Exhibit
99.1
Wrap
Reports $1.1M Q1 Revenue; $3.2M in Bookings; Lands DHS Contract as Drone and Counter-UAS Pre-Orders Accelerate
Company
Reports 45% Revenue Growth in First Quarter 2026; Operating Cash Expenses Improve 59% as SG&A Reflects Investment in Sales and Go-to-Market
Expansion
Miami,
FL – May 13, 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 first quarter ended March 31, 2026, highlighted
by triple-digit growth in product sales, an expanding active installed base, and a strengthened balance sheet as the Company continues
to execute against its target of approximately 100% revenue growth in 2026.
First
Quarter 2026 Financial Highlights (vs. Q1 2025):
| ● | Revenue
increased 45% to $1.1 million, compared to $0.8 million in the prior-year period |
| ● | Bookings
totaled $3.2 million in Q1 2026, including approximately $1.1 million from domestic sales
and $2.1 million from international sales, reflecting continued global demand for Wrap’s
Non-Lethal Response solutions. |
| ● | Product
sales increased 186% to $0.9 million, compared to $0.3 million in the prior-year quarter,
driven by increased domestic and international demand for the BolaWrap 150 product line |
| ● | Wrap
received a purchase order for BolaWrap technology from the U.S. Department of Homeland Security,
providing an early federal adoption milestone as the Company advances its Wrap Federal strategy
across non-lethal response, drone interdiction, and counter-UAS markets. |
| ● | Gross
profit increased 16% to $0.7 million, compared to $0.6 million in the prior-year period |
| ● | Gross
margin was 62%, compared to 78% in the prior-year period |
| ● | Total
operating expenses were $5.5 million, compared to $4.5 million in the prior-year period,
with the year-over-year increase primarily reflecting higher non-cash share-based compensation
expense |
| ● | Loss
from operations was $(4.8) million, compared to $(3.9) million in the prior-year period |
| ● | Net
loss was $(4.5) million compared to net income of $0.1 million in the prior-year period;
the prior-year period included a $4.0 million non-cash gain from the change in fair value
of warrant liabilities |
| ● | Cash
and cash equivalents were $7.3 million at March 31, 2026, compared to $3.5 million at December
31, 2025 |
| ● | Cash
used in operating activities improved 59% to $(1.2) million, compared to $(3.1) million in
the prior-year period |
Business
Highlights:
| |
1. |
Drone Related Technology Expansion & Pre-Order
Sales. |
| |
○ |
Wrap secured a binding pre-order for drone
and counter-drone systems supporting expansion across the United Kingdom and Europe. |
| |
○ |
The Company also received a follow-on DFR-X
drone interdiction order from a Panama-based partner, reflecting international interest in non-lethal aerial response technologies. |
| |
○ |
Wrap entered into a strategic agreement in
India covering BolaWrap, WrapReality, and DFR-X drone interdiction systems, expanding its international market presence and integrated
platform strategy. |
| |
2. |
R&D into Additional Platforms and Markets. |
| ○ | Wrap
continued its Made-in-America supply chain initiative. |
| ○ | The
Company established a drone testing and Non-Lethal Response training site in Florida in partnership
with WOFT to accelerate product development, testing, and operational training capabilities. |
| ○ | Wrap
filed an intellectual property application for a next-generation multi-shot non-lethal response
system and announced an R&D expansion into net-based drone interdiction, broadening its
non-lethal counter-UAS portfolio and expanding into new operational applications. |
| |
3. |
Deepening Existing Customers with Additional Sales.
|
| ○ | Multiple
agencies transitioned to department-wide BolaWrap 150 deployments for all sworn officers,
consistent with the Company’s strategy of expanding from individual device placements
to agency-wide programmatic adoption. |
| ○ | Wrap
expanded international training and certification activity through instructor retraining
and program growth with the Malta National Police Force. |
| ○ | Continued
consumable reorder activity across the active installed base reinforced ongoing field utilization
and recurring customer engagement. |
Q1
2026 Management Commentary Summary:
Customers
are increasingly resonating with technologies centered around early intervention, threat detection, and safer response outcomes, which
aligns with the operational philosophy behind Wrap’s flagship BolaWrap platform. As public safety agencies continue seeking alternatives
that can intervene earlier, reduce escalation risk, and integrate force governance considerations, the Company believes demand may expand
beyond traditional handheld tools toward integrated systems capable of supporting safer autonomous and semi-autonomous response models
over time. The foregoing are forward-looking statements subject to the risks and uncertainties described below under “Cautionary
Note on Forward-Looking Statements.”
Wrap
believes the future of public safety will increasingly involve advanced platforms such as drones equipped with non-lethal response technologies
capable of extending distance, increasing response speed, and reducing risk to both officers and the public. The Company’s recent
drone and counter-drone pre-orders, including orders supporting deployment across the United Kingdom and Europe, provide early commercial
validation that customers are beginning to evaluate non-lethal drone response as part of the next evolution of public safety and security
infrastructure.
Internationally
and domestically, customer adoption of Non-Lethal Response continued to deepen during the quarter as agencies increasingly evaluated
BolaWrap, Wrap Reality, and DFR-X as part of a single integrated operational capability rather than standalone products. Multiple agencies
expanded into broader department-wide deployments, while international engagements across Europe, India, Panama, and Malta reinforced
growing demand for integrated non-lethal response and drone interdiction solutions.
At
the same time, recent R&D investments began demonstrating early commercial upside. Pre-orders for drone and counter-drone systems,
expansion into net-based drone interdiction, development of next-generation multi-shot systems, and continued investment in manufacturing,
training, and intellectual property infrastructure reflect Wrap’s strategy to scale against converging global public safety, security,
and counter-UAS requirements.
Q1
also strengthened the Company’s operating foundation entering the balance of the year. Cash use from operations declined substantially
year-over-year while revenue grew, and the Company believes its February capital raise was structured to help address manufacturing capacity
as a bottleneck against accelerating demand. Wrap intends to continue investing behind market adoption opportunities rather than managing
to a fixed cost structure.
The
cadence of agency adoption and international engagement continued to accelerate following quarter end, as the Company aims to expand
its reach into additional international markets and new verticals such as healthcare. Wrap continues to target 100% revenue growth for
2026, with management’s confidence in that outlook supported by trends observed throughout Q1.
About
Wrap Technologies, Inc.
Wrap
Technologies, Inc. (Nasdaq: WRAP) is 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. 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; 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 expectations regarding expansion into new verticals, including healthcare; the Company’s
beliefs regarding the future role of autonomous and semi-autonomous response models and drone-equipped non-lethal platforms in public
safety; and the expected benefits of the Company’s capital raise in addressing manufacturing capacity constraints. 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 countries 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
