Exhibit
99.1
Wrap
Accelerates Momentum Targeting 100% Revenue Growth in 2026; Company Reports Fourth Quarter and Full Year 2025 Results
Full
Year Gross Revenue Grows 15%; Q4 Gross Revenue Up 62%; Full Year Technology-Enabled Services Revenue Increases 85%; Operating Loss Improves
13%
Miami,
FL – March 26, 2026 – Wrap Technologies, Inc. (NASDAQ: WRAP) (“Wrap” or, the “Company”), a global
leader in non-lethal response, today announced financial and operating results for the fourth quarter and full year ended December 31,
2025, highlighted by accelerating revenue growth, expanding margins, and improving operating efficiency as the Company targets approximately
100% revenue growth in 2026.
Fourth
Quarter 2025 Financial Highlights (vs. Q4 2024):
| ● | Gross
revenue increased 62% to $1.4 million, compared to $0.9 million in the prior-year period |
| ● | Product
sales more than doubled to $1.2 million, compared to $0.6 million in the prior-year quarter,
driven by increased domestic and international demand for BolaWrap |
| ● | Gross
profit increased 79% to $0.7 million, compared to $0.4 million in the prior-year period |
| ● | Gross
margin increased from 47% to 52% |
| ● | Total
operating expenses decreased 7% to $4.7 million, compared to $5.0 million in the prior-year
quarter, suggesting continued cost discipline while investing in new products and market
expansion |
| ● | Loss
from Operations improved 15% to $(3.9) million, compared to $(4.6) million in the prior-year
period |
| ● | Fourth
quarter net loss improved 48% to $(3.9) million, compared to $(7.6) million in the prior-year
period, aligning with the combined impact of revenue growth, margin expansion, and continued
cost discipline |
Full
Year 2025 Financial Highlights (vs. FY 2024):
| ● | Gross
Revenue was up 15% year-over-year, going from $4.5 million in 2024 to $5.2 million in 2025 |
| ● | Technology-enabled
services revenue of $1.7 million in 2025, up 85% from $0.9 million in 2024, reflecting the
acquisition of W1 in early 2025 and the expansion of training, managed services, and software
subscriptions |
| ● | Gross
Profit increased by 9.5%, or $0.2 million year-over-year, increasing from $2.5 million in
2024 to $2.7 million in 2025 |
| ● | Gross
Margin increased from 55% to 58% |
| ● | Total
operating expenses decreased 10% to $16.2 million in 2025, down from $18.0 million in the
prior-year period |
| ● | Loss
from operations improved 13% to $(13.5) million, compared to $(15.6) million in 2024 |
| ● | Net
loss of $(10.3) million compared to $(5.9) million in 2024. The year-over-year increase was
driven by a $6.4 million reduction in non-cash income from warrant fair value adjustments. |
Business
Highlights:
| 1. | Customer
Retention and Deepening Engagement. Nearly half of all departments trained in 2025 were
existing customers returning for instructor recertification, suggesting sustained commitment
to their programs and deepening engagement with Wrap’s training ecosystem |
| 2. | Training
Drives Outcomes. Agencies supported through Wrap’s full Non-Lethal Response framework,
including instructor certification, recertification, and solution integration, demonstrated
a significantly higher field use success rate in 2025, reinforcing the link between ongoing
training and real-world performance. |
| 3. | Shift
to Fleet-Wide Deployments. Average deal size increased nearly sixfold from the first
half to the fourth quarter of 2025, aligning with the Company’s strategic shift from
individual device placements to comprehensive, fleet-wide Non-Lethal Response deployments
that combine hardware and training. |
| 4. | Active
Installed Base. Over 10,000 active BolaWrap units are deployed domestically, with more
than 76% on the current-generation BolaWrap 150 platform. Consistent consumable reorder activity
across agencies throughout 2025 suggests active field deployment in both training and real-world
operations. |
| 5. | International
Expansion. Wrap expanded its international presence in 2025 and early 2026, including
new distribution partnerships and purchase orders spanning multiple continents, and recent
entry into the Indian market through a strategic agreement covering BolaWrap, WrapReality,
and DFR-X drone interdiction systems. |
2025
Management Commentary Summary:
A
year ago, we outlined our vision for transforming Wrap from a product company into something different. In 2025, we executed on that
vision, and what emerged is a company we believe is positioned to lead an entirely new category in public safety; Non-Lethal Response
(“Non-Lethal Response” or “NLR”). What we described last year as an evolving product roadmap is now an operational
Non-Lethal Response framework; an integrated system of tools, training, and tactics designed to give public safety professionals proactive,
lawful control of encounters.
We
are no longer solely a device company. We are a solutions company. Our main solution is straightforward; safer outcomes. The outcome
we have delivered so far is measurable: no injuries, no fatalities, and no resulting litigation when our Non-Lethal Response solution
is properly deployed. That realization has reshaped our strategy, our portfolio, and our go-to-market approach.
The
milestones are tangible: we launched WrapTactics, a subscription-based digital training platform that addresses our historical constraint
on scaling training; launched WrapVision, a TAA-compliant body-worn camera option with cloud-based evidence management; formed Wrap Federal
to pursue DOD, DHS, and federal opportunities alike; entered the counter-UAS market with the first known air-to-air drone interdiction
using mechanical entanglement; opened government procurement channels through Carahsoft; and partnered with K-Form to expand domestic
R&D and Made in America production. These are not concepts. They are products, partnerships, and platforms that are building pipelines
and expanding our addressable market.
The
financial results align with this transformation. Revenue grew 15% year-over-year, with fourth quarter gross revenue up 62% and product
sales more than doubling in Q4 2025 compared to the same period last year, giving us real momentum entering 2026. We also reduced operating
expenses by 10%, while simultaneously launching new products and entering new markets, suggesting disciplined growth and strategic investment
are not mutually exclusive.
During
the year, we evaluated our services portfolio and made deliberate decisions about focus. We retained and invested in the technology-enabled
offerings where customer demand is strongest (policy governance, training, virtual reality and digital evidence management), and redirected
resources away from non-core activities like advisory services. The result is a leaner, more focused services business that aligns directly
with our Non-Lethal Response framework and positions WrapTactics, WrapVision, and professional training as the recurring revenue engines
going forward.
This
refocusing, combined with the relocation of manufacturing to Norton, Virginia and partnerships with firms like K-Form, we believe reflects
a company that is investing where the opportunity is clearest: integrated non-lethal response and counter-UAS technology.
2026
Priorities
Entering
2026, our priorities are clear and our execution plan is focused on:
| ● | Non-Lethal
Response at Scale. Expanding agency-wide deployments of BolaWrap through integrated programs
that bundle BolaWrap hardware, training subscriptions in WrapTactics and Wrap Reality, policy
support, and WrapVision. This programmatic approach is expected to provide deeper customer
relationships, higher retention, and expanding revenue per agency. |
| ● | Federal
and Defense Market Entry. Wrap Federal is actively positioning our portfolio for DOD,
DHS, and other federal customers. Our Carahsoft partnership and Made in America manufacturing
efforts are designed to comply with the procurement infrastructure these customers require. |
| ● | UAS
Advancement. As we see autonomous systems and drone-related technology evolving in public
safety, we believe non-lethal response solutions are the logical place to start, and we are
developing those technologies to meet that need. |
| ● | Recurring
Revenue Growth. We are focused on scaling subscription-based digital and VR training,
digital evidence management, and technology-enabled services to build a more predictable,
higher-margin revenue base. |
| ● | International
Expansion. Current trends suggest broad-based interest in non-lethal response solutions
globally. We believe our distributor network and the centralized procurement dynamics in
many international markets support the potential for large-scale deployments. |
We
believe the public safety market is at an inflection point. In our experience, agencies need integrated solutions, not isolated devices;
and that is what Non-Lethal Response delivers. We entered 2026 with a broader portfolio, stronger partnerships, and what we believe to
be a clearer path to growth than at any point in our history.
About
Wrap Technologies, Inc.
Wrap
Technologies, Inc. (Nasdaq: WRAP) 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® 150 device, WrapReality™ immersive training platform,
WrapVision™ body-worn camera system, WrapTactics™ 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. Wrap’s BolaWrap® 150 solution leads
in non-lethal response 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 that leverages sight, sound and sensation to expand the window and gives
officers the advantage and critical time to manage non-compliant subjects before resorting to higher-force options. The BolaWrap®
150 is not pain-based compliance. It does not shoot, strike, shock, or incapacitate, instead, it helps officers strategically operate
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® 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™
VR is a fully immersive training simulator to enhance decision-making under pressure.
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™ 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.
Trademark
Information
Wrap,
the Wrap logo, BolaWrap®, WrapReality™ 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 the Company’s target of approximately 100% revenue growth in 2026; the
expected expansion of agency-wide deployments; the expected recurring revenue growth from subscription-based training and digital evidence
management; the Company’s ability to enter and generate revenue from the federal and defense market through Wrap Federal; the development,
demonstration, government testing, and commercialization timeline for the MERLIN drone interdiction system and 1KC anti-drone cassette;
the expected benefits and growth from international expansion, including the strategic agreement covering the Indian market; the Company’s
planned future products, technologies, and intended product designs and expected benefits therefrom; and expected market opportunities
and outcomes related to the Company’s Non-Lethal Response, 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 achieve its targeted approximately
100% revenue growth in 2026; 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 counties 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)
583-2652
ir@wrap.com
