Wrap Technologies (NASDAQ:WRAP) Releases Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Wrap Technologies (NASDAQ:WRAP) issued its earnings results on Tuesday. The company reported ($0.04) EPS for the quarter, topping analysts’ consensus estimates of ($0.10) by $0.06, Zacks reports. The firm had revenue of $2.05 million during the quarter, compared to the consensus estimate of $1.61 million. Wrap Technologies had a negative net margin of 205.10% and a negative return on equity of 101.23%.

Here are the key takeaways from Wrap Technologies’ conference call:

• Q2 revenue doubled year over year to $2.1 million, while gross margin expanded to approximately 75% from 48%; operating and net losses also narrowed.
• The ATF determined that BolaWrap 150 is neither a firearm nor a weapon, which management says materially expands its addressable market to private security and strengthens discussions with insurers.
• Wrap is pursuing a broader set of opportunities, including 11 DOJ grant programs, DHS and border-related initiatives, and an exclusive U.S. and NATO right to Frenel’s TPiCore sensing technology for detecting difficult-to-identify threats such as RF-silent drones.
• The company is shifting from one-time device sales toward recurring “readiness” revenue through WrapTactics, its learning-management system, virtual reality, and ongoing training subscriptions.
• Management maintained its growth outlook but warned that the timing of one or two large orders could cause results to move materially up or down; Chilean revenue is excluded from the 2026 forecast, and accelerated spending or future capital raises may be needed to pursue new opportunities.

Wrap Technologies Trading Down 0.3%

NASDAQ:WRAP traded down $0.01 during midday trading on Thursday, hitting $1.73. 339,517 shares of the company were exchanged, compared to its average volume of 903,137. Wrap Technologies has a fifty-two week low of $1.04 and a fifty-two week high of $3.23. The company has a market capitalization of $96.15 million, a PE ratio of -6.39 and a beta of 1.34. The company has a fifty day simple moving average of $1.62 and a 200 day simple moving average of $1.62.

Analysts Set New Price Targets

A number of brokerages have issued reports on WRAP. Wall Street Zen downgraded Wrap Technologies from a “hold” rating to a “sell” rating in a report on Saturday, May 16th. Weiss Ratings downgraded Wrap Technologies from a “sell (d-)” rating to a “sell (e+)” rating in a report on Monday, May 18th. One investment analyst has rated the stock with a Sell rating, Based on data from MarketBeat, the company currently has a consensus rating of “Sell”.

Insider Transactions at Wrap Technologies

In related news, Director John D. Shulman acquired 100,000 shares of the firm’s stock in a transaction on Wednesday, July 8th. The stock was bought at an average price of $1.10 per share, for a total transaction of $110,000.00. Following the completion of the purchase, the director directly owned 199,037 shares of the company’s stock, valued at approximately $218,940.70. The trade was a 100.97% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 33.26% of the stock is owned by corporate insiders.

Institutional Trading of Wrap Technologies

Several institutional investors and hedge funds have recently made changes to their positions in the company. HRT Financial LP purchased a new position in Wrap Technologies during the 4th quarter worth approximately $27,000. XTX Topco Ltd acquired a new stake in shares of Wrap Technologies in the second quarter valued at approximately $32,000. Barclays PLC acquired a new stake in shares of Wrap Technologies in the fourth quarter valued at approximately $96,000. Squarepoint Ops LLC grew its position in shares of Wrap Technologies by 45.3% during the third quarter. Squarepoint Ops LLC now owns 50,209 shares of the company’s stock worth $109,000 after acquiring an additional 15,650 shares during the last quarter. Finally, OMERS ADMINISTRATION Corp purchased a new position in shares of Wrap Technologies during the fourth quarter worth approximately $126,000. 8.82% of the stock is owned by hedge funds and other institutional investors.

About Wrap Technologies

Wrap Technologies, Inc (NASDAQ: WRAP) is a designer and manufacturer of less-lethal restraint devices aimed at law enforcement and security professionals. Its flagship product, the BolaWrap®, is a handheld remote restraint tool that deploys a Kevlar-reinforced cord to safely immobilize individuals from a distance of up to 25 feet. The system is engineered to support de-escalation tactics and reduce reliance on physical force in high-risk encounters.

Based in Scottsdale, Arizona, Wrap Technologies oversees product development, testing and training at its headquarters.