Revenue growth is accelerating (45% YoY) and bookings of $3.2M provide visibility into Q2, but the company remains unprofitable with a widening operating loss. The DHS contract and drone pre-orders are positive catalysts, but the 62% gross margin (down from 78%) and continued cash burn warrant caution. Monitor Q2 revenue conversion from the $3.2M bookings pipeline and any further federal contract wins.
Price Chart
Executive Summary
Wrap Technologies reported Q1 2026 revenue of $1.1M, up 45% YoY from $0.8M, and product sales more than doubled to $0.9M. The company secured a DHS purchase order and $3.2M in bookings, but operating loss widened to $(4.8)M from $(3.9)M and net loss swung to $(4.5)M from net income of $0.1M in the prior-year period (which included a $4.0M non-cash warrant gain). Management reiterated its target of approximately 100% revenue growth for 2026, but the company remains deeply unprofitable with a $79M market cap and negative operating cash flow.
Key Financial Metrics
Key Facts
- Q1 2026 revenue increased 45% YoY to $1.1M (vs $0.8M in Q1 2025)
- Product sales surged 186% to $0.9M (vs $0.3M)
- Bookings totaled $3.2M, including $1.1M domestic and $2.1M international
- Received a purchase order from the U.S. Department of Homeland Security
- Gross margin compressed to 62% from 78% in the prior-year period
- Operating loss widened to $(4.8)M from $(3.9)M
- Net loss of $(4.5)M vs net income of $0.1M (prior year included $4.0M non-cash warrant gain)
- Cash used in operations improved 59% to $(1.2)M from $(3.1)M
- Cash balance strengthened to $7.3M at quarter-end from $3.5M at Dec 31, 2025
- Management targets approximately 100% revenue growth for full year 2026
Financial Impact
Revenue growth of 45% YoY to $1.1M, but operating loss widened by $0.9M to $(4.8)M and net loss swung by $4.6M to $(4.5)M
Risk Factors
- Gross margin compression from 78% to 62% suggests product mix shift or pricing pressure
- Operating loss widened despite revenue growth, indicating negative operating leverage
- Net loss swung to $(4.5)M from net income of $0.1M, though prior year included a $4.0M non-cash gain
- Cash balance of $7.3M is modest relative to quarterly cash burn of $1.2M (operating)
- Management's 100% revenue growth target is aspirational and depends on execution
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-022738 |
| Document: form8-k.htm | 0001493152-26-022738 |
| Document: 0001493152-26-022738-index-headers.html | 0001493152-26-022738 |
| Document: 0001493152-26-022738-index.html | 0001493152-26-022738 |
| Document: 0001493152-26-022738.txt | 0001493152-26-022738 |
| 8-K Data (Synthetic) | 0001493152-26-022738 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | 8-K | $1.15 | awaiting T+5 | — | $1.15 (−0.00%) |
Oct 22, 2026 4d ago | 3 | $1.22 | awaiting T+5 | — | $1.15 (−5.74%) |
Aug 28, 2026 8w ago | Press Release | $1.61 $1.67 | ▲ +3.73% | ▲ +3.62% | $1.15 (−28.57%) |
Aug 11, 2026 10w ago | Press Release | $1.73 $1.61 | ▼ −6.94% | ▼ −6.49% | $1.15 (−33.53%) |
Aug 4, 2026 11w ago | Press Release | $1.93 $1.73 | ▼ −10.36% | ▼ −10.71% | $1.15 (−40.41%) |
Jul 9, 2026 15w ago | Insider Cluster | $2.46 $2.19 | ▼ −10.98% | ▼ −10.42% | $1.15 (−53.25%) |
May 13, 2026 23w ago | 8-K | $1.65 $1.45 | ▼ −12.12% | ▼ −11.40% | $1.15 (−30.30%) |
May 13, 2026 23w ago | Press Release | $1.65 $1.45 | ▼ −12.12% | ▼ −11.40% | $1.15 (−30.30%) |
Apr 24, 2026 26w ago | Press Release | $1.60 $1.54 | ▼ −3.75% | ▼ −4.66% | $1.15 (−28.13%) |
Apr 22, 2026 26w ago | Press Release | $1.57 $1.58 | ▲ +0.32% | ▲ +0.26% | $1.15 (−26.75%) |
US Market Status
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