Wrap Technologies Reports 103% Revenue Growth to $2.1 Million in Latest Quarter

Wrap Technologies, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2026. The company achieved total revenues of $2.1 million for the three months ended June 30, 2026, marking a 103% increase from $1.0 million in the same period last year. This growth was primarily driven by a substantial rise in product sales, which reached $1.7 million compared to just $50,000 in the prior year, reflecting improved order flow and increased shipments of the BolaWrap 150 devices and related cassettes. However, technology-enabled services revenue declined to $305,000, down 68% from $962,000, largely due to the winding down of managed services associated with a previous acquisition.

In terms of profitability, Wrap Technologies reported a gross profit of $1.5 million for the quarter, up from $487,000 a year earlier, resulting in a gross margin of 75.3%. The company’s operating expenses increased to $3.8 million, up 14% from $3.3 million, primarily due to higher selling, general, and administrative costs, which included increased share-based compensation. The net loss for the quarter was $2.3 million, a decrease from a net loss of $3.7 million in the same quarter of 2025, indicating improved operational efficiency.

Wrap Technologies also noted key operational developments, including a strategic investment in Frenel Imaging Ltd. in July 2026, which aims to enhance its WrapShield platform with advanced thermal-polarimetric imaging technology. The company is focusing on expanding its product offerings, including the development of the Wraptor MX, a multi-shot restraint platform, and the DFR-X drone-deployed restraint system. The company’s employee headcount has also increased, reflecting its growth strategy and the need for additional talent to support its expanding operations.

The company’s balance sheet showed total assets of $15.3 million as of June 30, 2026, a slight decrease from $15.4 million at the end of 2025. Total liabilities decreased significantly to $2.0 million, down from $3.9 million, primarily due to the termination of an operating lease. Stockholders' equity increased to $13.3 million, bolstered by proceeds from a private placement and warrant exercises. Looking ahead, Wrap Technologies anticipates continued investment in its product development and marketing efforts, while managing costs and capital resources. The company remains optimistic about the adoption of its core products and the potential for future revenue growth, although it acknowledges the ongoing challenges of operating in a highly regulated environment and the need for sustained operational readiness.