Revenue growth remains highly volatile, swinging from a 151.4% surge in 2025Q3 to a 48.2% contraction in 2025Q1, while operating expenses consistently dwarf gross profits.
| Sales/Revenue | 5.02M | 4.67M | 4.51M | 6.13M | 8.05M | 7.73M | 3.94M | 696.79K | 23.15K | 0 | 0 |
| Revenue Growth % | 32.19% | 3.66% | -26.51% | -23.8% | 4.14% | 95.97% | 466.02% | 2909.89% | - | - | - |
| Cost of Goods Sold | 2.22M | 1.97M | 2.04M | 3.23M | 4.32M | 4.99M | 2.6M | 420.02K | 18.61K | 6.66K | 0 |
| COGS % of Revenue | - | 42.23% | 45.31% | 52.62% | 53.61% | 64.52% | 65.95% | 60.28% | 80.39% | - | - |
| Gross Profit | 2.79M | 2.7M | 2.46M | 2.91M | 3.73M | 2.74M | 1.34M | 276.77K | 4.54K | -6.66K | 0 |
| Gross Margin % | 55.7% | 57.77% | 54.69% | 47.38% | 46.39% | 35.48% | 34.05% | 39.72% | 19.61% | - | - |
| Gross Profit Growth % | - | 9.49% | -15.18% | -22.17% | 36.18% | 104.17% | 385.23% | 5997.69% | 168.14% | - | - |
| Operating Expenses | 17.13M | 16.18M | 18.03M | 21.63M | 21.46M | 27.24M | 14.42M | 8.89M | 3.34M | 833.54K | 281.23K |
| OpEx % of Revenue | - | 346.4% | 400.09% | 352.65% | 266.67% | 352.4% | 365.62% | 1275.92% | 14437.03% | - | - |
| Selling, General & Admin | 17.25M | 16.13M | 14.06M | 18.36M | 16.39M | 20.28M | 11.63M | 6.65M | 2.61M | 522.21K | 20.53K |
| SG&A % of Revenue | - | 345.21% | 311.89% | 299.38% | 203.58% | 262.34% | 294.9% | 954.87% | 11263.05% | - | - |
| Research & Development | -129K | 56K | 2.34M | 3.27M | 5.08M | 6.21M | 2.79M | 2.24M | 734.78K | 311.33K | 260.69K |
| R&D % of Revenue | - | 1.2% | 52.01% | 53.27% | 63.09% | 80.4% | 70.71% | 321.04% | 3173.98% | - | - |
| Other Operating Expenses | 0 | 0 | 1.63M | 0 | -1 | 747K | 0 | 0 | -409 | 0 | 0 |
| Operating Income | -14.33M | -13.48M | -15.57M | -18.72M | -17.73M | -24.5M | -13.08M | -8.61M | -3.34M | -833.54K | -281.23K |
| Operating Margin % | -285.57% | -288.63% | -345.4% | -305.27% | -220.28% | -316.92% | -331.57% | -1236.19% | -14417.43% | - | - |
| Operating Income Growth % | - | 13.37% | 16.85% | -5.59% | 27.62% | -87.31% | -51.82% | -158.08% | -300.41% | -196.4% | - |
| EBITDA | -13.84M | -12.89M | -14.74M | -17.9M | -16.97M | -24.02M | -12.91M | -8.49M | -3.32M | -826.88K | -279.65K |
| EBITDA Margin % | -275.71% | -275.92% | -327.05% | -291.85% | -210.81% | -310.74% | -327.43% | -1217.97% | -14322.93% | - | - |
| EBITDA Growth % | 5.19% | 12.54% | 17.65% | -5.49% | 29.35% | -85.98% | -52.17% | -155.95% | -300.99% | -195.68% | - |
| D&A (Non-Cash Add-back) | 495K | 594K | 827K | 823K | 762K | 478K | 163K | 127.01K | 21.88K | 6.66K | 1.57K |
| EBIT | -14.33M | -13.48M | -13.94M | -18.72M | -17.73M | -23.75M | -13.08M | -8.33M | -3.34M | -833.54K | -281.23K |
| Net Interest Income | 6K | 7K | 156K | 375K | 52K | 31K | 83.27K | 291.49K | 1.61K | 0 | 0 |
| Interest Income | 6K | 7K | 156K | 375K | 52K | 31K | 83K | 291.49K | 2.91K | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.3K | 0 | 0 |
| Other Income/Expense | -654K | 3.15M | 9.69M | -11.5M | 113K | 46K | 497K | 288.19K | 1.2K | 0 | 0 |
| Pretax Income | -14.98M | -10.34M | -5.88M | -30.22M | -17.62M | -24.45M | -12.58M | -8.33M | -3.34M | -833.54K | -281.23K |
| Pretax Margin % | -298.61% | -221.21% | -130.35% | -492.74% | -218.87% | -316.33% | -318.97% | -1194.83% | -14412.25% | - | - |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 895 | -5 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | -0.03% | 0% | 0% |
| Net Income | -14.98M | -10.34M | -5.88M | -30.22M | -17.62M | -24.45M | -12.58M | -8.33M | -3.34M | -833.54K | -281.23K |
| Net Margin % | -298.61% | -221.21% | -130.35% | -492.74% | -218.87% | -316.33% | -318.97% | -1194.83% | -14412.25% | - | - |
| Net Income Growth % | -154.7% | -75.91% | 80.56% | -71.54% | 27.94% | -94.35% | -51.1% | -149.53% | -300.27% | -196.4% | - |
| Net Income (Continuing) | -14.98M | -10.34M | -5.88M | -30.22M | -17.62M | -24.45M | -12.58M | -8.33M | -3.34M | -833.54K | -281.23K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.28 | -0.22 | -0.16 | -0.72 | -0.42 | -0.62 | -0.37 | -0.29 | -0.14 | -0.04 | -0.04 |
| EPS Growth % | -99.87% | -37.5% | 77.78% | -71.43% | 32.26% | -67.57% | -27.59% | -107.14% | -282.51% | 2.92% | - |
| EPS (Basic) | - | -0.22 | -0.16 | -0.72 | -0.42 | -0.62 | -0.37 | -0.29 | -0.14 | -0.04 | -0.04 |
| Diluted Shares Outstanding | 54M | 50.39M | 45.62M | 42.32M | 41.17M | 39.28M | 33.85M | 28.65M | 23.58M | 22.8M | 7.47M |
| Basic Shares Outstanding | 54M | 50.39M | 45.62M | 42.32M | 41.17M | 39.28M | 33.85M | 28.65M | 23.58M | 22.8M | 7.47M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Imminent liquidity and dilution risk
As reported in recent financial filings, WRAP's quarterly revenue exhibits extreme volatility, with growth rates swinging from a 151.4% surge in 2025Q3 to a 48.2% contraction in 2025Q1, suggesting that the company has yet to establish a predictable, repeatable sales cycle within its core municipal market.
The lack of consistent top-line expansion indicates that the company's pilot-to-permanent conversion strategy is not yet yielding the necessary scale to support its cost base. Investors should monitor whether the lumpy nature of these revenue figures reflects genuine market adoption or merely the timing of sporadic, non-recurring international distributor orders.
Based on the provided income statement data, WRAP's gross margin has fluctuated significantly, ranging from a negative 49.4% in 2023Q4 to a peak of 77.8% in 2025Q1, which highlights the inherent instability in the company's current manufacturing and pricing execution for its BolaWrap hardware.
While a 57.77% average gross margin suggests the product has inherent value, the wide variance between quarters implies that the company may be struggling with inventory management or inconsistent pricing power. This volatility complicates the ability to forecast long-term profitability, as the cost of goods sold appears highly sensitive to production volume and potential inventory write-downs.
According to the company's income statement, WRAP's operating expenses consistently dwarf its gross profit, resulting in an operating margin of -288.63% that underscores a structural inability to scale the business effectively relative to the high fixed costs of its sales and administrative infrastructure.
The persistent gap between revenue generation and SG&A expenses suggests that the current go-to-market model is prohibitively expensive for the company's current size. Without a significant inflection in revenue, the company appears trapped in a cycle where it must continue to burn capital to maintain its market presence, preventing the realization of any meaningful operating leverage.
As evidenced by the quarterly data, WRAP's net income figures are frequently impacted by significant stock-based compensation, which reached $1.7M in 2025Q1, effectively masking the underlying cash burn and complicating the assessment of true operational performance for shareholders.
The reliance on equity-based incentives in a period of negative net margins warrants further investigation into the company's cash preservation strategy. Investors should be wary of these non-cash adjustments, as they may obscure the actual rate at which the company is consuming its limited cash reserves to fund ongoing operations.
Based on the reported figures, the company's cash position of $3.47M against a TTM net loss exceeding $10M suggests a precarious financial state that may force management to seek dilutive financing in the near term to maintain basic operations.
Short-sellers would likely focus on the disconnect between the company's high-growth narrative and the reality of its stagnant revenue and mounting losses. The inability to achieve a sustainable path to profitability, combined with the high risk of further shareholder dilution, suggests that the current valuation may be disconnected from the company's fundamental operational realities.
Quick answers to the most common questions about buying WRAP stock.
For fiscal year 2025, Wrap Technologies, Inc. (WRAP) reported total revenue of $4.7M.
Wrap Technologies, Inc. (WRAP) reported a net loss of $10.3M for the fiscal year ending 2025.
Wrap Technologies, Inc. (WRAP) reported an operating income of $-13.5M, resulting in an operating profit margin of -288.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Wrap Technologies, Inc. (WRAP) generated $2.7M in gross profit for the year, representing a gross profit margin of 57.8%. This demonstrates the company's core pricing power and production efficiency.