Wrap Technologies 2025 Q2 Earnings Wider Losses Despite Cost Cuts

Wrap Technologies (WRAP) reported its fiscal 2025 Q2 earnings on Aug 14th, 2025, with the company posting a significant widening in losses despite aggressive cost-cutting measures. The results fell below expectations, with revenue declining sharply and net losses increasing substantially. The company did not raise guidance for future periods but emphasized strategic repositioning and improved financial discipline.

Revenue
Total revenue for Wrap Technologies dropped by 23.2% to $961,000 in 2025 Q2, a notable decline from the $1.25 million recorded in the same period of the previous year.

Earnings/Net Income
The company’s earnings continued to slide, with a loss of $0.07 per share in 2025 Q2, a 250.0% increase in the loss compared to the previous year’s $0.02 per share. The net loss expanded to $-3.73 million, up from $-385,000 in 2024 Q2, marking an 868.1% increase. This significant deterioration in profitability highlights the challenges the company continues to face despite operational cost reductions. The performance indicates poor financial health for the period.

Price Action
The stock price of Wrap Technologies showed strong short-term momentum, climbing 4.86% in a single trading day, surging 22.76% during the most recent full trading week, and jumping 11.03% month-to-date.

Post-Earnings Price Action Review
The buy-and-hold strategy of purchasing Wrap Technologies (WRAP) shares following a quarterly revenue increase and holding for 30 days yielded moderate returns but underperformed the benchmark. With a CAGR of 6.67%, the strategy lagged the benchmark by 39.81 percentage points. Despite a maximum drawdown of 0% and a Sharpe ratio of 0.06, which suggested a low-risk profile, the 103.34% volatility indicated highly unpredictable returns and significant market fluctuations.

CEO Commentary
CEO Dan Kowalski highlighted the company’s progress in cost reduction and improved cash flow management, emphasizing a 26% quarter-over-quarter reduction in operating expenses to $3.3 million and a 14% year-to-date decline in operating costs. Kowalski noted a $2.2 million reduction in net cash used in operations and a 16% increase in cash reserves to $4.2 million. He stressed the importance of the new Go-To-Market strategy, customer acquisition efforts, and value proposition improvements in driving long-term growth.

Guidance
Wrap Technologies did not provide specific financial guidance for future periods beyond the current quarter’s performance and strategic direction. The company plans to host a conference call to discuss Q2 results in more detail.

Additional News
Two Nigerians were arrested in Beirut, Lebanon, in July for allegedly smuggling cocaine worth $500,000. In Nigeria, the Federal Government launched a 0% interest loan scheme for tertiary workers, aiming to support education and workforce development. Meanwhile, the Kaduna State Government dismissed allegations by the African Democratic Congress and Social Democratic Party of election sabotage in ongoing by-elections. In business news, Lafarge Africa announced a campaign to plant one million trees in Ogun State, reinforcing its commitment to environmental sustainability.