• Enterprise Value/Ebitda: -6.45
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $2.50 ▲(13.12% Upside)

The overall stock score of 49 reflects significant financial challenges and valuation concerns, which are partially offset by positive developments in the earnings call. The company's strategic initiatives and market expansion efforts are promising, but financial stability and valuation remain critical issues.

Positive Factors

Strategic Partnership

The partnership with K-Form enhances Wrap's supply chain, supporting scalable production and innovation, crucial for long-term growth.

Market Expansion

Expanding into federal and international markets positions Wrap for significant growth, tapping into a large addressable market.

Product Success

High success rate of BolaWrap 150 reinforces product reliability and safety, strengthening its competitive position in non-lethal solutions.

Negative Factors

Financial Challenges

Ongoing financial challenges, including persistent losses and negative cash flows, threaten Wrap's long-term financial stability.

Policy Dependency

Reliance on policy changes for product adoption poses a risk, potentially slowing down market penetration and growth.

Balance Sheet Health

A high debt-to-equity ratio indicates financial risk, limiting Wrap's ability to invest in growth and innovation.

Wrap Technologies Business Overview & Revenue Model

Company Description

Wrap Technologies, Inc., a public safety technology and services company, develops policing solutions to law enforcement and security personnel. The company develops BolaWrap 150, a hand-held remote restraint device that discharges a Kevlar cord to restrain noncompliant individuals from a range of 10-25 feet. It operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was founded in 2016 and is based in Tempe, Arizona.

How the Company Makes Money

Wrap Technologies generates revenue through the sale of its products, primarily the BolaWrap device, to law enforcement agencies and security organizations. The company also earns income through training programs and support services that accompany the use of its products. Additionally, Wrap may engage in partnerships with governmental and private entities that seek to implement its technology, which can lead to bulk sales or long-term contracts. The company also explores opportunities for international expansion, further enhancing its revenue potential as it taps into global markets for public safety solutions.

Wrap Technologies Financial Statement Overview

Summary

Wrap Technologies faces significant financial challenges across its income statement, balance sheet, and cash flow statement. Persistent losses, declining revenues, and negative cash flows highlight operational and financial difficulties. While there are some strengths, such as gross profit, the overall financial health of the company requires strategic interventions to improve performance and 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	4.13M	4.51M	6.13M	8.05M	7.73M	3.94M
Gross Profit	2.38M	2.46M	2.91M	3.73M	2.74M	1.34M
EBITDA	-16.66M	-13.11M	-17.90M	-16.97M	-23.27M	-12.91M
Net Income	-13.99M	-5.88M	-30.22M	-17.62M	-24.45M	-12.58M
Balance Sheet
Total Assets	18.24M	15.12M	28.50M	30.57M	44.23M	48.83M
Cash, Cash Equivalents and Short-Term Investments	5.96M	3.61M	11.46M	19.28M	34.92M	41.64M
Total Debt	2.49M	2.20M	2.29M	301.00K	56.00K	150.00K
Total Liabilities	4.11M	14.87M	25.34M	3.52M	2.97M	2.42M
Stockholders Equity	14.13M	250.00K	3.16M	27.05M	41.26M	46.41M
Cash Flow
Free Cash Flow	-9.39M	-8.14M	-16.93M	-14.86M	-19.22M	-13.11M
Operating Cash Flow	-9.13M	-8.13M	-16.70M	-14.60M	-18.22M	-12.19M
Investing Cash Flow	-300.00K	7.31M	5.18M	14.91M	-6.94M	-26.11M
Financing Cash Flow	10.52M	468.00K	10.15M	83.00K	13.45M	37.96M

Wrap Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.21
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 2.21 is below the 20-day moving average (MA) of 2.25, below the 50-day MA of 2.42, and above the 200-day MA of 1.83, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 48.74 is Neutral, neither overbought nor oversold. The STOCH value of 34.52 is Neutral, 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
MPTI	73 Outperform	$150.15M	20.90	22.65%	―	12.79%	23.79%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RELL	61 Neutral	$150.02M	486.11	0.11%	2.29%	6.17%	―
KULR	51 Neutral	$128.35M	―	-29.07%	―	71.92%	31.84%
WRAP	49 Neutral	$108.25M	―	-136.26%	―	-2.32%	26.38%
GNSS	47 Neutral	$98.44M	―	-177.60%	―	8.95%	14.34%
LINK	41 Neutral	$64.81M	―	-13.78%	―	-1.70%	17.13%

Wrap Technologies Corporate Events

Wrap Technologies Earnings Call Highlights Growth and Expansion

Wrap Technologies, Inc. recently held an earnings call that conveyed a generally positive sentiment, highlighting strong growth and successful transformation efforts. The company is making significant strides in expanding into new markets, although it faces some challenges related to policy dependency and international deals.

Wrap Technologies Reports Strong Revenue Growth in Q3

Wrap Technologies, Inc. is a global leader in non-lethal response and public safety technology solutions, offering innovative tools and training programs for law enforcement and defense sectors. In its latest earnings report, Wrap Technologies announced a significant 241% increase in gross revenue for the third quarter of 2025, reaching $2 million. This growth was driven by strong sales of its BolaWrap product and the addition of managed services revenue. The company also reported a 276% increase in gross profit, with margins expanding to 59%, reflecting improved pricing and operational efficiencies.

Wrap Technologies Amends Bylaws on Stockholder Voting

On November 5, 2025, Wrap Technologies, Inc. announced an amendment to its bylaws, specifically Article II, Section 11, to clarify the voting requirements for stockholder decisions. The amendment establishes that a majority vote of stockholders present or represented by proxy is required for decisions other than director elections, excluding abstentions and broker non-votes, potentially impacting how stockholder decisions are made and aligning with legal and stock exchange requirements.

The most recent analyst rating on (WRAP) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Wrap Technologies stock, see the WRAP Stock Forecast page.

Wrap Technologies CFO Departure and Leadership Changes

On October 21, 2025, Wrap Technologies announced the mutual separation with Jerry Ratigan, its Chief Financial Officer, effective October 24, 2025. Scot Cohen, the company’s CEO, has been appointed to assume the roles of Principal Financial Officer and Principal Accounting Officer without additional compensation. Additionally, the Board of Directors expanded to six members with the appointment of John Shulman, founder of Juggernaut Capital Partners, to strengthen Wrap’s mission of expanding its non-lethal technology ecosystem across various markets. These changes are expected to enhance Wrap’s strategic vision and market expansion, positioning the company to unlock significant opportunities in public safety and private security markets.

The most recent analyst rating on (WRAP) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Wrap Technologies stock, see the WRAP Stock Forecast page.

Wrap Technologies’ Earnings Call Highlights Growth and Expansion

During the recent earnings call, Wrap Technologies, Inc. expressed a positive outlook, highlighting significant progress in restructuring, financial performance, and market expansion. The company acknowledged past challenges in data collection and distribution but emphasized strategic initiatives aimed at fostering growth.

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.

The most recent analyst rating on (WRAP) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Wrap Technologies stock, see the WRAP Stock Forecast page.

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 Reports Q2 2025 Financial Progress

Wrap Technologies, Inc., a leader in public safety technology, specializes in innovative non-lethal tools and training solutions for law enforcement and public safety organizations worldwide. In its second quarter of 2025, Wrap Technologies reported significant progress in cost reduction, cash flow improvements, and strategic repositioning. Operating expenses were reduced by 26% compared to the previous quarter, and net cash used in operations decreased by $2.2 million over the past six months. The company also saw a 16% increase in cash reserves, now totaling $4.2 million.