Wrap Technologies sees $15B global opportunity through non-lethal, drone-integrated solutions expansion

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

MANAGEMENT VIEW

* CEO Scot Cohen highlighted that the third quarter represented "our strongest in the past 2 years, delivering $2 million in gross revenue, 12% of which came from subscription-based sales, suggesting a clear improvement in our core fundamentals." Cohen emphasized a strategic transformation, explaining, "From being a straightforward device manufacturer becoming a provider of non-lethal response subscription solutions for law enforcement and for Counter-UAS operations."
* Cohen noted, "BolaWrap adoption continues to be on the rise. While we have observed TASER, pepper spray and baton use declining... policies are tightening around the country, making it harder and harder to use the tools on the belt today."
* Cohen detailed performance metrics, stating, "As of today, BolaWrap 150 has now demonstrated a 92% field success rate with 0 reported deaths, 0 serious injuries and 0 lawsuits, a record unmatched by any other known or widely deployed tool in public safety."
* President and COO Jared Novick described the company's shift: "We're building a connected ecosystem of training, policy and tools that are designed to work together... Together, these 3 pillars, training, policy and tools, form the foundation of a recurring system business model, transforming once was a onetime hardware sale into a multiyear subscription contract that integrate hardware, software and training."
* Cohen further outlined, "We've already demonstrated the world's first drone to person interdiction using BolaWrap's patented technology, demonstrating that Wrap's capability extends beyond the street into the sky and into the future of public safety."
* Novick introduced Wrap Federal, "designed to be our DCAA compliant Federal division," and noted the opening of the Norton Virginia manufacturing and training facility as a step to "expand capacity, create high-tech jobs and ensure Wrap's eligibility under federal procurement preferences for domestic content."

OUTLOOK

* Management signaled ongoing expansion into federal, defense, homeland security, and international markets, referencing the global Counter-UAS market "projected to exceed $15 billion globally by 2030."
* Cohen stated, "Our systems are working, and our strategy is gaining traction. We're bringing today's momentum to tomorrow's larger opportunity."
* Novick explained, "We acknowledge that lethal tools will always have a role in policing and defense. But our mission is to ensure that non-lethal comes first."
* The company is focused on scaling recurring, high-margin revenue streams and expects further penetration into adjacent commercial, healthcare, transportation, defense, and education sectors.

FINANCIAL RESULTS

* Cohen reported, "the third quarter represented our strongest in the past 2 years, delivering $2 million in gross revenue, 12% of which came from subscription-based sales."
* Novick stated, "While managed services contributed lower margin professional services revenue, the higher-margin system sales driven by BolaWrap, WrapTactics and WrapVision delivered the majority of our growth."
* Management attributed growth to the shift towards recurring and integrated systems revenue, suggesting this is "driving margin expansion and positioning Wrap for profitability."

Q&A

* Twitter: "Now that the company seems to be heading in the right direction... do you see Wrap finally being able to approach the capital markets and execute a public secondary?" Cohen: "Yes, I do see us being able to tap those markets. The Board and management is regularly evaluating financial options."
* Online: "What made you go back to non-lethal and how is that different than less lethal?" Cohen: "We are absolutely clear. This device is non-lethal... as the data comes in and continues to build that non-lethal status just gets clearer and clearer to us."
* Online: "Can you provide clarity on the bylaws amendment and if you guys are planning on doing any splits?" Cohen: "We have no intention to split. That was a protective measure that offers flexibility."
* Online: "What gives you the confidence that adoption is happening...?" Cohen and Novick pointed to deployment data, direct agency reports, and rising use rates, with Novick adding, "...in our conversations... for those that do [have BolaWrap], this is data coming right from them... they're going to the BolaWrap because their choices are now limited."
* Online: "Do you have any updates on where we're at with the potential Chile deal...?" Cohen: "We're dealing with Chile on a weekly, sometimes daily basis... we're very active. And we're anticipating doing some real business down there, hopefully, it's next year."
* Online: "What makes DFR-X different than DFR?" Novick: "...when you put these cassettes on the drone, you now can [interdict]... you are actually able to deter and delay and distract with BolaWrap technology, and that's novel, and that's unique, and it's protected."
* Online: "Please comment on your plans to obtain sales. Can you describe your sales force?" Cohen: "We've onboarded close to 18 people that touch sales and marketing and -- including the D.C. office. So it's a huge push."

SENTIMENT ANALYSIS

* Analysts and online participants focused on growth prospects, capital strategy, competitive differentiation, and market adoption, often seeking granular clarity and expressing cautious optimism.
* Management maintained a confident and assertive tone throughout, especially Cohen, who used phrases such as "we are clear," "we believe," and "we're going to press this because the times now." The tone was more pronouncedly optimistic compared to the previous quarter, with recurring references to momentum and clarity of direction.
* Compared to Q2, management's tone shifted from emphasizing restructuring and cost control to a more growth-focused, opportunity-driven narrative, while analyst sentiment remained probing but less concerned with operational risks than with future potential.

QUARTER-OVER-QUARTER COMPARISON

* Q3 marked a transition from post-restructuring stability to an assertive go-to-market expansion, whereas Q2 focused on operational discipline, cost reduction, and early signs of market validation.
* The Q3 call highlighted a $2 million gross revenue figure and momentum in subscription-based sales, compared to Q2's $1 million quarterly revenue and operational cost focus.
* Strategic focus expanded from law enforcement and regulatory response in Q2 to a broader addressable market including defense, homeland security, and international sectors in Q3.
* Analysts' questions in Q3 leaned toward capital markets access, sales force ramp, and global deals, while Q2 focused more on operational turnaround and product-market fit.
* Management expressed stronger confidence and clarity in market positioning, expansion, and product differentiation in Q3.

RISKS AND CONCERNS

* Management acknowledged challenges related to policy adoption, market education, and necessity for policy alignment with technology deployments.
* The company is closely monitoring capital needs and is considering public market options for additional funding.
* International deal execution, such as the Chile opportunity, remains subject to ongoing engagement and uncertainty regarding timeline.
* Management highlighted the importance of integrating training and policy with product sales, suggesting pure hardware sales are insufficient for long-term adoption.

FINAL TAKEAWAY

The third quarter underscored Wrap Technologies' strategic transformation from a device manufacturer to an integrated, non-lethal response solutions provider, supported by robust growth in recurring revenue and expanded market reach. With increased adoption of BolaWrap, a rise in subscription sales, and the opening of a new Virginia manufacturing facility, management emphasized a clear strategy to capture opportunities across law enforcement, defense, homeland security, and international markets. The company remains focused on scaling high-margin revenue streams and leveraging its ecosystem approach to drive sustainable growth and profitability.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/wrap/earnings/transcripts]

MORE ON WRAP TECHNOLOGIES

* Wrap Technologies, Inc. (WRAP) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4842778-wrap-technologies-inc-wrap-q3-2025-earnings-call-transcript]
* Wrap Technologies: Public-Safety Platform With Small Revenue Base [https://seekingalpha.com/article/4831373-wrap-technologies-stock-public-safety-platform-with-small-revenue-base]
* Wrap Technologies raises $4.5M in preferred stock for Wrap-Merlin and Wrap-PANDA programs [https://seekingalpha.com/news/4486599-wrap-technologies-raises-45m-in-preferred-stock-for-wrap-merlin-and-wrap-panda-programs]
* Seeking Alpha’s Quant Rating on Wrap Technologies [https://seekingalpha.com/symbol/WRAP/ratings/quant-ratings]
* Financial information for Wrap Technologies [https://seekingalpha.com/symbol/WRAP/income-statement]