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1. Company Snapshot

1.a. Company Description

Wrap Technologies, Inc., a public safety technology and services company, develops policing solutions to law enforcement and security personnel.The company develops BolaWrap 150, a hand-held remote restraint device that discharges a Kevlar cord to restrain noncompliant individuals from a range of 10-25 feet.It operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.


The company was founded in 2016 and is based in Tempe, Arizona.

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1.b. Last Insights on WRAP

The recent 3-month performance of Wrap Technologies, Inc. was negatively impacted by the lack of significant revenue growth despite the company's efforts to expand its managed services and commercialize its technology solutions. The Q4 2024 earnings release showed a 47% increase in revenue, but this growth was largely driven by a one-time event, and the company's overall revenue remains relatively low. The appointment of several high-profile executives, including former FBI and DEA officials, was intended to enhance the company's capabilities and drive growth, but their impact on the company's financial performance is yet to be seen.

1.c. Company Highlights

2. Wrap Technologies' Q3 2025 Earnings: A Pivotal Stage in Transformation

Wrap Technologies reported its strongest quarter in two years, with $2 million in gross revenue, driven by a mix of device sales and subscription-based services, with the latter accounting for 12% of total revenue. The company's EPS loss narrowed to $-0.05, beating estimates of $-0.1. Managed services contributed to lower-margin professional services, while higher-margin system sales driven by BolaWrap, Wrap Tactics, and WrapVision delivered the majority of growth. The shift towards recurring and integrated systems revenue is driving margin expansion and positioning Wrap for profitability.

Publication Date: Nov -19

📋 Highlights
  • Revenue Growth & Subscription Shift:: $2 million gross revenue, with 12% from subscription-based sales, marking the strongest quarter in two years.
  • BolaWrap Success Rate:: 92% field success rate with zero deaths, injuries, or lawsuits reported for the BolaWrap 150.
  • Market Expansion Strategy:: Addressable market now includes global public safety, defense, and homeland security via Wrap Federal (DCAA-compliant).
  • Margin Expansion:: Higher-margin system sales (BolaWrap, Wrap Tactics, WrapVision) drove growth, shifting from lower-margin services.
  • Operational Scale-Up:: 18+ sales and marketing hires, daily policy discussions, and declassification efforts to unlock international security guard market access.

Operational Highlights

The company's data from 516 law enforcement agencies shows a measurable and accelerating shift in use of force practices, with Wrap adoption rising and TASER, pepper spray, and baton use declining. BolaWrap 150 has demonstrated a 92% field success rate with zero reported deaths, zero serious injuries, and zero lawsuits. Departments across North Carolina, Colorado, and Kentucky are reporting that their BolaWrap deployments are outpacing TASER use, even with fewer BolaWraps in circulation.

Business Momentum and Expansion

Wrap is building a nonlethal response ecosystem, including a connected ecosystem of training, policy, and tools designed to work together to deliver safer outcomes, measurable performance improvements, and recurring value for customers. The company is expanding its total addressable market beyond law enforcement to global public safety, with Wrap Federal established to support expansion into defense and homeland security markets. Internationally, Wrap continues to demonstrate strong momentum, with significant reorder volume and growing demand for officer recertifications.

Valuation and Growth Prospects

With a P/S Ratio of 22.38, the market is pricing in significant growth expectations. The company's ROE is currently negative at -199.5%, but the shift towards recurring and integrated systems revenue is expected to drive margin expansion and profitability. Analysts estimate next year's revenue growth, and if achieved, could lead to a re-rating of the stock. The current valuation multiples suggest that the market is expecting a significant turnaround in the company's financial performance.

Management's Outlook

According to CEO Scot Cohen, "When we're able to safely apprehend subjects, adoption of our technology, BolaWrap, skyrockets." The company is positioning itself for significant growth, with a focus on sales and marketing, and is undergoing a hiring spree. With over 18 people now involved in sales and marketing, Wrap is poised to capitalize on the growing demand for nonlethal response solutions.

3. NewsRoom

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Texas Border Agency Selects New Non-Lethal Response Subscription to Strengthen Officer and Community Safety

Nov -24

Source: globenewswire.com

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Bubble Wrap Maker Sealed Air Sold for $6.2 Billion, Here's Who's Taking Over

Nov -17

Source: investopedia.com

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Wrap and K-Form Strengthen Made in America Supply Chain for Wrap's Non-Lethal Response and CUAS Manufacturing

Nov -14

Source: globenewswire.com

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Wrap Technologies, Inc. (WRAP) Q3 2025 Earnings Call Transcript

Nov -13

Source: seekingalpha.com

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Wrap Reports $2M Gross Revenue in Q3 With Non-Lethal Response Launch

Nov -12

Source: globenewswire.com

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Wrap and LETAC Lead Policy Development for Human Centered Non-Lethal Integration of Humanoid Robotics in Public Safety

Nov -07

Source: globenewswire.com

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Wrap and LETAC USA Announce Innovative Partnership to Help Define Global Standards for Non-Lethal Machine-to-Man Policy and Tactics

Nov -06

Source: globenewswire.com

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Wrap and Vector Achieve Air-to-Air Interdiction Using BolaWrap® Entanglement Technology, Ushering New Era of CUAS Defense for Military, Homeland Security, and Public Safety Partners

Nov -05

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.78%)

6. Segments

BoloWrap Remote Restraint Device

Expected Growth: 12.4%

Growing demand for non-lethal restraint methods, increasing adoption by law enforcement agencies, and expanding use in corrections and mental health facilities drive the growth of the BoloWrap Remote Restraint Device market.

Other

Expected Growth: 15.4%

Growing demand for non-lethal policing solutions, increasing adoption of virtual reality training, and expanding product offerings drive growth in Wrap Technologies' 'Other' segment.

7. Detailed Products

BolaWrap

A handheld remote restraint device that discharges a Kevlar tether to wrap a subject at a distance, allowing for de-escalation and minimizing the risk of injury.

Wrap Reality

A virtual reality training platform that provides immersive, scenario-based training for law enforcement and first responders.

Wrap Analytics

A data analytics platform that provides insights and trends on use-of-force incidents, helping agencies identify areas for improvement and reduce liability.

8. Wrap Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Wrap Technologies, Inc. faces moderate threat from substitutes, as law enforcement agencies may opt for alternative solutions for public safety and security.

Bargaining Power Of Customers

Wrap Technologies, Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Wrap Technologies, Inc. relies on a few key suppliers for its products and services, giving them moderate bargaining power.

Threat Of New Entrants

The public safety and security industry is highly competitive, and new entrants can easily disrupt the market, posing a significant threat to Wrap Technologies, Inc.'s market share.

Intensity Of Rivalry

The public safety and security industry is highly competitive, with many established players, leading to intense rivalry among companies, including Wrap Technologies, Inc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.10%
Debt Cost 3.95%
Equity Weight 98.90%
Equity Cost 11.49%
WACC 11.40%
Leverage 1.11%

11. Quality Control: Wrap Technologies, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Data I/O

A-Score: 4.6/10

Value: 8.4

Growth: 1.4

Quality: 4.7

Yield: 0.0

Momentum: 8.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Wrap Tech

A-Score: 4.2/10

Value: 6.0

Growth: 5.1

Quality: 4.2

Yield: 0.0

Momentum: 9.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
CPS Technologies

A-Score: 4.1/10

Value: 7.2

Growth: 0.8

Quality: 4.3

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
LightPath Technologies

A-Score: 3.6/10

Value: 6.0

Growth: 0.6

Quality: 3.9

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
LGL Group

A-Score: 3.4/10

Value: 3.8

Growth: 2.3

Quality: 6.1

Yield: 0.0

Momentum: 3.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Rogers

A-Score: 3.2/10

Value: 6.5

Growth: 2.7

Quality: 3.3

Yield: 0.0

Momentum: 1.0

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.79$

Current Price

2.79$

Potential

-0.00%

Expected Cash-Flows