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Sep 30
Wrap Technologies Q3 2025 Earnings Report
Wrap Technologies reported a significant revenue increase in Q3 2025, driven by growth in product sales and managed services.
Key Takeaways
Wrap Technologies delivered its strongest quarterly revenue performance in two years, with solid growth in recurring subscription sales and improved gross margin, while reducing operating expenses and narrowing its operating loss.
Gross revenue rose 241% YoY to $2 million, led by BolaWrap® product sales and new managed services.
Recurring subscription sales reached $236,000, accounting for 12% of total gross revenue.
Gross profit surged to $883,000 with a 59% margin, up from 40% in the prior year.
Operating loss narrowed to $2.8 million, down from $3.6 million in Q3 2024.
Wrap Technologies
Wrap Technologies
Wrap Technologies Revenue by Segment
Revenue by Segment
Product Sales Revenue
CapyFin.comManaged Services Revenue
CapyFin.comTech-Enabled Services Revenue
CapyFin.com Forward Guidance
Wrap continues investing in sales, R&D, and federal market expansion while emphasizing operational efficiency and recurring revenue.
Positive Outlook
- Continued investment in sales and marketing to drive revenue growth
- Launch of next-gen drone and counter-UAS products
- Successful early adoption of WrapReady and WrapPlus
- Expansion into federal markets via Washington, D.C. presence
- Improved pricing and operational efficiency supported margin gains
Challenges Ahead
- Company remains unprofitable with a $2.8M operating loss
- R&D spending decreased, possibly limiting innovation pace
- Net loss widened after preferred stock dividends
- Free cash flow remains negative at over $7.6M used in operations
- Revenue still relatively low despite strong percentage growth
Revenue & Expenses
Visualization of income flow from segment revenue to net income