WRAP

Image source: The Motley Fool. Tuesday, Aug. 11, 2026 at 4:30 p.m. ET Vice President of Finance - Louis Springer Chief Executive Officer - Scot Cohen President and Chief Operating Officer - Jared Novick Operator: Good day, and thank you for standing by. Welcome to the Wrap Technologies, Inc. Q2 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Louis Springer. Louis Springer: Thank you. Good afternoon, and welcome to Wrap Technologies Second Quarter 2026 Earnings Conference Call. I'm Louis Springer, Vice President of Finance. Joining me today is Scot Cohen, Chief Executive Officer; and Jared Novick, President and Chief Operating Officer. We appreciate your time and continued interest in Wrap. Before we begin, I want to remind you that certain statements and assumptions in this conference call contain or are based upon forward-looking information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and the federal securities regulations. Please review the forward-looking and cautionary statements section at the end of our second quarter 2026 earnings release for various factors that could cause actual results to differ materially from forward-looking statements made during our call today. Such forward-looking statements are subject to numerous assumptions, uncertainties and known or unknown risks, which could cause actual results to differ materially from those anticipated. These factors are more fully discussed in the company's filings with the Securities and Exchange Commission. The forward-looking statements included in this conference call are only made as of the date of this call, and the company is not obligated to publicly update or revise them. Statements made during this call do not constitute an offer to sell or a solicitation of an offer to buy any securities. Securities will be offered only by means of a registration statement and prospectus, which can be found at www.sec.gov. Also, during today's call, we will discuss certain non-GAAP financial measures, which we believe can be useful in evaluating the company's financial performance. Descriptions of those non-GAAP financial measures that we use and reconciliations of these measures to our results as reported in accordance with GAAP are detailed in our earnings release. Unless otherwise stated, all reported results discussed in this call will compare the second quarter ended June 30, 2026, to second quarter ended June 30, 2025. The earnings release will be available on the Financial Information section of our website at ir.wrap.com. In addition, a replay of this earnings call will be posted to our website after the call. I will now hand it over to Scot. Scot Cohen: Thanks, Lou, and thank you, everybody, for joining the call today. We're coming off our best quarter in years. Revenue doubled quarter-over-quarter and we doubled compared to the second quarter last year. Operations continue to become more efficient. We're expanding sales. We productize our training. We're growing our BolaWrap programs, and we have doubled our product offerings. Today, we can serve -- we serve federal, state and local private sector customers. But the big difference now is the money is flowing from the state, local and federal level, and we're following that money. There are funded requirements, which we now have capabilities to service for the first time in a long time. We transformed Wrap from a single product company into a portfolio of solutions with a strong emphasis on scalable training delivered through our learning management system. And we've accomplished all this at a fraction of the expense of the past. But that's not the real story. Three recent developments have put us in a truly unique position that we intend to capitalize on. The first is the ATF determination issued in early July that BolaWrap is not classified as a firearm or a weapon. For years, that uncertainty limited our ability to pursue the private security market, a market significantly larger than the domestic law enforcement business. One company I spoke to last week employs more security guards than there are police officers in this entire country. In the past 30 days, we've had dozens of conversations with potential customers in this market, and we've already received our first grant-funded training order. This opportunity is significant and the time to pursue it is right now. Security guards face many of the same challenges as our law enforcement officers do, but with one major difference. Most of them are unarmed and they receive very little training. The average police officer receives roughly 800 hours of training before becoming -- before receiving their badge. By comparison, security guards receive fewer than 50 hours at best. The problem is access to the training and it's the budget. BolaWrap now has a solution these professionals can actually carry and our LMS allows us to deliver consistent, scalable training wherever they operate. Even more encouraging is the insurance companies that are interested in supporting its adoption, and we're going to get more into that when Jared presents. Dozens of conversations with private sector organizations given us clear direction, and we're going for this market aggressively. Dozens -- the second development is the return of DOJ grant funding. We've identified 11 active programs that could fund the BolaWrap, can fund our body cameras that are funding deescalation training and virtual training. Most of our customers are small and midsized departments where grant funding is essential to purchasing equipment, providing effective training. The funding window has reopened, and we're positioned to help customers take advantage of it. And the third development is the Frenel opportunity. We've been watching this technology for years, and I'll spare you the long story. But when we received a call telling us that the tech was finally operational, we dug in. We saw it detect a wide range of threats, including drones that couldn't be tracked by some of the most advanced thermal systems. Its polarization layer identified both material characteristics and heat signatures. One screen was blue sky and the other screen was a clear threat. That conclusion was obvious to us. Frenel could see what other systems could not. This technology has critical applications for our cities, our borders and our national defense. More importantly, it gives Warp a structural advantage that competitors simply cannot copy, replicate or acquire. Wrap now holds an exclusive U.S. and NATO rights to TriCore by Frenel, a physics-based polarimetric sensing technology detects, identifies and classifies objects based on the materials and shapes. It is one of the few technologies capable of addressing RF-silent and camouflaged targets in dense urban GPS denied, cluttered, and RF contested environments. In plain English, it can distinguish a drone from a bird under conditions where conventional systems struggle. No jamming, no spoofing, no countermeasures. Together, these 3 developments open new markets across private security, law enforcement and national defense. This is a significant opportunity for Wrap and for all of us. With that, Lou, it's back to you. Louis Springer: Thank you, Scot. Second quarter 2026 financial highlights are as follows: Total revenue increased 103% to $2.1 million compared to $1 million in the prior year period. Gross profit increased 217% to $1.5 million, compared to $0.5 million in the prior year period, and gross margin expanded to approximately 75%, compared to approximately 48% in the prior year period. Our loss from operations improved 21% to $2.3 million, compared to a loss of $2.9 million in the prior year period. Net loss improved 39% to a loss of $2.3 million compared to a loss of $3.7 million in the prior year period. The prior year period quarter included a $0.9 million noncash loss from the change in fair value of warrant liabilities that did not recur. Cash and cash equivalents were $4.8 million at June 30, 2026, compared to $3.5 million at December 31, 2025. Lastly, total liabilities were reduced to $2 million at June 30, 2026, from $3.9 million at December 31, 2025, reflecting the termination of the company's former office lease. Now I'll hand it over to Jared. Jared Novick: Thanks, Lou. I'm about to describe a company that's changing, new markets, bigger markets, a new revenue model and a new platform. And let me tell you that story in 5 parts. First, the environment around this company changed this year, twice, both were outside of Wrap. The first came from the Supreme Court in 2025. Barnes v. Felix rejected the narrow reading on the use of force. It's the Supreme Court decision. And the question of what an officer faced in the final seconds changed. The whole encounter now matters, what happened before it, what officers knew and how the situation developed. That matters to us because our thesis has always been about creating another option earlier before an encounter reaches its most dangerous point. The second came in June. ATF classified the BolaWrap 150 as an instrument restraint and a rescue tool. Under the federal statute defining firearms and weapons, the BolaWrap 150 is neither. Now you put those side by side. The constitutional lens has widened to what they call the totality of circumstances, the totality of the encounter now matters. And the federal government has determined that our tool built to create an option earlier is no longer a weapon. That only is not a firearm, it's not a weapon. We didn't manufacture the constitutional change. We didn't control the federal classification, but we built the technology that now sits at the intersection of both. That's a structural advantage. And it doesn't exist with this clarity until just a few short months ago when all this came into fruition. That's a big one. Second. The second part is what we're selling. What we sell is changing. A BolaWrap in a holster is not a capability. It becomes a capability when an officer recognizes the moment, deploys it correctly under stress and still has that proficiency months later. We all know proficiency decades. A 1-day certification class doesn't reliably survive a year on the street. So we did something about it. The real product isn't the device. We're selling readiness and Wrap tactics is how we deliver it. We launched earlier this year. And as of this month, the core content library is complete. And here's what that changes. Instead of spending classroom time where we did instruction in person on foundational material that can't be learned beforehand, we now send digital training in advance. And now we use in-person time for what actually requires being in the room for, scenario worth of what they see in the streets every day, coaching, certification and the customer relationship. Digital does not replace the instructor. It makes the instructor more valuable. And it lets the relationship continue after the instructor leaves. Commercially, that means we can take proficiency to market as a subscription. The customer stops buying a device in a single training day. They start buying a standard of readiness that we can help them maintain. Recurring training, recurring proficiency, recurring engagement. The recurring revenue is the economic consequence of this model. And let me be precise where we are. The capability is built and it's ready to sell. This revenue is ahead of us, not behind us. The shift is real because it changes what we are from a company that closes a sale to a company that maintains a capability. Thirdly, our market just got materially larger. Everything so far has been about law enforcement. That's been our market. It's no longer the boundary of it. Start with private security. A significant portion of those officers are unarmed and in some environments, they cannot be armed. But they're still expected to manage conflict and respond when behavior escalates. When it does, there's an enormous gap between the verbal command and then calling law enforcement. And sometimes the only real choice is to act or not act. And either way, the outcome carries legal consequence and suboptimal results. That gap is operational risk, and it's a liability for employers, insurers, property owners and security providers, all of whom increasingly have to answer one question. What options were available and what did we give these people before the situation became an emergency? Well, a tool the federal government just declassified as not a firearm or not a weapon sounds to be a pretty good option for that. There are over 1.2 million licensed security officers in the United States. That's a larger population than all law enforcement, but the number isn't the point. The point is why it exists now. This isn't Wrap marketing the same product to a new segment. The regulatory change altered the addressability of the product. And the service architecture I just described gives us a way to support those customers. Fourth, we're working on federal opportunities built on the same logic. We are putting resources in Washington, D.C. The logic is early response in options and environments where use of force carries significant legal and most important public scrutiny. And we're aligning ourselves where the money is. Now I want to be disciplined here. Prospective federal opportunities are not in our guidance, and I'm not asking anyone to assign value to those contracts we haven't won. But it isn't theoretical either. We've announced this. Wrap received a purchase order from the Department of Homeland Security. And in the second quarter, we delivered training to DHS, completing what we believe is an initial phase of support to their operational requirements. Timing matters here. Public safety funding is reopening. At the same time, federal and defense investment is accelerating around autonomous systems and counter-UAS in response of those technologies. It's a matter of time, but those threats that we see across the ocean and internationally are now here in the homeland, and we need to face that reality and start thinking about the integration of those technologies into the public safety. Those sound like separate markets, but underneath them is the same problem we've been describing [ all call ]. The environments may differ, but the core capability that addresses them does not. And fifth, this is lastly, where does this all go? Everything today follows one line, a device that gives officer an earlier adoption, training that keeps our customers and keeps it usable, a commercial model that keeps customers engaged, and a regulatory change that opens our new bigger markets. Each step makes the next one possible. Our strategy reflects the convergence of funding, regulation, technology and customer need. I'm going to make some points here. We are following the funding. Public safety funding is returning. Counter-UAS is moving from defense to homeland-security and public safety. Detection is the common requirement, better sensing by time and time creates options. Our Frenel investment gives Wrap a truly differentiated position in this direction. The ATF classification expands our core addressable market. We are moving from product to readiness and consequently, subscription. These markets are connected by one strategic thesis, detect risk earlier, make better decisions, enable an earlier and more appropriate response. And the technologies we built around that thesis have valuable adjacencies. It's not just about counter-UAS, border security and maritime surveillance. We hear about autonomous platforms. We hear about ISR from the military and potentially, our technologies have space-based applications. This is the logic behind WrapShield. We're not abandoning our core. We're taking the competency at the center of Wrap earlier in invention and extending it across a much larger set of markets, customers and funded opportunities. Scot, back to you. Scot Cohen: Thanks, Jared. Let me leave you with where I think all this goes. The market indicators are clear. The ATF determination cracked open a private market that's been untapped, and that market is driven by risk mitigation, which puts us directly inside the insurance conversation. Expect partnerships, expect additional pipeline. With Frenel, we have already started building WrapShield into a platform that will eventually carry the full envelope of integrated solutions and establish a multichannel revenue model underneath it. I can tell you, we have already had much larger conversations with international customers and with our own government about how to move that vision forward. Frenel is an example of what happens when you get ahead of the game. We chose to build a solution to evolving threats instead of reacting after our competitors had secured their positions and traction has followed. This kind of foresight has to become a permanent part of how Wrap builds its business, and we intend to keep expanding it by continuously adding new solutions and new products. Some of these conversations, we are handling directly with governments. Others will require partnerships and players deeply already entrenched in the space. It has been 30 days, and we can already see where this is going. There is a category being created here and no one else is building it. Others sell cameras, radios, electrical weapons. We are building a layer that sits between the tool and the moment of life that's at stake, backed by the training that makes it accountable and the sensing that makes it intelligent. This is the company we intend to be, and we intend to own that category. We do not take any of these advantages for granted. From this moment, we will move quickly on hires, partnerships and on execution. Lou, I know we've got a bunch of questions in the hopper. I think it's time to get to our Q&A. Louis Springer: Absolutely. If we don't get to all of our questions, everyone is welcome to e-mail [email protected] because we do have a lot here, and we are time constrained. So the first question came in from our Investor Relations inbox, and it says, where is the company at with Chile? What is the latest update? Scot Cohen: Let me take that one. We actually met with our distributor just a couple of weeks ago. They came to visit us here in Miami. 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. There is an opportunity that we're pursuing right now to see if our government will fund, which they have funded Chile's police for public safety business in the past, INL has, which we're actively exploring. But for now, we don't have any Chile business in our forecasted revenue for '26. So we're playing it safe with Chile. They've indicated and they put large numbers in their budget for all of us to see. We've seen it, but we're not putting it in our forecast, and that's where we stand. We'll update as we get updates from -- directly from the customer. Louis Springer: The next question also came in through our Investor Relations inbox. What is the company's plans with insurance companies? Jared Novick: Yes, Scot, I can start that. Let's talk about this one together. Insurance companies are in our future. And it's because the ATF declassification changed the world. I mean we always thought about insurance companies in the past. We were kind of stymied by declassification of a firearm and a weapon. We knew insurance had plays somehow through risk pools that I think, Scot, you know more about than I do in the past, to law enforcement. But excitingly, the active conversations we have is 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. So the insurance company conversation that we've learned at some of these big box stores retailers or critical infrastructure or health care or transportation, they surely use security guards and they should. But when we make a value proposition, the security guard companies say, we do whatever our customer wants us to, which then means they point right back to the customer we're trying to support. So when we go to that customer, we now can say and the aim is, well, we have a device that's a rescue tool, no longer a firearm alongside our insurance where we hope to be a provider for us, we can give you preferred terms. It's a value proposition. And what we can do as Wrap as the orchestrator of all this is coordinate across 3 parties; the insurance underwriter, the security guard, both armed or unarmed provider and ultimately, all of us focused on the customer. So we think this is central. Insurance companies are central to our go-to-market to take a large bit of the private security space. Scot Cohen: Let me add to that. So on the public safety side, law enforcement side. I remember from almost day 1, we had a meeting, it was right when we launched the company with -- we were in San Diego at an entrepreneur's home that was hosting us. And he started talking to us about insurance saying, "Gosh, the PDs aren't your play. It is the insurance companies. You need to focus on the insurance companies." We all hope that was a good idea, but we had no real clear plan for it. And just thinking back over the years, there's been plenty, lots of insurance pools, insurance carriers, reinsurance companies approaching us for years. And in fact, 2 states where we've got backing from insurance companies, were paying -- one was paying for 50% of the device, and the other was paying for 100% of the device. This is 7, 8 years ago. So early, early days. Now that we've developed the learning management system, and we're launching that and we've got a training line that we were actually -- we're putting a lot of effort into and it's supporting the BolaWrap, that training is now going to make this much more attractive to insurance companies. The training is focused on outcomes. The training is focused on sight, sound and sensation, all 3 elements. It also now is in training, it's considering the human factors. What happens with officer judgment, how to improve your judgment, how to make decisions and risk and time-sensitive risk situations, how to use persuasion skills. All that's being trained now in a new partnership that we're into on the LMS, and you're going to hear more about it. But that training line, we didn't -- that was not available to our customer base for the year. So it's only become available now. I believe that's going to get the insurance business on the law enforcement side, much more engaged, reengaged in the very near future. And this reclassification by the ATF. I think that's going to bode really well. We've had 2 conversations with large insurance companies, and they were really focused on that fact. So there's a lot more coming, and there's a lot more to unpack about the ATF and that determination. But I can tell you right now the insurance companies, it was a wake up to them, and it's good to be back in touch with them on the public safety side. But Jared was just giving you a recent conversation we're having on the private side, which we're very encouraged about. Louis Springer: Great. The next question comes from our chat. What are the latest updates with Wrap reality? Jared Novick: Okay. 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. We've made significant updates in care and feeding and maintenance of the system. It's both hardware and software updates. It's a very, very compelling value proposition at the price point. It falls in line with de-escalation training and it falls in line with our go-to-market of blended training, both digitally through the LMS, in person and to follow-up on readiness with virtual reality. New scenarios have been added. And honestly, we see the recent developments from Barnes v. Felix, the totality of circumstances, ripe for application into virtual reality, and how that's trained and delivered. Virtual reality is with us, it's core to us. It's not on the periphery, it's central, and we can continue to deliver that and integrate it closer as a cohesive product and service to departments. Louis Springer: The next question comes from our Investor Relations inbox. Are you going to be raising money? If yes, what would it be for? Scot Cohen: I'll take that one. As in the past, we regularly explore financing options that we believe are beneficial to all shareholders. As we look forward, we continue to be thoughtful and disciplined about how we capitalize this business. As everybody knows, I'm a significant shareholder in this company, so dilution affects me alongside of every other shareholder. I am highly sensitive to it. Any capital decision we made needs to be weighed against the value we believe that capital can create. Louis Springer: The next question comes from the chat. Are you pursuing anything with border or DHS? Jared Novick: Well, border and DHS are kind of 2 things to me. I mean, well, look, we are pursuing things with both border and DHS. The answer to that is yes. So the way we look at that is DHS is very broad in the duties that they have to our country. It's both in carrying out an important law enforcement function and also concern on the borders of our country, clearly. And our role in that applies. When it comes to federal law enforcement, again, referenced in our earnings script, we had a purchase order from DHS. We delivered training, which means we have to know how to integrate into their operations and be clear about our value that we deliver. But when it comes to border, this is where WrapShield becomes increasingly important. Drones are a problem. Bad guys with drones are a problem, and you need to detect them as early as possible. And yes, the government and DHS has a lot to do with the detection of drones, but there are blind spots. These RF silent drones present a unique problem, which means you got to go to some other type of phenomenology or physics to kind of get into that. And so part of the allure and the motivation and subsequent investment into Frenel, is that it's a differentiated way in its application for early detection of some of our nation's most emerging threats. So our conversation in DHS is largely on different fronts. First is supporting via BolaWrap and everything we went through today for law enforcement and then delivering and being part of an integrated system, which starts with detection. And Frenel is a way to do that. But I know, Scot, when you think border, you think of more than just the U.S. border. Scot Cohen: We've got -- we've been -- everybody knows, a large part of our revenues come from overseas. And when we're overseas, we're typically talking about national police forces. In those conversations, it's very common to have an interior minister present or involved in the decision-making, particularly when you're talking about a countrywide deployment with the national police force, standardizing on some of this equipment. The same people that we're meeting on the BolaWrap programs when we're talking about training, when we're talking about cameras and speaking about VR, too, are the same customers we find ourselves in a Frenel called threat detection. They are worried just like ours about their borders, and they're spending quite a bit of money to protect the borders just like we are. So the same events that are happening here are happening all over other countries, allied countries of ours, and we're finding ourselves very easily in that conversation, and we're in a position to compete for that business. And that's exactly what we're going to do because Frenel has such a unique advantage. It's different than anything that's been out there. Nothing has been presented like this, and it's a really simple demonstration. You show the threats with our technology. And then you look at the most modern advanced thermal detectors with RF detection and maybe some other capability and you just simply can't see the threats the same way as we're able to image it. So it feels really good to go into accounts that we've been in for years and in different stages in different places in the sales cycle. Some we've already sold to, and they are repeat customers growing their business, growing their programs and some we're still trying to crack. But very easily, almost effortlessly we find ourselves in a threat detection discussion about Frenel and the question -- it's really not a sales pitch. It's when can we see this and how many -- what the supply chain look like? That becomes the question. And I've got it enough, where we don't -- we're not going to be having a sales issue. We're going to have a delivery issue. Technology speaks for itself. And the problem itself is very obvious. That's what I've got to say on border. And just a lot of the clients that are already dealing many of them so far at least, it's only been a month or so in change, but trust me, we're out talking to our most closest relationships and the reaction is when can we get a demonstration. So we're going to be busy in the next 12 months. We're going to be very busy. Louis Springer: The next question came in through our Investor Relations inbox. You mentioned that DC is a big part of your strategy. What are you doing there? Jared Novick: I'll take -- I'll take those things first. Look, I have my roots in D.C. in many ways. And to me, the first question says, what's your federal strategy that we're going to follow the money. As you got to go where the money is, which means the government knows they have a problem, when they have a problem, they put down a requirement. When they write down the requirement they allocate budget against it. So the DC being part of our strategy can be as simple as that for now, which is requirements, funding, and then our job is to marry our emerging capabilities, the solutions we've presented both from BolaWrap 150 to WrapShield and map our capability to funding that's already been identified. You can't get blood from a turnup is what they say, right? So you got to go where the money is. And so that means federally in D.C., there are a couple of different categories. First, there's DHS and others, and we have capabilities that measure those requirements, and we know there is money there. So we put effort against that. Then there's the Department of War, when we talk about early threat detection right now through Frenel, early threat detection with Frenel. So our DC strategy is to align our capabilities to where there is funding and requirements and then to put the people in our company who can work those channels appropriately to make that marriage. Scot Cohen: I'm going to just add to this. It actually reminds me of the first business that I started 25 years ago with a couple of partners. We were literally matching money to companies that needed it. It was -- there were funds that were literally had a specific investment profile that they were looking for. And we knew the companies that had gaps in their balance sheet that needed to be filled. We're connecting buyers to sellers. It's not that difficult. And what I really like about what Jared was just saying and what I'm realizing, we started this company. We had to create our own requirement. There was no requirement out for what we've created, a remote restraint device, a device that uses no pain to bring anyone into subject into compliance, a device that uses sight and sound in restraint, they got sidetracked as a fire or and it got sidetracked as a fire and there you go. So you know how hard that, that push was, I didn't. If I knew what I knew probably never would have launched it. It was way harder and there were no requirements for this, so we had to do what we did. We're talking to insurance companies, we're bringing prototypes, we are doing the dog and pony show. Look how great this is. Look, we've revised this. We've optimized this. The device has gotten a lot better. And it works so much better than the past. We're having consistent outcomes with it. We're training it in a much more connected way. And finally, we have a way to answer the training issue, which is how do you scale training when we just -- we're just about to launch that and show our customers how to scale training. So what I love about this where we're going to. The requirements are there federally already. They're there. They're in place. And so part of our Hill strategy is we're identifying the money, and we're going right for it. We're going where the money is. It's really simple, and that's a big part of our DC strategy. Yes, there's bills we're going to produce. And yes, there's legislation and policies that we want to bring forward all of that. Yes, yes, yes. But right now, there's plenty of money that's already available, that's stated requirements, and we're going for that money. We're going to connect those dots. Louis Springer: Thank you. The next question came into our Investor Relations inbox. you're targeting 100% growth year-over-year. Is there anything that you feel that didn't materialize that caused you to miss the target? Scot Cohen: Let me take it. Our prior guidance on our projected revenue growth was a good faith estimate at the time. And we do not have any information today that would cause us to update it. So at this time, we recognize the nature of our business. One or two meaningful orders, particularly the timing of those orders can obviously have a significant impact on where we ultimately finish the year. We're not backing away from any opportunities that we're pursuing right now, and we're not changing our expectations today. We also want to be transparent with our shareholders that as the year progresses, and we gain greater visibility into the timing of those opportunities, the target could move either up or down. And I just want to be super clear on that. Louis Springer: Got it. The next question came into our chat. Does the ATF's declassification apply to any other product lines besides BolaWrap? Jared Novick: Yes. The short answer is no, it just applies to BolaWrap 150. Look, it was a great effort by our company to work in concert with everyone, and we like that ruling clearly on the BolaWrap 150. Now when we look at our entire product suite and with the recent announcement of Raptor MX, our company will again work closely with the ATF, and we're hopeful, but to answer it directly, ATF classification only applies to BolaWrap 150 at this time. Louis Springer: Got it. All right. This question came in through our Investor Relations inbox. Can you walk us through management's history and relationship with Frenel before Wrap made investment into the company? And when those relationships began and how the opportunity came about? Scot Cohen: Sure. The opportunity has actually been on our radar for years. We first became aware of it through one of our largest customers. but about 6 months ago, when we saw the technology operationalize, our perspective changed significantly. At that point, we brought the opportunity to the Board and I think it's important to understand the level of experience around that table. We have a retired Navy Admiral with direct experience in this area of warfare, who's evaluated technologies like these professionally almost his whole career. We have a private equity manager with decades of investment experience managing over $1 billion, and we have significant operational technical expertise on this board. So this was not a casual decision. The board conducted a robust evaluation of the technology, the market opportunity, and it is a strategic fit where Wrap is going and they greenlighted it. That's what happened. We saw something operationally that changed our perspective. We put it in front of people with the experience, the challenge it faces. They did the work, we made the decision to move forward. We've got to wrap things up. So if you don't mind, let's just 1 more and we'll call it a day. Louis Springer: You got it. The last question came into our Investor Relations inbox. If revenue does approximately double this year, what happens to cash consumption? And then at what level does the existing business become sustainably cash flow breakeven without relying on additional equity? Scot Cohen: We're not changing our spending profile today. We're currently operating around a $3 million breakeven and we don't anticipate any dramatic increase in spending in the near term. That said, based on everything that we're seeing in front of us today, there is absolutely a scenario where we might accelerate it. And frankly, our bias right now is towards acceleration because the opportunities -- because of the opportunities we're actually seeing. But we're going to let the market and the opportunities earn that investment. 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. So the message is no significant change in spending today. But based on what we're seeing, we could become much more aggressive. As such, it is not possible to accurately predict the amount of revenue we'll need to become profit. Louis Springer: Thank you. That concludes our question-and-answer portion. I know we didn't have time to get to all of the questions. So if you have more, please send them into [email protected], and we will get back to you. On behalf of Scot, Jared and the entire Wrap team, thank you for your engagement and support. We look forward to updating you on our progress. This concludes Wrap Technologies' Second Quarter 2026 Earnings Conference Call. Thank you. Operator: This concludes today's conference call. Thank you for participating. You may now disconnect. Before you buy stock in Wrap Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Wrap Technologies wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,970!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,040!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 18, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Wrap (WRAP) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue doubled quarter-over-quarter and year-over-year, driven by a transition from a single-product company to a portfolio of solutions serving federal, state, and private sectors. The July ATF determination that BolaWrap is not a firearm or weapon has removed a long-standing barrier to the private security market, which management identifies as significantly larger than domestic law enforcement. Management is shifting the business model from one-time product sales to a 'readiness' subscription model, utilizing a new Learning Management System (LMS) to generate recurring revenue through scalable training. The acquisition of exclusive U.S. and NATO rights to Frenel's TriCore technology provides a structural advantage in the counter-UAS and threat detection markets that competitors cannot easily replicate. Operational efficiency has improved significantly, with gross margins expanding to 75% while maintaining a lower expense profile compared to historical levels. Performance attribution is increasingly tied to 'following the money,' specifically targeting 11 active DOJ grant programs and reopening public safety funding windows for small to mid-sized departments. Management maintains its 100% year-over-year revenue growth target but notes that the timing of one or two meaningful orders could cause this target to move up or down as the year progresses. The company intends to aggressively pursue the private security market, specifically targeting unarmed security officers and leveraging interest from insurance companies to support adoption. Strategic focus is shifting toward Washington D.C. to align product capabilities with established federal requirements and funded budgets in DHS and the Department of Defense. While current spending remains disciplined around a $3 million breakeven profile, management expressed a bias toward accelerating investment if market traction for new technologies like Frenel develops as expected. Future revenue sustainability is expected to be driven by the convergence of regulatory changes, the return of public safety funding, and the integration of sensing technologies into the core public safety offering. The ATF classification of BolaWrap 150 as an 'instrument restraint and rescue tool' rather than a weapon is a pivotal structural change for the company's addressable market. Total liabilities were reduced from $3.9 million to $2 million following the termination of the company's former office lease. The 2025 Supreme Court decision in Barnes v. Felix is cited as a strategic tailwind, as it emphasizes the 'totality of the encounter,' supporting the company's thesis on early-intervention tools. Management noted that while the Chilean government has cited a funding gap, Wrap is exploring U.S. government funding (INL) to support that specific international opportunity. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management views insurance companies as central to the private security go-to-market strategy, as the non-weapon classification allows for preferred terms and risk-pool integration. The new LMS training focus on officer judgment and persuasion skills is expected to make the product more attractive to law enforcement insurance carriers. Chilean business is currently excluded from the 2026 forecast due to a funding gap within the Chilean government. The company is actively exploring whether the U.S. government (INL) will provide public safety funding to bridge this gap for the Chilean police. CEO Scot Cohen emphasized sensitivity to dilution as a major shareholder but stated the company would access capital markets if needed to support growth acceleration. The company is not currently changing its spending profile but will let market opportunities 'earn' any increased investment. Wrap is targeting 'RF-silent' drone detection needs at the border using Frenel technology, which identifies threats that advanced thermal systems miss. The company has already delivered initial training to the Department of Homeland Security (DHS) following a recent purchase order.

Interested in Wrap Technologies, Inc.? Here are five stocks we like better. Strong second-quarter performance: Revenue doubled to $2.1 million, gross profit increased 217% to $1.5 million, and gross margin expanded to approximately 75%. The net loss improved to $2.3 million, while cash rose to $4.8 million and liabilities declined. Private-security expansion: An ATF determination that the BolaWrap 150 is neither a firearm nor a weapon could broaden sales to the U.S. private-security market. Wrap has begun discussions with prospective customers and received its first grant-funded training order in that sector. Growth initiatives remain in development: The company is building recurring revenue through digital, in-person and virtual-reality training, while pursuing federal grants, DHS business and threat-detection applications for its Frenel technology. Management maintained its target of roughly 100% annual revenue growth but cautioned that order timing could cause results to vary. Wrap Technologies (NASDAQ:WRAP) reported second-quarter revenue of $2.1 million, up 103% from $1.0 million a year earlier, as the company highlighted expanding product offerings, new training services and opportunities in private security, federal markets and threat detection. Gross profit rose 217% to $1.5 million, while gross margin expanded to about 75% from approximately 48% in the prior-year quarter. The company’s operating loss narrowed 21% to $2.3 million, and its net loss improved 39% to $2.3 million. Vice President of Finance Lou Springer said the prior-year period included a $0.9 million non-cash loss tied to changes in the fair value of warrant liabilities that did not recur. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Cash and cash equivalents totaled $4.8 million at June 30, compared with $3.5 million at the end of 2025. Total liabilities declined to $2 million from $3.9 million, reflecting the termination of the company’s former office lease. Chief Executive Officer Scot Cohen said the company is coming off its “best quarter in years,” citing revenue growth, improved operating efficiency and an expansion from a single-product business into a broader portfolio of products and training services. → 3 Dividend Champion Utilities for a Market That Can't Sit Still A central development cited by management was an early-July determination from the Bureau of Alcohol, Tobacco, Firearms and Explosives that the BolaWrap 150 is not classified as a firearm or weapon. President and Chief Operating Officer Jared Novick said the determination applies only to the BolaWrap 150 and not to the company’s other products. Management said the classification could broaden the company’s ability to sell into private security, where many guards are unarmed and receive less training than law-enforcement officers. Novick said there are more than 1.2 million licensed security officers in the United States, a population larger than all law enforcement. → Is Wingstop's Growth Story Losing Steam? Cohen said Wrap has held dozens of discussions with prospective private-sector customers in the past month and has received its first grant-funded training order in the market. He also said the company expects insurance companies to become an important part of its go-to-market effort, particularly as customers look for risk-mitigation tools and training. “Expect partnerships. Expect additional pipeline,” Cohen said regarding the insurance opportunity. Novick said the company is seeking to sell a continuing standard of readiness rather than simply a restraint device and a one-day training course. The company launched its WrapTactics training platform earlier this year, and Novick said its core content library was complete as of the call. The model uses digital instruction in advance of in-person sessions, allowing classroom time to focus on scenario work, coaching, certification and customer relationships. Management expects the learning management system, in-person instruction and virtual-reality offerings to support subscription-based recurring training and proficiency revenue. Novick said Wrap Reality, the company’s virtual-reality training platform, remains central to its offering. The company has added scenarios and made hardware and software updates, he said, while positioning the platform alongside digital learning and in-person training. Management also pointed to the return of Department of Justice grant funding. Cohen said Wrap has identified 11 active programs that could fund BolaWrap devices, body cameras, de-escalation training and virtual training. He said grants are particularly important for small and midsize law-enforcement agencies. Novick said Wrap received a purchase order from the Department of Homeland Security and delivered training during the second quarter, completing what the company believes was an initial phase of support for DHS operational requirements. He said prospective federal opportunities are not included in the company’s guidance. Separately, Wrap is pursuing a threat-detection business through its exclusive U.S. and NATO rights to TPiCore by Frenel, a polarimetric sensing technology. Cohen said the technology can detect, identify and classify objects based on materials and shapes, including RF-silent and camouflaged targets in challenging environments. Management said the technology could have applications in counter-drone operations, border security, maritime surveillance, national defense and public safety. The company is building what it calls the WrapShield platform around integrated solutions, although executives did not provide financial projections for the initiative. Cohen said the company has not changed its prior target for approximately 100% year-over-year revenue growth and has no new information requiring an update. However, he cautioned that the timing of one or two significant orders could materially affect the company’s results and that the target could move higher or lower as the year progresses. Regarding Chile, Cohen said the company’s distributor still expects business this year but has cited a government funding gap. Wrap is exploring whether U.S. government funding could support the opportunity, but Cohen said Chilean business is not included in the company’s 2026 revenue forecast. On financing, Cohen said Wrap regularly evaluates options that could benefit shareholders and remains sensitive to dilution. The company is operating around a $3 million break-even level and does not anticipate a dramatic near-term increase in spending. Still, Cohen said management could accelerate investment and potentially access capital markets if market traction develops as expected. Wrap Technologies, Inc (NASDAQ: WRAP) is a designer and manufacturer of less-lethal restraint devices aimed at law enforcement and security professionals. Its flagship product, the BolaWrap®, is a handheld remote restraint tool that deploys a Kevlar-reinforced cord to safely immobilize individuals from a distance of up to 25 feet. The system is engineered to support de-escalation tactics and reduce reliance on physical force in high-risk encounters. Based in Scottsdale, Arizona, Wrap Technologies oversees product development, testing and training at its headquarters. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Wrap Technologies Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

LOS ANGELES, CA - August 5, 2026 (NEWMEDIAWIRE) - WrapTechnologies (NASDAQ: WRAP) announced it will host a conference call on Tuesday, Aug. 11, 2026, at 4:30 p.m. ET to discuss financial and operational results for the second quarter ended June 30, 2026. Company management will provide an update on quarterly performance followed by a question-and-answer session. Investors may submit questions in advance by email through 5 p.m. ET on Aug. 10, with responses subject to relevance and public disclosure considerations. The company said its second-quarter 2026 earnings release and related materials will be available in the Investors section of its website before the call. Participants may join the webcast or register for dial-in access through the links provided by the company. To view the full press release, visithttps://ibn.fm/wQrcn AboutWrapTechnologies, Inc. WrapTechnologies, Inc., a global leader in innovative public safety technologies and non-lethal tools, deliveringcutting-edgetechnology with exceptional people to address the complex, modern day challenges facing public safety organizations. WRAP'scomplete public safety portfolio includes the non-lethalBolaWrap(R)150 device,WrapReality(R)immersive training platform,WrapVision(TM) body-worn camera system,WrapTactics(TM) training programs, and next-generation C-UAS solutions like PAN-DA and the 1KC Kinetic Anti-Drone Cassette, all of which supports the Company's mission to provide safer, scalable, and cost-effective technologies for public safety, defense, and critical infrastructure markets. With a growing demand for non-lethal tools and techniques to create time, distance and tacticaladvantagein non-criminal calls,Wrap's BolaWrap(R)150incorporates a multi-sensory distraction of sight and sound as a first response, followed by a non-lethal restraint if further escalation isrequired. This approach reduces the risk of injury to officers, subjects, and the community. Wrap's BolaWrap(R)150 solutionisintended to provide law enforcement with a safer choice fornearly everyphase of a critical incident. This innovative, patented device deploysa multi-sensory, cognitive disruption to expand the pre-escalation period and gives officers the advantage and critical time to manage non-compliant subjects before resorting to higher-force options. The BolaWrap(R)150 is notpain-based compliance. It does not shoot, strike, shock, or incapacitate, instead, it helps officers strategicallyoperatepre-escalation on the force continuum, reducing the risk of injury to both officers and subjects. Used by over 1,000 agencies across the U.S. and in 60 countries, BolaWrap(R)is backed by training certified by the International Association of Directors of Law Enforcement Standards and Training (IADLEST), reinforcing Wrap's commitment to public safety throughcutting-edgetechnology and expert training. WrapReality(TM) VR is a fully immersive training simulator to enhance decision-making understress. As a comprehensive public safety training platform, it provides first responders with realistic, interactive scenarios that reflect the evolving challenges of modern law enforcement. By offering a growing library of real-world situations, WrapReality(TM) is intended to equip officers with the skills and confidence to navigatehigh stakesencounterseffectively, which we believe leads to safer outcomes for both responders and the communities they serve. WrapVision is an all-new body-worn camera and evidence management system built for efficiency. Designed for efficiency, security, and transparency to meet the rigorous demands of modern law enforcement, WrapVision captures, stores, and helps manage digital evidence, ensuring operational security, regulatory compliance, and enhanced video picture quality and field of view. The WrapVision camera, powered by IONODES, boasts streamlined cloud integration and final North American assembly, with a critical made-in-America roadmap projected for early 2026. This track helps ensure data integrity and helpseliminatecritical concerns over unauthorized access or foreign surveillance risks. Please see full terms of use and disclaimers on the InvestorBrandNetwork website applicable to all content provided by IBN, wherever published or re-published: http://IBN.fm/Disclaimer The latest news and updates relating to WRAP are available in the company's newsroom at https://ibn.fm/WRAP Forward Looking Statements Certain statements in this article are forward-looking, as defined in the Private Securities Litigation Reform Act of 1995. These statements involve risks, uncertainties, and other factors that may cause actual results to differ materially from the information expressed or implied by these forward-looking statements and may not be indicative of future results. These forward-looking statements are subject to a number of risks and uncertainties, including, among others, various factors beyond management's control, including the risks set forth under the heading "Risk Factors" discussed under the caption "Item 1A. Risk Factors" in Part I of the Company's most recent Annual Report on Form 10-K or any updates discussed under the caption "Item 1A. Risk Factors" in Part II of the Company's Quarterly Reports on Form 10-Q and in the Company's other filings with the SEC. Undue reliance should not be placed on the forward-looking statements in this article in making an investment decision, which are based on information available to us on the date hereof. All parties undertake no duty to update this information unless required by law View the original release on www.newmediawire.com

MIAMI, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Wrap Technologies, Inc. (NASDAQ: WRAP) (“Wrap” or, the “Company”), a global leader in non-lethal response and public safety technology, today announced it plans to hold a conference call on Tuesday, August 11, 2026 at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss its financial and operational results for the second quarter ended June 30, 2026. Wrap management will host the presentation, followed by a question-and-answer period. Interested parties may submit questions to the Company prior to the call at [email protected] by 5:00 p.m. Eastern Time on August 10, 2026. Questions will be addressed based on the relevance to the Company’s strategic direction and execution, stockholder base and public disclosure rules. Date: Tuesday, August 11, 2026Time: 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time)Webcast Link: Click here to registerDial-In Link: Click here to register for Dial-In The second quarter 2026 earnings press release with financial results and other related materials will be available on the “Investors” section of Wrap’s website at ir.wrap.com prior to the call. About Wrap Technologies, Inc. WRAP Technologies, Inc. (NASDAQ: WRAP) is developing WrapShield, an autonomous public safety platform intended to unify threat detection, classification, command-and-control, and non-lethal response in a single operating architecture. At the platform’s core is the principle that the technology layer between situational awareness and human force application should be trustworthy, accountable, and — wherever tactically appropriate — non-lethal. Building on the foundation of BolaWrap, the Company’s flagship restraint tool deployed across more than 1,000 agencies in over 60 countries, WRAP is building an operating layer between perception and response. Trademark InformationWRAP, the Wrap logo, BolaWrap®, Non-Lethal Response™, Wrap Reality™, and Wrap Training Academy are trademarks of WRAP Technologies, Inc., some of which are registered in the U.S. and abroad. All other trade names used herein are either trademarks or registered trademarks of the respective holders. Cautionary Note on Forward-Looking Statements - Safe Harbor Statement This release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Words such as “expect,” “anticipate,” “should,” “believe,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “could,” “intend,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Moreover, forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the Company's control and include, but are not limited to, statements relating to Wrap's planned future products, technologies, integration, intended product designs and expected benefits therefrom, expected market opportunities and outcomes related to Wrap's products to increase officer and public safety. The Company's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: the Company's ability to maintain compliance with the Nasdaq Capital Market's listing standards; the Company's ability to successfully implement training programs for the use of its products; the Company's ability to manufacture and produce products for its customers; the Company's ability to develop sales for its products; the market acceptance of existing and future products; the availability of funding to continue to finance operations; the complexity, expense and time associated with sales to law enforcement and government entities; the lengthy evaluation and sales cycle for the Company's product solutions; product defects; litigation risks from alleged product-related injuries; risks of government regulations; the impact resulting from geopolitical conflicts and any resulting sanctions; the ability to obtain export licenses for countries outside of the United States; the ability to obtain patents and defend intellectual property against competitors; the impact of competitive products and solutions; and the Company's ability to maintain and enhance its brand, as well as other risk factors mentioned in the Company's most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, and other Securities and Exchange Commission filings. These forward-looking statements are made as of the date of this release and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations. Investor Relations Contact: (800) [email protected]://www.wrap.com

LOS ANGELES, CA - July 13, 2026 (NEWMEDIAWIRE) - Wrap Technologies (NASDAQ: WRAP) announced it entered the third quarter of 2026 with approximately $1.2 million in international orders from customers in Brazil and India, with the associated revenue expected to be recognized during the quarter. The company said the orders reflect expanding international adoption of its BolaWrap(R) 150 restraint device and were secured before increased customer interest following the recent ATF ruling classifying the product as an instrument of restraint rather than a firearm or "any other weapon." Wrap said the combination of repeat international orders, growing global demand and the favorable regulatory change positions the company for a potentially strong second half of 2026. The company reaffirmed its target of approximately 100% year-over-year revenue growth for 2026, citing expanding international deployments, repeat customer activity and a growing commercial pipeline. To view the full press release, visit https://ibn.fm/4PKTZ About Wrap Technologies, Inc. Wrap Technologies, Inc., a global leader in innovative public safety technologies and non-lethal tools, delivering cutting-edge technology with exceptional people to address the complex, modern day challenges facing public safety organizations. WRAP's complete public safety portfolio includes the non-lethal BolaWrap(R) 150 device, Wrap Reality(R) immersive training platform, WrapVision(TM) body-worn camera system, WrapTactics(TM) training programs, and next-generation C-UAS solutions like PAN-DA and the 1KC Kinetic Anti-Drone Cassette, all of which supports the Company's mission to provide safer, scalable, and cost-effective technologies for public safety, defense, and critical infrastructure markets. With a growing demand for non-lethal tools and techniques to create time, distance and tactical advantage in non-criminal calls, Wrap's BolaWrap(R) 150 incorporates a multi-sensory distraction of sight and sound as a first response, followed by a non-lethal restraint if further escalation is required. This approach reduces the risk of injury to officers, subjects, and the community. Wrap's BolaWrap(R) 150 solution is intended to provide law enforcement with a safer choice for nearly every phase of a critical incident. This innovative, patented device deploys a multi-sensory, cognitive disruption to expand the pre-escalation period and gives officers the advantage and critical time to manage non-compliant subjects before resorting to higher-force options. The BolaWrap(R) 150 is not pain-based compliance. It does not shoot, strike, shock, or incapacitate, instead, it helps officers strategically operate pre-escalation on the force continuum, reducing the risk of injury to both officers and subjects. Used by over 1,000 agencies across the U.S. and in 60 countries, BolaWrap(R) is backed by training certified by the International Association of Directors of Law Enforcement Standards and Training (IADLEST), reinforcing Wrap's commitment to public safety through cutting-edge technology and expert training. WrapReality(TM) VR is a fully immersive training simulator to enhance decision-making under stress. As a comprehensive public safety training platform, it provides first responders with realistic, interactive scenarios that reflect the evolving challenges of modern law enforcement. By offering a growing library of real-world situations, WrapReality(TM) is intended to equip officers with the skills and confidence to navigate high stakes encounters effectively, which we believe leads to safer outcomes for both responders and the communities they serve. WrapVision is an all-new body-worn camera and evidence management system built for efficiency. Designed for efficiency, security, and transparency to meet the rigorous demands of modern law enforcement, WrapVision captures, stores, and helps manage digital evidence, ensuring operational security, regulatory compliance, and enhanced video picture quality and field of view. The WrapVision camera, powered by IONODES, boasts streamlined cloud integration and final North American assembly, with a critical made-in-America roadmap projected for early 2026. This track helps ensure data integrity and helps eliminate critical concerns over unauthorized access or foreign surveillance risks. Please see full terms of use and disclaimers on the InvestorBrandNetwork website applicable to all content provided by IBN, wherever published or re-published: http://IBN.fm/Disclaimer Forward Looking Statements Certain statements in this article are forward-looking, as defined in the Private Securities Litigation Reform Act of 1995. These statements involve risks, uncertainties, and other factors that may cause actual results to differ materially from the information expressed or implied by these forward-looking statements and may not be indicative of future results. These forward-looking statements are subject to a number of risks and uncertainties, including, among others, various factors beyond management's control, including the risks set forth under the heading "Risk Factors" discussed under the caption "Item 1A. Risk Factors" in Part I of the Company's most recent Annual Report on Form 10-K or any updates discussed under the caption "Item 1A. Risk Factors" in Part II of the Company's Quarterly Reports on Form 10-Q and in the Company's other filings with the SEC. Undue reliance should not be placed on the forward-looking statements in this article in making an investment decision, which are based on information available to us on the date hereof. All parties undertake no duty to update this information unless required by law View the original release on www.newmediawire.com

Interested in Wrap Technologies, Inc.? Here are five stocks we like better. Wrap Technologies’ Q1 revenue rose 45% year over year to $1.1 million, driven mainly by a 186% jump in product sales for its BolaWrap 150 line. Bookings also increased to $3.2 million, signaling stronger demand. Management reiterated its 2026 goal of 100% revenue growth and said its confidence has improved as the sales pipeline begins to convert and agency adoption expands. The company is also pushing international, federal, and defense opportunities, along with drone and counter-drone initiatives. Despite higher operating expenses, cash burn improved significantly, with cash used in operating activities falling 59% to $1.2 million. Management said it is also searching for a CFO and believes stronger execution could open up better financing options. Wrap Technologies (NASDAQ:WRAP) said first-quarter revenue rose 45% year-over-year as product sales for its BolaWrap 150 line accelerated, while management reiterated its goal of doubling revenue in 2026. On the company’s first-quarter 2026 earnings call, Chief Executive Officer Scot Cohen said management’s confidence in its full-year target had strengthened since March, citing greater visibility into the sales pipeline and continued momentum entering the second quarter. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? “One quarter in, I can tell you that based on the information we have today, our conviction in that target has strengthened,” Cohen said. He added that first-quarter results suggested the company’s pipeline “is beginning to convert” and that agencies using BolaWrap are expanding their adoption. Vice President of Finance Louis Springer said total revenue for the quarter ended March 31, 2026, was $1.1 million, up from $0.8 million in the prior-year period. Product sales increased 186% to $0.9 million, compared with $0.3 million a year earlier, driven by domestic and international demand for the BolaWrap 150 product line. → MP Materials Is Quietly Building a Rare Earth Powerhouse Bookings grew to $3.2 million during the period, according to Springer. He said cassettes and consumables represented a growing portion of product revenue, which the company views as consistent with a larger base of BolaWrap devices in active field use. Technology-enabled services revenue declined to $0.2 million from $0.5 million in the prior-year quarter. Springer said the change reflected growth in WrapVision and related software revenue, offset by the wind down of certain advisory and investigative services. He said the company is focusing that revenue line on higher-margin subscription and software-based offerings, including WrapTactics, Wrap Reality and WrapVision evidence management subscriptions. → Micron Investors Face a High-Stakes Moment After the Latest Rally Gross profit rose 16% to $0.7 million from $0.6 million a year earlier. Gross margin declined to 62% from 78%, which Springer attributed to a higher mix of hardware product sales, which carry lower margins than software subscription and managed services revenue. He said the company currently expects margins to improve if technology-enabled services become a larger share of revenue during 2026, while noting there is no assurance that mix shift will occur at the expected pace or magnitude. Total operating expenses were $5.5 million, compared with $4.5 million in the prior-year period. Within selling, general and administrative expense, share-based compensation was $2.4 million, up from $1.7 million a year earlier. Cash-based SG&A was $3 million, compared with $2.5 million, reflecting investment in sales and go-to-market expansion. Cash used in operating activities improved 59% to $1.2 million from $3.1 million in the prior-year period. Springer said the improvement reflected higher revenue, disciplined cost management and reduced cash burn, even as the company continued to invest in sales and go-to-market activities. “We believe the first quarter results reflect a leaner, more focused business that is beginning to grow with the non-lethal response framework we laid out last quarter,” Springer said. Cohen said the company has expanded its international footprint in India, Panama, Brazil, Malta and the U.K. He also said recurring elements of the business are beginning to take shape across BolaWrap, Wrap Reality, drone and counter-drone solutions. In operational remarks, the company said agencies are showing increased interest in moving from single-device purchases to broader agency-wide adoption. Management said an integrated approach that includes hardware, technology, training and policy is resonating with customers. The company also said its federal and defense market strategy is supported by consultants and advisers positioning its portfolio for customers including the Department of Defense and Department of Homeland Security. Management cited TAA-compliant products, Made in America manufacturing efforts and procurement infrastructure through Carahsoft as its master government aggregator as part of that strategy. On drone and counter-drone initiatives, management said research and development investments in drone-to-drone and drone-to-person capabilities are showing traction. The company reported pre-orders for both drone and counter-drone systems, including recent orders across the U.K. and Europe, follow-on DFR-X orders from a partner in Panama and R&D expansion into net-based drone interdiction. Cohen reiterated that the company continues to target 100% revenue growth for 2026. He said the company is pursuing contracts for 2026 and 2027 that, if awarded, could meaningfully increase the scale of the business. However, he noted those opportunities remain subject to competitive processes, government funding decisions and other factors outside the company’s control. For the balance of 2026, Cohen said the company’s priorities are to continue converting its pipeline, deepen agency-wide adoption, advance federal and international opportunities and execute against its revenue target. During the question-and-answer portion of the call, Cohen was asked whether the company’s current financing approach should be viewed as a temporary bridge or a continuing capital structure model. He said stronger fundamentals, increased stock liquidity and continued top-line execution could expand the company’s financing options. Cohen said he has personally participated in financing rounds and acknowledged that raising capital has been difficult while the company was not performing. He said that if the company executes on its growth plan, it should have “real financing options” for the first time. Asked what shareholders should watch for as evidence of reduced reliance on more dilutive financing structures, Cohen pointed to execution on fundamentals and the potential to attract more institutional investors. He said one sign would be the company completing a larger financing transaction involving institutions that are active filers in small-cap companies with long-term positions. Cohen also said the company is searching for a chief financial officer. He said the company’s financial systems and controls are “the best they’ve ever been” and that a CFO would help communicate the company’s story to capital markets and investors. In response to a question about unusually high trading volume on April 10, 2026, Cohen said he did not see major changes in the company’s capitalization table after the event. He said his “best guess” was that the activity was related to algorithmic trading. Wrap Technologies, Inc (NASDAQ: WRAP) is a designer and manufacturer of less-lethal restraint devices aimed at law enforcement and security professionals. Its flagship product, the BolaWrap®, is a handheld remote restraint tool that deploys a Kevlar-reinforced cord to safely immobilize individuals from a distance of up to 25 feet. The system is engineered to support de-escalation tactics and reduce reliance on physical force in high-risk encounters. Based in Scottsdale, Arizona, Wrap Technologies oversees product development, testing and training at its headquarters. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Wrap Technologies Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Image source: The Motley Fool. Wednesday, May 13, 2026, at 4:30 p.m. ET Chief Executive Officer — Scot Jason Cohen President and Chief Operating Officer — Jared Novick Vice President of Finance — Louis Springer Need a quote from a Motley Fool analyst? Email [email protected] Louis Springer: Thank you. Good afternoon, and welcome to Wrap Technologies First Quarter 26 Earnings Conference Call. I am Louis Springer, Vice President of Finance. Joining me today is Scot Jason Cohen, Chief Executive Officer and Jared Novick, president and chief operating officer. We appreciate your time and continued interest in Wrap. Before we begin, I want to remind you that certain statements and assumptions in this conference call contain or are based upon forward looking information. That are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 2000 and the Federal Securities Regulations. Please review the forward looking and cautionary statement section at the end of our first quarter 26 earnings release for various factors that could cause actual results to differ materially from forward looking statements made during our call. Today. Such forward looking statements are subject to numerous assumptions uncertainties and known or unknown risks. which could cause actual results to differ materially from those anticipated. These factors are more fully discussed in the company's filings with Securities and Exchange Commission. The forward looking statements included in this conference call are only made as of the date of this call, and the company is not obligated to publicly update or revise them. Statements made during this call do not constitute an offer to sell or a solicitation of any offer to buy any securities. Securities will be offered only by means of a registration statement and prospectus can be found at www.sec.gov. Also, during today's call, we will discuss certain non GAAP financial measures, which we believe can be useful in evaluating the company's financial performance. Descriptions of those non GAAP financial measures that we use and reconciliations of those measures to our results as reported in accordance with GAAP are detailed in our earnings release. Unless otherwise stated, all reported results discussed in this call compared to first quarter ended 03/31/2026 with the first quarter ended 03/31/2025. The earnings release will be available on the financial info section of our website at ir.rap.com. In addition, a replay of this earnings call will be posted on our website after the call. I will now hand it over to Scot. Scot Jason Cohen: Thank you, Louis. Good afternoon, everybody, and thanks for joining us today. When we spoke in March, we told you that for the first time, we had visibility into our pipeline. And that we are targeting 100% revenue growth for 26. 1 quarter in, I can tell you that based on the information we have today, our conviction in that target has strengthened. The momentum we described coming out of the fourth quarter carried directly into the first quarter and has continued to build as we move into the second quarter. First quarter revenue grew 45% year over year. More importantly, product sales the core measure of agency adoption, with our technology grew 186%. That growth was driven by increased domestic and international demand for the BolaWrap 150 line. Including continual reorders from a very active installed base. We believe these numbers indicate 2 things. First, the pipeline we talked about in Marcy is beginning to convert. And second, the agencies that have adopted BolaWrap are using it and expanding. Internationally, we are expanding our footprint We have expanded our footprint in India, Panama, Brazil, Malta, and The UK. Across the BolaWrap, WrapReality, our drone and counter drone solutions. We are seeing the reoccurring side of this business start to take shape. Cassettes represented a growing number-- a growing component of product revenue in the quarter, consistent with the expanding base of BoRap devices in active field use. Subscription activity and wrap reality wrap tactics, and wrap vision is beginning to build behind that. Recurring revenue is a slower compounding story than our single large pro than a single large product order. But it is-- it is a meaningful contributor to the quality of our revenue base over time, and it is growing steadily. On the innovation front, the early commercial traction we are seeing from the drone and counter drone reinforces our view that nonlethal response integrated with autonomous platforms is a real and emerging market. and 1 in which we believe we are well positioned for. Jared is going to cover that in detail shortly. I am now gonna turn it back over to Louis, who is going to walk you through the financial results and Jared will cover our operational progress and R&D growth initiatives. I will come back to discuss our outlook and priorities for the balance of 2026. Thank you. Louis Springer: Thank you, Scot. The financial results in Q1 suggest that our strategy is beginning to translate into commercial traction. Total revenue for the first quarter was $1.1 million an increase of 45% compared to the $800 thousand in the prior year period. We saw our bookings grow to $3.2 million over the same period. Product sales increased 186% to $900 thousand compared to $300 thousand in the prior year quarter driven by increased domestic and international demand for the BolaWrap 150 product line. Cassettes and consumables represented a growing component of product revenue. Consistent with the expanding base of BolaWrap devices in active field use. Technology enabled services revenue was $200 thousand compared to $500 thousand in the prior year period. The year over year change reflects the growth in WrapVision, and related software revenue. Offset by the wind down of certain advisory and investigative services. We are focusing technology enabled services revenue line on higher margin and software based offerings. Including WrapTactics, Wrap Reality, and WrapVision Evidence Management subscriptions. Gross profit increased 16% to $700 thousand. Compared to $600 thousand in the prior year period. Gross margin was 62% compared to 78% in the prior year period. The decline in gross margin percentage reflects the growth in hardware product sales in Q1, which carry lower margin than software subscription demand services. We currently expect gross margins to improve as technology enabled services revenue grows as a proportion of total revenue. Throughout 2026. Although there can be no assurances that this mix and or shift will occur at the pace or magnitude we anticipate. Within selling, general, and administrative expense, share based compensation was $2.4 million for the first quarter compared to $1.7 million in the prior year period. Cash based SG&A was $3 million compared to $2.5 million in the prior year period. Reflecting investment in sales and go to market expansion. Total operating expenses were $5.5 million compared to $4.5 million in the prior year period. Please note, as always, a reconciliation of GAAP to non GAAP measures can be found in our earnings release, which is posted on our website. Cash used in operating activities improved 59%. To $1.2 million compared to $3.1 million in the prior year period. Reflecting higher revenue dis discipline cost management and reduced cash burn even as we continue to invest in sales and go to market activities. We believe the first quarter results reflect a leaner, more focused business that is beginning to grow with the non lethal response framework we laid out last quarter. I will now hand it over to Jared to cover our operational highlights and strategic initiatives. Jared Novick: Thank you, Louis. As we look beyond the headline financial results, the first quarter also provided early evidence that our go to market strategy is beginning to gain traction in areas we have prioritized for growth. Let me describe this in the following key areas. Non lethal response at scale. We see agencies are increasingly interested in moving away from single device purchase to agency wide adoption. In the first quarter, we saw this validated as agencies began to make that transition. The integrated program approach, of hardware technology training and policy is what is resonating. When it comes to federal and defense market entry, our strategy is supported by federal consultants and advisers that continue to position our portfolio for DOD, DHS, and other federal customers. We continue to focus on TAA compliant products, made in America manufacturing efforts, procurement infrastructure through Carahsoft as our master government aggregator give us the foundation to compete for that work. When it comes to counter UAS and our advancements there, our R&D investments into drone to drone and drone to person capabilities are showing traction. We have preorders for both drone and counter drone systems. With recent orders across The UK and Europe, and follow on DFRX orders from our partner in Panama, and our R&D expansion into net based drone interdiction reflect that a market is moving from concept to procurement. International reorders and engagements across The UK, Europe, India, Panama and Malta during and after the quarter supported the view that demand for integrated nonlethal response solutions is broad based and global. I will now hand it back to Scot to discuss our outlook for the balance of 2026. Scot Jason Cohen: Thanks, Jared. Putting all this together, we continue to target 100% growth for this year. What has changed in our visibility into our pipeline, and our conviction? The contracts that we are currently pursuing for 2026 and 2027, if awarded, have the potential for a meaningful increase in the scale of this business. However, these opportunities do remain subject to competitive processes and government funding decisions and other factors outside of our control. But in summary, Q1 showed early evidence that our go to market strategy is beginning to convert into measurable commercial traction with revenue growth, stronger product sales, and expanding bookings and lower operating cash use. We are seeing customers move towards broader nonlethal response adoption. While early drone and counter drone preorders suggest that our recent R&D investments may open additional markets beyond the core handheld BolaWrap platform. Our focus for the balance of 2026 is straightforward. Continue converting pipeline, deepen agency wide adoption, advance federal and international opportunities, and execute against our 100% revenue target for this year. To all you shareholders, thank you. Thank you for your continued support and confidence. All right, Louis. I am going to turn it over to you. I think we have got how many questions do we get today? Louis Springer: We had 4 questions come in. Scot Jason Cohen: Alright. Let's hear them. So first question that came in should shareholders view the current financing approach as a temporary bridge during the company's scaling phase? Or as the capital structure model management expects to continue utilizing going forward. Alright. I am going to take that 1 since I have been leading and driving a lot of the capital-- all of the financing. So look, it is-- it is really straightforward. The more liquidity in our stock, the more options you have. The and to get institutional quality investors, they are looking for fundamentals in this business. We finally have them. We finally have pipeline that we can show. We finally have a sales rep. We finally have fiscal discipline that is showing up in our numbers. And if we can continue to drive the top line like what is unfolding here, we are going to be a lot of different financial options for us. It has been a tough You guys know how much money I put into this company. I am participating in these rounds. It was not something I was anticipating doing, but I am standing up for this company. I am standing up for what we are building, and I am not stopping because we have got really important work in front of us. it is not easy taking in money for a company that has not been formed because we have not. it is been really tough. But if things continue, and I have never the company's never given out guidance, but if we can execute on this, we will have finally, for the first time, some real financing options. I hope that answered your first question. Second, The second is what specific indicators should shareholders watch for evidence of the company reducing its long term reliance on higher diluted financing structures? Louis Springer: The first thing you need to do is put the fundamentals in place and put up numbers, which thankfully we are doing now with visibility, which we will be talking about the whole be this will be unfolding throughout the year. Scot Jason Cohen: So I went as you are on that path, we get to engage with different types of funds, different types of brokers, that actually have fundamental investors that are interested in a financial story with some big upside associated with it. So that-- those are-- that is activity that we are getting ready for because finally, the company can stand. I used to be on the buy side. I was on the front on the on the sell side. So I know this arena extremely well. And I know how much time can get wasted on the road, and I know what funds are looking to invest in. And we are definitely investable. When you put the-- you put the numbers together with the story that is unfolding here, I think we are going to have a lot of financial-- a lot better financial options going forward. So you could and the first sign is when we actually do it. When we actually put up a deal, that with some with some institutions that everybody can see, and it is-- those are bigger transactions. And you can see those funds will hopefully be active filers in small cap companies. With long term positions. But I will say this. Being real about our cap table, I am very proud of that cap table. There are-- there are still we have some extremely sticky shareholders. We pulled the shareholder base 3.5 years ago, maybe 4 years ago, and found that over 1/3 of our cap table were people associated with law enforcement. That is that made me very proud. And that is a really good indicator the industry is buying in on what this technology is about. So and if you look at our top holders, you can look at some of the small, but our top holders have been in place for from the beginning. it is had very little change in the in that whole shift. So I am I am thankful and grateful that people have been supporting us for years and have not stopped. Those financings that have taken place, those smaller financings, let's call them 3 to 5 we could have taken in bigger money possibly, but hard to get real fundamental people involved, and you cannot go out to the street and keep talking about this because it puts pressure on the stock. You have to be very, very careful. So again, the thing that makes me proud, not only do we have a large amount of our cap tables coming from people that are associated with law enforcement, But our top holders and most of our holders have not moved their positions. Some of them increased. But they have not moved. So and particularly the people that have invested in those the pipes, the 3 or 4 last deals that we have done, they are still in there inside. Barely any of them have sold their positions. So that is not easy to do. It you need to have trust with that investor, and I think we have established that But it is time. I think we all want a different class of investors in. We can access them if we keep doing exactly what we are on a path to start to access that kind of capital. If we can get through the second quarter and execute through this year, we will have plenty more financing options available to us. Next question, Louis. Next question is investors have seen extended periods where the CEO simultaneously has held multiple executive and financial reporting functions. Is there a plan to search for a CFO? Jared Novick: Oh, yeah. There certainly is. Look. We have had plenty of C suite turnover. I could tell you with and you could see evidence by today's call, we were ahead of time for the first time in a long time. Our systems are in place, and our controls are the best they have ever been. So big thanks out to Yulu and Brian and the rest of the team. They have done a great job to get us here, and get us finally in a good place financially. But we are going to-- I am going to be looking for a CFO that can help talk to capital markets, help tell our story and get in front of investors. But in order to do that, you better have the numbers to because you will not even get the meeting. You will be wasting time. So I think we are coming up to that point. We are in the lockout. We have done interviews. And we will find the right candidate But the good news is our financial infrastructure is the best it is ever been. Jared, do you have anything to add to that? Scot Jason Cohen: it is a priority of company. Leadership matters. it is leadership. So it is it is 1 of the key initiatives of the company to find top talent in these positions. Louis Springer: Right. Okay, Louis. What else we got? Scot Jason Cohen: Final question. How should shareholders interpret the 04/10/2020 trading session where trading volume dramatically exceeded historical norms without any repricing of the equity. Louis Springer: Great question. I am still scratching my head how that happened. I am going to leave it to algorithms. I think an algo must have gotten ahold of us, and traded back and forth because as soon as-- I saw no big changes in the cap table. Subsequent to that event. So if I saw a large movement in the share any of the large shareholders, I could tell you that I was from, but it was not. I saw no movement in the cap table. So, unfortunately, it was a bit of a head fake. It was exciting day. I did not know where it was coming from, but my best guess is an algo. All right. Scot Jason Cohen: That concludes our question and answer portion. Louis Springer: On behalf of Scot, Jared, and the entire Wrap team, thank you for your engagement and support. We look forward to updating you on our progress. This concludes Wrap Technologies first quarter 26 earnings conference call. Thank you. Operator: This concludes today's conference call. Thank you for participating. You may now disconnect. Before you buy stock in Wrap Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Wrap Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $472,744!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,353,500!* Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Wrap Technologies (WRAP) Q1 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: May 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Wrap Technologies Inc (NASDAQ:WRAP) reported a 45% year-over-year increase in total revenue for the first quarter, reaching $1.1 million. Product sales surged by 186%, driven by increased domestic and international demand for the Bolerap 150 product line. The company is expanding its international footprint, with growth in markets such as India, Panama, Brazil, Malta, and the UK. Recurring revenue from subscription services like Rap Reality, Rap Tactics, and Rap Vision is steadily growing, contributing to a more stable revenue base. Early commercial traction in drone and counter-drone solutions suggests potential for new market opportunities beyond the core handheld Bolerap platform. Gross margin declined from 78% to 62% year-over-year, primarily due to the growth in lower-margin hardware product sales. Technology-enabled services revenue decreased from $0.5 million to $0.2 million, reflecting a shift away from certain advisory and investigative services. Operating expenses increased to $5.5 million from $4.5 million in the prior year, driven by investments in sales and market expansion. The company continues to rely on higher diluted financing structures, which may affect shareholder value. There is ongoing C-suite turnover, and the company is still in search of a CFO to strengthen its financial leadership. Warning! GuruFocus has detected 4 Warning Signs with WRAP. Is WRAP fairly valued? Test your thesis with our free DCF calculator. Q: Should shareholders view the current financing approach as a temporary bridge during the company's scaling phase, or as the capital structure model management expects to continue utilizing going forward? A: Scott Cohen, CEO, explained that the current financing approach is seen as a temporary measure during the company's scaling phase. The company is focusing on building liquidity and fundamentals to attract institutional investors, which will provide more financial options in the future. Q: What specific indicators should shareholders watch for as evidence of the company reducing its long-term reliance on higher diluted financing structures? A: Scott Cohen, CEO, advised that shareholders should look for the company putting up strong financial numbers and engaging with different types of funds and brokers. The company aims to attract fundamental investors interested in a financial story with significant upside potential. Q: Is there a plan to search for a CFO, given the CEO has been holding multiple executive and financial reporting functions? A: Scott Cohen, CEO, confirmed that there is a plan to search for a CFO. The company is looking for a candidate who can help communicate with capital markets and investors. The financial infrastructure is currently strong, and finding top talent is a priority. Q: How should shareholders interpret the April 10th, 2026 trading session where trading volume dramatically exceeded historical norms without any repricing of the equity? A: Scott Cohen, CEO, suggested that the unusual trading volume might have been due to algorithmic trading, as there were no significant changes in the cap table or large shareholder movements following the event. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Wrap Technologies (NASDAQ:WRAP) reported first-quarter financial results on Wednesday. The transcript from the company's first-quarter earnings call has been provided below. This content is powered by Benzinga APIs. For comprehensive financial data and transcripts, visit https://www.benzinga.com/apis/. Access the full call at https://edge.media-server.com/mmc/p/xqophtid/ Wrap Technologies reported a 45% increase in total revenue for Q1 2026, reaching $1.1 million, with product sales climbing 186% due to increased demand for the BolaWrap 150 product line. The company is targeting 100% revenue growth for 2026, with expanding operations in international markets such as India, Panama, Brazil, Malta, and the UK. Operational highlights include the growth of recurring revenue from technology-enabled services and early traction in drone and counter-drone solutions, indicating potential new market opportunities. Gross profit increased by 16% to $0.7 million, although gross margin declined to 62% from 78% due to higher sales of lower-margin hardware products. Management expressed confidence in the company's strategic initiatives, focusing on agency-wide adoption of non-lethal solutions, and improving financial options as fundamentals strengthen. OPERATOR Good day and thank you for standing by. Welcome to the Wrap Technologies, Inc. First Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session. Webcast viewers can type questions in at any time via the webcast Q&A function. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Lou Springer. Please go ahead. Lou Springer (Vice President of Finance) Thank you. Good afternoon and welcome to Wrap Technologies first quarter 2026 earnings conference call. I'm Lou Springer, Vice President of Finance. Joining me today is Scott Cohen, Chief Executive Officer and Jared Novick, President and Chief Operating Officer. We appreciate your time and continued interest in Wrap. Before we begin, I want to remind you that certain statements and assumptions in this conference call contain or are based upon forward looking information that are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform act of 1995 and the Federal Securities Regulations. Please review the forward looking and Cautionary Statements section at the end of our first quarter 2026 earnings release for various factors that could cause actual results to differ materially from forward looking statements made during our call today. Such forward looking statements are subject to numerous assumptions, uncertainties and known or unknown risks which could cause actual results to differ materially from those anticipated. These factors are more fully discussed in the Company's filings with the securities and Exchange Commission. The forward looking statements included in this conference call are only made as of the date of this call and the Company is not obligated to publicly update or revise statements made during this call do not constitute an offer to sell or a solicitation of any offer to buy any securities. Securities will be offered only by means of a registration statement and prospectus which can be found at www.sec.gov. also, during today's call we will discuss certain non GAAP financial measures which we believe can be useful in evaluating the Company's financial performance. Descriptions of those non GAAP financial measures that we use and reconciliations of those measures to our results as reported in accordance with GAAP are detailed in our earnings release. Unless otherwise stated, all reported results discussed in this call compare the first quarter ended March 31, 2026 with the first quarter ended March 31, 2025. The earnings release will be available on the Financial Info section of our [email protected] in addition, a replay of this earnings call will be posted on our website after the call. I will now hand it over to Scott Scott Cohen (Chief Executive Officer) thank you Lou. Good afternoon everybody and thanks for joining us today. When we spoke in March we told you that for the first time we had visibility into our pipeline and that we are targeting 100% revenue growth growth for 26 1/4 in I can tell you that based on the information we have today, our conviction in that target has strengthened the momentum we described coming out of the fourth quarter carried directly into the first quarter and has continued to build as we move into the second quarter. First quarter revenue grew 45% year over year. More importantly, product sales, the core measure of agency adoption with our technology grew 186%. That growth was driven by increased domestic and international demand for the bowler app 150 line, including continual reorders from and very active installed base. We believe these numbers indicate two things. First, the pipeline we talked about in March is beginning to convert and second, the agencies that have adopted Bull Ramp are using it and expanding internationally. We're expanding our footprint. We've expanded our footprint in India, Panama, Brazil, Malta and the uk. Across the BolaWrap, Wrap Reality, our drone and counter drone solutions, we are seeing the reoccurring side of this business start to take shape. Cassettes represented a growing number, a growing component of product revenue in the quarter consistent with the expanding base of BO wrap devices and in active field use subscription activity and Wrap Reality Wrap Tactics and rap vision is beginning to build. Behind that reoccurring revenue is a slower compounding story than our single large than a single large product order. But it's me. It's a meaningful contributor to the quality of our revenue base over time and it is growing steadily on the innovation front. The early commercial traction we are seeing from the drone encounter Drone reinforces our view that non lethal response integrated with autonomous platforms is a real and emerging market and one in which we believe we're well positioned for. Jared's going to cover that in detail shortly. I'm now going to turn it back over to Lou who's going to walk you through the financial results. And Jared will cover our operational progress and R and D growth initiatives. I'll come back to discuss our outlook and priorities for the balance of 26. Thank you. Lou Springer (Vice President of Finance) Thank you Scott. The financial results in Q1 suggest that our strategy is beginning to translate into commercial traction. Total revenue for the first quarter was 1.1 million, an increase of 45% compared to the 0.8 million in the prior year period. We saw our bookings grow to 3.2 million over the same period. Product sales increased 186% to 0.9 million compared to 0.3 million in the prior year quarter driven by increased domestic and international Demand for the Bolerap 150 product line. Cassettes and consumables represented a growing component of product revenue consistent with the expanding base of Bolarap devices in active field use. Technology enabled services revenue was 0.2 million compared to 0.5 million in the prior year period. The year over year change reflects the growth in RAP Vision and related software revenue offset by the wind down of certain advisory and investigative services. We are focusing technology enabled services revenue line on higher margin subscription and software based offerings including RAP Tactics, RAP Reality and RAP Vision Evidence Management. Subscriptions Gross profit increased 16% to 0.7 million compared to 0.6 million in the prior year period. Gross margin was 62% compared to 78% in the prior year period. The decline in gross margin percentage reflects the growth in hardware product sales in Q1 which carry lower margin than software subscriptions and managed services. We currently expect gross margins to improve as technology enabled services revenue grows as a proportion of total revenue throughout 2026, although there can be no assurances that this mix or shift will occur at the pace or magnitude we anticipate. Within selling General and administrative Expense Share based compensation was 2.4 million for the first quarter compared to 1.7 million in the prior year period. Cash based SGA was 3 million compared to 2.5 million in the prior year period reflecting investment in sales and go to market expansion. Total operating expenses were $5.5 million compared to $4.5 million in the prior year period. Please note, as always, a reconciliation of GAAP to non GAAP measures can be found in our earnings release which is posted on our website. Cash used in operating activities improved 59% to $1.2 million compared to $3.1 million in the prior year period reflecting higher revenue discipline, disciplined cost management and reduced cash burn. Even as we continue to invest in sales and go to market activities. We believe the first quarter results reflect a leaner, more focused business that is beginning to grow with the non lethal response framework we laid out last quarter. I'll now hand it over to Jared to cover our operational highlights and strategic initiatives. Thank you Lou. Jared Novick (President and Chief Operating Officer) As we look beyond the headline financial results, the first quarter also provided early evidence that our go to market strategy is beginning to gain traction in areas we have prioritized for growth. Let me describe this in the following key areas. Non Lethal Response at Scale we see agencies are increasingly interested in moving away from single device purchase to agency wide adoption. In the first quarter we saw this validated as agencies began to make that transition. The integrated program approach of hardware technology training and policy is what is resonating when it comes to federal defense market entry. Our strategy is supported by federal consultants and advisors that continue to position our portfolio for DoD, DHS and other federal customers. We continue to focus on TAA compliant products, made in America manufacturing efforts, procurement infrastructure through carahsoft as our master government aggregator give us foundation to compete for that work. When it comes to counter UAS and our advancements there, our R and D investments into drone to drone and drone to person capabilities are showing traction. We have pre orders for both drone and counter drone systems with recent orders across the UK and Europe and follow on dfrx. Orders from our partner in Panama and our R and D expansion into net based drone interdiction reflect that a market is moving from concept to procurement. International reorders and engagements across the uk, Europe, India, Panama and Malta during and after quarter support review that demand for integrated non lethal response solutions is broad based and global. I'll now hand it back to Scott to discuss our outlook for the balance of 2026. Scott Cohen (Chief Executive Officer) Thanks Jarrett. Putting all this together, we continue to target 100% growth for this year. What has changed in our visibility, our pipeline and our conviction? The contracts that we're currently pursuing for 26 and 27, if awarded, have the potential for a meaningful increase in the scale of this business. However, these opportunities do remain subject to competitive processes and government funding decisions and other factors outside of our control. But in summary for Q1 showed early evidence that our go to market strategy is beginning to convert into measurable commercial traction. With revenue growth, stronger product sales and expanding bookings and lower operating cash use, we are seeing customers move towards broader non lethal response adoption. While early drone and counter drone pre orders suggest that our recent R and D investments may open additional markets beyond the core handheld BoarApp platform, our focus for the balance of 26 is straightforward. Continue converting pipeline, deepen agency wide adoption, advance federal and international opportunities and execute against our 100% revenue target for this year. To all you shareholders, thank you, thank you for your continued support and confidence. All right, Lou, I'm going to turn it over to you. I think we've got how many questions do we get today? We had four questions come in. All right, let's hear them. All right, I'm going to take that one. Since I've been leading and driving a lot of the capital, a lot of the financing. So look, it's really straightforward. The more liquidity in our stock, the more options you have. And to get institutional quality investors, they're looking for fundamentals in this business. We finally have them. We finally have pipeline that we can show. We finally have a sales rep. We finally have fiscal discipline, discipline that's showing up in our numbers. And if we can continue to drive the top line like what's unfolding here, there's going to be a lot of different financial options for us. It has been a tough road. You guys know how much money I put into this company. I participated in all these rounds. It wasn't something I was anticipating doing, but I am standing up for this company. I'm standing up for what we're building and I'm not stopping because we've got really important work in front of us. It's not easy taking in money for a company that hasn't been forming because we haven't. It's been really tough. But if things continue, and I've never, the company's never given out guidance, but if we can execute on this, we will have finally, for the first time, some real financing options. I hope that answered your first question. The first thing you need to do is put the fundamentals in place and put up numbers, which thankfully we're doing now with visibility, which we'll be talking about. This will be unfolding throughout the year. So as you're on that path, we get to engage with different types of funds, different types of brokers that actually have fundamental investors that are interested in a financial story with some big upside associated with it. So that's activity that we are getting ready for because finally the company could stand. I used to be on the buy side, I was on the sell side. So I know this arena extremely well and I know how much time can get wasted on the road and I know what funds are looking to invest in and we're definitely investable. But when you put the numbers together with the story that's unfolding here, I think we're going to have a lot of financial, a lot better financial options going forward. So you could end the first sign is when we actually do it, when we actually put up a deal that with some credit, with some Institutions that everybody can see and those are bigger transactions. And you can see those funds will hopefully be active filers in small cap companies with long term positions. But I will say this being real about our cap table, I'm very proud of that cap table. There are still we have some extremely sticky shareholders. We pulled the shareholder base three and a half years ago, maybe four years ago and found that over a third of our cap table were people associated with law enforcement. That is, that made me very proud and that's a really good indicator the industry has is buying in on what this technology is about. So and if you look at our top holders, you can look at some of the small but our top holders have been in place for from the beginning. It's had very little change in that holy ship. So I am thankful and grateful that people have been supporting us for years and haven't stopped those financings that have taken place, those smaller financings, let's call them 3 to 5. We could have taken in bigger money possibly but hard to get real fundamental people involved. And you can't go out to the street and talking about this because it puts pressure on the stock. Have to be very, very careful. So again the thing that makes me proud not only do we have a big large amount of our cap table is coming from people that are associated with law enforcement but our top holders and most of our holders haven't moved their positions. Some of them increase but they haven't moved. So and particularly the people that have invested in those, the pipes, the three or four last deals that we've done, they're still in there side barely any of them have sold their positions. So that is not easy to do. You need to have trust with that investor and I think we've established that. But it is time. I think we all want a different class investors and we can access them if we keep doing exactly what we are on a path to start to access that kind of capital. If we can get through the second quarter and execute through this year, we will have plenty more financing options available to us. Lynn Next question Next question is investors have seen extended periods where the CEO simultaneously held multiple executive and financial reporting functions. Is there a plan to search for a cfo? Scott Cohen (Chief Executive Officer) Oh yeah, there certainly is. Look, we've had plenty of C suite turnover I could tell you with and you can see evidenced by today's call. We were ahead of time. For the first time in a long time our systems are in place and our controls are the best they've ever been. So big thanks out To Yulu and Brian and the rest of the team. They've done a great job to get us here and get us finally in a good place financially. But we are good. I am going to be looking for a CFO that can help talk to capital markets, help help tell our story and get in front of investors. But in order to do that, you better have the numbers to because you won't even get the meeting. It'll be wasting time. So I think we're coming up to that point. We are on the lockout lookout. We've done interviews and we will find the right candidate. But the good news is our financial infrastructure is the best it's ever been. Jared, do you have anything to add to that? Jared Novick (President and Chief Operating Officer) It's a priority of the company. People matter. It's a leadership. So it is. It is one of the key initiatives of the company to find top talent in these positions. Scott Cohen (Chief Executive Officer) Right. Okay, Lou, what else we got? Lou Springer (Vice President of Finance) Final question. How should Shareholders interpret the April 10, 2026 trading session where trading volume dramatically exceeded historical norms without any repricing of the equity? Scott Cohen (Chief Executive Officer) Great question. I still scratch in my head how that happened. I'm going to leave it to algorithms. I think an algo must have gotten a hold of us and traded back and forth because as soon as I saw no big changes in the cap table subsequent to that event. So if I saw a large movement in any of the large shareholders, I could tell you that I was from. But it wasn't. I saw no movement in the cap table. So unfortunately it was a bit of a head fake. It was exciting day. I didn't know where it was coming from, but my best guess is the net worth. Lou Springer (Vice President of Finance) All right, that concludes our question and answer portion. On behalf of Scott, Jared and the entire Rapp team, thank you for your engagement and support. We look forward to updating you on our progress. And this concludes Rapp Technologies first quarter 2026 earnings conference call. Thank you. OPERATOR This concludes today's conference call. Thank you for participating. Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice. UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga: WRAP TECHNOLOGIES (WRAP): Free Stock Analysis Report This article Transcript: Wrap Technologies Q1 2026 Earnings Conference Call originally appeared on Benzinga.com © 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.