Wrap Technologies, Inc. (WRAP) AI Stock Analysis
WRAP AI stock analysis summary
AI ResearchWrap Technologies, Inc. (WRAP) develops public safety technology, notably the BolaWrap 150 remote restraint device. In FY2025, the company generated $4.7M in revenue with a net income of -$10.3M, while trailing twelve-month revenue reached $6.1M. With $4.8M in cash and short-term investments as of June 30, 2026, the company continues to post negative operating cash flow.
- Market cap
- $78.5M
- Revenue (TTM)
- $6.1M
- P/E
- —
- 1Y return
- -46.0% S&P 500 16.8%
- Avg. target
- $2.50 96.9% vs last close
Bull case
- Quarterly revenue growth reached 102.8% year-over-year in the quarter ended June 30, 2026.
- Gross margin has expanded annually from 35.5% in FY2021 to 57.8% in FY2025.
- The balance sheet holds $4.3M in net cash with total debt of $436,000 as of June 30, 2026.
Bear case
- Free cash flow was -$10.4M in FY2025 against cash and short-term investments of $4.8M as of June 30, 2026.
- The stock trades at a price-to-sales multiple of 13.0x, higher than the 2.8x median of its US-listed Technology peers.
- Share count increased 41.9% over five years, reflecting ongoing equity dilution.
What Wrap Technologies does
Wrap Technologies, Inc. is a public safety technology company providing solutions for law enforcement and security personnel globally. Founded in 2016 and headquartered in Tempe, Arizona, the company is known for its flagship product, the BolaWrap 150. This hand-held remote restraint device deploys a Kevlar cord that restrains noncompliant subjects from a safe distance of 10 to 25 feet. Operating across the Americas, Europe, the Middle East, Africa, and the Asia Pacific regions, the company develops technologies designed to help officers de-escalate confrontations while promoting community safety.
Growth and profitability
Revenue for Wrap Technologies was $7.7M in FY2021 and $8.0M in FY2022 before decreasing to $6.1M in FY2023 and $4.5M in FY2024. In FY2025, revenue rose 3.7% to $4.7M, resulting in a 5-year revenue CAGR of 3.4% from FY2020 to FY2025. Gross margin expanded from 35.5% in FY2021 to 57.8% in FY2025. Operating margin remained negative throughout the period, coming in at -288.6% in FY2025 alongside a net income of -$10.3M. In the latest quarter ended June 30, 2026, quarterly revenue growth reached 102.8% year-over-year, supporting trailing twelve-month revenue of $6.1M and an operating margin of -109.7%.
Balance sheet and cash flow
As of June 30, 2026, Wrap Technologies had $4.8M in cash and short-term investments and $436,000 in total debt, resulting in net cash of $4.3M. The company reported a current ratio of 8.04 and a debt-to-equity ratio of 0.03 against shareholders' equity of $13.3M. Operating cash flow was -$10.3M and free cash flow was -$10.4M in FY2025. Capital expenditures totaled $100,000 in FY2025, while the 5-year share count change was 41.9%.
Valuation and performance
At its last close of $1.27 on October 16, 2026, Wrap Technologies had a market cap of $78.5M and an enterprise value of $86.8M. The company trades at a price-to-sales multiple of 13.0x and an enterprise value-to-revenue multiple of 14.3x, above the 2.8x price-to-sales median of its US-listed Technology peers. Over the past year, the stock fell 46.0%, trailing the 16.8% return of the S&P 500 (SPY). Over five years, the stock fell 78.6% while the S&P 500 gained 83.0%.
What analysts expect
Wall Street analysts have a mean price target of $2.50 for Wrap Technologies, which is 96.9% above its last close of $1.27. For the current fiscal year ending December 31, 2026, the consensus revenue estimate is $0. Over the last 4 quarters, the company recorded 0 EPS beats. Wrap Technologies is scheduled to report its next earnings on November 11, 2026.
Key risks and what to watch
- Trailing twelve-month operating margin stands at -109.7%, driven by continuing operational losses.
- Short percent of float is elevated at 19.3%.
- R&D expense dropped from $6.2M in FY2021 to $56,000 in FY2025, which may constrain ongoing product development.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this WRAP AI stock analysis
This page is an AI-written research summary of Wrap Technologies, Inc. (WRAP). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: WRAP income statement, WRAP balance sheet, WRAP key metrics, WRAP analyst forecast, WRAP chart. See the WRAP stock overview for the latest quote and news.
WRAP AI stock analysis FAQ
What does Wrap Technologies do?
Wrap Technologies, Inc. develops public safety and policing tools, primarily the BolaWrap 150 hand-held remote restraint device that discharges a Kevlar cord from 10 to 25 feet.
What is Wrap Technologies' cash and debt position?
As of June 30, 2026, Wrap Technologies held $4.8M in cash and short-term investments, $436,000 in total debt, and net cash of $4.3M.
How has WRAP stock performed over the past year?
Over the 1-year period through October 16, 2026, WRAP fell 46.0%, compared to a 16.8% gain for the S&P 500 (SPY).
What are analysts forecasting for WRAP?
Analysts have set a mean price target of $2.50, representing a 96.9% premium over the last close of $1.27, alongside 0 EPS beats over the past 4 quarters.