Wrap Technologies, Inc. (WRAP) Earnings
Wrap Technologies, Inc. is expected to report next earnings on August 13, 2026 (in NaN days), with a consensus EPS estimate of $-0.10. WRAP has beaten EPS estimates in 5 of its last 6 reported quarters (average surprise +19.1% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 13, 2026 | $-0.10 | $-0.09 | +12.9% | $1M | -30.9% |
| Mar 26, 2026 | $-0.10 | $-0.08 | +22.6% | $1M | -12.7% |
| Nov 12, 2025 | — | $-0.06 | — | $1M | — |
| Aug 14, 2025 | — | $-0.07 | — | $1M | — |
| May 15, 2025 | — | $-0.00 | — | $765000 | — |
| Mar 31, 2025 | — | $-0.17 | — | $865000 | — |
| Nov 14, 2024 | — | $0.04 | — | $593000 | — |
| Sep 25, 2024 | — | $0.00 | — | $1M | — |
| Nov 9, 2023 | $-0.10 | $-0.05 | +50.0% | $4M | +51.3% |
| Aug 9, 2023 | $-0.11 | $-0.12 | -9.1% | $1M | -36.7% |
| May 2, 2023 | $-0.11 | $-0.08 | +23.4% | $4M | +122.6% |
| Aug 10, 2022 | $-0.13 | $-0.12 | +7.7% | $1M | -38.1% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 13, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Core Commercial Traction * Q1 2026 total revenue grew 45% year over year, with the company's core product adoption metric (product sales) growing 186% year over year, confirming that the previously reported sales pipeline is beginning to convert. * Agencies that have adopted BOLRAP technology are expanding usage and placing repeat orders, validating demand for the company's integrated agency-wide program model that combines hardware, technology, training, and policy support. * Total bookings grew to $3.2 million in Q1 2026, and cash burn from operating activities improved 59% year over year to $1.2 million, reflecting improved revenue discipline and cost management alongside continued go-to-market investment. - International Expansion * The company has expanded its commercial footprint across India, Panama, Brazil, Malta, and the UK, with verified repeat orders and customer engagements across all these markets confirming broad-based global demand for integrated non-lethal response solutions. * The company received follow-on DFRX drone system orders from its Panamanian partner and new drone/counter-drone orders across the UK and Europe, marking early commercial traction outside the core handheld BOLRAP platform. - Federal and Defense Market Entry * The company is leveraging federal consultants and advisors to position its full product portfolio for opportunities with the U.S. Department of Defense (DOD) and Department of Homeland Security (DHS). * The company has built a competitive foundation for federal procurement via TAA-compliant products, U.S.-based manufacturing, and established procurement infrastructure through its master government aggregator partnership with Kerasoft. - Research and Development (R&D) and Innovation * R&D investments in drone-to-drone and drone-to-person non-lethal interdiction capabilities are delivering early commercial results, with pre-orders now secured for both drone and counter-drone systems, confirming the market is moving from concept to active procurement. * The company is actively expanding R&D into net-based drone interdiction to address growing demand for counter-UAS solutions. - Recurring Revenue Development * Recurring revenue streams (including consumables for existing hardware and software subscriptions across WRAP Reality, WRAP Tactics, and WRAP Vision) are growing steadily alongside the expanding installed base of active devices. * While recurring revenue grows more gradually than one-time product orders, management expects it will meaningfully improve revenue quality and margins over time.
Guidance
- Management reaffirms its full-year 2026 target of 100% year-over-year revenue growth, and notes that stronger-than-expected Q1 performance and improved pipeline visibility have increased management's conviction in this target. - Management expects gross margin percentage to improve over the course of 2026 as higher-margin technology-enabled services grow as a proportion of total revenue, though there is no guarantee this mix shift will occur at the expected pace or magnitude. - Management notes that currently pending contract opportunities for 2026 and 2027, if awarded, could meaningfully increase the company's business scale.
Segment performance
RAP Technologies reports two core revenue segments for Q1 2026: 1) Product sales: Total product revenue was $0.9 million, representing an 186% year-over-year increase from $0.3 million in Q1 2025. This segment accounted for 81.8% of total Q1 2026 revenue. Growth was driven by strong domestic and international demand for the Bowler App 150 (BOLRAP) product line, with cassettes and consumables making up a growing share of product revenue as the installed base of active BOLRAP devices expands. 2) Technology-enabled services: Total services revenue was $0.2 million, a year-over-year decrease from $0.5 million in Q1 2025. This segment accounted for 18.2% of total Q1 2026 revenue. The decline reflects the wind-down of lower-margin advisory and investigative services, which was partially offset by growth in higher-margin software and subscription revenue for WRAP tactics, WRAP reality, and WRAP vision evidence management solutions.
Risks & headwinds
- Forward-looking statements (including the 100% revenue growth target and expected gross margin improvement) are subject to numerous assumptions, uncertainties, and known/unknown risks that could cause actual results to differ materially from anticipated outcomes. - Pending large contract awards are subject to competitive procurement processes, government funding decisions, and other factors outside of the company's control. - The company has historically relied on smaller, more dilutive financing rounds, and there is no guarantee that the company will be able to access less dilutive institutional financing on favorable terms in the future even if it hits its 2026 performance targets.
Analyst Q&A
Q: Is the company's current fragmented, dilutive financing approach a temporary scaling bridge, or the ongoing expected capital structure model?
A: Management confirms current financing is intended to be temporary. Now that the company has a validated pipeline, commercial traction, and demonstrated fiscal discipline, it is positioned to access new financing options from institutional investors if it continues hitting performance targets. The CEO notes he has personally participated in all prior financing rounds to support the company through its early development stage.
Q: What indicators should shareholders watch for to confirm the company is reducing reliance on dilutive financing structures?
A: The primary indicator will be the completion of a visible institutional financing round with long-term, fundamentally focused investors. Management is already preparing for this process, noting that over a third of the current cap table is held by individuals tied to law enforcement, and most top long-term shareholders have held positions for decades with little selling, indicating strong existing investor confidence in the company's technology.
Q: Is there an active plan to hire a dedicated CFO, given the CEO has previously held multiple top executive and financial roles?
A: Yes, hiring a dedicated CFO is an active company priority. The company has already conducted candidate interviews and is seeking an executive with capital markets experience to support investor engagement and share the company's story. Management notes the company's financial systems and internal controls are already the strongest they have ever been, putting the infrastructure in place to support a new CFO.
Q: What caused the unusually high trading volume with no corresponding price change on April 10, 2026?
A: Management states it found no material changes to the cap table or large shareholder position changes following the trading session. The leading explanation for the abnormal volume is algorithmic high-frequency trading activity, and the event was a non-fundamental head fake with no material business behind it.