Wrap Technologies Reports 36% Revenue Decline in Q2 2025, New Managed Services Revenue Emerges

Wrap Technologies, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $1.0 million, a decrease of 36% compared to $1.6 million in the same period last year. The decline in revenue was primarily attributed to a significant drop in product sales, which fell by 84% to $197,000 from $1.3 million in the prior year. However, the company saw a new revenue stream from managed services, contributing $764,000, following its acquisition of W1 Global, LLC in February 2025. For the first half of 2025, total revenues were $1.8 million, down 42% from $3.0 million in the first half of 2024.

The company's gross profit for the second quarter was $487,000, resulting in a gross margin of 48%, down from 63% in the previous year. This decrease was largely due to lower sales volumes of the BolaWrap 150 product, although the acquisition of W1 added higher-margin managed services revenue. Operating expenses for the quarter were reduced to $3.3 million from $4.2 million, reflecting the company's cost containment measures. The net loss for the quarter was $3.9 million, compared to a loss of $896,000 in the same quarter of 2024.

Wrap Technologies has made strategic moves to enhance its market position, including the acquisition of W1 Global, which has expanded its offerings to include advisory and investigative professional services. The company has also focused on increasing its training programs, with over 1,580 agencies now trained in using the BolaWrap, representing a 4% increase in agencies and a 3% increase in certified instructors compared to the previous year. The company continues to explore opportunities in international markets, having shipped products to 62 countries and established distribution agreements covering 43 countries.

As of June 30, 2025, Wrap Technologies reported total assets of $15.6 million, an increase from $15.1 million at the end of 2024. The company’s cash and cash equivalents rose to $4.2 million from $3.6 million, bolstered by proceeds from a private placement in February 2025. The company’s total liabilities decreased significantly to $3.9 million from $14.9 million, primarily due to the reclassification of warrant liabilities to equity following amendments to warrant agreements. Looking ahead, Wrap Technologies aims to leverage its innovative product offerings and training programs to capture a larger share of the growing non-lethal policing market, which is projected to reach $16.1 billion by 2027.