Wrap Technologies (NASDAQ:WRAP) said first-quarter revenue rose 45% year-over-year as product sales for its BolaWrap 150 line accelerated, while management reiterated its goal of doubling revenue in 2026.
On the company’s first-quarter 2026 earnings call, Chief Executive Officer Scot Cohen said management’s confidence in its full-year target had strengthened since March, citing greater visibility into the sales pipeline and continued momentum entering the second quarter.
“One quarter in, I can tell you that based on the information we have today, our conviction in that target has strengthened,” Cohen said. He added that first-quarter results suggested the company’s pipeline “is beginning to convert” and that agencies using BolaWrap are expanding their adoption.
Product Sales Drive First-Quarter Revenue Growth
Vice President of Finance Louis Springer said total revenue for the quarter ended March 31, 2026, was $1.1 million, up from $0.8 million in the prior-year period. Product sales increased 186% to $0.9 million, compared with $0.3 million a year earlier, driven by domestic and international demand for the BolaWrap 150 product line.
Bookings grew to $3.2 million during the period, according to Springer. He said cassettes and consumables represented a growing portion of product revenue, which the company views as consistent with a larger base of BolaWrap devices in active field use.
Technology-enabled services revenue declined to $0.2 million from $0.5 million in the prior-year quarter. Springer said the change reflected growth in WrapVision and related software revenue, offset by the wind down of certain advisory and investigative services. He said the company is focusing that revenue line on higher-margin subscription and software-based offerings, including WrapTactics, Wrap Reality and WrapVision evidence management subscriptions.
Gross profit rose 16% to $0.7 million from $0.6 million a year earlier. Gross margin declined to 62% from 78%, which Springer attributed to a higher mix of hardware product sales, which carry lower margins than software subscription and managed services revenue. He said the company currently expects margins to improve if technology-enabled services become a larger share of revenue during 2026, while noting there is no assurance that mix shift will occur at the expected pace or magnitude.
Expenses Rise, Operating Cash Use Improves
Total operating expenses were $5.5 million, compared with $4.5 million in the prior-year period. Within selling, general and administrative expense, share-based compensation was $2.4 million, up from $1.7 million a year earlier. Cash-based SG&A was $3 million, compared with $2.5 million, reflecting investment in sales and go-to-market expansion.
Cash used in operating activities improved 59% to $1.2 million from $3.1 million in the prior-year period. Springer said the improvement reflected higher revenue, disciplined cost management and reduced cash burn, even as the company continued to invest in sales and go-to-market activities.
“We believe the first quarter results reflect a leaner, more focused business that is beginning to grow with the non-lethal response framework we laid out last quarter,” Springer said.
Management Highlights International and Federal Opportunities
Cohen said the company has expanded its international footprint in India, Panama, Brazil, Malta and the U.K. He also said recurring elements of the business are beginning to take shape across BolaWrap, Wrap Reality, drone and counter-drone solutions.
In operational remarks, the company said agencies are showing increased interest in moving from single-device purchases to broader agency-wide adoption. Management said an integrated approach that includes hardware, technology, training and policy is resonating with customers.
The company also said its federal and defense market strategy is supported by consultants and advisers positioning its portfolio for customers including the Department of Defense and Department of Homeland Security. Management cited TAA-compliant products, Made in America manufacturing efforts and procurement infrastructure through Carahsoft as its master government aggregator as part of that strategy.
On drone and counter-drone initiatives, management said research and development investments in drone-to-drone and drone-to-person capabilities are showing traction. The company reported pre-orders for both drone and counter-drone systems, including recent orders across the U.K. and Europe, follow-on DFR-X orders from a partner in Panama and R&D expansion into net-based drone interdiction.
2026 Outlook Remains Focused on 100% Revenue Growth
Cohen reiterated that the company continues to target 100% revenue growth for 2026. He said the company is pursuing contracts for 2026 and 2027 that, if awarded, could meaningfully increase the scale of the business. However, he noted those opportunities remain subject to competitive processes, government funding decisions and other factors outside the company’s control.
For the balance of 2026, Cohen said the company’s priorities are to continue converting its pipeline, deepen agency-wide adoption, advance federal and international opportunities and execute against its revenue target.
Q&A Addresses Financing, CFO Search and Trading Volume
During the question-and-answer portion of the call, Cohen was asked whether the company’s current financing approach should be viewed as a temporary bridge or a continuing capital structure model. He said stronger fundamentals, increased stock liquidity and continued top-line execution could expand the company’s financing options.
Cohen said he has personally participated in financing rounds and acknowledged that raising capital has been difficult while the company was not performing. He said that if the company executes on its growth plan, it should have “real financing options” for the first time.
Asked what shareholders should watch for as evidence of reduced reliance on more dilutive financing structures, Cohen pointed to execution on fundamentals and the potential to attract more institutional investors. He said one sign would be the company completing a larger financing transaction involving institutions that are active filers in small-cap companies with long-term positions.
Cohen also said the company is searching for a chief financial officer. He said the company’s financial systems and controls are “the best they’ve ever been” and that a CFO would help communicate the company’s story to capital markets and investors.
In response to a question about unusually high trading volume on April 10, 2026, Cohen said he did not see major changes in the company’s capitalization table after the event. He said his “best guess” was that the activity was related to algorithmic trading.
About Wrap Technologies (NASDAQ:WRAP)
Wrap Technologies, Inc (NASDAQ: WRAP) is a designer and manufacturer of less-lethal restraint devices aimed at law enforcement and security professionals. Its flagship product, the BolaWrap®, is a handheld remote restraint tool that deploys a Kevlar-reinforced cord to safely immobilize individuals from a distance of up to 25 feet. The system is engineered to support de-escalation tactics and reduce reliance on physical force in high-risk encounters.
Based in Scottsdale, Arizona, Wrap Technologies oversees product development, testing and training at its headquarters.
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