What are the company's plans regarding engagement with insurance companies?

The ATF declassification has made insurance companies central to Wrap's go-to-market strategy, especially for private security. They aim to coordinate with underwriters, security providers, and customers to offer preferred terms and integrated services, leveraging the BolaWrap as a rescue tool. “Insurance companies are in our future. And it's because the ATF declassification changed the world... now that we're no longer a firearm and no longer a weapon, we know insurance has to be part of our service as an integrated service to private companies or even security markets directly.”

What are the latest updates with the Wrap Reality virtual reality product?

Wrap Reality continues to impress customers with its depth and breadth, receiving significant updates to hardware and software. It's a core component of their blended training approach, offering compelling de-escalation scenarios and integrating recent legal developments. “Our virtual reality is great. I mean when we go to our customers, they are continually impressed about the depth and breadth of what it offers. And accordingly, we've resourced that product line appropriately.”

Is the company planning to raise money, and if so, for what purpose?

The company regularly explores financing options beneficial to shareholders and is highly sensitive to dilution. Any capital decision will be weighed against the value it can create. While not changing current spending, they are biased towards accelerating investment if opportunities materialize, which might require accessing capital markets. “Any capital decision we made needs to be weighed against the value we believe that capital can create... If we begin to see the traction develop the way we believe it can, we will be prepared to increase our investment to capture it, and we will be prepared to access the capital markets to support that growth.”

WRAP

Wrap Technologies (WRAP) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Information Technology· Aug 11, 2026

Source: earnings call transcript

Executive summary

Wrap Technologies Q2 FY26 — Strong Revenue Growth and Strategic Expansion into New Markets

Wrap Technologies delivered a strong second quarter, marked by significant revenue growth and improved profitability. The company is strategically expanding its market reach, leveraging a recent ATF declassification of BolaWrap to target the private security sector and securing exclusive rights to Frenel technology for advanced threat detection. This shift transforms Wrap into a multi-solution provider with a focus on scalable training and recurring revenue models, positioning it for growth in law enforcement, private security, and national defense, though future capital needs are acknowledged.

Highlights

Total revenue increased 103% to $2.1 million compared to the prior year period.
Gross profit increased 217% to $1.5 million, with gross margin expanding to approximately 75%.
ATF determination that BolaWrap is not classified as a firearm or weapon, opening the private security market.
Secured exclusive U.S. and NATO rights to TriCore by Frenel, a physics-based polarimetric sensing technology.
Loss from operations improved 21% to $2.3 million, and net loss improved 39% to $2.3 million.

Concerns

Chile business not included in FY26 forecasted revenue due to a funding gap with the Chilean government.
Potential need to access capital markets to support accelerated growth, implying future shareholder dilution.
Uncertainty regarding the timing of meaningful orders, which could cause the 100% growth target to fluctuate.

Guidance & targets

Category	Target	Timeline	Confidence
Revenue growth	100% year-over-year high materiality	FY26	Medium

Product announcements

Product	Type	Timeline
BolaWrap 150	update	early July
TriCore by Frenel (WrapShield platform)	launch	—
Wrap Tactics (Learning Management System)	launch	launched earlier this year, core content library complete as of this month
Raptor MX	update	—

Deals & partnerships

Frenel Exclusive U.S. and NATO rights to TriCore by Frenel technology.

Secured exclusive rights to a physics-based polarimetric sensing technology for advanced threat detection, forming the basis of the WrapShield platform.

Department of Homeland Security (DHS) Purchase order for BolaWrap and training services.

Wrap received a purchase order and delivered training to DHS in Q2, supporting federal law enforcement functions.

Risks & headwinds

Chile government funding gap FY26

Chile business not included in FY26 forecasted revenue.

Mitigation:Actively exploring if U.S. government (INL) will fund.

Shareholder dilution from capital raise near term

Potential need to access capital markets to support growth.

Mitigation:Will let market and opportunities earn that investment; highly sensitive to dilution.

Volatility from timing of large orders FY26

One or two meaningful orders... can have a significant impact on where we ultimately finish the year.

Mitigation:Not backing away from opportunities; will update visibility as year progresses.

Frenel supply/delivery issue next 12 months

We're going to have a delivery issue.

Mitigation:Being busy in the next 12 months to manage demand.

What to watch in Q3 FY26

Chile business funding

next quarter

Current Funding gap with Chilean government; not in FY26 forecast.

Target Funding secured; business included in forecast.

Why it matters

Resolution of funding could add significant revenue to the FY26 outlook.

They're still expecting business this year, but they have cited a funding gap with the Chilean government. So at this point, we're waiting for funding to become available.

Find out whether WRAP delivers this. Inve re-checks your case every morning.

Q&A highlights

What is the latest status of the Chile business?

The distributor still expects business this year, but there's a funding gap with the Chilean government. Wrap is exploring U.S. government funding for Chile's police but is not including Chile business in its FY26 forecast.

“They're still expecting business this year, but they have cited a funding gap with the Chilean government. So at this point, we're waiting for funding to become available.”

asked by Louis Springer · answered by Scot Cohen

2 min read 6 chapters

Detailed narrative

Strategic Transformation and Market Expansion

Wrap Technologies has transformed from a single-product company into a portfolio of solutions, emphasizing scalable training through its learning management system (LMS). This shift, coupled with the ATF determination that BolaWrap is not a firearm, has opened the significantly larger private security market, which was previously limited. The company is aggressively pursuing this market, having already received its first grant-funded training order.

Frenel Technology and WrapShield Platform

Wrap secured exclusive U.S. and NATO rights to TriCore by Frenel, a physics-based polarimetric sensing technology. This technology offers a structural advantage in detecting and classifying objects, including RF-silent drones, under challenging conditions. This forms the basis of the new WrapShield platform, which is intended to carry integrated solutions for national defense, border security, and maritime surveillance, addressing emerging threats.

DOJ Grant Funding and Federal Opportunities

The return of DOJ grant funding, with 11 active programs identified, provides essential purchasing power for small and mid-sized law enforcement departments for BolaWrap, body cameras, and de-escalation training. Wrap is also actively pursuing federal opportunities in Washington D.C., aligning its capabilities with identified funding and requirements in areas like homeland security and counter-UAS, having already delivered training to the Department of Homeland Security.

Evolution of Product and Revenue Model

The company is shifting its focus from selling devices to selling "readiness" through its Wrap Tactics program and LMS. This enables recurring training and proficiency, leading to a subscription-based revenue model. The virtual reality product, Wrap Reality, is also core to this blended training approach, offering immersive de-escalation scenarios and integrating the "totality of circumstances" legal framework.

Insurance Industry Engagement

The ATF declassification of BolaWrap as not a firearm has significantly increased interest from insurance companies. This opens a new channel for market penetration, particularly in private security, where insurance providers are interested in supporting adoption as a risk mitigation tool. Wrap aims to orchestrate partnerships between insurance underwriters, security providers, and customers to offer preferred terms and integrated services.

Capital Allocation and Growth Outlook

While the company is not changing its current spending profile of approximately $3 million to breakeven, management indicates a bias towards accelerating investment if market traction develops as anticipated. This could involve accessing capital markets to support growth, acknowledging potential shareholder dilution. The company reiterated its 100% year-over-year revenue growth target for FY26, while noting that timing of large orders could impact the final outcome.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.