Wrap Reports Q2 Revenue of $2.1 Million, Up 103% Year Over Year; ATF Classifies BolaWrap 150 as Non-Firearm, Non-Weapon
WRAP TECHNOLOGIES, INC. (WRAP) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Wrap Reports Q2 Revenue of $2.1 Million, Up 103% Year Over Year; ATF Classifies BolaWrap 150 as Non-Firearm, Non-Weapon BolaWrap 150 Declassification Unlocks Large Private-Security Addressable Market While WrapShield Extends WRAP Into U.S. Defense and New Federally F
How this was made
The 30-second read
Why it matters
The filing itself is a procedural disclosure that the earnings release exists; the trading-relevant impact depends on the missing Exhibit 99.1 details (earnings vs expectations, guidance, and any material changes).
Market read
Traders should treat this as an earnings-release filing event for WRAP, but the provided text does not contain the results needed to judge upside or downside.
What to watch
The attached Exhibit 99.1 likely contains the actionable numbers and any guidance; without it, the trading signal is incomplete.
Wrap Reports Q2 Revenue of $2.1 Million, Up 103% Year Over Year; ATF Classifies BolaWrap 150 as Non-Firearm, Non-Weapon
Second-quarter revenue more than doubled, gross margin expanded to approximately 75%, and operating and net losses improved, while the company remained loss-making and did not update its prior 2026 revenue-growth target.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueother | $2.1M | – | increased 103% |
| Gross profitother | $1.5M | – | increased 217% |
| Gross marginother | approximately 75% | – | – |
| Total operating expensesother | $3.8M | – | – |
| Loss from operationsother | −$2.3M | – | improved 21% |
| Net lossother | −$2.3M | – | improved 39% |
| Total revenue, first six monthsother | $3.2M | – | increased 78% |
| Product sales, first six monthsother | $2.6M | – | – |
| Gross profit, first six monthsother | $2.2M | – | increased 106% |
| Gross margin, first six monthsother | approximately 71% | – | – |
| Net cash used in operating activities, first six monthsother | −$3.7M | – | improved 27% |
2026 outlook
- Revenue100% revenue growth for 2026
- NoteBased on currently available information, we are not updating that prior target.
- NoteThe nature of our business can result in material changes to the ultimate timing on recognizing revenue so our final revenue for 2026 may differ materially from our current expectations.
What drove it
- Second-quarter revenue more than doubled year over year and product sales continued to accelerate.
- Gross margin expanded to approximately 75% in the second quarter, compared to approximately 48% in the prior-year period.
- The ATF classified BolaWrap 150 as an instrument of restraint and rescue, and not a firearm or weapon under applicable federal statutes.
- The company identified 11 active programs that can support BolaWrap, body-worn cameras, de-escalation training, and virtual-reality training.
- The company made a strategic investment in Frenel Imaging Ltd. to anchor the detection layer of its new WrapShield platform.
Concerns
- Total operating expenses were $3.8 million, compared to $3.3 million in the prior-year period, with the increase primarily reflecting higher non-cash share-based expense.
- The company reported a net loss of $(2.3) million for the second quarter.
- The prior-year quarter included a $0.9 million non-cash loss from the change in fair value of warrant liabilities that did not recur.
- The company stated that lengthy evaluation and sales cycles and budget and procurement constraints of government and law-enforcement customers are risks.
- Management stated that final revenue for 2026 may differ materially from current expectations because revenue-recognition timing can change materially.
What to watch
- Execution against management's target of 100% revenue growth for 2026, which management did not update.
- Commercial follow-through from the ATF classification and prospective private-sector organizations, following dozens of conversations reported by the company.
- Development, integration, commercialization, and market adoption of WrapShield and the company's counter-UAS initiatives.
- The timing and scale of international orders and agency-wide BolaWrap deployments.
- Continued gross-margin performance, operating losses, and capital resources.
Balance sheet and cash flow
- Cash and cash equivalents were $4.8 million at June 30, 2026, compared to $3.5 million at December 31, 2025.
- Total liabilities were reduced to $2.0 million at June 30, 2026, from $3.9 million at December 31, 2025, reflecting the termination of the Company’s former office lease.
- Net cash used in operating activities improved 27% to $(3.7) million, compared to $(5.0) million in the prior-year period.
Analysis
Wrap reported second-quarter total revenue of $2.1 million, up 103% from $1.0 million in the prior-year period. Gross profit increased 217% to $1.5 million, and gross margin expanded to approximately 75% from approximately 48%. For the first six months, total revenue increased 78% to $3.2 million, while product sales increased to $2.6 million from $0.4 million.
The profitability trend improved alongside the revenue growth. Loss from operations improved 21% to $(2.3) million from $(2.9) million, and net loss improved 39% to $(2.3) million from $(3.7) million. The comparison includes a prior-year $0.9 million non-cash loss from the change in fair value of warrant liabilities that did not recur. Operating expenses rose to $3.8 million from $3.3 million, primarily due to higher non-cash share-based expense.
Liquidity and cash consumption also improved on the figures reported. Cash and cash equivalents were $4.8 million at June 30, 2026, versus $3.5 million at December 31, 2025. Total liabilities were $2.0 million, down from $3.9 million, reflecting termination of the former office lease. First-six-month net cash used in operating activities improved 27% to $(3.7) million from $(5.0) million.
The operating narrative centers on the subsequent ATF classification of BolaWrap 150 as an instrument of restraint and rescue rather than a firearm or weapon, which management says opens private-security applications. Management also cited WrapShield, its strategic investment in Frenel Imaging Ltd., and 11 identified active funding programs as avenues into public safety, homeland security, defense, sensing, border security, and counter-UAS markets.
Management reiterated, rather than updated, its prior target of 100% revenue growth for 2026. It explicitly cautioned that sales cycles and revenue-recognition timing can cause final 2026 revenue to differ materially from current expectations. The principal reported items to monitor are whether the higher product-sales base converts into sustained revenue, whether the gross-margin expansion persists, and whether reduced operating cash use continues while the company funds its platform expansion.
Management, verbatim
Q2 represented a strong quarter, but more importantly, it reflects the transformation underway at WRAP Technologies.
Scot Cohen, Chairman and CEO of WRAP Technologies
As previously disclosed, management was targeting 100% revenue growth for 2026.
Scot Cohen, Chairman and CEO of WRAP Technologies
Based on currently available information, we are not updating that prior target.
Scot Cohen, Chairman and CEO of WRAP Technologies
Not in the filing
stated, not guessed- GAAP or non-GAAP basis labels for the reported financial metrics
- Diluted or basic EPS, including GAAP and non-GAAP EPS
- Prior-quarter figures and quarter-over-quarter changes
- Reported revenue by operating segment
- Second-quarter product sales
- Operating cash flow for the second quarter
- Free cash flow
- Debt balance
- Share repurchases, dividends, or other capital-return figures
- Quantified gross-margin, operating-expense, and tax-rate guidance
- A prior outlook section for comparison with actual results
- Amount of the strategic investment in Frenel Imaging Ltd.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The SEC 8-K (Item 2.02) reports that Wrap Technologies issued an earnings release for its fiscal quarter ended June 30, 2026, with the release attached as Exhibit 99.1.
Ticker impact
WRAP filed an 8-K stating it issued an earnings release for the quarter ended June 30, 2026, attached as Exhibit 99.1.
Near-term volatility possible on the earnings release, but direction cannot be inferred from the provided text.
The filing confirms the release occurred and is attached, yet the article body contains no revenue, EPS, margin, cash flow, or outlook figures to assess fundamentals or surprises.
Market effects
No sector read-through is provided in the scraped text beyond the fact that WRAP reported quarterly results.
None stated.
None stated.
Counterpoint
Because the scraped content omits the actual earnings figures, traders may overreact to the filing itself rather than the underlying results.
Key entities
- public_companyWRAP
Wrap Technologies, Inc., the registrant filing the 8-K and issuing the earnings release for the quarter ended June 30, 2026.
- regulatory_filingSEC Form 8-K
Current report under Item 2.02, furnishing the earnings-release information via Exhibit 99.1.
