Wrap Technologies (WRAP) AI Stock Analysis

• Market Cap: $94.83M
• Dividend Yield: N/A
• Average Volume (3M): 372.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.51
• 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: 54,501,637
• 10 Day Avg. Volume: 242,300
• 30 Day Avg. Volume: 372,531
• PEG Ratio: 0.21
• Price to Book (P/B): 386.87
• Price to Sales (P/S): 21.46
• P/FCF Ratio: -11.89
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 21.19
• Enterprise Value/Gross Profit: 36.88
• Enterprise Value/Ebitda: -5.26
• 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: $2.00 ▼(-9.50% Downside)

The score is held down primarily by heavy losses and persistent cash burn, with bearish technical trend indicators reinforcing near-term risk. Offsetting factors include constructive earnings-call momentum around growth and product adoption, plus supportive financing to fund operational scaling, but these are not yet reflected in profitability or cash generation.

Positive Factors

Healthy Gross Margin

A sustained ~51% gross margin indicates strong unit economics for the BolaWrap product line. This margin buffer gives the company room to invest in sales, training, and manufacturing while scaling volumes, making profitability achievable if revenue growth continues and fixed costs are absorbed.

Platform & Subscription Shift

Shifting from one-off device sales to subscription-based, integrated nonlethal response solutions (training, software, multi-product ecosystem) improves revenue predictability and lifetime customer value, while expanding TAM into federal, defense, and international channels for longer-term growth.

Targeted Capital Raise to Scale

The $5M financing directly supports restarting U.S. manufacturing, rehiring production staff, improving quality controls and commercializing multi-shot and drone-enabled R&D. This reduces near-term execution risk and funds capability buildout needed to scale operations and capture larger contracts.

Negative Factors

Persistent Cash Burn

Sustained negative operating and free cash flow means the business relies on external capital to operate. Continued cash consumption increases dilution and financing risk if revenue growth or margin improvements stall, making long-term self-funding unlikely without material improvement.

Deep Operating Losses

Extremely large operating losses far exceed current revenue, indicating fixed costs and operating structure are not aligned with scale today. Even with good gross margins, such loss levels erode equity, limit reinvestment capacity, and require substantial and sustained revenue expansion to reach breakeven.

Policy-Driven Adoption Risk

Sales into law enforcement are contingent on policy changes and leadership buy-in, lengthening procurement cycles and making adoption lumpy. This structural dependency complicates forecasting, delays scaling in key markets, and raises execution risk for recurring subscription model rollout.

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

Revenue is improving and gross margin is solid (~51%), and leverage appears manageable in the latest TTM view. However, results are dominated by extremely large operating losses (TTM net margin about -307%) and continued cash burn (TTM FCF about -$9.4M), keeping financial quality weak despite some momentum.

Income Statement

TTM (Trailing-Twelve-Months) revenue improved meaningfully (+27.8% vs. the prior period), and gross margin remains solid at ~51%, showing the product can carry healthy unit economics. However, the company is still deeply unprofitable: TTM net margin is about -307% and operating losses remain very large (EBIT and EBITDA both materially negative), indicating operating costs are far out of line with the current revenue base. Annual results also show choppy/declining revenue in 2023–2024, reinforcing that the path to scale is not yet consistent.

Balance Sheet

Leverage looks manageable in TTM (Trailing-Twelve-Months) with low debt relative to equity (debt-to-equity ~0.18), suggesting limited balance-sheet strain from borrowings. That said, profitability pressure is clearly eroding shareholder returns (TTM return on equity is roughly -199%), and equity was extremely thin in 2024 (very high debt-to-equity that year), pointing to prior balance-sheet stress and potential dilution/recapitalization dynamics. Overall, assets exceed debt by a wide margin, but continued losses remain the key risk to balance-sheet durability.

Cash Flow

Cash generation remains weak: TTM (Trailing-Twelve-Months) operating cash flow is about -$9.1M and free cash flow is about -$9.4M, indicating the business is still consuming significant cash to operate. While free cash flow shows improvement versus the prior year (positive growth rate), the company is still far from self-funding, and ongoing cash burn increases reliance on external capital if revenue growth and cost control do not improve materially.

Breakdown	TTM	Mar 2025	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: Negative
• Last Price: 2.21
• 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 2.21 is above the 20-day moving average (MA) of 1.97, below the 50-day MA of 2.32, and above the 200-day MA of 1.96, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 36.82 is Neutral, neither overbought nor oversold. The STOCH value of 35.05 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
MPTI	82 Outperform	$185.90M	26.79	22.65%	―	12.79%	23.79%
RELL	64 Neutral	$183.66M	193.81	0.11%	2.25%	6.17%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KULR	59 Neutral	$136.11M	-4.67	-29.07%	―	71.92%	31.84%
WRAP	49 Neutral	$94.83M	-5.91	-136.26%	―	-2.32%	26.38%
GNSS	49 Neutral	$90.42M	-6.16	-183.60%	―	69.76%	43.82%
LINK	41 Neutral	$52.92M	-26.02	-13.78%	―	-1.70%	17.13%

Wrap Technologies Corporate Events

Wrap Technologies Raises $5 Million to Expand Platform

On February 2, 2026, Wrap Technologies entered into a securities purchase agreement with accredited investors for a $5 million private placement of common stock, pre-funded warrants, and common warrants, which closed on February 3, 2026. The deal, conducted as an unregistered offering under Regulation D, involved issuing 1.7 million common shares, 800,000 pre-funded warrants, and 2.5 million common warrants, all priced at $2.00 per share or pre-funded warrant with warrants attached and carrying a $2.30 exercise price, and included registration rights for the resale of the shares and warrant shares. Wrap plans to use the proceeds for general corporate purposes, including restarting domestic manufacturing, tightening quality controls, rehiring key production and quality staff, expanding training capacity, and commercializing advanced R&D initiatives such as multi-shot systems and drone-enabled non-lethal delivery. Management positions the financing as a catalyst to transition from a single-device approach to an integrated non-lethal response platform spanning technology, training, and policy, supporting federal and international expansion through its Wrap Federal segment and aiming to strengthen its role as a system-level non-lethal solutions provider amid rising global demand for low-collateral public safety tools.

The most recent analyst rating on (WRAP) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on Wrap Technologies stock, see the WRAP Stock Forecast page.

Wrap Technologies Approves Key Proposals at Annual Meeting

On December 12, 2025, Wrap Technologies held its Annual Meeting, where all proposals were approved by stockholders. Key outcomes included increasing authorized common stock to 200,000,000 shares, updating the 2017 Equity Compensation Plan to add 4,000,000 shares, and approving a potential reverse stock split within a 1-for-2 to 1-for-10 ratio. Additionally, the company ratified auditors, approved director elections, and addressed Nasdaq compliance related to securities issuance, highlighting its strategy for flexibility in capital structure and governance improvements.

The most recent analyst rating on (WRAP) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Wrap Technologies stock, see the WRAP Stock Forecast page.

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.