Wrap Tech | 8-K: FY2025 Q3 Revenue: USD 1.491 M

Revenue: As of FY2025 Q3, the actual value is USD 1.491 M.

EPS: As of FY2025 Q3, the actual value is USD -0.06.

EBIT: As of FY2025 Q3, the actual value is USD -2.763 M.

Total gross revenue for Q3 2025 was $2.0 million, a 241% increase from $0.6 million in Q3 2024. This growth was driven by stronger BolaWrap® product sales and the addition of managed services revenue. Total net revenue for the quarter was $1.5 million, up 151% from the prior-year period. For the nine months ended September 30, 2025, gross revenue totaled $3.8 million compared to $3.6 million in 2024, while net revenue was $3.3 million versus $3.6 million, reflecting the Company’s transition to a more sustainable, service-oriented model.

Recurring subscription sales for Q3 2025 totaled $236,000, representing approximately 12% of total gross revenue. This increase reflects the Company’s transition toward a recurring revenue model, supported by growth in WrapReady™, WrapPlus™, and managed service subscriptions, as well as early adoption of training and policy management programs across law enforcement agencies.

Gross profit increased 276% to $0.9 million for Q3 2025, compared to $0.2 million in Q3 2024. Gross margin expanded to 59% from 40%, driven by improved pricing discipline, product mix, and operational efficiencies. For the nine-month period ended September 30, 2025, gross profit was $2.0 million, representing a 61% margin, compared to $2.1 million and a 56% margin in 2024.

Operating expenses for Q3 2025 were $3.6 million, compared to $3.9 million in Q3 2024, an improvement of 6%. For the nine months ended September 30, 2025, operating expenses decreased 11% to $11.5 million, from $13.0 million in the prior-year period.

Operating loss improved 24% to $2.8 million for Q3 2025, compared to $3.6 million in Q3 2024. For the nine months ended September 30, 2025, operating loss improved 13% to $9.5 million, from $10.9 million in the prior-year period.

Net cash used in operating activities for the nine months ended September 30, 2025, was - $7,624,000, compared to - $6,919,000 for the same period in 2024.
Net cash provided by financing activities for the nine months ended September 30, 2025, was $10,228,000, compared to $468,000 for the same period in 2024.
Cash and cash equivalents at the end of the period were $5,965,000, compared to $3,610,000 at the beginning of the period.

Wrap Technologies, Inc. expects to continue its transition to a more sustainable, service-oriented model, supported by growth in recurring subscription sales and strategic investments in sales, marketing, and R&D.