10-Q · May 13, 2026
Wrap Technologies reported a significant 45% increase in revenues to $1.1 million for Q1 2026 compared to $765 thousand in Q1 2025, primarily driven by a 186% jump in product sales. However, the company incurred a net…
Earnings analysis · 10-Q
WRAP earnings analysis
Filed August 11, 2026 · Our reading of the company's report
The latest report
WRAP reported Q2 revenue of $2.1 million, up 103% year over year, while gross margin increased to approximately 75% and the operating loss improved to approximately $(2.3) million. The company maintained its 100% 2026…
Read full summary
WRAP reported Q2 revenue of $2.1 million, up 103% year over year, while gross margin increased to approximately 75% and the operating loss improved to approximately $(2.3) million. The company maintained its 100% 2026 revenue-growth target but cautioned that revenue-recognition timing could cause final results to differ materially from current expectations. Newly emphasized Frenel license, investment and WrapShield execution risks materially increase uncertainty around the platform strategy.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Segment
- Single reportable segment; Q2 2026 revenue was $2.1 million.
What stood out
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Revenue More Than Doubled
Revenue was $2.1 million, up 103% year over year, versus $1.0 million in Q2 2025. The filing’s reported single-segment structure provides no additional segment revenue breakout.
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Gross Margin Expanded
Gross margin expanded to approximately 75%, up about 26.9 percentage points from 48.1% in Q2 2025 and 12.8 points from 62.2% in Q1 2026.
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Operating Loss Improved
Operating loss improved to approximately $(2.3) million from approximately $(2.8) million in Q2 2025, although the implied operating margin remained deeply negative at approximately -109.5%.
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2026 Growth Target Maintained
Management maintained its 100% revenue-growth target for 2026, supporting continued investment in the company’s platform strategy.
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WrapShield Platform Introduced
The company introduced WrapShield in 2026 as an integrated threat-detection, decision-support and response architecture focused initially on counter-unmanned-aircraft applications.
What to watch
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Dependence on Frenel License
WrapShield depends on Frenel’s exclusively licensed polarimetric thermal-imaging technology for its detection layer. The license has an initial four-year term and may convert from exclusive to non-exclusive if specified milestones are not met.
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Illiquid $2.0 Million Investment
The company invested $2.0 million in Frenel preferred shares in July 2026 and holds the right to invest up to an additional $2.5 million. The privately held investment is illiquid and could suffer a partial or total loss.
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Early-Stage Platform Execution
WrapShield is an early-stage strategy introduced in 2026 and requires integration of third-party technologies. Management states that the timing and scale of related revenue are uncertain and that the strategy may not achieve commercialization or market adoption.
Management's outlook
Management maintained its previously disclosed target of 100% revenue growth for 2026, while cautioning that revenue-recognition timing could cause final 2026 revenue to differ materially from current expectations.
Earlier filings 4
10-K · March 26, 2026
Wrap Technologies is repositioning from a single-product company into a diversified public‑safety technology and services provider, launching WrapTactics and WrapVision in 2025 and advancing C‑UAS work (MERLIN) while…
10-Q · May 15, 2025
Wrap Technologies reported Q1 revenues of $765,000 and gross profit of $595,000, but underlying operations remain unprofitable with loss from operations of $3,922,000. Cash increased to $6,170,000 after a $5,729,000…
10-K · March 31, 2025
Wrap Technologies positions itself as a global public-safety technology and services company selling the BolaWrap remote restraint, Wrap Reality VR training and, after its August 2023 acquisition of Intrensic, body‑worn…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.