Wrap Technologies, Inc. reported a significant decline in revenue for the first quarter of 2025, with total revenues of $765,000, down 48% from $1.5 million in the same period last year. The decrease was primarily attributed to lower product sales, which fell to $353,000 from $1.3 million, despite the addition of $234,000 in managed services revenue following the acquisition of W1, LLC. The company's gross profit also decreased to $595,000, reflecting a gross margin of 78%, compared to 57% in the prior year, largely due to reduced sales volume of the BolaWrap 150 product.
Operating expenses for the quarter were reduced to $4.5 million from $5.0 million, a decrease of 9%, driven by cost containment measures initiated in early 2024. The company reported a loss from operations of $3.9 million, an improvement from the $4.1 million loss recorded in the same quarter of 2024. Notably, selling, general, and administrative expenses slightly decreased, while research and development expenses saw a significant drop, reflecting a strategic shift in resource allocation.
In terms of operational developments, Wrap Technologies has expanded its customer base, with over 900 U.S. law enforcement agencies now utilizing the BolaWrap product, which is also deployed in 62 countries. The company has established a distribution network covering 75 countries and is actively pursuing opportunities in military and private security markets. As of March 31, 2025, the company had a backlog of approximately $64,000 and deferred revenue of $350,000, indicating potential future revenue streams.
The company’s financial position improved with cash and cash equivalents increasing to $6.2 million from $3.6 million at the end of 2024, bolstered by a private placement that generated $5.7 million in net proceeds. However, Wrap Technologies continues to face challenges, including geopolitical tensions and macroeconomic conditions that could impact future operations. Management remains optimistic about the growth potential of its product offerings, particularly in the context of increasing demand for non-lethal policing solutions, and anticipates continued innovation and market expansion in the coming quarters.
About WRAP TECHNOLOGIES, INC.
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