Wrap Technologies 2025 Q1 Earnings Mixed Results as Net Income Declines 6.8%
Daily EarningsFriday, May 16, 2025 1:05 am ET
15min readWrap Technologies (WRAP) reported its fiscal 2025 Q1 earnings on May 15th, 2025. Despite a decline in revenue and net income, showed improvements in certain financial metrics. The company reported a revenue of $765 thousand, which missed expectations set during the previous quarter. However, Technologies has adjusted its guidance, projecting a gradual increase in revenue streams, particularly from managed services, for the next quarter, indicating cautious optimism towards achieving its target revenue of approximately $1 million.
Revenue
The total revenue of Wrap Technologies decreased by 55.8% to $587,000 in 2025 Q1, down from $1.33 million in 2024 Q1.
Earnings/Net Income
Wrap Technologies narrowed losses to $0.00 per share in 2025 Q1 from a loss of $0.00 per share in 2024 Q1 (31.3% improvement). Meanwhile, the company's net income declined to $109,000 in 2025 Q1, down 6.8% from $117,000 reported in 2024 Q1. Despite improvements in EPS, net income shows a slight downturn.
Price Action
The stock price of Wrap Technologies has edged up 1.32% during the latest trading day, has climbed 4.79% during the most recent full trading week, and has climbed 3.38% month-to-date.
Post-Earnings Price Action Review
The strategy of buying Wrap Technologies (WRAP) shares after revenue increases on the financial report release date and holding for 30 days resulted in a commendable 16.00% annualized return over the past five years, outperforming the average annual return of the S&P 500, which stood at 11.50%. Despite a 67% share price decline over the last half-decade, this strategy leveraged consistent revenue growth, which often exceeded expectations. The decline in share price may be attributed to high expectations or market sentiment, further evidenced by a recent 21% drop. However, the strategy capitalized on insider buying and significant improvements in cash and margins, suggesting potential for a turnaround.
CEO Commentary
Wrap Technologies, Inc. CEO emphasized that the company is navigating challenges while focusing on its strategic priorities in the public safety sector. He noted an improvement in cash position and gross margins, attributing this to effective cost management and the successful integration of the W1 Global acquisition. The CEO highlighted ongoing customer interest in their BolaWrap product and the expansion into managed services as key growth drivers. He expressed cautious optimism about the potential for increasing market adoption of their innovative non-lethal tools, reinforcing the commitment to enhancing public safety through advanced technology and training solutions.
Guidance
The company anticipates a gradual increase in revenue streams, particularly from managed services, projecting a target revenue of approximately $1 million for the upcoming quarter. Additionally, Wrap Technologies expects to maintain a focus on operational efficiency, with plans to contain operating expenses under $4 million. The leadership indicated that while they aim for positive net income in the next quarter, they remain vigilant about market conditions and will adapt strategies to mitigate risks associated with geopolitical tensions and regulatory challenges.
Additional News
Wrap Technologies has made significant strides in enhancing its leadership and strategic direction. Recently, the company completed the acquisition of W1 Global, LLC, a professional services firm led by former law enforcement and U.S. Intelligence Community professionals. This acquisition aims to bolster Wrap's managed services capabilities and expand its competitive edge in public safety solutions. Additionally, Wrap appointed Joseph Bonavolonta, a 27-year FBI veteran, and Rob Heuchling, with a 15-year FBI career, to scale the company’s support offerings. These leadership enhancements are expected to drive global expansion and strengthen Wrap's international growth strategy, as the company continues to focus on innovative non-lethal tools aimed at improving public safety.
Revenue
The total revenue of Wrap Technologies decreased by 55.8% to $587,000 in 2025 Q1, down from $1.33 million in 2024 Q1.
Earnings/Net Income
Wrap Technologies narrowed losses to $0.00 per share in 2025 Q1 from a loss of $0.00 per share in 2024 Q1 (31.3% improvement). Meanwhile, the company's net income declined to $109,000 in 2025 Q1, down 6.8% from $117,000 reported in 2024 Q1. Despite improvements in EPS, net income shows a slight downturn.
Price Action
The stock price of Wrap Technologies has edged up 1.32% during the latest trading day, has climbed 4.79% during the most recent full trading week, and has climbed 3.38% month-to-date.
Post-Earnings Price Action Review
The strategy of buying Wrap Technologies (WRAP) shares after revenue increases on the financial report release date and holding for 30 days resulted in a commendable 16.00% annualized return over the past five years, outperforming the average annual return of the S&P 500, which stood at 11.50%. Despite a 67% share price decline over the last half-decade, this strategy leveraged consistent revenue growth, which often exceeded expectations. The decline in share price may be attributed to high expectations or market sentiment, further evidenced by a recent 21% drop. However, the strategy capitalized on insider buying and significant improvements in cash and margins, suggesting potential for a turnaround.
CEO Commentary
Wrap Technologies, Inc. CEO emphasized that the company is navigating challenges while focusing on its strategic priorities in the public safety sector. He noted an improvement in cash position and gross margins, attributing this to effective cost management and the successful integration of the W1 Global acquisition. The CEO highlighted ongoing customer interest in their BolaWrap product and the expansion into managed services as key growth drivers. He expressed cautious optimism about the potential for increasing market adoption of their innovative non-lethal tools, reinforcing the commitment to enhancing public safety through advanced technology and training solutions.
Guidance
The company anticipates a gradual increase in revenue streams, particularly from managed services, projecting a target revenue of approximately $1 million for the upcoming quarter. Additionally, Wrap Technologies expects to maintain a focus on operational efficiency, with plans to contain operating expenses under $4 million. The leadership indicated that while they aim for positive net income in the next quarter, they remain vigilant about market conditions and will adapt strategies to mitigate risks associated with geopolitical tensions and regulatory challenges.
Additional News
Wrap Technologies has made significant strides in enhancing its leadership and strategic direction. Recently, the company completed the acquisition of W1 Global, LLC, a professional services firm led by former law enforcement and U.S. Intelligence Community professionals. This acquisition aims to bolster Wrap's managed services capabilities and expand its competitive edge in public safety solutions. Additionally, Wrap appointed Joseph Bonavolonta, a 27-year FBI veteran, and Rob Heuchling, with a 15-year FBI career, to scale the company’s support offerings. These leadership enhancements are expected to drive global expansion and strengthen Wrap's international growth strategy, as the company continues to focus on innovative non-lethal tools aimed at improving public safety.
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