Wrap Technologies Reports 103% Revenue Surge, ATF Classification Opens Private Security Market

Wrap Technologies, Inc. (NASDAQ: WRAP), a global leader in innovative public safety technologies, announced second-quarter 2026 financial results showing 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 reported a 21% improvement in loss from operations to $2.3 million and a 39% improvement in net loss 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.

A significant development subsequent to the quarter end was the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) classifying the BolaWrap 150 as an instrument of restraint and rescue rather than a firearm or weapon under applicable federal statutes. This classification expands potential applications beyond law enforcement into the private security market. Wrap Technologies also made a strategic investment in Frenel Imaging Ltd. to anchor the detection layer of its new WrapShield platform, which targets public safety, homeland security, defense, and technology opportunities including advanced sensing, counter-uncrewed aerial systems, and autonomous systems. Management stated it is not updating its previously disclosed target of 100% revenue growth for 2026, noting that the timing of revenue recognition could cause final results to differ materially from current expectations.

The ATF classification is a game-changer for Wrap Technologies. By defining the BolaWrap 150 as a restraint tool rather than a weapon, it removes regulatory barriers that might have limited its use in private security settings. This could open up a vast market of security guards, private investigators, and other non-law enforcement personnel who seek non-lethal methods to manage confrontations. The company's product, which deploys a multi-sensory distraction followed by a non-lethal restraint, is designed to reduce the risk of injury to officers, subjects, and the community. Used by over 1,000 agencies across the U.S. and in 60 countries, the BolaWrap 150 is backed by training certified by the International Association of Directors of Law Enforcement Standards and Training (IADLEST).

The investment in Frenel Imaging Ltd. and the development of the WrapShield platform signal Wrap Technologies' expansion into broader public safety and defense markets. This move aligns with growing global concerns about security threats, including drones and autonomous systems. The company's portfolio now includes the BolaWrap 150, Wrap Reality immersive training platform, WrapVision body-worn camera system, WrapTactics training programs, and next-generation counter-uncrewed aerial systems (C-UAS) like PAN-DA and the 1KC Kinetic Anti-Drone Cassette. These technologies address modern challenges faced by public safety organizations, offering safer, scalable, and cost-effective solutions.

The strong financial performance and strategic developments have significant implications for the public safety industry and investors. The revenue growth and margin expansion demonstrate increasing adoption of non-lethal technologies, which are becoming more critical as communities and law enforcement seek to reduce use-of-force incidents. The ATF classification could accelerate adoption in the private sector, potentially leading to a surge in demand. Furthermore, the company's focus on made-in-America manufacturing for its WrapVision camera addresses concerns over data security and supply chain resilience, appealing to government and enterprise clients.

For readers, this news matters because it highlights a shift toward safer public safety tools that can reduce injuries and fatalities. It also underscores the economic impact of companies like Wrap Technologies in Texas, where the company is headquartered, contributing to job creation and technological innovation. As the company continues to innovate and expand its product line, it is poised to play a pivotal role in shaping the future of public safety and security, both in Texas and globally.