8-K: Wrap Technologies Targets 100% Revenue Growth in 2026

Wrap Technologies, a leader in non-lethal response, announced strong Q4 and full-year 2025 results, projecting approximately 100% revenue growth for 2026.

Summary

• Q4 2025 Gross revenue increased 62% to $1.4 million, compared to $0.9 million in the prior-year period.
• Full Year 2025 Gross Revenue grew 15% year-over-year, from $4.5 million in 2024 to $5.2 million in 2025.
• Full Year 2025 Technology-enabled services revenue increased 85% to $1.7 million, up from $0.9 million in 2024.
• Q4 2025 Gross profit increased 79% to $0.7 million, with gross margin rising from 47% to 52%.
• Full Year 2025 Gross Margin increased from 55% to 58%.
• Q4 2025 Total operating expenses decreased 7% to $4.7 million, compared to $5.0 million in the prior-year quarter.
• Full Year 2025 Total operating expenses decreased 10% to $16.2 million, down from $18.0 million in the prior-year period.
• Q4 2025 Loss from Operations improved 15% to $(3.9) million, compared to $(4.6) million in the prior-year period.
• Full Year 2025 Loss from operations improved 13% to $(13.5) million, compared to $(15.6) million in 2024.
• Q4 2025 Net loss improved 48% to $(3.9) million, compared to $(7.6) million in the prior-year period.
• Full Year 2025 Net loss was $(10.3) million, compared to $(5.9) million in 2024, primarily driven by a $6.4 million reduction in non-cash income from warrant fair value adjustments.
• The company targets approximately 100% revenue growth in 2026.
• The average deal size increased nearly sixfold from the first half to the fourth quarter of 2025, reflecting a strategic shift to comprehensive, fleet-wide Non-Lethal Response deployments.
• Over 10,000 active BolaWrap units are deployed domestically, with consistent consumable reorder activity.
• Wrap expanded its international presence in 2025 and early 2026, including new distribution partnerships and entry into the Indian market.
• New product launches include WrapTactics (subscription-based digital training), WrapVision (body-worn camera), and the formation of Wrap Federal to pursue government opportunities.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive report, driven by strong Q4 revenue acceleration, improved operating efficiency, and an ambitious yet strategic outlook for 2026, despite the full-year net loss increase being a non-cash item.

Positives

• Significant Q4 2025 gross revenue growth of 62% to $1.4 million, indicating accelerating momentum.
• Full year 2025 gross revenue increased 15% to $5.2 million.
• Technology-enabled services revenue surged 85% to $1.7 million in 2025, reflecting successful acquisition integration and service expansion.
• Improved gross margins in both Q4 (52% from 47%) and full year (58% from 55%).
• Operating expenses decreased by 7% in Q4 and 10% for the full year, demonstrating continued cost discipline while investing in growth.
• Operating loss improved by 15% in Q4 and 13% for the full year.
• Net loss improved by 48% in Q4, aligning with revenue growth, margin expansion, and cost discipline.
• Strong customer retention and deepening engagement, with nearly half of 2025 trained departments being existing customers returning for recertification.
• Average deal size increased nearly sixfold from H1 to Q4 2025, driven by a strategic shift to comprehensive, fleet-wide deployments.
• Over 10,000 active BolaWrap units deployed domestically, with consistent consumable reorder activity suggesting active field use.
• Successful international expansion in 2025 and early 2026, including new distribution partnerships and entry into the Indian market.
• Launch of new products and platforms like WrapTactics, WrapVision, Wrap Federal, and entry into the counter-UAS market, expanding the addressable market.
• Company targets approximately 100% revenue growth in 2026, signaling strong future expectations and a clear growth path.

Negatives

• Full year 2025 net loss increased to $(10.3) million from $(5.9) million in 2024, primarily due to a $6.4 million reduction in non-cash income from warrant fair value adjustments.
• The company continues to operate at a significant loss from operations, reporting $(13.5) million for FY2025.

Risks

• Ability to achieve the targeted approximately 100% revenue growth in 2026.
• Ability to maintain compliance with Nasdaq Capital Markets listing standards.
• Ability to successfully implement training programs for the use of its products.
• Ability to manufacture and produce products for its customers.
• Ability to develop sales for its products.
• Market acceptance of existing and future products.
• Availability of funding to continue to finance operations.
• Complexity, expense, and time associated with sales to law enforcement and government entities.
• Lengthy evaluation and sales cycle for the company's product solutions.
• Product defects.
• Litigation risks from alleged product-related injuries.
• Risks of government regulations.
• Impact resulting from geopolitical conflicts and any resulting sanctions.
• Ability to obtain export licenses for countries outside of the United States.
• Ability to obtain patents and defend intellectual property against competitors.
• Impact of competitive products and solutions.
• Ability to maintain and enhance its brand.

Future Outlook

Wrap Technologies targets approximately 100% revenue growth in 2026, driven by expanding agency-wide deployments of BolaWrap through integrated programs, entry into federal and defense markets via Wrap Federal, advancement in UAS technology, scaling subscription-based recurring revenue, and continued international expansion. The company believes the public safety market is at an inflection point, favoring integrated Non-Lethal Response solutions.

Management Comments

• "A year ago, we outlined our vision for transforming Wrap from a product company into something different. In 2025, we executed on that vision, and what emerged is a company we believe is positioned to lead an entirely new category in public safety; Non-Lethal Response (Non-Lethal Response or NLR)."
• "We are no longer solely a device company. We are a solutions company. Our main solution is straightforward; safer outcomes."
• "The outcome we have delivered so far is measurable: no injuries, no fatalities, and no resulting litigation when our Non-Lethal Response solution is properly deployed."
• "The financial results align with this transformation. Revenue grew 15% year-over-year, with fourth quarter gross revenue up 62% and product sales more than doubling in Q4 2025 compared to the same period last year, giving us real momentum entering 2026."
• "We also reduced operating expenses by 10%, while simultaneously launching new products and entering new markets, suggesting disciplined growth and strategic investment are not mutually exclusive."
• "We entered 2026 with a broader portfolio, stronger partnerships, and what we believe to be a clearer path to growth than at any point in our history."

Industry Context

StockSavvy.ai notes that Wrap Technologies is strategically positioning itself within the evolving public safety sector, moving beyond single product sales to integrated non-lethal response solutions. This aligns with a broader industry trend towards comprehensive, technology-enabled frameworks for law enforcement, emphasizing de-escalation and officer safety. The expansion into counter-UAS technology also places Wrap at the forefront of emerging security challenges, diversifying its market reach beyond traditional policing tools.

Stakeholder Impact

• Shareholders: Potential for increased value due to strong revenue growth targets, improved operating efficiency, and strategic market expansion.
• Employees: Continued investment in new products and market expansion suggests stable to growing employment opportunities, particularly in technology-enabled services and R&D.
• Customers (Law Enforcement/Public Safety): Benefit from integrated non-lethal solutions, enhanced training, and new technologies like body-worn cameras and counter-UAS systems, leading to safer outcomes.
• Suppliers: Increased demand for BolaWrap and other products could lead to higher order volumes for suppliers, especially those involved in Made in America production.

Next Steps

• Expand agency-wide deployments of BolaWrap through integrated programs bundling BolaWrap hardware, training subscriptions in WrapTactics and Wrap Reality, policy support, and WrapVision.
• Actively position the portfolio for DOD, DHS, and other federal customers through Wrap Federal, Carahsoft partnership, and Made in America manufacturing efforts.
• Develop non-lethal response technologies for autonomous systems and drone-related public safety needs.
• Scale subscription-based digital and VR training, digital evidence management, and technology-enabled services to build a more predictable, higher-margin revenue base.
• Continue international expansion through the distributor network and centralized procurement dynamics in many international markets.
• Projected Made-in-America roadmap for the WrapVision camera is expected for early 2026.

Key Dates

Recommendation

The company demonstrated significant acceleration in Q4 2025 revenue growth and improved operating efficiency, coupled with an ambitious yet well-defined strategy for 2026, targeting 100% revenue growth. The shift to a solutions-based model, expansion into federal and international markets, and focus on recurring revenue streams position Wrap Technologies for substantial future growth in the evolving public safety sector. While a full-year net loss was reported, it was primarily due to non-cash adjustments, and operational improvements are evident. This indicates a strong potential for long-term value creation.

Keywords

Wrap Technologies, BolaWrap, Non-Lethal Response, Public Safety Technology, Law Enforcement, Body-Worn Camera, VR Training, Drone Interdiction, Counter-UAS, NASDAQ: WRAP, Financial Results, Revenue Growth, Operating Efficiency, Government Contracts, International Expansion