Wrap Technologies (WRAP) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 103% year-over-year to $2.1 million, driven by strong product sales, especially BolaWrap 150, while technology-enabled services declined due to the wind-down of legacy contracts.

• Gross margin expanded to 75% from 48% year-over-year, reflecting higher product sales volume and a more favorable revenue mix.

• Net loss improved to $2.3 million, down from $3.7 million year-over-year, with operating loss narrowing to $2.3 million from $2.9 million.

• Strategic initiatives included the launch of the WrapShield platform, a $2 million investment in Frenel Imaging Ltd., and exclusive U.S./NATO rights to advanced thermal imaging technology.

• ATF classified BolaWrap 150 as a non-firearm, unlocking private security and insurance markets and expanding addressable opportunities.

Financial highlights

• Q2 2026 revenue: $2.1 million (+103% YoY); six months ended June 30, 2026: $3.2 million (+78% YoY).

• Gross profit for Q2 2026: $1.5 million (75% margin); six months: $2.2 million (70.7% margin).

• Operating loss Q2 2026: $2.3 million (improved by $0.6 million YoY); net loss Q2 2026: $2.3 million (improved from $3.7 million YoY).

• Cash and cash equivalents at June 30, 2026: $4.8 million, up from $3.5 million at year-end 2025; working capital: $11.6 million.

• Total liabilities reduced to $2 million from $3.9 million, reflecting lease termination.

Outlook and guidance

• Targeting 100% year-over-year revenue growth for 2026, but timing of large orders and government procurement cycles could impact results.

• Focus on expanding BolaWrap deployments, recurring revenue from training and subscription services, and advancing WrapShield and new product development.

• No change to spending profile; breakeven at ~$3 million revenue, but may accelerate investment if traction develops.

• No Chile revenue forecasted for 2026 due to funding gaps.

• Management expects continued operating losses until scale and recurring revenue improve.