Wrap Tech | 10-Q: 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.

Segment Revenue

• Product Sales: $1,743 thousand for the three months ended September 30, 2025, compared to $434 thousand for the same period in 2024, representing a 302% increase.
• Managed Services: $242 thousand for the three months ended September 30, 2025, with no revenue reported for the same period in 2024.
• Technology Enabled Services: $37 thousand for the three months ended September 30, 2025, compared to $159 thousand for the same period in 2024, representing a 77% decrease.

Operational Metrics

• Net Loss: - $2,773 thousand for the three months ended September 30, 2025, compared to a net income of $1,990 thousand for the same period in 2024.
• Gross Profit: $883 thousand for the three months ended September 30, 2025, compared to $235 thousand for the same period in 2024, representing a 276% increase.
• Operating Expenses: $3,644 thousand for the three months ended September 30, 2025, compared to $3,861 thousand for the same period in 2024, representing a 6% decrease.

Cash Flow

• Net Cash Used in Operating Activities: - $7,624 thousand for the nine months ended September 30, 2025, compared to - $6,919 thousand for the same period in 2024.
• Net Cash Provided by Financing Activities: $10,228 thousand for the nine months ended September 30, 2025, compared to $468 thousand for the same period in 2024.

Unique Metrics

• Deferred Revenue: $400 thousand as of September 30, 2025, consisting of $15 thousand related to BolaWrap extended warranties and services, $20 thousand related to WRAP Ready, $289 thousand related to Intrensic extended warranties and services, $39 thousand related to VR, and $37 thousand related to training.

Future Outlook and Strategy

• Core Business Focus: The company plans to increase product demonstrations and training sessions, particularly in international markets, and expects sales of the BolaWrap 150 and Wrap Reality to continue to rise, aided by ongoing cost savings and cost control measures.
• Non-Core Business: Wrap Technologies is expanding into drone and counter-UAS technologies, with initiatives such as MERLIN and PAN-DA programs, aiming to broaden its reach beyond traditional policing to include defense, homeland security, and other public-safety markets.

Priority

• Strategic Partnerships: The company announced a strategic partnership with Carahsoft Technology Corp. to serve as Wrap’s Master Government Aggregator, making its portfolio of technologies available to the public sector through Carahsoft’s reseller partners and contracts.