Wrap Technologies Reports 103% Q2 Revenue Surge, ATF Classification Expands Market Reach

Wrap Technologies (NASDAQ: WRAP), a global leader in innovative public safety technologies, reported second-quarter 2026 revenue of $2.1 million, a 103% increase from $1.0 million in the same period last year. Gross profit surged 217% to $1.5 million, with gross margin expanding to approximately 75% from 48%. The company also reduced its loss from operations by 21% to $2.3 million and improved net loss by 39% to $2.3 million. Cash and cash equivalents stood at $4.8 million as of June 30, up from $3.5 million at year-end.

For the first six months of 2026, revenue increased 78% to $3.2 million, including product sales of $2.6 million, while gross profit rose 106% to $2.2 million. These results underscore the growing demand for non-lethal public safety solutions, a market that Wrap Technologies is well-positioned to lead.

Subsequent to quarter end, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) classified the BolaWrap 150 as an instrument of restraint and rescue rather than a firearm or weapon under applicable federal statutes. This classification is pivotal as it expands the potential applications of BolaWrap beyond law enforcement into the private security market. The BolaWrap 150, which is used by over 1,000 agencies across the U.S. and in 60 countries, is a non-lethal restraint device that deploys a multi-sensory distraction followed by a restraint, providing officers with a safer option for managing non-compliant subjects.

In addition to the ATF classification, Wrap Technologies made a strategic investment in Frenel Imaging Ltd. to anchor the detection layer of its new WrapShield platform. This platform targets public safety, homeland security, defense, and technology opportunities, including advanced sensing, counter-uncrewed aerial systems, and autonomous systems. The investment aligns with the company's mission to deliver cutting-edge technology that addresses complex modern-day challenges.

The company's portfolio includes the BolaWrap 150, Wrap Reality immersive training platform, WrapVision body-worn camera system, WrapTactics training programs, and next-generation C-UAS solutions like PAN-DA and the 1KC Kinetic Anti-Drone Cassette. These products support public safety, defense, and critical infrastructure markets, reflecting a comprehensive approach to safety and security.

The ATF classification and strategic investments are significant for the industry as they highlight the growing acceptance and adoption of non-lethal tools in public safety. By expanding into the private security market, Wrap Technologies could see increased demand, potentially accelerating revenue growth. The company's focus on innovation and training, certified by the International Association of Directors of Law Enforcement Standards and Training (IADLEST), reinforces its commitment to providing safer, scalable, and cost-effective technologies.

Management noted that it is not updating its previously disclosed target of 100% revenue growth for 2026, citing that the timing of revenue recognition could cause final results to differ materially from current expectations. However, the strong quarterly performance and strategic moves suggest a positive trajectory.

For more details, the full press release is available at https://ibn.fm/eK3bs.