Wrap Technologies (WRAP) AI Stock Analysis

• Market Cap: $75.36M
• Dividend Yield: N/A
• Average Volume (3M): 190.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.87
• Revenue Growth: -44.97%
• EPS Growth: 75.63%
• Country: US
• Employees: 19
• Sector: Technology
• Sector Strength: 90
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.11
• Shares Outstanding: 50,577,168
• 10 Day Avg. Volume: 108,436
• 30 Day Avg. Volume: 190,269
• PEG Ratio: N/A
• Price to Book (P/B): 26.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.61
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 3.40
• Enterprise Value/Gross Profit: 30.25
• Enterprise Value/Ebitda: -1.04
• 1Y Price Target: $1.50
• Price Target Upside: 6.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: $1.50 ▲(6.38%Upside)

Wrap Technologies' overall stock score reflects significant financial challenges, including persistent losses and negative cash flows, which weigh heavily on the score. While recent earnings call insights show operational improvements and positive international prospects, these are offset by ongoing financial risks and valuation concerns. Technical indicators provide a mixed outlook, but the strategic appointment of a new CFO offers a potential long-term positive impact.

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 primarily through the sale of its BolaWrap devices and related accessories to law enforcement agencies and security organizations worldwide. The company also offers training programs and services to ensure the effective and safe use of its products, which contribute to its revenue streams. Additionally, Wrap Technologies may engage in partnerships with distributors and resellers to expand its market reach and enhance product accessibility. The company's growth and earnings are influenced by the increasing demand for non-lethal law enforcement tools and its ability to innovate and expand its product offerings.

Wrap Technologies Financial Statement Overview

Summary

Wrap Technologies shows significant financial challenges with persistent losses, declining revenues, and negative cash flows. While the gross profit margin is positive, operational inefficiencies are evident from negative EBIT and EBITDA margins, and a high debt-to-equity ratio poses financial risk.

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	3.80M	4.51M	6.13M	8.05M	7.73M	3.94M
Gross Profit	2.22M	2.46M	2.91M	3.73M	2.00M	1.34M
EBITDA	-15.73M	-14.74M	-17.90M	-16.97M	-23.88M	-12.91M
Net Income	-6.05M	-5.88M	-30.22M	-17.28M	-24.42M	-12.50M
Balance Sheet
Total Assets	17.97M	15.12M	28.50M	30.57M	44.23M	48.83M
Cash, Cash Equivalents and Short-Term Investments	6.17M	3.61M	11.46M	19.28M	34.92M	41.64M
Total Debt	2.12M	2.20M	2.29M	301.00K	56.00K	369.00K
Total Liabilities	1.58M	15.33M	25.34M	3.52M	2.97M	2.42M
Stockholders Equity	2.57M	250.00K	3.16M	27.05M	41.26M	46.41M
Cash Flow
Free Cash Flow	-7.42M	-8.29M	-17.33M	-15.03M	-20.16M	-13.11M
Operating Cash Flow	-7.47M	-8.13M	-16.70M	-14.60M	-18.22M	-12.19M
Investing Cash Flow	4.79M	7.31M	5.18M	14.91M	-6.94M	-26.11M
Financing Cash Flow	5.67M	468.00K	10.15M	83.00K	13.45M	37.96M

Wrap Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 1.41 is below the 20-day moving average (MA) of 1.55, below the 50-day MA of 1.51, and below the 200-day MA of 1.72, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 37.85 is Neutral, neither overbought nor oversold. The STOCH value of 22.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WRAP.

Wrap Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$33.85B	5.90	-11.67%	1.83%	5.25%	-18.21%
LINK	59 Neutral	$66.78M	―	-18.75%	―	-18.62%	-112.68%
LPTH	54 Neutral	$138.99M	―	-24.86%	―	2.59%	-48.02%
WRAP	51 Neutral	$75.36M	―	-166.89%	―	-44.97%	75.63%
GNSS	49 Neutral	$90.31M	―	-131.75%	―	-20.77%	-2.08%
ODYS	47 Neutral	$78.34M	―	-50.56%	―	100.27%	-7.06%

Wrap Technologies Corporate Events

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.