Wrap Technologies, Inc. (WRAP): Marketing Mix Analysis [Dec-2025 Updated]

You're trying to map out the real value of Wrap Technologies, Inc. as they move past the single-product phase, and frankly, the late-2025 data shows a clear pivot. We're seeing a strategic shift from just selling the BolaWrap to building a full public safety ecosystem, which is already boosting the bottom line-Q3 2025 gross revenue hit $2.0 million, and gross margin expanded to 59% on the back of new subscription efforts. I've distilled exactly how their Product, Place, Promotion, and Price strategies are aligning to support this move toward higher-margin, integrated sales; check out the breakdown below to see the mechanics of this transition.

Wrap Technologies, Inc. (WRAP) - Marketing Mix: Product

You're looking at the core offering from Wrap Technologies, Inc. (WRAP) as of late 2025. The product strategy has clearly moved beyond just selling a single piece of hardware; it's about building a comprehensive, recurring response system.

The central physical good remains the BolaWrap® 150 non-lethal remote restraint device. This device is the foundation of the entire ecosystem. As of the third quarter of 2025, management reported that the BolaWrap 150 has demonstrated a field success rate of 92%, with an unmatched record of 0 reported deaths, 0 serious injuries, and 0 lawsuits related to its deployments. For instance, the City of Pavia, Italy, recently adopted the device, initially purchasing four units and training twelve officers.

Wrap Technologies, Inc. is actively expanding this core product into a connected ecosystem. This involves integrating hardware with software and services, which is key to their new revenue structure. The ecosystem components include:

• WrapVision, which is a North American-made, all-in-one body-worn camera and evidence management system.
• WrapReality™ VR, a fully immersive training simulator designed to enhance decision-making under pressure.
• WrapTactics, a digital pre-escalation and performance training platform.

The strategic pivot is evident in the financial results. For the third quarter ending September 30, 2025, the company reported total gross revenue of $2.0 million. Crucially, recurring subscription sales, which include services layered onto the hardware, reached $236,000 in that quarter, representing approximately 12% of the total gross revenue. This shows the shift from one-time hardware sales to multi-year subscription contracts integrating hardware, software, and training, with new offerings like WrapReady and WrapPlus designed to manage consumable costs.

Furthermore, Wrap Technologies, Inc. is targeting defense and counter-UAS (Counter-Unmanned Aircraft Systems) markets with new hardware. The Merlin/DFR-X drone payload is a purpose-built system designed to turn standard drones into active, non-lethal interdiction tools. This system features a six-cassette payload. The company secured $4.5 million in a private placement to accelerate the development of Merlin-1 and related programs, as the global C-UAS market is projected to reach $6.8 billion by 2030. Pre-orders for the DFR-X payload were scheduled to start on November 17, 2025.

The commitment to domestic manufacturing is tied to the WrapVision product line. The company has established a new production facility in Norton, Virginia, as part of its roadmap to ensure data integrity through a Made-in-America supply chain, a point management highlighted in mid-November 2025.

Here is a quick look at the product performance metrics as of Q3 2025:

The product portfolio is now segmented across sales reporting into product sales (BolaWrap and accessories), technology-enabled services (VR, service, training, shipping), and managed services. This diversification supports the goal of transforming a one-time hardware sale into a multi-year recurring system contract.

Wrap Technologies, Inc. (WRAP) - Marketing Mix: Place

The Place strategy for Wrap Technologies, Inc. centers on scaling domestic law enforcement penetration while aggressively pursuing federal and international channels to drive recurring revenue streams. This involves a multi-pronged distribution approach that leverages established international partnerships alongside a newly formalized direct federal sales arm.

Global market access is supported by an established network that has seen the restraint products shipped to 62 countries. The international distribution framework relies on agreements with 22 international distributors who cover an additional 43 countries to ensure broad market coverage outside the U.S.. This is complemented by the company's focus on its ecosystem, which includes technology-enabled services like WrapReality™ VR training, moving the relationship beyond a simple hardware transaction.

Domestically, the core distribution remains focused on public safety agencies. As of late 2025, the flagship BolaWrap 150 device is in use by over 900 U.S. law enforcement agencies, with other reports indicating adoption by over 1,000 agencies across the U.S.. This domestic penetration is now being buttressed by a dedicated federal strategy.

To prioritize direct sales to federal entities, Wrap Technologies, Inc. announced the formation of Wrap Federal, LLC on October 21, 2025. This wholly owned subsidiary is specifically designed to meet the strict compliance, contracting, and operational standards, including alignment with Defense Contract Audit Agency (DCAA) readiness standards, necessary for supporting U.S. federal government clients within the Department of Defense (DoD) and the Department of Homeland Security (DHS). This entity is intended to streamline access to mission-critical programs within these key federal sectors.

To support this scaling and the 'Made-In-America' roadmap, manufacturing and logistics capabilities were significantly enhanced. The new U.S. Manufacturing World Headquarters in Norton, Virginia, officially opened on September 19, 2025, with the facility lease commencing on October 1, 2025. This state-of-the-art site is built to manufacture up to 23,000 BolaWrap® 150 devices and more than 150,000 cassettes per month, with future capacity expected to double or triple output. The facility is also projected to create 120+ new jobs in manufacturing, engineering, logistics, and training roles.

The overarching distribution strategy prioritizes direct engagement with public safety agencies and federal bodies, shifting toward a recurring systems business model integrating hardware, software, and training.

Key Distribution Metrics as of Late 2025:

The expansion of domestic production capacity directly supports the strategy of securing federal contracts through Wrap Federal, LLC, which is intended to align with DoD and DHS production requirements. This localized, scaled production is a critical enabler for the direct sales priority to federal entities.

The company's focus on recurring revenue is also a distribution factor, as evidenced by subscription-based sales contributing 12% of gross revenue in Q3 2025.

• The Norton, Virginia facility opening date was September 19, 2025.
• Wrap Federal, LLC is dedicated to supporting DoD and DHS clients.
• The company is focused on expanding its presence in the law enforcement and security sectors worldwide.
• The new facility is designed to create 120+ new jobs in southwestern Virginia.

Wrap Technologies, Inc. (WRAP) - Marketing Mix: Promotion

You're looking at how Wrap Technologies, Inc. (WRAP) is communicating its value proposition in late 2025. The promotion strategy is clearly shifting from simple product sales to selling an integrated system, which requires a different kind of message.

Messaging centers on a non-lethal response ecosystem for de-escalation and safety. The focus is on building a connected ecosystem of training, policy, and tools designed to work together to deliver safer outcomes and recurring value for customers. This represents a transformation from what was once a one-time hardware sale into a multi-year subscription contract that integrates hardware, software, and training.

Wrap Technologies, Inc. utilizes WrapTactics™ and Wrap Reality™ to promote training and policy alignment as a system. Wrap Tactics™ is promoted as a subscription platform providing behavioral, scenario-based officer training. Wrap Reality™ VR is positioned as a fully immersive training simulator to enhance decision-making under pressure for first responders.

The credibility of the training component is reinforced because the BolaWrap® Instructor Course holds IADLEST recertification for training credibility. The Company announced this 2025 renewal through the International Association of Directors of Law Enforcement Standards and Training (IADLEST) National Certification Program (NCP). This National Certification is currently accepted in 37 states.

Marketing efforts are being scaled, fueled by recent capital raises, to support the dual-use strategy. Management confirmed they are 'certainly putting our money and resources behind marketing and selling the product' now that the company has clarity on its identity. The Q3 2025 results showed $2 million in gross revenue, with 12% of that coming from subscription-based sales, signaling the shift in focus.

Here's a quick look at some of the operational and financial metrics supporting this scaling effort as of mid-to-late 2025:

Wrap Technologies, Inc. is also actively pursuing federal contracts and competitions like the U.S. Army xTechCounter Strike. To facilitate this, the company established Wrap Federal, LLC, a wholly owned subsidiary designed to be DCAA-compliant to strengthen relationships across the Department of Defense (DoD) and Department of Homeland Security (DHS). This federal division concentrates on the BolaWrap 150 Non-Lethal Tool and Counter-UAS solutions. A recent contract with the Rio Grande City Police Department in Texas involved supplying and training 12 officers under the WrapReady onboarding program.

The promotion of the ecosystem is also seen in recent customer wins:

• Messaging centers on a non-lethal response ecosystem for de-escalation and safety.
• Utilizes WrapTactics™ and Wrap Reality™ to promote training and policy alignment as a system.
• BolaWrap® Instructor Course holds IADLEST recertification for training credibility.
• Marketing efforts are being scaled, fueled by recent capital raises, to support the dual-use strategy.
• Actively pursuing federal contracts and competitions like the U.S. Army xTechCounter Strike.

Wrap Technologies, Inc. (WRAP) - Marketing Mix: Price

You're looking at how Wrap Technologies, Inc. (WRAP) structures the money customers pay for its offerings as of late 2025. The focus here is on the hard numbers reflecting their pricing strategy shift.

Wrap Technologies, Inc. is executing a strategic shift toward a recurring revenue model. This is visibly supported by the performance of their subscription tiers, specifically mentioning WrapReady™ and WrapPlus™ alongside managed service subscriptions.

The financial results from the third quarter ending September 30, 2025, clearly illustrate this pricing evolution:

• Recurring subscription sales reached $236,000 in Q3 2025.
• This subscription revenue accounted for approximately 12% of total gross revenue for the quarter.

This move is directly impacting profitability metrics. The company's Q3 2025 gross margin expanded significantly to 59%, a substantial improvement from 40% in Q3 2024. This expansion is explicitly attributed to pricing discipline and a favorable product mix. The gross profit for the quarter was $0.9 million.

To put these pricing shifts into context with overall top-line performance, the Q3 2025 total gross revenue was $2.0 million, marking the strongest quarterly result in the past eight quarters. Net revenue for the same period was $1.5 million.

The underlying pricing model is intentionally moving toward higher-margin system sales. This strategy involves bundling hardware, software, and training, positioning Wrap Technologies, Inc. as a long-term systems provider rather than relying solely on transactional hardware sales.

Here's a quick look at the key pricing and revenue metrics from Q3 2025:

The emphasis on higher-margin system sales, which include products like BolaWrap, Wrap Tactics, and WrapVision, is the primary driver supporting the margin expansion, even as managed services contribute lower-margin professional services revenue. Finance: draft 13-week cash view by Friday.