Revenue growth is accelerating (45% YoY) and cash burn is narrowing, but the net loss swing and gross margin compression signal ongoing profitability challenges. The DHS order and $3.2M bookings provide near-term revenue visibility. Monitor Q2 2026 for evidence of operating leverage and whether the 100% growth target is achievable without further dilution.
Price Chart
Executive Summary
Wrap Technologies reported Q1 2026 revenue of $1.1M (+45% YoY) but a net loss of $(4.5)M vs. net income of $0.1M a year ago, driven by higher operating expenses and the absence of a prior-year $4.0M warrant liability gain. Product sales surged 186% to $0.9M, and bookings hit $3.2M, while cash burn improved 59% to $(1.2)M. Management reiterated a ~100% revenue growth target for 2026, but the widening loss and GAAP net income swing to negative make this a mixed report with a bearish tilt on profitability.
Key Financial Metrics
Key Facts
- Revenue grew 45% YoY to $1.1M, driven by 186% product sales growth to $0.9M
- Net loss of $(4.5)M vs. net income of $0.1M in Q1 2025 (prior year included $4.0M warrant gain)
- Gross margin compressed to 62% from 78% a year ago
- Operating expenses rose to $5.5M from $4.5M, driven by higher non-cash share-based compensation
- Cash and equivalents improved to $7.3M from $3.5M at year-end 2025
- Operating cash burn improved 59% to $(1.2)M from $(3.1)M
- Bookings totaled $3.2M, including $1.1M domestic and $2.1M international
- Received purchase order from U.S. Department of Homeland Security for BolaWrap technology
- Management targets ~100% revenue growth for full-year 2026
Financial Impact
Revenue $1.1M, net loss $(4.5)M, operating cash burn $(1.2)M
Risk Factors
- Net loss widened significantly vs. prior-year profit, driven by operating expense growth and absence of warrant gain
- Gross margin fell 16 percentage points to 62%, indicating cost pressure or product mix shift
- Company remains pre-revenue at scale with $79M market cap and $1.1M quarterly revenue
- Forward-looking 100% growth target is aspirational and may require additional capital
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3294389 |
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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