Wrap Technologies, Inc. (WRAP): Business Model Canvas [Dec-2025 Updated]

You're looking at Wrap Technologies, Inc. and wondering where the real value is now, and honestly, the story has fundamentally shifted from selling hardware to building a recurring systems provider. After years focused on the one-time sale of the BolaWrap device, the 2025 strategy is clearly about locking in long-term contracts through integrated solutions like the WrapReady™ bundles. With Q3 2025 gross revenue hitting $2.0 million and recurring sales already contributing $236,000, this Business Model Canvas lays out exactly how they plan to turn their patented, 92% successful non-lethal tool into a sticky, subscription-based public safety platform. Dive in to see the key resources and channels driving this strategic pivot.

Wrap Technologies, Inc. (WRAP) - Canvas Business Model: Key Partnerships

The Key Partnerships structure for Wrap Technologies, Inc. centers on securing domestic manufacturing, aligning with federal compliance, and integrating core technologies through strategic alliances.

The company's third-quarter fiscal year 2025 revenue was reported at $2 million, with an earnings per share (EPS) of -$0.06. The market capitalization stood at $110.23 million as of November 14, 2025. The current ratio was noted at 5.65.

Wrap Federal, LLC, established in October 2025, is the dedicated entity for U.S. federal government clients, including the Department of Defense (DoD) and Department of Homeland Security (DHS).

• Wrap Federal strives to align with Defense Contract Audit Agency (DCAA) readiness standards.
• The subsidiary aims to support classified contracting and uphold compliant accounting protocols.

The strategy for federal access relies heavily on collaboration with established prime contractors and utilizing existing contracting mechanisms.

• Large prime contractors winning full and open contracts are generally required to set aside about 30% of work to small businesses, representing a subcontracting opportunity.

The partnership with K-Form Inc., announced November 2025, focuses on expanding the U.S. manufacturing base and supply chain for non-lethal response tools and autonomous platforms.

K-Form provides capabilities including rapid prototyping, circuit board printing, component assembly, and custom fabrication compliant with U.S. defense and government sourcing requirements. This supports expansion at the Southwestern Virginia manufacturing hub.

The partnership with IONODES powers the WrapVision body-worn camera technology.

The BolaWrap 150 device is currently deployed to over 1,000 agencies across the U.S. and in 60 countries.

The WrapReality training system allows up to two participants to enter a simulated training environment simultaneously, offering 45 scenarios for law enforcement and corrections and 15 scenarios for societal reentry.

Finance: draft 13-week cash view by Friday.

Wrap Technologies, Inc. (WRAP) - Canvas Business Model: Key Activities

You're looking at the core engine driving Wrap Technologies, Inc. as it pivots from primarily hardware sales to a more sustainable, integrated service model, all while scaling domestic production. Here's the quick math on what the company is actively doing to make that happen as of late 2025.

Manufacturing and assembly at the new Virginia facility

Wrap Technologies, Inc. officially opened its new U.S. Manufacturing World Headquarters in Norton, Virginia, on September 19, 2025. This move anchors the company's Made-In-America production strategy, supported by a $4.1 million project investment. The facility is a 20,000-square-foot site built with the capacity to scale significantly, with room to double or triple its footprint down the line. The initial production capability is set to manufacture up to 23,000 BolaWrap® 150 devices and more than 150,000 cassettes per month. This site is also intended to create over 120 new jobs, with one report citing a target of 126 new roles across engineering, manufacturing, logistics, and training. Furthermore, the facility is positioned to assemble the patent-pending 1KC kinetic anti-drone cassette, and the company has a critical roadmap to ensure WrapVision cameras are made in North America by the end of 2025.

Research and development (R&D) for the non-lethal ecosystem (e.g., Merlin, DFR-X)

The company is actively repurposing its tether technology for the counter-unmanned aircraft systems (C-UAS) market, targeting a global market projected to climb from $1.9 billion to $6.8 billion by 2030. To fuel this, Wrap Technologies, Inc. secured $4.5 million in gross proceeds from a private placement in August 2025. This funding is specifically earmarked to advance the Wrap-Merlin 1 and PAN-DA programs. Wrap-Merlin 1 is a modular payload designed to mount on an FPV drone and can carry up to six BolaWrap cassettes to disable hostile drones mid-flight. The DFR-X system, also known as MERLIN-Interdictor, completed internal Phase II testing, with plans to begin taking pre-orders on November 17, 2025. On the body-worn camera side, the North American-made WrapVision BWC launched on August 11, 2025.

• Wrap-Merlin 1 payload capacity: Up to six BolaWrap cassettes per sortie.
• DFR-X pre-order start date: November 17, 2025.
• WrapVision BWC launch date: August 11, 2025.
• Private placement proceeds for C-UAS R&D: $4.5 million.

Executing the strategic shift to a recurring subscription revenue model

The strategic shift is showing measurable results in the third quarter of 2025. For the quarter ending September 30, 2025, Wrap Technologies, Inc. reported total gross revenue of $2.0 million, a 241% increase over the $0.6 million reported in Q3 2024. Net revenue for that same quarter was $1.5 million, which is a 151% increase from the $0.593 million net revenue in Q3 2024. Recurring subscription sales specifically hit $236,000 in Q3 2025, representing about 12% of total gross revenue. Gross margin expanded significantly to 59% in Q3 2025, up from 40% in Q3 2024, with gross profit reaching $0.9 million for the quarter. For the nine-month period ending September 30, 2025, the gross margin was 61% on $2.0 million in gross profit. In terms of product effectiveness, the BolaWrap 150 documented a 92% success rate in real-world deployments, with zero reported deaths, zero serious injuries, and zero lawsuits.

The operational efficiency is also improving; operating expenses in Q2 2025 were $3.3 million, a 26% reduction compared to Q1 2025.

Global sales, training, and policy certification for law enforcement

The core BolaWrap 150 device has been deployed to over 1,000 agencies worldwide, spanning 60 countries. A recent contract with the Rio Grande City Police Department in Texas involves supplying equipment and training for 12 officers, marking the first implementation of the WrapReady onboarding in a Texas border community. Furthermore, the company's non-lethal instructor course achieved recertification by IADLEST. Wrap Technologies, Inc. is also actively engaged in policy development, partnering with LETAC USA to help define global standards for non-lethal machine-to-man policy and tactics.

Compliance and contracting for federal procurement through Wrap Federal

Wrap Technologies, Inc. established a dedicated operating entity, Wrap Federal, LLC, on October 21, 2025, specifically to serve U.S. federal government clients, including the Department of Defense (DoD) and Department of Homeland Security (DHS). This new division strives to fully align with Defense Contract Audit Agency (DCAA) readiness standards to support classified contracting and compliant operational protocols. The WrapVision body camera system, which is part of the ecosystem supported by this federal push, adheres to Trade Agreements Act (TAA) compliance requirements and GSA schedule contracts requirements.

Finance: draft 13-week cash view by Friday.

Wrap Technologies, Inc. (WRAP) - Canvas Business Model: Key Resources

You're looking at the core assets Wrap Technologies, Inc. (WRAP) relies on to execute its strategy as of late 2025. These aren't just things they own; these are the things that make their value proposition possible.

Patented BolaWrap® Remote Restraint device technology is central. This patented device deploys a Kevlar® tether using light and sound to achieve temporary restraint, focusing on pre-escalation rather than pain compliance. The device is proving effective in safely detaining individuals without injury to officers or subjects, with zero lawsuits reported related to its deployments.

The physical infrastructure supporting this includes a Virginia-based manufacturing and training facility for domestic capacity. The company announced the completion of its transition, establishing a production facility in Virginia, which supports its Made in America positioning.

The company has built an integrated product ecosystem: hardware, software, and training platforms. This ecosystem is designed to offer comprehensive solutions beyond just the restraint device. Here's a look at the key components:

A significant operational resource is the focus on TAA compliance and a Made-in-America roadmap for federal contracts. The Trade Agreements Act (TAA) requires 'final products' sold through GSA Schedules to be manufactured or 'substantially transformed' in the U.S. or a designated country. Wrap Technologies announced a partnership in November 2025 to strengthen its supply chain and support scalable production for its Made-in-America product ecosystem, including the BolaWrap® 150.

Financially, the balance sheet shows a specific level of liquidity as of the last reported quarter end. This capital base is a critical resource for funding near-term operations. The latest reported figure is:

• Cash and cash equivalents of $4.2 million as of June 30, 2025.

This cash position followed a period where the company focused heavily on cost discipline, which directly impacts the burn rate of this resource. For context on resource management:

• Operating expenses in Q2 2025 declined by 26% from Q1 2025, falling to $3.3 million.
• Net cash used in operations improved by $2.2 million for the six months ended June 30, 2025, down to $5.0 million compared to $7.2 million in the same period in 2024.
• Year-to-date revenue for the six months ended June 30, 2025, was $1.8 million.

Finance: draft 13-week cash view by Friday.

Wrap Technologies, Inc. (WRAP) - Canvas Business Model: Value Propositions

You're looking at the core reasons agencies choose Wrap Technologies, Inc. (WRAP) solutions right now, late in 2025. It's about moving beyond simple hardware to an integrated safety ecosystem.

Non-lethal, pain-free compliance tool for pre-escalation scenarios

The flagship BolaWrap 150 device is positioned as the primary non-lethal option for pre-escalation situations. This focus aligns with the Supreme Court's unanimous Barnes v. Felix ruling, which expanded officer liability into that pre-escalation period.

Adoption metrics show this positioning is resonating:

• Internal data from 516 agencies demonstrates increasing BolaWrap adoption.
• This adoption correlates with declining use of TASER, pepper spray, and batons.

Reduces liability and injury risk with a 92% documented success rate

The documented performance of the BolaWrap 150 directly addresses liability and injury concerns for departments. This is the hard data backing the pre-escalation value.

BolaWrap 150 Field Performance:

Integrated system of Tools, Training, and Policy for safer outcomes

Wrap Technologies, Inc. is driving value through its ecosystem, which includes hardware, immersive training (Wrap Reality™), and policy support, moving toward a more predictable revenue stream. This shift is showing up in the financials as of Q3 2025.

Financials reflecting the integrated system adoption (Q3 2025):

• Recurring subscription sales reached $236,000.
• Subscription sales accounted for 12% of total gross revenue.
• Gross margin expanded to 59%, up from 40% year-over-year.

Cost discipline also supports the platform strategy; for example, operating expenses in Q2 2025 were reduced by 26% compared to Q1 2025, dropping to $3.3 million from $4.5 million.

Data security and integrity via North American-made WrapVision camera

The WrapVision body-worn camera offers specific value around data sovereignty and compliance, critical for government clients. It is fully compliant with the Trade Agreements Act (TAA) and is a North American-made solution. Security is reinforced by offering secure North American exclusive data centers to mitigate risks of unauthorized foreign access.

WrapVision Camera Specifications (as launched):

Drone-based non-lethal interdiction capability (Merlin/DFR-X)

The introduction of the Drone First Responder-X (DFR-X) system, branded as the MERLIN-Interdictor payload, extends the non-lethal capability into the aerial domain. Pre-orders were scheduled to begin on November 17, 2025.

DFR-X Payload Details:

The system uses operator-controlled remote deployment.

Wrap Technologies, Inc. (WRAP) - Canvas Business Model: Customer Relationships

You're looking at how Wrap Technologies, Inc. (WRAP) builds and maintains its connection with law enforcement and public safety agencies, which is now firmly rooted in a long-term systems provider approach rather than one-off hardware sales. This relationship strategy is designed to create scale, predictability, and enduring partnerships by integrating hardware, software, and training into multi-year subscription contracts. This transformation is key to their financial outlook.

Dedicated account management for long-term systems provider model

The core of the customer relationship strategy is moving agencies from transactional sales to becoming a long-term systems provider at the heart of modern nonlethal response. This requires a high level of engagement, which is supported by the company's focus on policy alignment and managed services, often involving expertise gained through acquisitions like W1 Global, LLC. The goal is to embed the ecosystem deeply within agency operations, making switching costs high.

Multi-year subscription bundles like WrapReady™ and WrapPlus™

The relationship is formalized through subscription bundles like WrapReady™ and WrapPlus™, which integrate the BolaWrap devices and address consumable costs like replacement cassettes. This structure is clearly gaining traction with agencies. For the third quarter ending September 30, 2025, recurring subscription sales totaled $236,000. This figure represented approximately 12% of the total gross revenue for that quarter, signaling a successful strategic shift toward recurring revenue streams. The table below summarizes the financial context of this relationship shift as of Q3 2025.

Digital learning and performance tracking via Wrap Tactics platform

The digital component of the relationship is managed through the Wrap Tactics™ platform, a subscription-driven digital learning system. This platform delivers behavioral, scenario-based officer training using burst learning modules designed to improve skill retention, which research suggests can degrade rapidly. Agencies are actively using this digital ecosystem; for instance, Highland Park in Illinois and Lee County in Florida have converted to recurring subscription models that combine BolaWrap use with ongoing digital learning, analytics, and performance tracking. This platform is integral to renewing subscriptions under the Wrap Tactics ecosystem, especially in international markets.

High-touch training and recertification programs

The high-touch aspect of the relationship involves robust training and recertification. The company began charging for its training services back in the third quarter of 2022. This training is now being expanded internationally, where management notes significant reorder volume and growing demand for officer recertifications. The integrated ecosystem, which includes tools, policy, and training, is what the company believes positions it as a leader in the next era of public safety response. The documented success of the core tool-zero reported deaths, zero serious injuries, and zero lawsuits related to BolaWrap deployments to date-provides a strong foundation for these ongoing service relationships.

• Wrap Tactics™ addresses skill degradation where core defensive tactics can deteriorate within just two weeks without reinforcement.
• Training and policy management programs are cited as early adoption drivers supporting the subscription transition.
• The company is expanding its training focus to include adjacent markets like private security, corrections, and defense.

Wrap Technologies, Inc. (WRAP) - Canvas Business Model: Channels

You're looking at how Wrap Technologies, Inc. gets its non-lethal response ecosystem-BolaWrap, Wrap Reality, WrapVision, and the newer WrapTactics-into the hands of law enforcement and security agencies. The channel strategy is clearly multi-pronged, moving beyond simple product sales to an integrated service delivery model.

Direct domestic and international sales force expansion

Wrap Technologies, Inc. has been actively building out its direct sales capacity. You see this reflected in the financial results; for the third quarter ended September 30, 2025, total gross revenue hit $2.0 million, a 241% increase year-over-year, driven by stronger product sales and new managed services. This growth suggests the direct sales force expansion is gaining traction. The company appointed Stephen M. Renna in March 2025 to specifically lead international growth and financing strategy, which is a clear signal of prioritizing direct international channel development. The goal is scaling beyond the BolaWrap 150, which has been shipped to 19 countries historically, into a full ecosystem sale.

Global network of distributors and dealers (over 60 countries)

The company relies on a network of partners to achieve global reach. Historically, Wrap Technologies, Inc. established a network of 15 international distributors based in 26 countries. While the prompt mentions over 60 countries, the latest verifiable data points to this established international footprint, which is key for reorder volume and subscription renewals across their ecosystem products. This channel is crucial for scaling the deployment of the BolaWrap 150, which is documented as deployed to over 1,000 agencies worldwide.

Wrap Federal LLC, a dedicated subsidiary for U.S. government contracts

A major channel development in late 2025 was the formation of Wrap Federal, LLC in October 2025. This wholly owned subsidiary is dedicated to supporting U.S. federal government clients, specifically targeting the Department of Defense (DoD) and the Department of Homeland Security (DHS). This structure is designed to streamline contracting pathways and speed up access to mission-critical programs within federal frameworks, which is a distinct channel from municipal or state sales. The focus here is on integrating the BolaWrap 150 and next-generation C-UAS solutions like the MERLIN and PAN-DA programs.

Digital platforms for training and policy (Wrap Reality VR)

Digital channels are increasingly important, driving the recurring revenue stream. Recurring subscription sales in Q3 2025 totaled $236,000, making up about 12% of total gross revenue. This growth is explicitly supported by the adoption of training and policy management programs. The Wrap Reality™ VR immersive training simulator and the newer WrapTactics™ digital pre-escalation platform are central to this channel. This digital delivery mechanism helps ensure high product efficacy; for instance, the BolaWrap 150 has a documented 92% success rate in real-world deployments, with zero reported deaths, zero serious injuries, and zero lawsuits, which is a powerful metric for driving adoption through training validation.

Here's a quick look at the revenue mix supporting these channel efforts as of Q3 2025:

Finance: draft 13-week cash view by Friday.

Wrap Technologies, Inc. (WRAP) - Canvas Business Model: Customer Segments

You're looking at the core groups Wrap Technologies, Inc. (WRAP) targets for its public safety ecosystem, which now spans non-lethal tools, training, and counter-UAS (Unmanned Aerial Systems). The strategy is clearly segmented, moving from their established base to much larger adjacent markets.

Domestic and international Law Enforcement Agencies (over 1,000 agencies)

This is the foundation. The BolaWrap® 150 non-lethal device is deployed to over 1,000 agencies across the U.S. and in 60 countries globally. To get a clearer picture of adoption trends within this segment, internal data collected from 516 agencies demonstrates increasing BolaWrap usage and declining reliance on TASER, pepper spray, and batons. The company's CEO noted that the BolaWrap 150 has achieved a 92% field success rate with zero reported deaths, serious injuries, or lawsuits.

Here's a quick look at the current deployment footprint:

U.S. Federal Government (DoD, DHS, Border Agencies)

Wrap Technologies made a significant structural move on October 21, 2025, by forming Wrap Federal, LLC. This wholly owned subsidiary is dedicated to meeting the strict compliance standards, like DCAA readiness, necessary to support U.S. federal government clients. The focus for Wrap Federal is explicitly on securing contracts within the Department of Defense (DoD) and the Department of Homeland Security (DHS), alongside other federal agencies. This entity is expected to pursue contracts for the BolaWrap 150, DFR-X drone interdiction technology, and CUAS (Counter-UAS) programs.

Adjacent Public Safety Markets: Corrections, Healthcare, and Transportation

The company sees its future growth beyond the immediate law enforcement market. The addressable markets now explicitly include private security, commercial, corrections, healthcare, transportation, and defense. To put this into perspective, management estimates these adjacent markets are at least 20 times larger than the U.S. law enforcement market alone. The counter-UAS segment, which the Merlin and PANDA programs address, is projected to exceed $15 billion globally by 2030.

Private Security and Commercial sectors

Expansion into the commercial space is tied to potential product declassification. If this occurs, it would open access to a very large international opportunity, specifically the security guard market where guards are often unarmed. The company is also integrating its non-lethal response technology into aerial and robotic systems, tapping into the defense and homeland security segments.

• Adjacent Market Size Estimate: At least 20 times the U.S. law enforcement market
• Counter-UAS Market Projection: Expected to exceed $15 billion globally by 2030
• Subscription Revenue Share (Q3 2025): 12% of total revenue derived from recurring subscription offerings

Finance: draft 13-week cash view by Friday.

Wrap Technologies, Inc. (WRAP) - Canvas Business Model: Cost Structure

You're looking at the cost structure for Wrap Technologies, Inc. (WRAP) as of late 2025. The focus has clearly shifted toward operational efficiency, which shows up in the latest reported figures.

The most recent concrete cost data point is the operating expense reduction achieved in the second quarter of 2025. Operating expenses for Q2 2025 were reported at $3.3 million. This represented a 26% reduction compared to the $4.5 million reported in Q1 2025.

Looking at the first half of 2025, the year-to-date operating expenses were $7.9 million, which was a 14% reduction compared to the $9.1 million recorded for the same six-month period in 2024. This cost discipline is paired with a reduction in net cash used in operations, which fell to $5.0 million for the first six months of 2025, down from $7.2 million in the same period in 2024.

Here's a quick look at the key expense and liquidity metrics from the first half of 2025:

Manufacturing and supply chain costs are being actively managed through strategic partnerships to support US-based production. In November 2025, Wrap Technologies, Inc. announced a partnership with K-Form Inc. to expand its supply chain and support production, particularly at its Southwestern Virginia manufacturing hub. This move directly addresses the need for onshoring, with K-Form providing fabrication that complies with U.S. defense and government sourcing requirements.

The integrated ecosystem investment, particularly around new product launches like WrapVision, is tied to domestic manufacturing. WrapVision is noted as being built in North America with a critical made-in-America roadmap targeted for the end of 2025.

Costs associated with maintaining TAA compliance and federal readiness are a specific focus, especially for the WrapVision body-worn camera system. The WrapVision camera is explicitly stated to adhere to Trade Agreements Act (TAA) compliance requirements and GSA schedule contracts requirements.

Specific figures for Sales and marketing expenses and Research and Development (R&D) investment are embedded within the total operating expenses reported. However, the company's Q2 2025 revenue was $1.0 million, and year-to-date revenue was $1.8 million. Gross profit for Q2 2025 was $0.5 million, yielding a gross margin of 48%.

The strategic focus on compliance and domestic production suggests these elements represent fixed or semi-fixed costs that are necessary to secure government and federal contracts. The company is using this structure to differentiate itself from overseas competitors:

• WrapVision adheres to TAA compliance requirements.
• The partnership with K-Form supports production that complies with U.S. defense and government sourcing requirements.
• The company is working toward a Made-in-America roadmap for WrapVision by the end of 2025.

Finance: draft 13-week cash view by Friday.

Wrap Technologies, Inc. (WRAP) - Canvas Business Model: Revenue Streams

You're looking at the revenue generation for Wrap Technologies, Inc. (WRAP) as of late 2025, focusing on the hard numbers from their latest reported quarter.

The company's revenue streams are clearly segmenting into hardware sales and a growing base of recurring service and subscription income, reflecting a strategic shift in their business focus.

Product sales of hardware (BolaWrap 150, WrapVision, Merlin) remain a core component, driving the bulk of the top-line number, especially with the growth attributed to stronger BolaWrap® product sales in the third quarter.

The transition toward recurring revenue is gaining traction, supported by several offerings:

• Recurring subscription revenue from WrapReady™/WrapPlus™ bundles.
• Training and policy platform subscriptions, specifically Wrap Tactics and related programs.
• Managed services and professional services revenue, bolstered by the W1 Global acquisition.

WRAP TECHNOLOGIES, INC. reports revenue from three main segments: product sales, technology-enabled services, and managed services. Product sales specifically include BolaWrap products and accessories. Technology-enabled services cover VR revenue, service, training, and shipping revenue.

Here's the quick math on the most recent reported quarter:

The $2.0 million in Q3 2025 gross revenue represented a 241% increase compared to $0.6 million in the same period in 2024. This quarterly performance was the strongest in the past eight quarters.

The recurring subscription sales figure of $236,000 in Q3 2025 reflects the ongoing strategic shift toward a more sustainable, service-oriented model. This growth is supported by early adoption of training and policy management programs across law enforcement agencies.

The introduction of managed services revenue, which followed the W1 Global acquisition, also contributed to the revenue surge in Q3 2025. Furthermore, operational highlights in 2025 included the launch of WrapVision and achieving key milestones in MERLIN stage one testing, which are expected to feed into future revenue streams across product sales and services.

Finance: draft 13-week cash view by Friday.