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Wrap Technologies
(NASDAQ:WRAP)
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Rating:55Neutral
Price Target:
$2.00
▲(17.65% Upside)
Action:Reiterated
Date:07/14/26
The score is held back primarily by weak financial performance—large ongoing losses and negative cash flow despite improving revenue and healthy gross margins. Technicals are a meaningful positive with strong trend/momentum, but the stock appears extended. Earnings call signals improving traction and reduced cash burn, while the recent Frenel/Wr apShield strategic move is directionally positive but adds execution commitments. Valuation remains difficult to support due to losses and lack of dividend.
Positive Factors
Revenue Growth Traction
Sustained top-line growth (45% YoY) and strong product sales expansion demonstrate durable go-to-market progress: agencies are moving from pilots to purchases, bookings ($3.2M) add conversion visibility, and growing device adoption supports repeat consumable demand and scalable revenue streams over months.
Negative Factors
Negative Cash Flow
Persistent and sizeable cash burn is a structural constraint: ongoing negative operating and free cash flow require recurring financing or rapid scale to reach self-funding. This elevates dilution and execution risk and limits the company's ability to invest without external capital over the next several months.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Traction
Sustained top-line growth (45% YoY) and strong product sales expansion demonstrate durable go-to-market progress: agencies are moving from pilots to purchases, bookings ($3.2M) add conversion visibility, and growing device adoption supports repeat consumable demand and scalable revenue streams over months.
Read all positive factors
Wrap Technologies (WRAP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$105.29M
Dividend YieldN/A
Average Volume (3M)372.53K
Price to Earnings (P/E)―
Beta (1Y)1.77
Revenue Growth87.26%
EPS Growth-32.16%
CountryUS
Employees25
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.27
Shares Outstanding56,003,640
10 Day Avg. Volume242,300
30 Day Avg. Volume372,531
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
18
Very Negative
Balance Sheet
62
Positive
Cash Flow
24
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 | -9.35M | -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
1.70
Price Trends
1.64
Positive
1.56
Positive
1.86
Positive
Market Momentum
0.03
Positive
53.36
Neutral
29.82
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 1.7 is below the 20-day moving average (MA) of 1.82, above the 50-day MA of 1.64, and below the 200-day MA of 1.86, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 53.36 is Neutral, neither overbought nor oversold. The STOCH value of 29.82 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 57 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 | $384.84M | 30.12 | 13.03% | ― | 11.85% | 10.33% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $294.71M | 44.97 | 3.98% | 1.30% | 9.41% | ― | |
55 Neutral | $105.29M | -6.92 | -101.24% | ― | 87.26% | -32.16% | |
52 Neutral | $91.13M | -78.39 | -10.92% | ― | 7.85% | 45.80% | |
51 Neutral | $122.18M | -1.19 | -92.81% | ― | 28.49% | -296.38% | |
49 Neutral | $78.79M | -12.98 | -314.53% | ― | 86.71% | 78.28% |
* Technology Sector Average
WRAP
Wrap Technologies
1.88
0.48
34.29%
GNSS
Genasys
1.73
-0.17
-8.95%
RELL
Richardson Electronics
20.34
10.84
114.02%
LINK
Interlink Electronics
5.79
0.79
15.93%
KULR
KULR Technology Group
2.64
-2.51
-48.74%
MPTI
M-tron Industries Inc
88.54
45.35
105.00%
Wrap Technologies Corporate Events
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.