WRAP · Wrap Technologies, Inc.

Wrap Technologies delivered Q1 2026 results showing revenue growth of 45% to $1.1 million, primarily propelled by a remarkable 186% surge in product sales to $0.9 million, fueled by heightened domestic and international demand for the BolaWrap 150 product line. Bookings expanded significantly to $3.2 million, split between $1.1 million domestic and $2.1 million international, underscoring robust global appetite for non-lethal response solutions. A pivotal milestone was the receipt of a purchase order from the U.S. Department of Homeland Security for BolaWrap technology, marking early federal adoption and advancing the Wrap Federal strategy into non-lethal response, drone interdiction, and counter-UAS markets. Gross profit rose 16% to $0.7 million, though margins compressed to 62% from 78% due to product mix shifts. Operating expenses climbed to $5.5 million from $4.5 million, driven by higher non-cash share-based compensation amid sales and go-to-market investments, resulting in an operating loss of $4.8 million and net loss of $4.5 million; the prior-year net income benefited from a $4.0 million warrant liability gain. Positively, cash efficiency improved markedly, with operating cash use dropping 59% to $1.2 million, bolstering the balance sheet to $7.3 million in cash from $3.5 million at year-end. Business momentum included drone-related pre-orders in the UK/Europe, a follow-on DFR-X order from Panama, and a strategic agreement in India for BolaWrap, WrapReality, and DFR-X. R&D progressed with IP filings for multi-shot systems, net-based drone interdiction, and a new Florida testing site. Management highlighted deepening agency adoptions, international training expansions, and consumable reorders, targeting approximately 100% revenue growth for 2026, supported by post-quarter acceleration and a February capital raise to address manufacturing constraints.