Wrap Technologies, Inc. (WRAP) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Wrap Technologies, Inc. (WRAP) Technology Profile & Competitive Position

Wrap Technologies, Inc. focuses on public safety technology, offering the BolaWrap 150, a remote restraint device designed for law enforcement and security. With a global presence, the company aims to provide non-lethal solutions for safely restraining individuals, operating within the hardware and equipment sector.

What Is the Investment Thesis for WRAP?

Wrap Technologies, Inc. presents a focused investment opportunity within the public safety technology sector. The company's innovative BolaWrap 150 addresses a critical need for non-lethal restraint solutions in law enforcement. With a market capitalization of $86.4M, Wrap Technologies operates in a niche market with potential for significant growth. The company's gross margin of 57.8% indicates strong pricing power. Key growth catalysts include expanding adoption by law enforcement agencies globally and continued product development. However, the company's negative profit margin of -221.2% highlights the need for improved cost management and revenue scaling. Investors should monitor the company's ability to increase sales, control operating expenses, and achieve profitability to fully realize the potential of its technology.

Based on FMP financials and quantitative analysis

WRAP Key Highlights

Market Cap of $86.4M reflects the company's current valuation in the public safety technology market.

• Gross Margin of 57.8% indicates strong pricing power and potential for profitability as sales scale.
• Beta of 1.52 suggests higher volatility compared to the overall market.
• Negative Profit Margin of -221.2% highlights the need for significant improvements in cost management and revenue generation.
• The company operates globally in the Americas, Europe, the Middle East, Africa, and the Asia Pacific, indicating a broad market reach.

Who Are WRAP's Competitors?

WRAP is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are WRAP's Key Strengths?

Innovative product (BolaWrap 150).

• Global market presence.
• Focus on non-lethal solutions.
• Strong gross margin (57.8%).

What Are WRAP's Weaknesses?

Negative profit margin (-221.2%).

• Limited product line.
• Small number of employees (19).
• High beta (1.52) indicating volatility.

What Could Drive WRAP Stock Higher?

Potential contracts with major law enforcement agencies could drive significant revenue growth.

• Increasing demand for non-lethal policing solutions is expected to fuel adoption of the BolaWrap 150.
• Product development and innovation could lead to new revenue streams and market opportunities.

What Are the Key Risks for WRAP?

Competition from established players in the law enforcement equipment market could limit market share.

• Regulatory changes affecting law enforcement practices could impact demand for the BolaWrap 150.
• The company's negative profit margin poses a risk to its long-term financial sustainability.
• Product liability claims could result in significant financial losses and reputational damage.

What Are the Growth Opportunities for WRAP?

• Expanding Adoption by Law Enforcement Agencies: The market for non-lethal restraint devices is growing as law enforcement agencies seek alternatives to traditional methods. Wrap Technologies can capitalize on this trend by increasing its sales and marketing efforts to target police departments and sheriff's offices across the United States and internationally. Securing large contracts with major law enforcement agencies could significantly boost revenue. The market size for law enforcement equipment is estimated to be in the billions of dollars annually, providing a substantial opportunity for Wrap Technologies to capture a larger share.
• International Market Expansion: Wrap Technologies has the opportunity to expand its presence in international markets, particularly in regions where law enforcement agencies are seeking to modernize their practices. By establishing partnerships with local distributors and tailoring its products to meet the specific needs of different countries, Wrap Technologies can tap into new revenue streams. The global market for public safety technology is estimated to be worth billions of dollars, offering significant growth potential.
• Product Development and Innovation: Wrap Technologies can continue to innovate and develop new products that address the evolving needs of law enforcement and security personnel. This could include enhancements to the BolaWrap 150, as well as the development of new devices and technologies that complement its existing product line. Investing in research and development will help Wrap Technologies maintain a competitive edge and attract new customers. The market for innovative policing solutions is constantly evolving, creating opportunities for companies that can stay ahead of the curve.
• Training and Support Services: Wrap Technologies can generate additional revenue by offering training and support services to law enforcement agencies that use its products. This could include on-site training programs, online resources, and ongoing technical support. By providing comprehensive training and support, Wrap Technologies can ensure that its customers are able to effectively use its products and achieve the desired results. This can also help to build customer loyalty and generate repeat business.
• Partnerships and Collaborations: Wrap Technologies can form partnerships and collaborations with other companies in the public safety technology sector to expand its reach and offer a more comprehensive suite of solutions. This could include partnerships with companies that provide body cameras, data analytics software, or other related technologies. By working together, Wrap Technologies and its partners can offer a more compelling value proposition to law enforcement agencies and capture a larger share of the market.

What Are WRAP's Competitive Advantages?

• Proprietary Technology: The BolaWrap 150 is a unique and patented device that offers a distinct advantage over traditional restraint methods.
• First-Mover Advantage: Wrap Technologies was among the first to introduce a remote restraint device of this kind to the market.
• Established Relationships: The company has established relationships with law enforcement agencies and security personnel, creating barriers to entry for competitors.
• Training and Support: Wrap Technologies provides comprehensive training and support services, which enhance customer loyalty and create a competitive advantage.

What Does WRAP Do?

Wrap Technologies, Inc. was founded in 2016 with the mission of modernizing policing through innovative technology. The company's core product, the BolaWrap 150, is a hand-held, remote restraint device that discharges a Kevlar cord to safely restrain non-compliant individuals from a distance of 10 to 25 feet. This technology is designed to de-escalate encounters between law enforcement and civilians, reducing the risk of injury to both parties. Wrap Technologies operates across the Americas, Europe, the Middle East, Africa, and the Asia Pacific, reflecting its global ambition. The company targets law enforcement agencies and security personnel, offering training and support alongside its product. Wrap Technologies aims to establish itself as a key player in the public safety technology market by providing effective, non-lethal solutions that prioritize safety and de-escalation in potentially volatile situations. The company is based in Tempe, Arizona, and continues to refine and expand its product offerings to meet the evolving needs of law enforcement agencies worldwide.

What Products and Services Does WRAP Offer?

• Develops the BolaWrap 150, a hand-held remote restraint device.
• Provides non-lethal policing solutions to law enforcement and security personnel.
• Offers a device that discharges a Kevlar cord to restrain noncompliant individuals.
• Operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
• Aims to de-escalate encounters between law enforcement and civilians.
• Provides training and support for its products.

How Does WRAP Make Money?

• Sells the BolaWrap 150 device to law enforcement agencies and security personnel.
• Generates revenue through product sales and related accessories.
• Offers training and support services to customers.
• Expands market reach through partnerships and international distribution.

What Industry Does WRAP Operate In?

Wrap Technologies operates within the public safety technology sector, which is experiencing increased demand for non-lethal solutions. Market trends include a growing emphasis on de-escalation tactics and a need for technologies that reduce the risk of injury during law enforcement encounters. The competitive landscape includes companies offering alternative restraint methods and less-lethal weapons. Wrap Technologies differentiates itself with the BolaWrap 150, a unique device designed to safely restrain individuals from a distance. The sector is driven by increasing scrutiny of law enforcement practices and a desire for safer, more humane methods of managing conflict.

Who Are WRAP's Key Customers?

• Law enforcement agencies (police departments, sheriff's offices).
• Security personnel (private security firms, government security).
• Correctional facilities.
• Military police

Company Profile

Wrap Technologies, Inc. operates in the Hardware, Equipment & Parts industry within the Technology sector. It is headquartered in Miami, US. The company is led by CEO Scot Jason Cohen. WRAP has traded publicly since 2018.

Key Financial Metrics

Return on assets is -88.1%, showing how much profit it generates from its asset base. Its free cash flow yield is -10.7%, a gauge of the cash the business throws off relative to its market value. A current ratio of 8.04 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -15.4%, the inverse of the P/E and a quick read on earnings relative to price.

WRAP Valuation & Market Position

With a $86.4M market cap, Wrap Technologies, Inc. sits in the micro-cap segment of the market. Relative to its peer group, WRAP's quantitative score of 24/100 is below the peer average of 65/100.

Quarterly Financial Performance: Wrap Technologies, Inc.

Revenue for Wrap Technologies, Inc. came in at $2.1M during Q2 2026, a 84.7% improvement versus the preceding quarter. The company recorded a net loss of $2.3M, with diluted EPS of $-0.04. Quarter-over-quarter revenue has been mixed, typical for a micro-cap company operating in Technology. Across the four most recent quarters, WRAP averaged $-0.07 in diluted EPS.

Wrap Technologies, Inc.'s Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 13.76 places it in the safe zone, indicating low near-term bankruptcy risk.

Wrap Technologies, Inc. has beaten Wall Street's EPS estimate in 4 of its last 8 reported quarters — more hits than misses. Reported results have landed about 45.7% below estimates on average.

Wall Street analysts project Wrap Technologies, Inc. revenue of about $4K for fiscal 2026, with EPS near $-0.14.

WRAP Financials

WRAP Latest News

WRAP Analyst Consensus

WRAP MoonshotScore

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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