📊 WRAP Key Takeaways
Is Wrap Technologies, Inc.. (WRAP) a Good Investment?
Wrap Technologies is a deeply unprofitable micro-cap company burning cash at $1.2M annually on only $1.1M in revenue, resulting in -408.6% net margins and -27.1% ROA. While the strong $7.3M cash position and zero debt provide temporary runway, the company lacks clear path to profitability with minimal revenue growth (3.7% YoY) and exploding losses. The 62.2% gross margin indicates unit economics potential, but operating expenses consume revenue 4x over, making the current business model fundamentally unsustainable.
Why Buy Wrap Technologies, Inc.. Stock? WRAP Key Strengths
- Strong liquidity with 7.59x current ratio and $7.3M cash providing 5+ year runway
- Zero long-term debt and favorable capital structure offering financial flexibility
- Gross margin of 62.2% demonstrates unit economics viability if operational scale achieved
WRAP Stock Risks: Wrap Technologies, Inc.. Investment Risks
- Massive operating losses of -$4.8M on $1.1M revenue with -408.6% net margin
- Negative operating cash flow of -$1.2M indicating unsustainable business model and cash burn
- Minimal revenue growth trajectory (3.7% YoY) with no demonstrated path to profitability or positive operating income
- Shareholder dilution accelerating with -37.5% YoY EPS decline despite revenue growth
Key Metrics to Watch
- Operating cash flow trend and achievement of positive FCF
- Revenue growth acceleration and gross profit dollar expansion
- Operating expense reduction as percentage of revenue
- Cash balance runway and quarterly burn rate sustainability
Wrap Technologies, Inc.. (WRAP) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 7.59x current ratio provides a solid financial cushion.
WRAP Profit Margin, ROE & Profitability Analysis
WRAP vs Market Sector: How Wrap Technologies, Inc.. Compares
How Wrap Technologies, Inc.. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Wrap Technologies, Inc.. Stock Overvalued? WRAP Valuation Analysis 2026
Based on fundamental analysis, Wrap Technologies, Inc.. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Wrap Technologies, Inc.. Balance Sheet: WRAP Debt, Cash & Liquidity
WRAP Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Wrap Technologies, Inc..'s revenue has declined by 28% over the 5-year period, indicating business contraction. The most recent EPS of $-0.16 indicates the company is currently unprofitable.
WRAP Revenue Growth, EPS Growth & YoY Performance
WRAP Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2025 | $197.0K | -$268.0K | $-0.02 |
| Q1 2025 | $353.0K | $109.0K | N/A |
| Q3 2024 | $434.0K | $1.7M | N/A |
| Q2 2024 | $1.0M | -$268.0K | N/A |
| Q1 2024 | $616.0K | $117.0K | N/A |
| Q3 2023 | $1.6M | -$2.8M | N/A |
| Q2 2023 | $969.0K | -$4.8M | N/A |
| Q1 2023 | $616.0K | -$4.0M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Wrap Technologies, Inc.. Dividends, Buybacks & Capital Allocation
WRAP SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Wrap Technologies, Inc.. (CIK: 0001702924)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WRAP
What is the AI rating for WRAP?
Wrap Technologies, Inc.. (WRAP) has an AI rating of STRONG SELL with 88% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WRAP's key strengths?
Claude: Strong liquidity with 7.59x current ratio and $7.3M cash providing 5+ year runway. Zero long-term debt and favorable capital structure offering financial flexibility.
What are the risks of investing in WRAP?
Claude: Massive operating losses of -$4.8M on $1.1M revenue with -408.6% net margin. Negative operating cash flow of -$1.2M indicating unsustainable business model and cash burn.
What is WRAP's revenue and growth?
Wrap Technologies, Inc.. reported revenue of $1.1M.
Does WRAP pay dividends?
Wrap Technologies, Inc.. does not currently pay dividends.
Where can I find WRAP SEC filings?
Official SEC filings for Wrap Technologies, Inc.. (CIK: 0001702924) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WRAP's EPS?
Wrap Technologies, Inc.. has a diluted EPS of $-0.09.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is WRAP a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Wrap Technologies, Inc.. has a STRONG SELL rating with 88% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is WRAP stock overvalued or undervalued?
Valuation metrics for WRAP: ROE of -31.5% (sector avg: 15%), net margin of -408.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy WRAP stock in 2026?
Our dual AI analysis gives Wrap Technologies, Inc.. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is WRAP's free cash flow?
Wrap Technologies, Inc..'s operating cash flow is $-1.2M, with capital expenditures of $5.0K. FCF margin is -112.6%.
How does WRAP compare to other Market stocks?
Vs Default sector averages: Net margin -408.6% (avg: 12%), ROE -31.5% (avg: 15%), current ratio 7.59 (avg: 1.8).