Wrap Technologies Reports 45% Revenue Growth to $1.1 Million in Q1 2026

Wrap Technologies, Inc. reported a significant increase in revenue for the first quarter of 2026, with total revenues reaching $1.1 million, a 45% increase from $765,000 in the same period last year. This growth was primarily driven by a substantial rise in product sales, which amounted to $883,000, up 186% from $309,000 in the prior year. The increase in product sales was attributed to improved order flow and higher shipments of the BolaWrap 150 devices and cassettes, reflecting a shift towards a more direct, agency-focused sales strategy. However, technology-enabled services revenue declined by 50% to $228,000, largely due to a strategic restructuring of managed services following the winding down of certain advisory arrangements.

The company's gross profit for the quarter was $691,000, representing a 16% increase from $596,000 in the previous year, although the gross margin decreased to 62.2% from 77.8%. This decline in margin was linked to a higher proportion of lower-margin hardware sales compared to higher-margin software subscriptions and managed services. Operating expenses rose to $5.5 million, a 21% increase from $4.5 million, driven mainly by higher non-cash share-based compensation expenses. As a result, Wrap Technologies reported a loss from operations of $4.8 million, compared to a loss of $3.9 million in the same quarter of 2025.

In terms of financial position, Wrap Technologies ended the quarter with cash and cash equivalents of $7.3 million, up from $3.5 million at the end of 2025. This increase was bolstered by $5 million in proceeds from a private placement completed in February 2026. Total liabilities decreased to $2.3 million, down from $3.9 million, primarily due to the termination of a long-term operating lease, which eliminated a significant lease liability. Stockholders' equity rose to $14.4 million, reflecting the net proceeds from the private placement and warrant exercises, offset by the net loss for the period.

Looking ahead, Wrap Technologies aims to expand the adoption of its core products, particularly the BolaWrap device, and enhance the utilization of its training and subscription-based offerings, including Wrap Reality and WrapTactics. The company is also focused on advancing its commercialization efforts for WrapVision, its body-worn camera solution. However, the outlook remains cautious, as the company anticipates continued operating losses until it achieves sufficient scale and recurring revenue to offset fixed costs. The management noted that future performance will be influenced by government budget cycles, procurement processes, and the availability of grant funding, particularly in international markets where sales may be uneven.