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

Wrap Technologies (NASDAQ:WRAP) posted its earnings results on Tuesday. The company reported ($0.04) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.10) by $0.06, Zacks reports. Wrap Technologies had a negative return on equity of 115.68% and a negative net margin of 270.03%.

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 Price Performance

Wrap Technologies stock traded up $0.04 during midday trading on Tuesday, hitting $1.87. 1,208,051 shares of the stock were exchanged, compared to its average volume of 905,247. Wrap Technologies has a 1 year low of $1.04 and a 1 year high of $3.23. The firm has a market cap of $104.23 million, a P/E ratio of -6.23 and a beta of 1.34. The company has a 50 day moving average price of $1.61 and a two-hundred day moving average price of $1.63.

Insiders Place Their Bets

In other 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 cost of $1.10 per share, with a total value of $110,000.00. Following the transaction, the director directly owned 199,037 shares in the company, valued at approximately $218,940.70. This represents a 100.97% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. 33.26% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. OMERS ADMINISTRATION Corp purchased a new position in Wrap Technologies in the fourth quarter valued at about $126,000. Barclays PLC purchased a new stake in Wrap Technologies during the 4th quarter worth approximately $96,000. State Street Corp increased its holdings in Wrap Technologies by 16.2% during the 4th quarter. State Street Corp now owns 129,667 shares of the company’s stock worth $309,000 after purchasing an additional 18,100 shares during the last quarter. Jane Street Group LLC raised its position in shares of Wrap Technologies by 417.6% in the 4th 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 in the last quarter. Finally, HRT Financial LP acquired a new position in shares of Wrap Technologies in the 4th quarter valued at approximately $27,000. Hedge funds and other institutional investors own 8.82% of the company’s stock.

Analyst Ratings Changes

WRAP has been the topic of several recent research reports. Weiss Ratings lowered Wrap Technologies from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Monday, May 18th. Wall Street Zen downgraded shares of Wrap Technologies from a “hold” rating to a “sell” rating in a research report on Saturday, May 16th. One investment analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, Wrap Technologies currently has an average rating of “Sell”.

Wrap Technologies Company Profile

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.