WRAP TECHNOLOGIES, INC. Q2 FY26 Results

Q2 represented a strong quarter, but more importantly, it reflects the transformation underway at WRAP Technologies. Our addressable market has expanded materially, while our fundamental technologies are increasingly being delivered not as point-in-time products, but as part of a lifecycle model focused on customer success, proficiency and readiness. That model applies to our core law enforcement market, to significantly larger federal and defense opportunities through WrapShield™, and now to the private security market following the federal classification of BolaWrap® 150 as an instrument of restraint rather than a firearm or weapon. We are positioning WRAP’s technologies and capabilities where customer priorities and funding are moving. Domestically, that means aligning with the return of public-safety and grant funding. In federal and defense markets, it means expanding into funded priorities around advanced sensing, counter-UAS, autonomous systems and earlier response. And in the private sector, it means addressing a newly accessible market where organizations and insurers are actively seeking better ways to manage risk. The result is a substantially larger addressable market, a broader set of customers, and a business model designed to create value throughout the lifecycle of the customer relationship rather than only at the point of sale. As previously disclosed, management was targeting 100% revenue growth for 2026. That target reflected our good-faith assessment based on information available at the time. Based on currently available information, we are not updating that prior target. However, the nature of our business can result in material changes to the ultimate timing on recognizing revenue so our final revenue for 2026 may differ materially from our current expectations. The Company believes that as policing continues to shift from force-centric training toward judgment-centric training, Wrap’s ecosystem of non-lethal tools, immersive and digital training, and evidence management becomes far more important to agencies than any single tool on an officer’s belt. Management believes this shift favors providers that can support sound decision-making across the full arc of an encounter, and it informs how the Company is building the product portfolio, its training offerings, and the WrapShield architecture.