Wrap Technologies Inc

Wrap Technologies Inc operates with a cash-and-equivalents balance of $3.18 million and no long-term debt, but its operating cash flow is negative at -$3.72 million, indicating reliance on existing liquidity rather than operational cash generation. The company's price-to-book ratio of 20.43 and price-to-tangible-book ratio of 20.43 suggest a premium valuation relative to its equity base. However, the price-to-earnings ratio of 782.69 and an EV/EBITDA of -21.36 highlight a high valuation multiple despite a net loss of $4.14 million in the latest period.

Profitability metrics show a return on equity of 2.61% and return on assets of 0.47%, both significantly below the industry median for communications equipment firms. The company's gross margin of 56.6% (calculated from $836,000 gross profit on $1.48 million revenue) is in line with industry norms, but its operating margin of -280.6% (calculated from -$4.14 million operating loss on $1.48 million revenue) indicates severe inefficiencies in cost control.

The company's revenue is concentrated in a single product line (Taser devices and accessories), with no disclosed geographic diversification. This lack of diversification increases exposure to demand volatility in law enforcement and personal protection markets. The company's revenue of $1.48 million in the latest period shows no year-over-year growth, and no segments are disclosed in the financials.

Outlook for the current fiscal year is neutral, with no significant revenue growth expected. The company's operating cash flow and net income are expected to remain negative, with no material improvement in operating margins. The company's free cash flow of $11,000 is minimal and insufficient to fund capital expenditures of -$80,000.

Risk assessment indicates low liquidity and dilution risk, with no immediate filing-based flags detected. The company has no long-term debt and a current ratio of 0.96, suggesting limited short-term liquidity. The absence of dilution risk is supported by equal basic and diluted shares outstanding (55.5 million). No recent filings or transcripts indicate material events affecting the company's operations or valuation.

Wrap Technologies maintains zero long-term debt, providing a strong balance sheet with no interest obligations.

The company holds a current ratio of 6.29, indicating strong short-term liquidity to meet immediate obligations.

Risk flags for dilution, liquidity, and credit are all assessed at low levels for the company.

Revenue declined 65.4% year-over-year to $7.7 million, signaling a severe contraction in top-line growth.

Revenue $765.0k, −48,2% YoY; Operating income +5,2% YoY.

• ▍Revenue $765.0k, −48,2% YoY
• ▍Operating income +5,2% YoY
• ▍Net income −6,8% YoY
• ▍Free cash flow +390,9% YoY
• ▍Net margin 14.2%

Revenue $865.0k; Operating income -$4.6M.

• ▍Revenue $865.0k
• ▍Operating income -$4.6M
• ▍Net margin -878.3%

Revenue $593.0k; Operating income -$3.6M.

• ▍Revenue $593.0k
• ▍Operating income -$3.6M
• ▍Net margin 335.6%

Revenue $1.6M; Operating income -$3.2M.

• ▍Revenue $1.6M
• ▍Operating income -$3.2M
• ▍Net margin -24.5%

Revenue $1.5M; Operating income -$4.1M.

• ▍Revenue $1.5M
• ▍Operating income -$4.1M
• ▍Net margin 7.9%

Revenue $4.7M, +3,7% YoY; Operating income +13,4% YoY.

• ▍Revenue $4.7M, +3,7% YoY
• ▍Operating income +13,4% YoY
• ▍Net income −75,9% YoY
• ▍Free cash flow −68,3% YoY
• ▍Net margin -221.2%

Revenue $4.5M, −26,5% YoY; Operating income +16,9% YoY.

• ▍Revenue $4.5M, −26,5% YoY
• ▍Operating income +16,9% YoY
• ▍Net income +80,6% YoY
• ▍Free cash flow +78,5% YoY
• ▍Net margin -130.4%

Revenue $6.1M, −23,8% YoY; Operating income −5,6% YoY.

• ▍Revenue $6.1M, −23,8% YoY
• ▍Operating income −5,6% YoY
• ▍Net income −71,5% YoY
• ▍Free cash flow −69,4% YoY
• ▍Net margin -492.7%

Revenue $8.0M, +4,1% YoY; Operating income +27,6% YoY.

• ▍Revenue $8.0M, +4,1% YoY
• ▍Operating income +27,6% YoY
• ▍Net income +27,9% YoY
• ▍Free cash flow +30,6% YoY
• ▍Net margin -218.9%