Free cash flow remains deeply negative with quarterly outflows often exceeding $3M, indicating a structural inability to generate self-sustaining capital from core hardware sales.
| Cash from Operations | -8.76M | -10.29M | -8.13M | -16.7M | -14.6M | -18.22M | -12.19M | -8.49M | -2.69M | -833.71K | -213.47K |
| Operating CF Margin % | - | -220.23% | -180.28% | -272.35% | -181.43% | -235.77% | -309% | -1217.82% | -11629.1% | - | - |
| Operating CF Growth % | -998.43% | -26.63% | 51.36% | -14.38% | 19.86% | -49.53% | -43.62% | -215.2% | -222.91% | -290.55% | - |
| Net Income | -14.98M | -10.34M | -5.88M | -30.22M | -17.62M | -24.45M | -12.58M | -8.33M | -3.34M | -833.54K | -281.23K |
| Depreciation & Amortization | 344K | 594K | 1.12M | 962K | 863K | 567K | 163K | 46.95K | 21.88K | 6.66K | 1.57K |
| Stock-Based Compensation | 1.77M | 0 | 0 | 0 | 0 | 0 | 2.24M | 1.54M | 512.99K | 26K | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 4.24M | 1.42M | -5.34M | 15.88M | 3.51M | 6.59M | -321K | 2.66K | 391.46K | -26K | 14.48K |
| Working Capital Changes | -137K | -1.97M | 1.97M | -3.33M | -1.36M | -935K | -1.69M | -1.75M | 109.44K | -6.83K | 51.71K |
| Change in Receivables | -1.41M | -2.39M | 2.45M | -696K | 957K | -2.11M | -1.69M | -190.95K | -4.4K | 74.27K | 0 |
| Change in Inventory | 1.17M | 1.16M | -391K | -2.22M | -2.41M | 559K | -343K | -1.89M | -27.07K | -131.19K | 0 |
| Change in Payables | 293K | 11K | -441K | -617K | -360K | 546K | 825K | 174.05K | 196.75K | 24.1K | 0 |
| Cash from Investing | -345K | -387K | 7.31M | 5.18M | 14.91M | -6.94M | -26.11M | -382.19K | -134.29K | -35.1K | -11.45K |
| Capital Expenditures | -399K | -387K | -168K | -623K | -1.13M | -1.93M | -921K | -371.02K | -134.29K | -35.1K | -11.45K |
| CapEx % of Revenue | 7.95% | 8.28% | 3.73% | 10.16% | 14.03% | 25% | 23.35% | 53.25% | 580.11% | - | - |
| Acquisitions | 0 | 0 | -20K | -554K | 0 | 0 | -210K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 54K | 0 | 0 | 0 | -92K | 4K | 0 | 0 | -120.07K | -35.1K | 0 |
| Cash from Financing | 10.2M | 10.53M | 468K | 10.15M | 83K | 13.45M | 37.96M | 13.49M | 12.1M | 3.7M | 531K |
| Debt Issued (Net) | 295K | 0 | 0 | 0 | 0 | -275K | 414K | 0 | -39.44K | 0 | 0 |
| Equity Issued (Net) | 9.9M | 10.53M | 588K | 10.21M | 83K | 13.72M | 12.4M | 12.5M | 13.68M | 3.77M | 0 |
| Dividends Paid | 0 | 0 | -120K | -58K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 0 | 0 | 0 | 0 | 25.15M | 992.8K | -1.54M | -70.08K | 531K |
| Net Change in Cash | 1.09M | -142K | -345K | -1.38M | 393K | -11.71M | -337K | 4.62M | 9.27M | 2.83M | 306.09K |
| Free Cash Flow | -9.1M | -10.39M | -8.14M | -16.93M | -14.86M | -19.22M | -13.11M | -8.86M | -2.83M | -868.81K | -224.91K |
| FCF Margin % | -181.27% | -222.37% | -180.54% | -276.1% | -184.61% | -248.65% | -332.35% | -1271.06% | -12209.21% | - | - |
| FCF Growth % | -19.62% | -27.68% | 51.95% | -13.96% | 22.68% | -46.61% | -48% | -213.35% | -225.32% | -286.29% | - |
| FCF per Share | -0.17 | -0.21 | -0.18 | -0.40 | -0.36 | -0.49 | -0.39 | -0.31 | -0.12 | -0.04 | -0.03 |
| FCF Conversion (FCF/Net Income) | 0.61x | 1.00x | 1.38x | 0.55x | 0.83x | 0.75x | 0.97x | 1.02x | 0.81x | 1.00x | 0.76x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity and dilution
According to the provided cash flow data, WRAP consistently reports net losses that fail to convert into positive operating cash flow, with the OCF/NI ratio frequently oscillating in ways that suggest significant non-cash adjustments and underlying operational inefficiencies that hinder the company's ability to generate self-sustaining capital.
The recurring gap between net income and operating cash flow suggests that the company's reported earnings are heavily influenced by non-cash items, such as stock-based compensation, rather than actual cash generation. Investors should monitor this divergence closely, as it indicates that the business model remains fundamentally reliant on external financing to cover its ongoing operational deficits.
As reported in financial statements, WRAP's free cash flow trajectory remains consistently negative, with quarterly outflows often exceeding $3 million, highlighting a structural inability to achieve positive cash flow margins despite the company's efforts to scale its BolaWrap hardware sales across municipal law enforcement agencies.
The persistent negative free cash flow suggests that the company's current revenue growth is insufficient to offset the high fixed costs associated with its sales and administrative infrastructure. This trend implies that the company is effectively burning through its limited cash reserves to fund its growth, which may necessitate further capital raises.
Based on the reported figures, WRAP's working capital dynamics exhibit significant quarterly volatility, with changes ranging from a $2.9 million inflow in 2024Q3 to a $1.1 million outflow in 2025Q1, suggesting that the company struggles to maintain a predictable cash conversion cycle within its municipal procurement model.
This erratic behavior in working capital likely reflects the lumpy nature of government contracts and potential inventory management challenges. Such instability makes it difficult to forecast future cash needs and suggests that the company may be facing difficulties in timing its collections and inventory replenishment effectively.
As evidenced by the quarterly cash flow statements, WRAP utilizes significant stock-based compensation, reaching $1.7 million in 2025Q1, which effectively obscures the true cash burn rate and complicates the assessment of the company's underlying operational performance for shareholders monitoring the firm's limited cash runway.
By relying on equity-based incentives, the company may be attempting to preserve cash, but this practice dilutes existing shareholders and masks the true cost of talent acquisition. Analysts should adjust for these non-cash expenses to understand the actual cash requirements needed to sustain the business in its current state.
Quick answers to the most common questions about buying WRAP stock.
Wrap Technologies, Inc. (WRAP) generated $-10.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Wrap Technologies, Inc. (WRAP) reported negative free cash flow of $10.4M in 2025, indicating capital requirements exceeded cash from operations.
Wrap Technologies, Inc. (WRAP) spent $0.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.