Wrap Reports $2M Gross Revenue in Q3 With Non-Lethal Response Launch

Core Insights - Wrap Technologies, Inc. reported a significant increase in gross revenue, with a 241% rise to $2.0 million for Q3 2025 compared to $0.6 million in Q3 2024, driven by strong sales of the BolaWrap product and managed services revenue [2][3] - The company is transitioning to a more sustainable, service-oriented model, as indicated by a net revenue of $1.5 million for the quarter, up 151% from the previous year [2][4] Revenue Growth - Total gross revenue for Q3 2025 was $2.0 million, a 241% increase from $0.6 million in Q3 2024, primarily due to stronger BolaWrap product sales and managed services [2] - For the nine months ended September 30, 2025, gross revenue totaled $3.8 million, slightly up from $3.6 million in 2024, while net revenue was $3.3 million compared to $3.6 million in the prior year [2] Recurring Subscription Growth - Recurring subscription sales reached $236,000 in Q3 2025, accounting for approximately 12% of total gross revenue, reflecting the company's shift towards a recurring revenue model [4] Margin Expansion - Gross profit for Q3 2025 increased by 276% to $0.9 million, with gross margin expanding to 59% from 40% due to improved pricing discipline and operational efficiencies [5] Reduced Operating Expenses - Operating expenses for Q3 2025 were $3.6 million, a 6% improvement from $3.9 million in the same period last year, while for the nine months ended September 30, 2025, operating expenses decreased by 11% to $11.5 million [6] Spending on Growth and Innovation - The company has shifted its spending towards growth and innovation, focusing on sales, marketing, and R&D to support future revenue generation [7] Improved Operating Results - Operating loss improved by 24% to $2.8 million for Q3 2025 compared to $3.6 million in Q3 2024, indicating progress towards profitability [8] Recent Highlights - Wrap Technologies has made significant advancements in its product offerings and partnerships, enhancing its position in the public safety technology market [14]