What is the revenue and EPS growth rate for Wrap Technologies year over year?

What were the key takeaways from Wrap Technologies's earnings call?

What does Wrap Technologies do and what are its main business segments?

What is the market's earnings forecast for Wrap Technologies next quarter?

Did Wrap Technologies beat or miss consensus estimates last quarter?

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What factors drove the changes in Wrap Technologies's revenue and profit?

What were the key takeaways from Wrap Technologies’s earnings call?

- **Revenue Growth**: Q3 2025 gross revenue of $2 million, 12% from subscriptions, signaling a shift to recurring revenue.
- **BolaWrap Success**: 92% field success rate, outpacing TASERs in North Carolina, Colorado, and Kentucky.
- **Subscription Model**: Integrated hardware, software, and training driving margin expansion.
- **Federal Expansion**: Targeting $15B Counter-UAS market with MERLIN drones and DFR-X technology.
- **Sales Force**: 18 new hires to accelerate adoption in law enforcement and adjacent markets.

**【CEO Summary Section】**
- Q3 2025 gross revenue reached $2 million, with 12% from subscription-based sales, signaling a strategic shift to recurring revenue models.
- BolaWrap adoption surged, with 516 law enforcement agencies reporting a 92% field success rate and 0 serious injuries or lawsuits. Departments in North Carolina, Colorado, and Kentucky reported BolaWrap use exceeding TASERs despite lower deployment volumes.
- The company transitioned from a device manufacturer to a provider of non-lethal response subscription solutions, integrating hardware, software, and training.

**【CFO Financial Commentary】**
- Q3 financials highlighted a 12% contribution from subscription-based sales, driving margin expansion and positioning the company for profitability.
- The shift to higher-margin system sales, including BolaWrap, WrapTactics, and WrapVision, is reducing reliance on lower-margin professional services.

**【COO Operational Update】**
- Introduced a connected ecosystem of tools, training, and policy: WrapTactics (scenario-based training), WrapVision (body-worn cameras), WrapReality (VR training), and MERLIN (drone-based response).
- Opened a Virginia manufacturing hub for R&D, production, and immersive training, aligning with federal procurement preferences.
- Expanded into federal and international markets, targeting the $15 billion global Counter-UAS market by 2030.

**【Q&A Key Highlights】**
- **Capital Markets Approach**: CEO confirms evaluation of public secondary offerings to reduce reliance on dilutive private placements.
- **Non-Lethal vs Less-Lethal**: Emphasized BolaWrap's non-lethal classification, supported by data showing safer outcomes than traditional tools.
- **Chile Deal Progress**: Actively engaged with Chilean authorities, anticipating potential deals in 2026.
- **DFR-X Innovation**: Drones equipped with BolaWrap cassettes enable proactive threat interdiction, expanding use cases to schools and critical infrastructure.
- **Sales Force Expansion**: Added 18 new hires in sales and marketing to capitalize on growing demand.
- **Declassification Efforts**: Pursuing declassification to access broader commercial markets, including private security and healthcare.

Wrap Technologies, Inc. (WRAP) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

WRAP

WRAP fundamentals

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