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

Wrap Technologies (NASDAQ:WRAP) posted its quarterly earnings results on Tuesday. The company reported ($0.04) EPS for the quarter, topping the consensus estimate of ($0.10) by $0.06, Zacks reports. Wrap Technologies had a negative net margin of 270.03% and a negative return on equity of 115.68%. The company had revenue of $2.05 million for the quarter, compared to the consensus estimate of $1.61 million.

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 Up 2.2%

Shares of NASDAQ:WRAP opened at $1.87 on Wednesday. The company has a market capitalization of $104.23 million, a PE ratio of -6.23 and a beta of 1.34. The business has a 50 day moving average of $1.62 and a two-hundred day moving average of $1.62. Wrap Technologies has a 12-month low of $1.04 and a 12-month high of $3.23.

Insider Buying and Selling at Wrap Technologies

In other news, Director John D. Shulman bought 100,000 shares of the stock in a transaction dated Wednesday, July 8th. The shares were acquired at an average cost of $1.10 per share, with a total value of $110,000.00. Following the purchase, the director directly owned 199,037 shares in the company, valued at $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 available through the SEC website. Company insiders own 33.26% of the company’s stock.

Institutional Investors Weigh In On Wrap Technologies

A number of institutional investors have recently added to or reduced their stakes in WRAP. Renaissance Technologies LLC increased its position in shares of Wrap Technologies by 236.0% during the fourth quarter. Renaissance Technologies LLC now owns 156,900 shares of the company’s stock worth $373,000 after purchasing an additional 110,200 shares in the last quarter. Vanguard Group Inc. increased its position in shares of Wrap Technologies by 6.3% during the 3rd quarter. Vanguard Group Inc. now owns 1,660,908 shares of the company’s stock worth $3,604,000 after purchasing an additional 98,782 shares during the last quarter. Jane Street Group LLC raised its position in Wrap Technologies by 417.6% in the fourth quarter. Jane Street Group LLC now owns 120,272 shares of the company’s stock valued at $286,000 after purchasing an additional 97,035 shares during the period. OMERS ADMINISTRATION Corp purchased a new stake in shares of Wrap Technologies during the fourth quarter worth $126,000. Finally, Barclays PLC acquired a new position in Wrap Technologies in the fourth quarter valued at approximately $96,000. Institutional investors and hedge funds own 8.82% of the company’s stock.

Analysts Set New Price Targets

Several brokerages have recently commented on WRAP. Weiss Ratings lowered Wrap Technologies from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Monday, May 18th. Wall Street Zen downgraded Wrap Technologies from a “hold” rating to a “sell” rating in a research report on Saturday, May 16th. One research analyst has rated the stock with a Sell rating, According to data from MarketBeat, the company has an average rating of “Sell”.

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.