Wrap Technologies (WRAP) Q4 2025 earnings summary

Executive summary

• Transitioned from a device-focused to a solutions-oriented company, integrating hardware, training, and digital services for non-lethal law enforcement response.

• Achieved 15% year-over-year gross revenue growth in 2025, with Q4 gross revenue up 62% compared to Q4 2024, reflecting strong momentum and expanding market presence.

• Technology-enabled services revenue rose 85% year-over-year, driven by acquisitions and expanded offerings in training, managed services, and software subscriptions.

• Operating loss improved 13% year-over-year, with disciplined cost management and a 10% reduction in total operating expenses despite investments in new products and market expansion.

• Expanded market focus to include law enforcement, schools, hospitals, correctional facilities, and international markets.

Financial highlights

• Full year gross revenue grew 15% to $5.2 million; Q4 revenue up 62% to $1.4 million year-over-year.

• Technology-enabled services revenue rose 85% to $1.7 million, reflecting growth in training and software.

• Gross margin expanded from 55% to 58% for the full year; Q4 gross margin rose to 52% from 47% year-over-year.

• Operating expenses decreased 10% year-over-year to $16.2 million.

• Net loss for 2025 was $10.3 million, impacted by a $6.4 million reduction in non-cash warrant adjustments and a one-time impairment.

Outlook and guidance

• Targeting 100% revenue growth for 2026, driven by agency-wide deployments, recurring revenue, and international expansion.

• Pipeline visibility and strong Q4 and Q1 sales bookings underpin confidence in guidance.

• Priorities include agency-wide deployments, federal and defense market entry, UAS technology advancement, and international expansion.