Wrap Technologies, Inc.

Second quarter 2026 total revenue increased 103% year over year to $2.1 million from $1.0 million. Gross profit increased 217% to $1.5 million from $0.5 million, and gross margin expanded to approximately 75% from approximately 48%. Loss from operations improved 21% to $2.3 million from a loss of $2.9 million, and net loss improved 39% to $2.3 million from a loss of $3.7 million. The prior-year quarter included a $0.9 million noncash loss from the change in fair value of warrant liabilities that did not recur. Cash and cash equivalents were $4.8 million at June 30, 2026 versus $3.5 million at December 31, 2025, and total liabilities fell to $2.0 million from $3.9 million. No formal next-quarter or full-year numerical guidance was given; management reiterated prior revenue growth expectations, said it is not changing spending today, and noted it operates around a $3 million breakeven while remaining open to accelerating investment if traction builds.

Scot Cohen framed the quarter as the company’s best in years and said Wrap has transformed from a single-product business into a portfolio company with training, BolaWrap, VR, and sensing technologies. His tone was highly optimistic and strategic, emphasizing that ATF declassification and restored grant funding open larger addressable markets, especially private security and government channels. He also highlighted Frenel/TriCore as a structural advantage that competitors cannot easily copy and said Wrap intends to move quickly on hires, partnerships, and execution.

Louis Springer led with the reported financials: revenue of $2.1 million, gross profit of $1.5 million, gross margin of about 75%, operating loss of $2.3 million, and net loss of $2.3 million. He noted the prior-year period included a $0.9 million noncash warrant-liability loss that did not recur, which helped the net loss comparison. He also said cash and cash equivalents were $4.8 million at quarter-end and liabilities declined to $2.0 million after the former office lease was terminated.

Analysts and investors focused on Chile, insurance, virtual reality, fundraising, DHS/border opportunities, ATF scope, and the path to cash flow breakeven. Management said Chile is not in the 2026 revenue forecast because of a funding gap, though it is exploring whether INL or other government funding could support it; on insurance, management said the ATF ruling makes insurance central to private security go-to-market and that conversations have already started. They also said Wrap reality is core and has been updated with new hardware/software and scenarios, while on financing they said capital decisions will be disciplined, dilution-sensitive, and potentially used if growth opportunities justify it. On cash flow, management said it is operating around a $3 million breakeven but cannot yet predict the revenue level needed to become profitable.