Wrap Technologies, Inc. (WRAP): History, Ownership, Mission, How It Works & Makes Money

How does a company with a market capitalization of roughly $108.77 million carve out a critical, non-lethal niche in the global public safety sector? Wrap Technologies, Inc. is doing exactly that, shifting from a single-device manufacturer to a subscription-based ecosystem provider, which drove 2025 Q3 gross revenue to $2 million. If you're looking for a case study on monetizing de-escalation, this company's story matters, especially given its flagship BolaWrap device boasts a 92% success rate in the field with defintely zero reported deaths or serious injuries. We need to look closely at its history, how this new model works, and why institutional owners like BlackRock, Inc. are watching this transition from a hardware sale to a recurring revenue stream.

Wrap Technologies, Inc. (WRAP) History

You're looking for the origin story of Wrap Technologies, Inc. (WRAP) to understand its current strategic pivot, and the history is a clear map of its non-lethal focus. The company started with a simple, yet radical, idea: a remote restraint device to de-escalate crisis situations. This vision has evolved from a single product-the BolaWrap-to a full, connected public safety ecosystem, which is now the core of their strategy as of late 2025.

Given Company's Founding Timeline

Year established

The company was established in 2016, focusing on developing innovative public safety tools to address the growing need for de-escalation tactics in law enforcement.

Original location

Wrap Technologies, Inc. was originally located in Tempe, Arizona, which remains a key location for the company.

Founding team members

Key figures in the founding and early development included Scot J Cohen and Elwood G Norris, with the mission to provide law enforcement with safer tools for community protection.

Initial capital/funding

While the initial capital was modest, a major injection of capital to fuel the 2025 strategic shift was the $5.8 million private placement closed in February 2025. This funding was critical to support the company's new 'go-forward strategy' and expansion.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The biggest shift for Wrap Technologies, Inc. wasn't a single event, but a deliberate, multi-part transformation in 2024-2025. This was a strategic reset that moved the company from a hardware seller to an integrated solutions provider.

• The Pivot to an Ecosystem Model: The introduction of the Managed Safety and Response (MSR) connected ecosystem in February 2025 was a game-changer. It means they now offer a full suite-hardware, virtual reality training (Wrap Reality), and managed services-instead of just the BolaWrap device.
• Financial Discipline and Margin Improvement: The company dramatically improved its financial health in 2025. In Q1 2025, the gross margin soared to 77.8%, a jump of over 21 points from Q1 2024, by reducing the cost of revenue. This shows a defintely stronger focus on profitability.
• Strategic Manufacturing and Supply Chain: The announcement of a new advanced manufacturing facility in Wise, Virginia, and the launch of the North American-made WrapVision body-worn camera, signaled a commitment to a Made-in-America supply chain and expansion into defense markets.
• Leadership and Expertise Integration: The February 2025 acquisition of W1 Global, LLC, and the addition of former FBI veterans to the leadership team, immediately scaled the company's expertise in high-level managed services and government contracting.

The focus is now on scaling these integrated solutions, moving toward a subscription-based revenue model to stabilize and grow recurring income. To understand the financial implications of this strategic shift, you should read Breaking Down Wrap Technologies, Inc. (WRAP) Financial Health: Key Insights for Investors.

Wrap Technologies, Inc. (WRAP) Ownership Structure

Wrap Technologies, Inc. operates as a publicly traded company on the Nasdaq Capital Market under the ticker WRAP, meaning its ownership is distributed among a mix of institutional funds, company insiders, and individual retail investors. This structure, where insiders hold a significant stake, aligns management's interests defintely with long-term shareholder value, but it also means a smaller float (publicly traded shares) can lead to higher stock volatility.

Given Company's Current Status

As of November 2025, Wrap Technologies is listed on the Nasdaq Capital Market (NASDAQ: WRAP), having regained compliance with listing requirements in late 2024. Being a public company requires strict adherence to Securities and Exchange Commission (SEC) reporting, giving investors transparency into its operations and financial health. For instance, the company reported total gross revenue of $2.0 million for the third quarter ended September 30, 2025, which was a 241% increase from the same period in 2024, demonstrating strong growth in its core BolaWrap® product sales and new managed services revenue. You can dig deeper into the numbers here: Breaking Down Wrap Technologies, Inc. (WRAP) Financial Health: Key Insights for Investors.

Given Company's Ownership Breakdown

The company's ownership profile is heavily tilted toward internal stakeholders and individual investors, which is not uncommon for a small-cap technology growth stock. Insiders and retail investors collectively control over 90% of the shares, giving them substantial voting power, but this also means institutional support is still building. Here's the quick math on the breakdown as of the 2025 fiscal year data:

Given Company's Leadership

The leadership team steering Wrap Technologies is a mix of its founder, technology veterans, and former public safety experts, reflecting its core mission. The Board of Directors expanded to six members in October 2025 with the addition of John D. Shulman, a substantial investor, which signals a focus on strengthening financial oversight and strategic direction.

The key executive and board members as of November 2025 are:

• Scot Cohen: Founder, Chairman, and Chief Executive Officer (CEO). He also took on the roles of Principal Financial Officer and Principal Accounting Officer in October 2025, consolidating financial control under the CEO.
• Jared Novick: President and Chief Operating Officer (COO). He joined in January 2024 and was promoted in March 2025, focusing on efficiency-driven offerings for law enforcement.
• Jose Baptista: Chief Commercial Officer (CCO). He leads Product, Marketing, and Growth, bringing over two decades of experience with major global brands.
• Joseph Cameron: Chief Revenue Officer (CRO). His extensive experience in public safety technology is crucial for identifying government requirements and driving revenue growth.
• John D. Shulman: Director. Appointed in October 2025, he is the Founder and Managing Partner of Juggernaut Capital Partners, and his presence strengthens the board's private investment expertise.

The fact that the CEO is also holding the Principal Financial Officer role right now is a situation to watch; it can streamline decision-making, but still, it's a lot of hats for one person to wear.

Wrap Technologies, Inc. (WRAP) Mission and Values

Wrap Technologies, Inc. is fundamentally committed to redefining public safety by integrating non-lethal technology, training, and policy to save lives and rebuild community trust. This mission drives their financial strategy, evidenced by a focus on high-margin solutions and an integrated ecosystem approach.

Wrap Technologies' Core Purpose

The company's core purpose goes beyond just selling a product; it's about establishing a new global standard for de-escalation and safe restraint. They exist to support law enforcement, communities, and individuals in crisis by providing truly non-lethal options, not the historically mislabeled 'less-lethal' tools.

Official Mission Statement

The mission is clear and action-oriented, focusing on the human element of public safety. It is a commitment to a systemic change in how law enforcement operates.

• Save lives, improve outcomes, and protect trust between officers and the public.
• Support officers, communities, and those in crisis through the seamless integration of non-lethal policy, technology, and training.
• Pioneer evidence-based solutions that transform conflict resolution, leveraging data and real-world feedback.

This dedication is visible in their 2025 operational focus, such as the launch of the Managed Safety and Response (MSR) connected ecosystem in February 2025, which bundles tools, technology, and training. You can learn more about the capital supporting this growth by Exploring Wrap Technologies, Inc. (WRAP) Investor Profile: Who's Buying and Why?

Vision Statement

Wrap Technologies' vision is to lead a generational movement in public safety, positioning their brand as the definitive standard for non-lethal response worldwide. They are defintely thinking big.

• Lead the global transition to a future where every officer is equipped with a truly non-lethal option.
• Be synonymous with non-lethal technologies and the integrated ecosystem that surrounds them.
• Envision a world of non-lethal solutions expanding across public safety, corporate campuses, and federal agencies.

Here's the quick math on their traction: Total revenue for the first three quarters of 2025 was approximately $3.765 million (Q1: $765 thousand, Q2: $1.0 million, Q3: $2.0 million), showing a strong ramp-up in the second half of the year as their new strategy took hold. Plus, the company achieved a Q1 2025 gross margin of 77.8%, reflecting the financial discipline required to sustain this long-term vision.

Wrap Technologies' Slogan/Tagline

The company's most authoritative tagline encapsulates their core challenge to the industry and their solution.

• Bringing Non-Lethal Back To Public Safety.

This simple phrase highlights their 'no-harm principle' and their commitment to creating safer outcomes for everyone involved, from the officer to the person in crisis. The goal is to reduce injuries and liability, which is a clear, measurable benefit to their customers.

Wrap Technologies, Inc. (WRAP) How It Works

Wrap Technologies, Inc. is fundamentally a public safety technology company that provides a connected ecosystem of tools, training, and policy frameworks to de-escalate confrontations before they require higher levels of force. It generates revenue by selling its non-lethal devices and, increasingly, through multi-year subscription contracts for its integrated hardware and software solutions to law enforcement and defense agencies globally.

Wrap Technologies, Inc.'s Product/Service Portfolio

Wrap Technologies, Inc.'s Operational Framework

The company's operational framework centers on a strategic shift from transactional hardware sales to a recurring revenue subscription model, which they call Managed Safety and Response (MSR). This model transforms a one-time device sale into a long-term partnership that integrates all three pillars of their business: tools, training, and policy. For the first nine months of 2025, Wrap Technologies reported approximately $3.765 million in gross revenue, with a growing portion coming from these higher-margin system sales.

This transition is defintely the core of their value creation. It ensures that agencies not only buy the BolaWrap 150 device but also receive the necessary training and policy guidance to use it effectively, which drives long-term customer value and predictable cash flow. In Q3 2025, subscription-based sales accounted for 12% of total revenue, a key metric to watch for margin expansion.

• Manufacture and assemble BolaWrap 150 and other hardware at the new U.S. manufacturing hub in Wise, Virginia.
• Deliver WrapTactics training and instructor certification, which is IADLEST-certified, to ensure proper use and policy alignment.
• Integrate data from WrapVision body-worn cameras with the WrapReality training platform to create a feedback loop for continuous improvement.
• Expand the addressable market beyond traditional law enforcement to include corrections, healthcare, and defense sectors, like the new CUAS (Counter-Unmanned Aerial Systems) solutions.

Wrap Technologies, Inc.'s Strategic Advantages

Wrap Technologies' primary strategic advantage is its unique position as a comprehensive, non-lethal response ecosystem provider, rather than just a single product company. They own the critical pre-escalation space, the 'WrapWindow,' which is the moment between verbal commands and physical force.

• Proven Safety and Effectiveness: The BolaWrap 150 has a reported 92% field success rate with zero reported deaths, serious injuries, or lawsuits, significantly reducing agency liability and enhancing public trust.
• Recurring Revenue Model: The WrapReady and WrapPlus subscription packages create predictable, high-margin revenue streams by bundling hardware, software, and services, moving away from volatile, one-time sales.
• Integrated Ecosystem: The combination of BolaWrap, WrapReality, WrapVision, and WrapTactics provides a single-source, end-to-end solution for non-lethal response, which is a powerful differentiator against competitors who offer only single tools.
• Domestic Supply Chain: Focus on a 'Made-in-America' supply chain strengthens eligibility for federal procurement contracts and mitigates foreign surveillance concerns, especially with the WrapVision camera system.

For a deeper dive into the company's long-term direction, you should review their Mission Statement, Vision, & Core Values of Wrap Technologies, Inc. (WRAP).

Wrap Technologies, Inc. (WRAP) How It Makes Money

Wrap Technologies, Inc. primarily generates revenue through the sale of its non-lethal BolaWrap device and its proprietary cartridges, but the long-term financial engine is shifting toward a high-margin, recurring subscription model that bundles the device, training, and software.

Wrap Technologies' Revenue Breakdown

The company is intentionally pivoting from a pure product-sales model to an ecosystem approach, which is why the recurring revenue percentage is a critical metric to watch. For the third quarter ended September 30, 2025, the company reported total gross revenue of $2.0 million.

The core of the business remains the initial sale of the BolaWrap device and the consumable Kevlar cartridges, which accounted for approximately 88% of gross revenue in Q3 2025. However, the strategic focus is on growing the 12% slice from recurring subscription sales, which includes WrapReady™, WrapPlus™, and managed services, signaling a move toward a more predictable revenue base.

Business Economics

The economic fundamentals of Wrap Technologies are centered on a 'razor-and-blade' model, but now it's a bundled ecosystem. The initial sale of the BolaWrap device is the razor, the proprietary cartridges are the recurring, high-volume blades, and the subscriptions are the defintely higher-margin service contract.

• High-Margin Consumables: The device uses single-shot cartridges of Kevlar cord, creating a continuous, necessary revenue stream from repeat purchases by law enforcement agencies.
• Subscription-Driven Value: The company has optimized its pricing models by introducing bundled subscriptions to drive recurring revenue. These subscriptions integrate the hardware with software and training, such as the Wrap Reality™ virtual reality training simulator, which is a high-value, high-margin service that improves officer outcomes and reduces liability.
• Gross Margin Expansion: Gross margin expanded significantly to 59% in Q3 2025, up from 40% in the prior-year period. This expansion is a direct result of product mix, pricing discipline, and operational efficiencies, demonstrating that the shift toward higher-margin systems is working.
• Dual-Use Strategy: The company is leveraging its existing BolaWrap 150 technology for new counter-drone (Counter-UAS) capabilities, which opens up new, large addressable markets in federal, defense, and homeland security sectors, improving the long-term total addressable market (TAM).

The goal is to increase the lifetime value of an agency customer by selling an integrated system, not just a single tool. This is a much stronger business model than simply selling hardware.

Wrap Technologies' Financial Performance

While revenue growth is strong, the company is still in a high-growth, investment phase, which is reflected in its bottom line. Here's the quick math on the near-term financial health as of Q3 2025:

• Revenue Surge: Total gross revenue for Q3 2025 was $2.0 million, representing a 241% increase compared to the same quarter in 2024. This marks the strongest quarterly performance in two years.
• Operating Loss: Despite the revenue growth, the company reported an operating loss of $2.8 million in Q3 2025, though this was a 24% improvement compared to the prior-year quarter, showing progress in cost control.
• Net Loss: The net loss for Q3 2025 was $2.77 million, or a loss per share of $0.06. What this estimate hides is the non-cash impact of prior financial instruments, but the core business is still burning cash to achieve scale.
• Liquidity: The company's cash and cash equivalents stood at approximately $6.0 million at the end of Q3 2025, providing near-term runway for operations. This cash position was bolstered by a $4.5 million private placement in August 2025 to accelerate its counter-drone and subscription strategies.

The financial picture is one of significant top-line momentum and margin expansion, still offset by the investment needed to scale operations and penetrate new markets like federal and counter-UAS. For a deeper dive into the company's strategic direction, you should review the Mission Statement, Vision, & Core Values of Wrap Technologies, Inc. (WRAP).

Wrap Technologies, Inc. (WRAP) Market Position & Future Outlook

Wrap Technologies is transitioning from a single-product company to a diversified public safety technology platform, focusing on recurring revenue streams and new defense applications. The company's immediate future hinges on scaling its Managed Safety and Response (MSR) ecosystem, which bundles the BolaWrap 150 device with training and subscription services, but its small $2.0 million gross revenue in Q3 2025 shows it's still an early-stage growth play.

Competitive Landscape

In the non-lethal market, Wrap Technologies' BolaWrap 150 occupies a unique pre-escalation niche, differentiating it from high-power Conducted Energy Weapons (CEWs). This positioning means it competes for budget and belt space with established giants like Axon Enterprise, which dominates the broader CEW and body-worn camera segments, and growing projectile launcher companies like Byrna Technologies. Here's the quick math on the relative market positioning:

Opportunities & Challenges

You're looking at a company with a compelling product, but a small revenue base and a nine-month net loss of $6.39 million as of Q3 2025. The path to profitability is clear but challenging; they need to convert one-time hardware sales into multi-year subscription contracts.

Industry Position

Wrap Technologies is a niche innovator in a massive, yet concentrated, public safety technology market. They are not a market share leader, but a disruptor in the force continuum-the range of options an officer can use. Their core value is the BolaWrap 150, a unique kinetic tether device that fills the gap between verbal commands and higher-force options like a TASER or firearm.

• De-escalation Pioneer: The BolaWrap 150 is positioned as a pre-escalation tool, which is a major selling point in the current climate of police reform and mental health crisis response.
• Ecosystem Play: The MSR strategy-combining the BolaWrap, WrapReality (Virtual Reality training), and WrapVision (body-worn camera/DEMS)-aims to compete directly with Axon's platform approach. It's a smart move.
• Financial Reality: The company's market capitalization of approximately $108.77 million is small, and its cash position of about $6.0 million in Q3 2025 means it must execute its subscription strategy defintely and quickly to achieve sustainable scale.

To be fair, their long-term success relies on policy makers and law enforcement agencies globally adopting their philosophy, as detailed in their Mission Statement, Vision, & Core Values of Wrap Technologies, Inc. (WRAP).