Wrap Technologies Q4 Earnings Call Highlights
by Mitch Edgeman · The Markets DailyWrap Technologies (NASDAQ:WRAP) used its fourth-quarter and full-year 2025 earnings call to outline what CEO Scot Cohen described as a “relaunch” of the business, emphasizing a shift from selling a single device to offering an integrated non-lethal response “system” that combines hardware, policy support, and scalable training.
Executives said the company has gained clarity after years of product development and market experimentation, arguing that outcomes improve most when technology is deployed alongside policy and training. Cohen said the company’s solution, when “properly deployed,” has produced measurable outcomes, including “no serious injuries, no fatalities, and no resulting litigation,” which management framed as a key differentiator versus “less-lethal” tools.
2025 results: revenue growth, higher services contribution, and margin expansion
Vice President of Finance Lou Springer reported that full-year gross revenue rose 15% to $5.2 million, supported by what he called strong momentum in the second half of the year. Fourth-quarter gross revenue increased 62% to $1.4 million, with product sales more than doubling from the prior-year quarter on higher domestic and international demand for BolaWrap.
Springer also highlighted growth in technology-enabled services, saying technology-enabled services revenue reached $1.7 million in 2025, up 85% from $0.9 million in 2024. He attributed the increase to contributions from training, managed services, and software subscriptions.
Profitability metrics improved on a gross basis. Springer said gross margin expanded to 58% from 55%, which he attributed to favorable product mix and cost discipline. He added that total operating expenses decreased 10% year over year “even as we launched new products and entered new markets,” and that net loss from operations improved 13%.
However, Springer noted that net loss widened to $10.3 million from $5.9 million in 2024, driven by a $6.4 million reduction in non-cash income from warrant fair value adjustments and a one-time non-cash impairment expense.
Strategy: from device sales to an integrated non-lethal response framework
Cohen said Wrap’s central learning has been that “technology alone is not enough,” and that training is essential to achieve consistent field outcomes. He said the company has now “digitized and effectively productized” its training so it can be delivered at scale, pointing to WrapTactics as a higher-margin way to expand training adoption.
Management positioned the business as a provider of an integrated, multilayered non-lethal response system, rather than a company “in opposition” to lethal or less-lethal tools. During Q&A, executives drew a sharp distinction between “less lethal” and “non-lethal,” arguing that other tools have documented rates of unintended fatalities, while Wrap cited its track record of “zero fatalities” and “zero serious injuries.”
Springer also said the company refined its services portfolio during 2025, choosing to retain and invest in offerings where it sees the strongest customer demand—policy governance, training, virtual reality, and digital evidence management—while exiting non-core advisory services.
Operational metrics: training linked to higher success rates and larger deals
President and COO Jared Novick said the company’s internal and agency-reported data suggests ongoing training improves performance in the field. He said 78% of agencies that reported a BolaWrap field use in 2025 had either completed instructor recertification or had an embedded master instructor, and that those recertified agencies showed a “significantly higher” success rate.
Novick defined a successful field use as an encounter where BolaWrap was deployed and the situation was resolved without escalation to a higher level of force. He also said instructor recertifications accounted for nearly half of all departments trained in 2025, which management views as evidence that agencies are recommitting to their programs rather than abandoning them.
On commercial momentum, Novick said more than 70% of first-time agency orders closed in the second half of 2025, with the fourth quarter described as particularly strong. He added that the company’s average deal size increased nearly six-fold from the first half to the fourth quarter, which management attributed to a shift from single-unit evaluations to broader program deployments bundling hardware, training, support, and—in some cases—evidence management.
Novick also said Wrap has more than 10,000 active BolaWrap units deployed across domestic agencies, with over 76% on the current-generation BolaWrap 150. He cited consumable reorder activity as a positive signal of ongoing training and field usage.
Operationally, Novick said the company has restarted domestic manufacturing at its Norton, Virginia facility, bringing production in-house to increase quality oversight and capacity as demand grows.
Drones, federal access, and 2026 priorities
Management devoted significant discussion to drone-related opportunities, including counter-UAS applications. Novick referenced a collaboration with Vector that demonstrated air-to-air drone interdiction using “mechanical entanglement” adapted from Wrap’s patented technology. He also described the 1KC wide area kinetic anti-drone cassette and a “Drone as a First Responder” interdiction payload concept intended to turn drones into “active” non-lethal response tools.
In Q&A, the company said it is “out of the lab,” has performed bench-top testing, and is now testing in controlled scenarios. Executives said they have accepted pre-orders and expect the drone offering to come to market this year, while emphasizing the need to “get this right.”
On government sales, management discussed its partnership with Carahsoft Technology as a channel to federal, state, and local procurement vehicles, including NASPO ValuePoint and OMNIA Partners. Executives said Wrap Federal is positioning the portfolio for customers such as DoD and DHS, and also described leveraging U.S. embassy connections for overseas deal flow.
Novick outlined five execution priorities for 2026:
- Scaling “non-lethal response at scale” through agency-wide deployments bundling hardware, training subscriptions (WrapTactics and Wrap Reality), policy support, and WrapVision
- Federal and defense market entry
- Continued UAS development
- Recurring revenue growth from subscription-based digital and VR training, digital evidence management, and other services
- International expansion through distributor networks and centralized procurement dynamics
Outlook, capital stance, and investor watch items
Cohen said he is providing a forward target for the first time since becoming CEO, stating the company is targeting 100% revenue growth this year. He attributed the confidence to recent pace in the business, sales bookings from the fourth and first quarters, and what he described as improved pipeline quality. He added that the target does not include “larger federal opportunities” the company is pursuing for 2026 and 2027, noting that timing can affect quarterly results.
On capital needs, management said it is not currently seeking additional capital after recently raising $5 million, though Cohen said the company would remain opportunistic if raising funds made sense.
Asked about catalysts for the next 12 months, Cohen pointed to Counter-UAS progress, expansion and adoption of WrapTactics (and associated recurring revenue), increased federal engagement and staffing, continued international deployments in regions such as South America and Asia Pacific, and legislative efforts at the federal and state level that the company described as bipartisan.
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.