Wrap Technologies (WRAP)
NASDAQ:WRAP
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Wrap Technologies
(NASDAQ:WRAP)
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Rating:51Neutral
Price Target:
$1.50
▼(-32.13% Downside)
Action:Reiterated
Date:05/15/26
The score is held back primarily by ongoing large losses and sustained cash burn despite low leverage. The earnings call provided credible early growth and bookings momentum plus improved operating cash use, but margin compression and financing/dilution risk remain meaningful. Technical signals are mixed-to-weak, and valuation is difficult to support with negative earnings and no dividend.
Positive Factors
Strong Product & Revenue Growth
Sustained double‑digit revenue growth and explosive product sales indicate genuine commercial adoption of the BolaWrap platform. Durable device reorders and growing consumables support a repeatable revenue base and provide a foundation for scaling margins as volumes rise and costs are amortized.
Negative Factors
Large Operating Losses & Negative Margins
Very large operating and net losses relative to a small revenue base mean the company must materially scale sales or cut costs to reach break‑even. Persistent negative margins undermine free cash generation and make sustainable profitability contingent on successful execution at scale.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Product & Revenue Growth
Sustained double‑digit revenue growth and explosive product sales indicate genuine commercial adoption of the BolaWrap platform. Durable device reorders and growing consumables support a repeatable revenue base and provide a foundation for scaling margins as volumes rise and costs are amortized.
Read all positive factors
Wrap Technologies (WRAP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$82.49M
Dividend YieldN/A
Average Volume (3M)372.53K
Price to Earnings (P/E)―
Beta (1Y)1.55
Revenue Growth32.19%
EPS Growth-104.80%
CountryUS
Employees19
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.31
Shares Outstanding55,738,250
10 Day Avg. Volume242,300
30 Day Avg. Volume372,531
Financial Highlights & Ratios
PEG Ratio-0.31
Price to Book (P/B)10.44
Price to Sales (P/S)25.67
P/FCF Ratio-11.54
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue14.77
Enterprise Value/Gross Profit26.52
Enterprise Value/Ebitda-5.36
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., 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 t...
How the Company Makes Money
Wrap Technologies primarily makes money by selling less-lethal devices and related products to government and institutional customers, with revenue generally recognized upon delivery under customer purchase orders and contracts. The core revenue s...
Wrap Technologies Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful early commercial traction: strong top-line growth (+45% revenue) and very large product sales expansion (+186%), improved bookings ($3.2M) and materially lower operating cash use. Management emphasized increased pipeline visibility, international expansion and early traction in drone/counter-drone solutions. Offsetting risks included a notable decline in gross margin (62% vs 78%), a drop in technology-enabled services revenue (~60%), and higher operating expenses and share-based compensation, along with financing/dilution risk and execution dependency on external procurement/funding decisions. On balance, the call presented more substantive progress and growth signals than setbacks, though material margin and financing risks remain.Positive Updates
Top-Line Revenue Growth
Total revenue was $1.1 million in Q1 FY2026, up 45% year-over-year from $0.8 million, demonstrating early commercial traction.
Negative Updates
Decline in Gross Margin Percentage
Gross margin fell to 62% from 78% year-over-year (a 16 percentage-point decline), driven by a higher mix of lower-margin hardware product sales versus software/subscription and managed services.
Read all updates
Q1-2026 Updates
Positive
Negative
Top-Line Revenue Growth
Total revenue was $1.1 million in Q1 FY2026, up 45% year-over-year from $0.8 million, demonstrating early commercial traction.
Read all positive updates
Company Guidance
The company reiterated a target of 100% revenue growth for 2026 and said its visibility and conviction have strengthened after Q1 results of $1.1M total revenue (up 45% YoY from $0.8M), product sales of $0.9M (up 186% from $0.3M), bookings of $3.2M, technology‑enabled services of $0.2M (vs. $0.5M prior), gross profit of $0.7M (up 16% from $0.6M) and a 62% gross margin (vs. 78% prior); management expects gross margins to improve as subscription and software services grow, is focused on converting pipeline and expanding agency‑wide, federal and international opportunities (including drone/counter‑drone preorders), and highlighted operating metrics of $2.4M share‑based compensation, $3.0M cash‑based SG&A ($3.0M vs $2.5M prior), $5.5M total operating expenses (vs $4.5M) and a 59% improvement in cash used in operations to $1.2M (from $3.1M).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 | 5.02M | 4.67M | 4.51M | 6.13M | 8.05M | 7.73M |
| Gross Profit | 2.79M | 2.70M | 2.46M | 2.91M | 3.73M | 2.74M |
| EBITDA | -13.84M | -12.89M | -13.11M | -17.90M | -16.97M | -23.27M |
| Net Income | -14.98M | -10.34M | -5.88M | -30.22M | -17.62M | -24.45M |
Balance Sheet | ||||||
| Total Assets | 16.72M | 15.97M | 15.12M | 28.50M | 30.57M | 44.23M |
| Cash, Cash Equivalents and Short-Term Investments | 7.26M | 3.47M | 3.61M | 11.46M | 19.28M | 34.92M |
| Total Debt | 558.00K | 2.42M | 2.20M | 2.29M | 301.00K | 56.00K |
| Total Liabilities | 2.29M | 4.48M | 14.87M | 25.34M | 3.52M | 2.97M |
| Stockholders Equity | 14.43M | 11.49M | 250.00K | 3.16M | 27.05M | 41.26M |
Cash Flow | ||||||
| Free Cash Flow | -9.10M | -10.39M | -8.14M | -16.93M | -14.86M | -19.22M |
| Operating Cash Flow | -8.76M | -10.29M | -8.13M | -16.70M | -14.60M | -18.22M |
| Investing Cash Flow | -345.00K | -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
Negative
2.21
Price Trends
1.51
Negative
1.83
Negative
1.98
Negative
Market Momentum
-0.01
Negative
47.46
Neutral
24.81
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 1.51, above the 50-day MA of 1.51, and above the 200-day MA of 1.98, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 47.46 is Neutral, neither overbought nor oversold. The STOCH value of 24.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $334.91M | 24.47 | 17.69% | ― | 11.50% | 9.24% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $226.07M | 42.82 | 2.37% | 2.25% | 4.82% | ― | |
57 Neutral | $181.32M | -0.97 | -56.90% | ― | 62.35% | -46.70% | |
52 Neutral | $58.43M | -34.25 | -16.71% | ― | 9.64% | 45.26% | |
51 Neutral | $82.49M | -4.58 | -115.68% | ― | 32.19% | -104.80% | |
47 Neutral | $84.25M | 28.47 | -314.53% | ― | 114.02% | 72.01% |
* Technology Sector Average
WRAP
Wrap Technologies
1.45
0.08
5.84%
GNSS
Genasys
1.90
0.26
15.85%
RELL
Richardson Electronics
16.95
7.98
88.90%
LINK
Interlink Electronics
4.54
1.37
43.22%
KULR
KULR Technology Group
3.62
-5.90
-61.97%
MPTI
M-tron Industries Inc
78.59
33.05
72.57%
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.