revenue growth
100 pct
FY 2026
official guidance
WRAP TECHNOLOGIES, INC.
Last · —$1.28-0.05 (-3.76%)live · yahoo · 2h ago
Market cap$79.07M—
P/E · TTM—fwd — · eps —
Beta—vs S&P 500
Div yield—annual · TTM
52w range
——
Volume—session
| Revenue | $4.7M |
|---|---|
| Operating income | $-13.5M |
| Net income | $-11.2M |
| Free cash flow | $-10.4M |
| Operating margin | -288.6% |
| Net margin | -240.5% |
| Return on equity | -97.8% |
| Period | 2025 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Do not buy yet; the quarter showed real operating improvement, but not enough evidence to underwrite the story.
Q2 revenue rose 103% to $2.1 million, gross margin reached 75%, and H1 revenue grew 78% to $3.2 million, yet the company still lost $2.3 million in Q2, consumed $3.7 million of operating cash in H1, and has only $4.8 million of cash. Management maintained its 100% FY2026 growth target, but conceded that one or two order-timing events could move the result materially and that capital may be needed if it accelerates spending.
Themes
- Revenue Growth
- Private Security
- Bola Wrap 150
- Doj Grants
- Dhs
- Recurring Training
Near term
Whether DOJ grant-funded demand and the newly opened private-security market convert into reported orders rather than conversations; management cited 11 potentially relevant DOJ programs and a first grant-funded training order but provided no revenue outlook by channel.
Chile is explicitly excluded from FY2026 revenue guidance because of a funding gap, removing a previously discussed source of potential upside.
DHS training has been delivered following a purchase order, but the call did not quantify its revenue or establish whether it represents repeat business.
Cash runway and dilution remain immediate issues: management is not increasing spending today, but said it may accelerate investment and access capital markets if pipeline traction develops.
Longer term
The ATF determination that BolaWrap 150 is neither a firearm nor a weapon could materially expand the addressable private-security market, including insurance-supported deployments; however, adoption, reimbursement and liability outcomes remain unproven.
The proposed shift from one-time device sales toward recurring readiness and proficiency subscriptions could improve lifetime value and predictability, but management explicitly said this revenue is ahead of the company and did not provide subscriber, pricing or ARR metrics.
TriCore by Frenel and the planned WrapShield platform could open counter-UAS, border and homeland-security markets, but the investment case depends on technical validation, procurement cycles and execution outside Wrap's historical core.
Analyst-style competitive pressure was limited on this call; management asserted Frenel has an advantage competitors cannot copy, but supplied no independent performance data, customer wins or defensible evidence supporting that claim.
Red flags
The 100% FY2026 growth target is fragile: management described it as a good-faith estimate, tied outcomes to the timing of one or two meaningful orders, and warned the target could move up or down.
Management repeatedly emphasized pipelines, conversations and prospective federal opportunities while excluding those opportunities from guidance; no bookings, backlog, conversion rates or recurring-revenue metrics were disclosed.
At approximately $3 million of operating breakeven, the company remains substantially below the scale needed to cover its cost base based on H1 revenue of only $3.2 million and continues to consume cash.
Management acknowledged that a one-day certification class does not reliably preserve proficiency for a year, underscoring the unresolved challenge of customer training compliance and recurring subscription adoption.
Potential financing was not ruled out. The company may raise capital to fund acceleration, creating dilution risk while the business remains loss-making.
Frenel's claimed differentiation was presented as a strategic advantage, but the call did not quantify Wrap's investment, economics, commercialization rights beyond U.S. and NATO exclusivity, manufacturing capacity or delivery obligations.
Forward outlook
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-03-26
- Sbc Revenue High
- Operating Cf Burn
- Net Margin Sharply Negative
- Cash Conversion Weak
- Cash Runway Low
- Accumulated Deficit High
Red flags
- Sbc Revenue High — SBC/Revenue 87.2%
- Operating Cf Burn — Negative operating cash flow
- Net Margin Sharply Negative — Net margin -240.5%
- Cash Conversion Weak — Cash conversion (CFO/Rev) -220.2%
- Cash Runway Low — Cash runway ~0.3 years
- Accumulated Deficit High — Accumulated deficit / equity 1012%
Upcoming earnings
9:00 PM UTC+1
Period
Sep 2026
Est. EPS
—
Est. revenue
0
Earnings transcripts
Press & signals
- GlobeNewswire
Wrap Appoints Veteran Law Enforcement Leader John “Chappy” Chapman as Vice President of Training and Missions
- GlobeNewswire
Wrap Technologies Inc. (NASDAQ: WRAP) Executes Deliberate Strategy to Establish Position in Vital Defense Sector
- GlobeNewswire
Wrap Technologies Inc. (NASDAQ: WRAP) Expands Vital Partnership, Strengthens Position in Key Defense Space
The rest of this company's wire — with summaries and source links — is part of Pro.
See plans