Wrap Technologies: Regulatory Clarity And Defense Pivot Change The Investment Case (Upgrade)

Wrap Technologies is upgraded to Buy following regulatory clarity and a transformative counter-UAS platform launch. ATF's reclassification of BolaWrap removes a major procurement hurdle, unlocking potential for broader law enforcement adoption and accelerating sales cycles. Exclusive rights to Frenel’s thermal-polarimetric tech enable WRAP to enter the high-growth defense and counter-drone markets with WrapShield. Management guides for 100% FY26 revenue growth; sustained operating leverage and proven WrapShield margins are key to long-term profitability.

I initiated coverage on Wrap Technologies, Inc. (WRAP) in late 2023 with a Hold rating. At the time, I recognized the company's public safety and non-lethal restraint solutions and its flagship product, the BolaWrap, but