Wrap Technologies (WRAP) AI Stock Analysis

• Market Cap: $112.89M
• Dividend Yield: N/A
• Average Volume (3M): 394.62K
• 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: 655,412
• 30 Day Avg. Volume: 394,622
• 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: 0.95
• 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: 54 Neutral
• Price Target: $3.00 ▲(35.75% Upside)

The overall stock score of 54 reflects significant financial challenges, despite positive technical indicators and promising earnings call highlights. The company's strategic initiatives and market expansion efforts are promising, but financial instability and valuation concerns weigh heavily on the score.

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. (WRAP) is a public safety technology company that specializes in developing innovative solutions for law enforcement and security personnel. The company is primarily focused on the design and manufacturing of non-lethal tools and technologies, including the BolaWrap, a remote restraint device that enables officers to safely apprehend suspects from a distance. By combining advanced technology with practical application, Wrap Technologies aims to reduce the incidence of injuries during arrests and improve overall public safety.

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: Neutral
• 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 Neutral. The current price of 2.21 is below the 20-day moving average (MA) of 2.33, below the 50-day MA of 2.42, and above the 200-day MA of 1.85, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 44.33 is Neutral, neither overbought nor oversold. The STOCH value of 34.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$154.25M	21.47	22.65%	―	12.79%	23.79%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RELL	61 Neutral	$157.17M	509.26	0.11%	2.18%	6.17%	―
KULR	61 Neutral	$150.27M	-5.08	-29.07%	―	71.92%	31.84%
WRAP	54 Neutral	$112.89M	-7.27	-136.26%	―	-2.32%	26.38%
GNSS	47 Neutral	$98.07M	-5.40	-183.60%	―	69.76%	43.82%
LINK	41 Neutral	$58.12M	-29.45	-13.78%	―	-1.70%	17.13%

Wrap Technologies Corporate Events

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.

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.