# WRAP earnings call intelligence

LOPJLB CallCard / temporal rollup · freemium · [stock page](https://www.lopjlb.com/stock/WRAP) · [Earnings tab](https://www.lopjlb.com/stock/WRAP?tab=earnings)

Updated: 2026-08-13T08:18:44

Quarters analyzed: 8

## Cross-quarter narrative

Across the earnings calls, Wrap Technologies demonstrated a transformation from a company focused on BolaWrap sales to one emphasizing a broader public safety platform. The company's revenue and gross margin have shown improvement, with a notable increase in Q2 2026. The management tone has generally been positive, with a focus on cost discipline, R&D, and expanding the company's product offerings. Despite challenges such as international deal timing uncertainty, manufacturing transition risks, and revenue concentration, the company has made progress in its restructuring efforts, go-to-market pivot, and pre-escalation strategy. The company's expansion into new markets, including private security and international sales, has also been a key area of focus.

## Latest CallCard · Q2

WRAP Q2 revenue doubled YoY to $2.1M with 75% gross margin; ATF declassification opens private security market, DOJ grants return, Frenel polarimetric sensing adds defense adjacency; shifting to subscription training model via LMS.

**Guidance:** vague — Management maintains prior 100% YoY growth target as good faith estimate but acknowledges it could move up or down based on timing of meaningful orders; no formal guidance update.

**Tone:** mgmt 0.8 · Q&A pressure 0.4 · divergence 0.4

Management emphasizes three transformative developments (ATF ruling, DOJ grants, Frenel tech) opening large new markets and creating structural advantages, with revenue doubling and margin expansion.

### Demand visibility

Improving with DOJ grant programs reopening and private security market opening post-ATF ruling, but timing uncertain.

11 active DOJ grant programs identified; private security market (1.2M officers) newly addressable; DHS purchase order delivered; international border opportunities emerging; but Chile funding gap shows sovereign timing risk.

### Margins / costs

Gross margin expanded to 75% from 48% YoY; operating loss narrowed 21%; operating at ~$3M breakeven.

Revenue $2.1M (+103%), gross profit $1.5M (+217%), gross margin ~75%; operating loss $2.3M vs $2.9M; net loss $2.3M vs $3.7M; cash $4.8M; liabilities reduced to $2M; management indicates no dramatic spending increase near term but bias toward acceleration.

### Capital allocation

Disciplined approach; exploring financing options but sensitive to dilution; prepared to accelerate investment if traction materializes.

Regularly explore financing options; Scot Cohen significant shareholder, dilution-sensitive; no significant spending change today but bias toward acceleration; prepared to access capital markets to support growth if opportunities develop; cannot predict revenue needed for sustainable cash flow breakeven.

### Milestones

- **ATF determination for BolaWrap 150** [delivered]: Issued early July 2026; classified as instrument of restraint/rescue tool, not firearm or weapon
- **DOJ grant funding return** [on_track]: 11 active programs identified that could fund BolaWrap, body cameras, de-escalation and virtual training
- **Frenel TriCore exclusive rights** [delivered]: Exclusive U.S. and NATO rights to polarimetric sensing technology for RF-silent/camouflaged target detection
- **Wrap Tactics LMS core content library** [delivered]: Completed this month; enables subscription-based readiness model with digital advance training and in-person scenario coaching
- **DHS purchase order and training delivery** [delivered]: Q2 2026 training delivered to Department of Homeland Security, completing initial phase
- **WrapShield platform development** [on_track]: Building integrated solutions platform with multichannel revenue model; early conversations with international and government customers
- **Private security market entry** [new]: Dozens of conversations in past 30 days; first grant-funded training order received; insurance partnership discussions active
- **Raptor MX ATF engagement** [new]: Company will work closely with ATF on new product; hopeful for favorable classification

### Fears / risks

- **Funding timing risk**: Revenue dependent on DOJ grant cycles and sovereign funding (e.g., Chile); management acknowledges one or two meaningful orders timing can significantly

## Quarter one-liners

- **2026 Q2:** WRAP Q2 revenue doubled YoY to $2.1M with 75% gross margin; ATF declassification opens private security market, DOJ grants return, Frenel polarimetric sensing adds defense adjacency; shifting to subscription training model via LMS.
- **2026 Q1:** Wrap Technologies reported 45% revenue growth and 186% product sales increase in Q1, reaffirmed its 100% FY2026 growth target, highlighted expanding international footprint and drone pre‑orders, while discussing financing dilution, CFO search and market uncertainties.
- **2025 Q3:** Wrap Technologies reports strongest quarter in two years with $2M revenue, 12% subscription, advancing nonlethal ecosystem with BolaWrap, training, policy, and drone integration; expanding federal/international, opened VA manufacturing hub.
- **2025 Q2:** Wrap Technologies completed restructuring, pivoted to pre-escalation strategy with new subscription bundles, cut op-ex 26% QoQ, and sees purchase order surge in early Q3.
- **2025 Q1:** Wrap reported Q1 2025 cash growth and margin expansion while emphasizing new use‑of‑force data to drive BolaWrap sales, outlining political outreach, international rollout and a completed Virginia facility move.
- **2024 Q4:** Wrap Technologies reports transformational 2024 with restructuring complete, revenue down 27% to $4.5M but margins improved to 54%, net loss down 81%; focusing on BolaWrap as entry point to end-to-end public safety platform, leveraging W1 Global acquisition and federal partnerships for growth.
- **2023 Q3:** Wrap Technologies reports record Q3 revenue and gross profit on international BolaWrap order and Wrap Reality growth; Intrensic acquisition adds recurring revenue body camera platform; management sees sustainable demand.
- **2023 Q2:** Wrap Technologies acquired Intrensic for $500K cash + 1.25M shares, posted flat Q2 revenue of $1.2M but 56% gross margin, record Wrap Reality sales, and expects stronger H2 driven by international pipeline and cost discipline.

## Theme arcs

- **Revenue Growth** (improving): Revenue has increased over time, with a notable doubling in Q2 2026
- **Gross Margin Expansion** (improving): Gross margin has expanded, reaching 75% in Q2 2026
- **International Expansion** (improving): The company has made progress in expanding its international footprint
- **Product Diversification** (improving): The company has introduced new products, including the BolaWrap 150 and WrapShield platform
- **Regulatory Environment** (improving): The ATF determination and DOJ grant funding return have created new opportunities for the company
- **Financing and Dilution** (deteriorating): The company's reliance on dilutive financing structures remains a concern
- **Manufacturing and Supply Chain** (improving): The company has completed its manufacturing facility relocation and is focused on cost discipline
- **Sales and Marketing** (improving): The company is investing in sales and marketing expansion, including the hiring of new staff
- **Research and Development** (improving): The company is focused on R&D, including the development of new products such as WrapVision and counter-UAS systems
- **Government Funding and Contracts** (improving): The company has received DOJ grant funding and is pursuing federal contracts

## Fear persistence

- **International Deal Timing Uncertainty** [recurring]: The company has consistently faced uncertainty around the timing of international deals
- **Manufacturing Transition Risks** [resolved]: The company has completed its manufacturing facility relocation and is focused on cost discipline
- **Revenue Concentration** [recurring]: The company's revenue remains concentrated, with a significant portion coming from a single customer or market
- **Financing and Dilution** [recurring]: The company's reliance on dilutive financing structures remains a concern
- **Government Funding and Contracts** [recurring]: The company faces uncertainty around government funding and contracts, including the timing and amount of DOJ grant funding
- **Private Security Market Adoption** [new]: The company has entered the private security market, but the pace of adoption is uncertain
- **Frenel Technology Supply Chain and Delivery Capacity** [new]: The company faces risks around the supply chain and delivery capacity for Frenel technology
- **Talent Acquisition and Retention** [recurring]: The company faces challenges in hiring and retaining talent, including the recruitment of a new CFO
- **Data Reporting and Regulatory Scrutiny** [recurring]: The company faces risks around data reporting and regulatory scrutiny, including the potential for federal monitors or consent decrees
- **Program Cancellations and Policy Shifts** [recurring]: The company faces risks around program cancellations and policy shifts, including changes in department policies and procedures

## Guidance path

2023 Q2:vague → 2023 Q3:vague → 2024 Q4:vague → 2025 Q1:vague → 2025 Q2:vague → 2025 Q3:vague → 2026 Q1:maintained → 2026 Q2:vague

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Research context only. Not personalized investment advice.

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