MIAMI, Nov. 12, 2025 (GLOBE NEWSWIRE) -- Wrap Technologies, Inc. $(WRAP)$ ("Wrap" or the "Company"), a global leader in non-lethal response and public-safety technology solutions, today announced financial and operating results for the third quarter ended September 30, 2025.
Highlights of Financial Results:
-- Revenue Growth:Total gross revenue for the three months ended September
30, 2025, was $2.0 million, representing an increase of 241% compared to
$0.6 million for the same period in 2024. The growth was primarily driven
by stronger BolaWrap$(R)$ product sales and the addition of managed
services revenue. Total net revenue for the quarter was $1.5 million, up
151% from the prior-year period. For the nine months ended September 30,
2025, gross revenue totaled $3.8 million compared to $3.6 million in
2024, while net revenue was $3.3 million versus $3.6 million, reflecting
the Company's ongoing transition to a more sustainable, service-oriented
model.The $2.0 million in quarterly sales represents the strongest
performance in the past 8 quarters which we believe indicates that the
Company's core fundamentals are improving, supported by growing demand
for its integrated non-lethal solutions.
-- Recurring Subscription Growth:Recurring subscription sales grew steadily
during the quarter ended September 30, 2025, totaling $236,000, which
represented approximately 12% of total gross revenue. The increase
reflects the Company's continued transition toward a recurring revenue
model, supported by growth in WrapReady$(TM)$, WrapPlus(TM), and managed
service subscriptions, as well as early adoption of training and policy
management programs across law enforcement agencies.
-- Margin Expansion:Gross profit increased 276% to $0.9 million for the
quarter ended September 30, 2025, compared to $0.2 million in the same
period last year. Gross margin expanded to 59% from 40%, driven by
improved pricing discipline, product mix, and operational
efficiencies.For the nine-month period ended September 30, 2025, gross
profit was $2.0 million, representing a 61% margin, compared to $2.1
million and a 56% margin in 2024.
-- Reduced Operating Expenses:Operating expenses for the quarter ended
September 30, 2025, were $3.6 million, compared to $3.9 million in the
same period last year - an improvement of 6% while maintaining strategic
investments in growth. For the nine months ended September 30, 2025,
operating expenses decreased 11% to $11.5 million, from $13.0 million in
the prior-year period.
-- Spending on Growth and Innovation:Although total expenses remain
relatively flat, the composition of spending has shifted toward growth
and innovation. Investments are now concentrated in sales, marketing, and
research & development (R&D)--areas that directly support future revenue
generation. The Company has expanded its domestic and international
salesforce, established a significant presence in Washington, D.C. to
accelerate federal market expansion, and made responsible R&D investments
to advance its non-lethal response ecosystem, including law enforcement
capabilities, counter-drone systems, and drone-as-first-responder
solutions that we believe together represent a significantly larger
addressable market.
-- Improved Operating Results:Operating loss improved 24% to $2.8 million
for the quarter ended September 30, 2025, compared to $3.6 million in the
third quarter of 2024. For the nine months ended September 30, 2025,
operating loss improved 13% to $9.5 million, from $10.9 million in the
prior-year period--demonstrating meaningful progress toward profitability
through disciplined execution and operational efficiency.
Other Recent Highlights:
-- Wrap and Vector Achieved Air-to-Air Interdiction Using BolaWrap(R)
Entanglement Technology, Ushering New Era of CUAS Defense for Military,
Homeland Security, and Public Safety Partners
-- Wrap and Mithril Defense Achieved Historic First Drone-to-Human
Interdiction, Proving Next-Gen Non-Lethal Aerial Response for Public
Safety and Defense
-- Wrap Launched Next-Generation Drone First Responder Interdiction Solution
with a Focus on Non-Lethal Response
-- Wrap Achieved Key Milestone in Counter-UAS Development with Successful
MERLIN Stage One Testing Conducted by Wrap
-- Wrap Partnered with Carahsoft to Expand Public Sector Access to
Non-Lethal Public Safety and Counter-UAS Solutions
-- Wrap and LETAC USA Announced Innovative Partnership to Help Define Global
Standards for Non-Lethal Machine-to-Man Policy and Tactics
-- Wrap and STORM Training Group Partnered to Deliver Post-BolaWrap(R)
Arrest & Control Training via WrapTactics(TM)
-- Wrap Introduced WrapTactics(TM): Digital Training Platform Driving
BolaWrap(R) Adoption and Shifting Policing Toward Pre-Escalation Training
-- Institutional Investor and Juggernaut Capital Founder John Shulman Joined
Wrap's Board of Directors
-- Wrap Appointed Internationally Recognized Strategic Communications and
Technology Expert Braden Frame as Chief Commercial Officer
-- Wrap Appointed Experienced Law Enforcement Leader Joseph Cameron as CRO
to Capture Expanding Growth Opportunities
Wrap expects to host a call to discuss these results. Details, including the date, time, and a link to register, are provided below:
-- Date: Wednesday, November 12, 2025 -- Time: 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) -- Webcast Link: https://edge.media-server.com/mmc/p/fys43zmv
About Wrap Technologies, Inc.
Wrap Technologies, Inc. (Nasdaq: WRAP) a global leader in innovative public safety technologies and non-lethal tools, delivering cutting-edge technology with exceptional people to address the complex, modern day challenges facing public safety organizations.
Wrap's complete public safety portfolio includes the non-lethal BolaWrap 150 device, WrapReality(TM) immersive training platform, WrapVision(TM) body-worn camera system, WrapTactics(TM) training programs, and next-generation CUAS solutions like PAN-DA and the 1KC Kinetic Anti-Drone Cassette, all of which supports the Company's mission to provide safer, scalable, and cost-effective technologies for public safety, defense, and critical infrastructure markets. Wrap's BolaWrap(R) 150 solution leads in pre-escalation intended to provide law enforcement with a safer choice for nearly every phase of a critical incident. This innovative, patented device deploys a multi-sensory, cognitive disruption that leverages sight, sound and sensation to expand the pre-escalation period and gives officers the advantage and critical time to manage non-compliant subjects before resorting to higher-force options. The BolaWrap 150 is not pain-based compliance. It does not shoot, strike, shock, or incapacitate, instead, it helps officers strategically operate pre-escalation on the force continuum, reducing the risk of injury to both officers and subjects. Used by over 1,000 agencies across the U.S. and in 60 countries, BolaWrap(R) is backed by training certified by the International Association of Directors of Law Enforcement Standards and Training (IADLEST), reinforcing Wrap's commitment to public safety through cutting-edge technology and expert training.
Wrap Reality(TM) VR is a fully immersive training simulator to enhance decision-making under pressure.
As a comprehensive public safety training platform, it provides first responders with realistic, interactive scenarios that reflect the evolving challenges of modern law enforcement. By offering a growing library of real-world situations, Wrap Reality(TM) is intended to equip officers with the skills and confidence to navigate high-stakes encounters effectively, which we believe leads to safer outcomes for both responders and the communities they serve.
WrapVision is an all-new body-worn camera and evidence management system built for efficiency.
Designed for efficiency, security, and transparency to meet the rigorous demands of modern law enforcement, WrapVision captures, stores, and helps manage digital evidence, ensuring operational security, regulatory compliance, and enhanced video picture quality and field of view.
The WrapVision camera, powered by IONODES, boasts streamlined cloud integration and final North American assembly, with a critical made-in-America roadmap projected for early 2026. This track helps ensure data integrity and helps eliminate critical concerns over unauthorized access or foreign surveillance risks.
Trademark Information
Wrap, the Wrap logo, BolaWrap(R) , Wrap Reality(TM) and Wrap Training Academy are trademarks of Wrap Technologies, Inc., some of which are registered in the U.S. and abroad. All other trade names used herein are either trademarks or registered trademarks of the respective holders.
Cautionary Note on Forward-Looking Statements -- Safe Harbor Statement
This release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Words such as "expect," "anticipate," "should", "believe", "target", "project", "goals", "estimate", "potential", "predict", "may", "will", "could", "intend", and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Moreover, forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the Company's control and include, but are not limited to, statements relating to any projections of revenue or other financial items or any statements regarding the plans and objectives of management for future operations, Wrap's planned future products, technologies, integration, intended product designs and expected benefits therefrom, expected market opportunities and outcomes related to Wrap's products to increase officer and public safety. The Company's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: the Company's ability to maintain compliance with the Nasdaq Capital Market's listing standards; the Company's ability to successfully implement training programs for the use of its products; the Company's ability to manufacture and produce products for its customers; the Company's ability to develop sales for its products; the market acceptance of existing and future products; the availability of funding to continue to finance operations; the complexity, expense and time associated with sales to law enforcement and government entities; the lengthy evaluation and sales cycle for the Company's product solutions; product defects; litigation risks from alleged product-related injuries; risks of government regulations; the impact resulting from geopolitical conflicts and any resulting sanctions; the ability to obtain export licenses for counties outside of the United States; the ability to obtain patents and defend intellectual property against competitors; the impact of competitive products and solutions; and the Company's ability to maintain and enhance its brand, as well as other risk factors mentioned in the Company's most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, and other Securities and Exchange Commission filings. These forward-looking statements are made as of the date of this release and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations.
Investor Relations Contact:
(800) 583-2652
ir@wrap.com
Wrap Technologies, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except par value and share amounts)
(unaudited)
September 30, 2025 December 31, 2024
ASSETS
Current Assets:
Cash and cash
equivalents $ 5,965 $ 3,610
Accounts receivable,
net 1,822 513
Inventories, net 5,461 6,170
Prepaids and deposits 334 178
------------------ -----------------
Total Current Assets 13,582 10,471
Property and equipment,
net 138 146
Operating lease right
of use assets, net 2,242 1,964
Intangible assets, net 2,147 2,354
Other assets, net 128 186
------------------ -----------------
Total Assets $ 18,237 $ 15,121
================== =================
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable 596 609
Accrued liabilities 563 1,403
Customer deposits 61 27
Deferred revenue -
short term 382 466
Operating lease
liability - short
term 305 567
Warrants - short term - 10,131
------------------ -----------------
Total Current
Liabilities 1,907 13,203
------------------ -----------------
Deferred revenue - long
term 18 39
Operating lease
liability - long term 2,186 1,629
------------------ -----------------
Total long-term
liabilities $ 2,204 $ 1,668
------------------ -----------------
Total Liabilities $ 4,111 $ 14,871
================== =================
Commitments and
Contingencies
Stockholders' Equity
Preferred stock -
5,000,000 authorized;
par value $0.0001 per
share; 12,707 shares
issued and outstanding
at September 30, 2025,
and December 31, 2024 - -
Common stock -
150,000,000
authorized; par value
$0.0001 per share;
51,497,710 and
47,101,631 shares
issued and outstanding
at September 30, 2025
and December 31, 2024,
respectively $ 5 $ 5
Series A convertible
preferred stocks -
10,000 authorized, par
value $0.0001 per
share; 8,207 shares
issued and outstanding
at September 30, 2025
and December 31, 2024 - -
Series B convertible
preferred stocks -
4,500 authorized, par
value $0.0001 per
share, 4,500 and 0
shares issued and
outstanding at
September 30, 2025 and
December 31, 2024,
respectively - -
Additional paid-in
capital 126,085 105,326
Accumulated deficit (111,964) (105,081)
------------------ -----------------
Total Stockholders'
Equity 14,126 250
------------------ -----------------
Total Liabilities
and Stockholders'
Equity $ 18,237 $ 15,121
================== =================
Wrap Technologies, Inc.
Condensed Consolidated Statements of Operations and
Comprehensive Loss
(in thousands, except share and per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------- ----------------------------
2025 2024 2025 2024
Revenues:
Product sales 1,743 $ 434 2,293 $ 3,012
Managed services 242 - 1,241 -
Technology
enabled
services 37 159 265 630
---------- ---------- ---------- ----------
Total
revenues,
gross 2,022 593 3,799 3,642
Sales returns
and
allowances (531) - (531) -
---------- ---------- ---------- ----------
Total
revenues,
net 1,491 593 3,268 3,642
Cost of revenues 608 358 1,303 1,587
---------- ---------- ---------- ----------
Gross profit 883 235 1,965 2,055
---------- ---------- ---------- ----------
Operating
Expenses:
Selling, general
and
administrative 3,477 3,334 10,887 11,029
Research and
development 167 527 619 1,960
---------- ---------- ---------- ----------
Total
operating
expenses 3,644 3,861 11,506 12,989
---------- ---------- ---------- ----------
Loss from
operations (2,761) (3,626) (9,541) (10,934)
---------- ---------- ---------- ----------
Other income /
(expense):
Interest income 2 21 6 154
Change in fair
value of
warrant
liabilities - 5,600 3,158 12,517
Other (14) (5) (14) (15)
---------- ---------- ---------- ----------
Total other
income /
(expense),
net (12) 5,616 3,150 12,656
---------- ---------- ---------- ----------
Net (loss)
income $ (2,773) $ 1,990 $ (6,391) $ 1,722
========== ========== ========== ==========
Less: convertible
preferred stock
dividends (164) (317) (492) (1,017)
---------- ---------- ---------- ----------
Net (loss) income
attributable to
common
stockholders $ (2,937) $ 1,673 $ (6,883) $ 705
========== ========== ========== ==========
Net (loss) income
per basic and
diluted share of
Common Stock $ (0.06) $ 0.04 $ (0.14) $ 0.02
========== ========== ========== ==========
Weighted average
common shares
used to compute
net loss per
basic and
diluted shares
of Common
Stock 51,096,292 45,861,208 49,998,057 45,067,793
========== ========== ========== ==========
Comprehensive
(loss) income:
Net (loss)
income $ (2,773) $ 1,990 $ (6,391) $ 1,722
---------- ---------- ---------- ----------
Comprehensive
(loss)
income $ (2,773) $ 1,990 $ (6,391) $ 1,722
========== ========== ========== ==========
Wrap Technologies, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Nine Months ended September 30,
-----------------------------------------
2025 2024
Cash Flows From Operating
Activities:
Net (loss) income $ (6,391) $ 1,722
Adjustments to reconcile net
loss to net cash used in
operating activities:
Depreciation and amortization 455 646
Loss on disposition of assets 9 -
Share-based compensation 3,073 1,814
Warranty provision 42 (37)
Change in fair value of
warrant liabilities (3,158) (12,517)
Non-cash lease expense (278) 217
Provision for doubtful
accounts 35 (89)
Inventory obsolescence
reserve (397) 12
Changes in assets and
liabilities:
Accounts receivable (1,344) 2,337
Inventories 1,106 (529)
Prepaid expenses and other
current assets (156) 666
Accounts payable (13) 168
Operating lease liability 295 (99)
Customer deposits 34 (956)
Accrued liabilities and other (876) (370)
Warranty settlement (13) (42)
Deferred revenue (105) 130
Changes in other non-current
assets 58 8
----------- -------------
Net cash used in operating
activities (7,624) (6,919)
----------- -------------
Cash Flows From Investing
Activities:
Proceeds from maturities of
short-term investments - 7,500
Capital expenditures for
property and equipment (93) (13)
Investment in patents and
trademarks (156) (124)
----------- -------------
Net cash (used in) provided
by investing activities (249) 7,363
----------- -------------
Cash Flows From Financing
Activities:
Proceeds from exercise of stock
options - 588
Proceeds from issuance of
Series B convertible preferred
stock 4,500 -
Proceeds from issuance of
warrants and common stock, net
of offering costs 5,728 -
Dividends settled in cash - (120)
----------- -------------
Net cash provided by
financing activities 10,228 468
----------- -------------
Net increase in cash and cash
equivalents 2,355 912
Cash and cash equivalents,
beginning of period 3,610 3,955
----------- -------------
Cash and cash equivalents, end of
period $ 5,965 $ 4,867
=========== =============
Supplemental Disclosure of
Non-Cash Investing and Financing
Activities:
Reclassification of warrant
liabilities to additional paid
in capital $ 12,151 $ 94
Dividends on convertible
preferred stock $ (492) $ (1,017)
Dividends settled with common
stock $ 492 $ 140
(END) Dow Jones Newswires
November 12, 2025 16:05 ET (21:05 GMT)
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