Wrap Technologies (NASDAQ: WRAP), a global leader in innovative public safety technologies, announced its second-quarter 2026 financial results, revealing a 103% jump in revenue to $2.1 million from $1.0 million in the same period last year. The company's gross profit increased 217% to $1.5 million, with gross margin expanding to approximately 75% from 48%. This significant improvement underscores the growing demand for non-lethal public safety solutions and the company's operational efficiency.
The company also reported that its loss from operations improved 21% to $2.3 million, and net loss improved 39% to $2.3 million. Cash and cash equivalents totaled $4.8 million at June 30, up from $3.5 million at year-end, providing a solid foundation for continued growth. For the first six months of 2026, revenue increased 78% to $3.2 million, including product sales of $2.6 million, while gross profit rose 106% to $2.2 million.
Subsequent to the quarter end, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) classified the BolaWrap 150 as an instrument of restraint and rescue rather than a firearm or weapon under applicable federal statutes. This classification is a pivotal development that expands potential applications beyond law enforcement into the private security market. The BolaWrap 150, which uses a multi-sensory distraction and non-lethal restraint, is already used by over 1,000 agencies across the U.S. and in 60 countries. The ATF's ruling could open new revenue streams for Wrap as private security firms seek safer alternatives for managing incidents.
In addition to the ATF classification, Wrap made a strategic investment in Frenel Imaging Ltd. to anchor the detection layer of its new WrapShield platform. This platform targets public safety, homeland security, defense, and technology opportunities, including advanced sensing, counter-uncrewed aerial systems, and autonomous systems. The investment aligns with Wrap's mission to provide safer, scalable, and cost-effective technologies for critical infrastructure markets.
Management maintained its previously disclosed target of 100% revenue growth for 2026, though they noted that the timing of revenue recognition could cause final results to differ materially from current expectations. This cautious outlook reflects the dynamic nature of the public safety technology market and the potential for regulatory or operational factors to influence revenue realization.
The company's portfolio includes the BolaWrap 150, Wrap Reality immersive training platform, WrapVision body-worn camera system, WrapTactics training programs, and next-generation C-UAS solutions like PAN-DA and the 1KC Kinetic Anti-Drone Cassette. WrapVision, powered by IONODES, boasts streamlined cloud integration and final North American assembly, with a made-in-America roadmap projected for early 2026, addressing concerns over unauthorized access or foreign surveillance risks.
The ATF classification and strategic investments signal Wrap's commitment to expanding its addressable market and enhancing its technology offerings. For the industry, these developments could accelerate the adoption of non-lethal tools in private security and other sectors, potentially reducing injuries and liability. For investors, the strong financial performance and growth initiatives position Wrap as a key player in the evolving public safety landscape.
For more information, visit the company's newsroom at https://ibn.fm/WRAP.
