Wrap Technologies posts $1.1M Q1 revenue, receives DHS contract

Wrap Technologies Inc. (NASDAQ: WRAP) reported first-quarter revenue of $1.1 million, representing a 45% increase from $0.8 million in the prior-year period. The company announced $3.2 million in bookings for the quarter, with $1.1 million from domestic sales and $2.1 million from international sales.

Product sales rose 186% to $0.9 million compared to $0.3 million in the first quarter of 2025, driven by demand for the BolaWrap 150 product line. Gross profit increased 16% to $0.7 million, though gross margin declined to 62% from 78% in the prior year.

The company received a purchase order for BolaWrap technology from the U.S. Department of Homeland Security, marking federal adoption of its non-lethal response technology. Wrap also secured pre-orders for drone and counter-drone systems for deployment in the United Kingdom and Europe.

Operating expenses increased to $5.5 million from $4.5 million in the prior-year period, primarily due to higher share-based compensation expense. The company reported an operating loss of $4.8 million compared to $3.9 million in the first quarter of 2025. Net loss was $4.5 million versus net income of $0.1 million in the prior year, which included a $4.0 million gain from warrant liability fair value changes.

Cash and cash equivalents totaled $7.3 million at March 31, 2026, up from $3.5 million at December 31, 2025. Cash used in operating activities improved 59% to $1.2 million from $3.1 million in the prior-year period.

The company established a drone testing facility in Florida and filed intellectual property applications for a multi-shot non-lethal response system. Wrap entered a strategic agreement in India covering its BolaWrap, WrapReality, and DFR-X drone interdiction systems.

Multiple law enforcement agencies expanded to department-wide BolaWrap 150 deployments during the quarter. The company maintains its target of approximately 100% revenue growth for 2026.

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