Wrap Technologies, Inc. is an enterprise dedicated to public safety technology and services, engineering advanced solutions for security personnel and law enforcement ...
Wrap Technologies, Inc. (NASDAQ: WRAP) is a public safety technology and services company dedicated to providing advanced solutions for law enforcement, corrections, and security agencies. The company's core product, the BolaWrap 150, is a hand-held remote restraint device that deploys a Kevlar cord to temporarily restrain a subject from a ...Wrap Technologies, Inc. (NASDAQ: WRAP) is a public safety technology and services company dedicated to providing advanced solutions for law enforcement, corrections, and security agencies. The company's core product, the BolaWrap 150, is a hand-held remote restraint device that deploys a Kevlar cord to temporarily restrain a subject from a distance of 10-25 feet, reducing the need for physical force. This tool aims to de-escalate confrontations and improve safety for both officers and civilians. The company operates globally, serving customers across the Americas, Europe, the Middle East, Africa, and Asia-Pacific. As of the latest data, Wrap Technologies has 25 full-time employees and is headquartered in Miami, Florida, with an office in Tempe, Arizona. Financially, the company has a market capitalization of approximately $104 million and generates revenue of around $6.1 million TTM, though it is currently unprofitable with negative EBITDA and net margins. Key financial metrics show a gross profit margin of 63.6%, but high operating expenses (SG&A at 282.8% of revenue) and R&D investments (16.3% of revenue) contribute to significant net losses. The company maintains a strong balance sheet with $8.6 million in cash and a current ratio of 8.04. Under the leadership of founder and CEO Scot Cohen, who has raised over $100 million in financing, Wrap is transitioning from a single-product company to a platform provider, integrating tools, training, and policy through its Non-Lethal Response™ system and the WrapShield™ autonomous platform. Despite financial challenges, the company remains committed to expanding its product line and market reach, aiming to empower public safety professionals with effective, less-lethal options.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$4.7M
+3.7%
+84.7%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-10.3M
-75.9%
+50.3%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+57.8%
+5.6%
+21.1%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-288.6%
+16.4%
+74.4%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-221.2%
-69.7%
+73.1%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-10.4M
-27.7%
-95.0%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-222.4%
-23.2%
-5.6%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
21.0%
-97.6%
+2.7%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
6.29x
+692.5%
+6.0%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day, and thank you for standing by. Welcome to the Wrap Technologies, Inc. Q2 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Louis Springer.
Louis Springer: Thank you. Good afternoon, and welcome to Wrap Technologies Second Quarter 2026 Earnings Conference Call. I'm Louis Springer, Vice President of Finance. Joining me today is Scot Cohen, Chief Executive Officer; and Jared Novick, President and Chief Operating Officer. We appreciate your time and continued interest in Wrap. Before we begin, I want to remind you that certain statements and assumptions in this conference call contain or are based upon forward-looking information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and the federal securities regulations. Please review the forward-looking and cautionary statements section at the end of our second quarter 2026 earnings release for various factors that could cause actual results to differ materially from forward-looking statements made during our call today. Such forward-looking statements are subject to numerous assumptions, uncertainties and known or unknown risks, which could cause actual results to differ materially from those anticipated. These factors are more fully discussed in the company's filings with the Securities and Exchange Commission. The forward-looking statements included in this conference call are only made as of the date of this call, and the company is not obligated to publicly update or revise them. Statements made during this call do not constitute an offer to sell or a solicitation of an offer to buy any securities. Securities will be offered only by means of a registration statement and prospectus, which can be found at www.sec.gov. Also, during today's call, we will discuss certain non-GAAP financial measures, which we believe can be useful in evaluating the company's financial performance. Descriptions of those non-GAAP financial measures that we use and reconciliations of these measures to our results as reported in accordance with GAAP are detailed in our earnings release. Unless otherwise stated, all reported results discussed in this call will compare the second quarter ended June 30, 2026, to second quarter ended June 30, 2025. The earnings release will be available on the Financial Information section of our website at ir.wrap.com. In addition, a replay of this earnings call will be posted to our website after the call. I will now hand it over to Scot.
Scot Cohen: Thanks, Lou, and thank you, everybody, for joining the call today. We're coming off our best quarter in years. Revenue doubled quarter-over-quarter and we doubled compared to the second quarter last year. Operations continue to become more efficient. We're expanding sales. We productize our training. We're growing our BolaWrap …
