Wrap Technologies, Inc.

What they do

Wrap sells BolaWrap 150, an electronically deployed tether restraint device, along with recurring consumable cassettes and accessories, to law enforcement, corrections, and security customers. It also offers Wrap Reality VR training, WrapTactics digital training, and WrapVision body-worn cameras with cloud digital evidence management, acquired via the 2023 purchase of Intrensic. The company is promoting a platform concept called WrapShield that combines threat detection, AI-assisted decision support, and non-lethal response, initially aimed at counter-drone applications. Wrap formed Wrap Federal, LLC in September 2025 to pursue U.S. Department of Defense, Department of Homeland Security, and other federal clients.

Revenue drivers

• BolaWrap devices and cassettes — The core commercial product: handheld BolaWrap 150 restraint devices sold with recurring consumable cassettes. Product sales were $2.6 million in the first six months of 2026 versus $0.4 million a year earlier, now the largest revenue category.
• Training and software (Wrap Reality, WrapTactics) — VR simulation training and subscription-based digital training focused on decision-making under stress and use-of-force judgment, sold to agencies as recurring software and services.
• Body-worn cameras and digital evidence management (WrapVision, Intrensic) — Camera hardware plus cloud evidence management, with WrapVision positioned as a North America-assembled product for federal procurement and data-sovereignty requirements.
• Managed services and policy support — Technology-enabled services in policy governance and training, retained from the W1 Global asset acquisition after Wrap determined W1's investigative services were not essential.

Recent performance

Q2 2026 revenue was $2.1 million, up 103% from $1.0 million a year earlier, with gross margin expanding to about 75% from about 48%. First-half 2026 revenue rose 78% to $3.2 million, with product sales of $2.6 million and gross margin of about 71%. The Q2 operating loss improved 21% to $(2.3) million and net loss improved 39% to $(2.3) million, helped by a prior-year $0.9 million non-cash warrant-liability charge that did not recur. Operating cash use for the first half improved 27% to $(3.7) million, and cash was $4.8 million at June 30, 2026, up from $3.5 million at December 31, 2025. Total liabilities fell to $2.0 million from $3.9 million after terminating the former office lease.

Strategy

Management is shifting from a single-product company toward an integrated platform, WrapShield, linking detection, AI-assisted decision support, and proportionate response with counter-UAS as the first focus. It advanced the MERLIN non-lethal drone interdiction program and completed a first Wraptor MX multi-shot restraint prototype, with DFR-X drone-deployed restraint still in development and not commercially available. In July 2026 it made a strategic investment in Frenel Imaging Ltd. and took an exclusive license to thermal-polarimetric imaging for the U.S. and NATO markets. Wrap Federal targets federal defense and homeland security customers, and the company is emphasizing policy, training, and governance services for state and federal adoption.

Risks

• Persistent losses and funding need — Net losses were $10.3 million in 2025 and $5.9 million in 2024, and the company states it may need additional capital, which could dilute stockholders.
• Small revenue base — Annual revenue fell from $7.7 million in 2021 to $4.7 million in 2025, so results depend on a small number of agency orders and can swing sharply quarter to quarter.
• Unproven new products and markets — Wraptor MX, DFR-X, and the WrapShield counter-UAS platform are in development or early stage, and Wrap says WrapShield and defense/counter-UAS revenue timing is uncertain.
• Single-product concentration — The BolaWrap 150 and its cassettes remain the commercial foundation, and management attributes much of the addressable-market expansion to the July 2026 ATF ruling that reclassified it as an instrument of restraint.

Outlook

Management frames the July 2026 ATF classification of BolaWrap 150 as an instrument of restraint, rather than a firearm or weapon, as opening a U.S. private-security market of more than 1.2 million licensed officers and says it has had dozens of conversations with prospective private-sector organizations. It expects WrapShield and the Frenel imaging license to position Wrap in federally funded public-safety, homeland-security, and defense priorities. Wrap says it believes current resources fund operations for at least the next twelve months, though it flags that working capital may not be sufficient to reach profitable operations.