CHANDLER, Ariz., March 26, 2026 (GLOBE NEWSWIRE) -- VirTra, Inc. (Nasdaq: VTSI) (“VirTra” or the “Company”), a global provider of judgmental use-of-force and firearms training simulators, reported results for the fourth quarter and full year ended December 31, 2025. The financial statements are available on VirTra’s website and here.
Fourth Quarter 2025 and Recent Operational Highlights
- Bookings totaled $7.3 million in Q4 2025, bringing total bookings for 2025 to $26.7 million.
- Total backlog was $25.6 million at December 31, 2025.
- Demonstrated its next-generation Drone Defense Training System for corrections professionals as agencies prepare officers to detect, track, and respond to unauthorized drones attempting to breach facility perimeters or deliver contraband into secure environments.
- Gained early traction with the APEX data analytics platform integration, conducting multiple demonstrations for U.S. military groups and securing an international contract win, reinforcing VirTra's ability to deliver actionable training insights and expand its military simulation capabilities.
- Introduced additional product offerings, including the V-One portable simulation platform, to address the needs of smaller agencies and mobile training environments, expanding accessibility of the Company’s solutions.
- Continued enhancement of the training ecosystem through integration of advanced analytics capabilities, enabling agencies to measure performance, assess decision-making, and support data-driven training outcomes.
- Expanded engagement with U.S. military branches, including demonstrations with Army and Marine Corps groups.
Fourth Quarter and Full Year 2025 Financial Highlights
For the Twelve Months EndedAll figures in millions, except per share dataDecember 31, 2025December 31, 2024*% ΔTotal Revenue$22.4$26.4-15% Gross Profit$15.2$19.4-22%Gross Margin68%74%N/A Net Income (Loss)$0.3$1.4N/ADiluted EPS$0.02$0.12N/AAdjusted EBITDA$1.6$2.9-45%*The column for the twelve months ended December 31, 2024 reflects restated financials.
Management Commentary
VirTra CEO John Givens stated, “Our fourth quarter and full year 2025 results reflect the impact of an extended and highly atypical federal funding disruption, which has affected the timing of awards, customer procurement, and system deliveries across our core markets throughout recent quarters. While these dynamics continued to weigh on revenue in Q4, underlying customer demand has remained intact, as reflected by our improvement in bookings and backlog growth to $25.6 million and strong engagement with law enforcement and defense agencies.
“In recent weeks, we have begun to see key federal grant programs, including the Justice Assistance Grant (JAG) Program and COPS funding, reopen and customers re-engage in the application process. Fiscal 2025 funding, originally approved in prior periods, is only now being released and applications are being accepted, reflecting the delays we have experienced. Behind this, additional funding cycles, including fiscal 2026 and expected fiscal 2027 allocations, are progressing, resulting in multiple funding cycles moving through the system concurrently and driving increased activity across our customer base.”
“We are proactively supporting customers as they move through the application, award, and procurement process. However, the timing of awards, purchase orders, and system deliveries remains dependent on external funding timelines and customer readiness, and we expect this process to play out over the next few quarters.
“While 2025 can be viewed as a transition year, the work we have done over the past twelve months to strengthen our sales organization, expand our product line, and deepen our relationships with key federal and international customers has positioned us well as the environment begins to normalize.
“We have taken steps to enhance our commercial execution, including expanding our federal sales coverage and strengthening our marketing capabilities, while continuing to invest in differentiating product offerings such as our advanced reporting and analytics platforms, which have contributed to recent customer wins. Importantly, we have aligned our operations and inventory to support rapid fulfillment as orders convert, with the ability to deliver systems on short timelines as customer funding is secured.
“Our disciplined financial approach has allowed us to preserve flexibility with a strong balance sheet. We are moving through 2026 with a clearer operational runway, and as funding conditions continue to normalize, our focus remains on converting backlog and pipeline activity into revenue.”
Full Year 2025 Financial Results
Total revenue for the year was $22.4 million, compared to $26.4 million (restated) in the prior year period. The 15% decrease was primarily due to decreased revenues from simulators and accessories.
Gross profit for year was $15.2 million (68% of revenue), compared to $19.4 million (74% of revenue) in the prior year period.
Net operating expense for the year was $14.8 million, a 15% decrease from $17.4 million in the prior year period, maintaining disciplined cost management.
Operating income for the year was $0.4 million, compared to $2.0 million in the prior year period.
Net income for the year was $0.3 million, or $0.02 per diluted share, compared to $1.4 million, or $0.12 per diluted share, in the prior year period.
Adjusted EBITDA, a non-GAAP metric, was $1.6 million for the year, compared to $2.9 million in the prior year period.
Fourth Quarter 2025 Financial Results
Total revenue for the fourth quarter was $2.9 million, compared to $4.7 million in the prior year period. The decrease was driven primarily by delays in government funding, customer purchasing cycles, and the timing of deliveries and acceptance across both domestic and international markets.
Gross profit for the fourth quarter was $1.7 million (58% of total revenue), compared to $2.9 million (62% of total revenue) in the prior year period.
Net operating expense for the fourth quarter was $3.3 million, a 23% decrease from $4.2 million in the prior year period, maintaining cost discipline.
Operating income for the fourth quarter was ($1.2) million compared to ($1.0) million in the prior year period.
Net income for the fourth quarter was ($1.0) million, or ($0.09) per diluted share, consistent with the prior year period.
Cash and cash equivalents were $18.6 million at December 31, 2025, compared to $18.0 million at December 31, 2024. The Company ended the year with $30.8 million in working capital, supporting continued operating flexibility.
Financial Commentary
“Our margins for the year remained strong as we continued prudent cost management through 2025’s complex funding environment. Our balance sheet strength provides flexibility to navigate order timing variability while continuing to invest in the business and execute as funding flows to our agency customers, while remaining disciplined stewards of capital. Our operating model is well-positioned to benefit from operating leverage and margin expansion as conditions improve.”
Conference Call
VirTra’s management will hold a conference call today (March 26, 2026) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results. VirTra’s CEO John Givens and Chief Financial Officer Alanna Boudreau will host the call, followed by a question-and-answer period.
U.S. dial-in number: 1-877-407-9208
International number: 1-201-493-6784
Conference ID: 13758841
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 949-574-3860.
The conference call will be broadcast live and available for replay here and via the investor relations section of the Company’s website.
A replay of the call will be available after 7:30 p.m. Eastern time on the same day through April 9, 2026.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13758841
About VirTra, Inc.
VirTra (Nasdaq: VTSI) is a global provider of judgmental use-of-force and firearms training simulators for law enforcement, military, educational, and commercial markets. Since 1993, VirTra has been dedicated to saving lives by providing highly effective, realistic training designed to prepare officers for the most difficult real-world situations.
About the Presentation of Adjusted EBITDA
Adjusted earnings before interest, income taxes, depreciation, and amortization and before other non-operating costs and income (“Adjusted EBITDA”) is a non-GAAP financial measure. Adjusted EBITDA also includes non-cash stock option expense and other than temporary impairment loss on investments. Other companies may calculate Adjusted EBITDA differently. VirTra calculates its Adjusted EBITDA to eliminate the impact of certain items it does not consider to be indicative of its performance and its ongoing operations. Adjusted EBITDA is presented herein because management believes the presentation of Adjusted EBITDA provides useful information to VirTra’s investors regarding VirTra’s financial condition and results of operations and because Adjusted EBITDA is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in VirTra’s industry, several of which present a form of Adjusted EBITDA when reporting their results. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of VirTra’s results as reported under accounting principles generally accepted in the United States of America (“GAAP”). Adjusted EBITDA should not be considered as an alternative for net income, cash flows from operating activities and other consolidated income or cash flows statement data prepared in accordance with GAAP or as a measure of profitability or liquidity. A reconciliation of net income to Adjusted EBITDA is provided in the following tables:
For the Year Ended December 31, December 31, Increase % 2025 2024 (Decrease) Change Net Income (Loss)$258,446 $1,363,681 $(1,105,235) -81%Adjustments: Provision for income taxes (111,258) 887,286 (998,544) -113%Depreciation and amortization 1,762,468 1,136,812 625,656 55%Interest (net) (139,516) (182,018) (42,502) -23%EBITDA 1,770,140 3,205,761 (1,434,621) -45%Right of use amortization (168,988) (279,592) 110,604 40% Adjusted EBITDA$1,601,152 $2,926,169 $(1,325,017) -45%
Forward-Looking Statements
The information in this discussion contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “should,” “could,” “predicts,” “potential,” “continue,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. The forward-looking statements are applicable only as of the date on which they are made, and we do not assume any obligation to update any forward-looking statements. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. In evaluating these statements, you should specifically consider various factors, uncertainties and risks that could affect our future results or operations. These factors, uncertainties and risks may cause our actual results to differ materially from any forward-looking statement set forth in the reports we file with or furnish to the Securities and Exchange Commission (the “SEC”). You should carefully consider these risk and uncertainties described and other information contained in the reports we file with or furnish to the SEC before making any investment decision with respect to our securities. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.
Investor Relations Contact:
Alec Wilson and Greg Bradbury
Gateway Group, Inc.
[email protected]
949-574-3860
CONDENSED BALANCE SHEETS
(UNAUDITED) December 31, 2025 2024 (Restated) ASSETS Current assets: Cash and cash equivalents$18,594,598 $18,040,827 Accounts receivable, net 5,502,087 7,507,315 Inventory, net 13,060,024 14,583,400 Unbilled revenue 868,216 2,570,441 Prepaid expenses and other current assets 2,622,462 1,273,115 Deferred contract costs – short-term 374,375 - Total current assets 41,021,762 43,975,098 Long-term assets: Property and equipment, net 16,268,400 16,204,663 Operating lease right-of-use asset, net 268,873 437,095 Intangible assets, net 2,513,186 558,651 Security deposits, long-term 15,979 35,691 Other assets, long-term 424,226 148,177 Deferred tax asset, net 4,135,463 3,595,574 Deferred contract costs – long-term 488,695 - Total long-term assets 24,114,822 20,979,851 Total assets$65,136,584 $64,954,949 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable$784,074 $957,384 Accrued compensation and related costs 461,430 1,253,544 Accrued expenses and other current liabilities 1,196,565 657,114 Note payable, current 227,754 230,787 Operating lease liability, short-term 196,311 192,410 Deferred revenue, short-term 7,361,738 6,355,316 Total current liabilities 10,227,872 9,646,555 Long-term liabilities: Deferred revenue, long-term 1,913,393 2,282,996 Note payable, long-term 7,314,085 7,567,536 Operating lease liability, long-term 89,053 265,111 Total long-term liabilities 9,316,531 10,115,643 Total liabilities 19,544,403 19,762,198 Commitments and contingencies (See Note 10) Stockholders’ equity: Preferred stock $0.0001 par value; 2,500,000 shares authorized; no shares issued or outstanding - - Common stock $0.0001 par value; 50,000,000 shares authorized; 11,303,885 shares and 11,255,709 shares issued and outstanding as of December 31, 2025 and 2024, respectively 1,130 1,125 Class A common stock $0.0001 par value; 2,500,000 shares authorized; no shares issued or outstanding - - Class B common stock $0.0001 par value; 7,500,000 shares authorized; no shares issued or outstanding - - Additional paid-in capital 33,056,091 32,915,112 Retained Earnings 12,534,960 12,276,514 Total stockholders’ equity 45,592,181 45,192,751 Total liabilities and stockholders’ equity$65,136,584 $64,954,949
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED) Year Ended December 31, 2025 2024 Revenues: Net sales$22,402,188 $26,350,819 Total revenue 22,402,188 26,350,819 Cost of sales 7,199,562 6,938,304 Gross profit 15,202,626 19,412,515 Operating expenses: General and administrative 12,381,536 14,412,882 Research and development 2,383,595 3,003,302 Net operating expense 14,765,131 17,416,184 Income (loss) from operations 437,495 1,996,331 Other income (expense): Other income 341,013 829,618 Other (expense) (631,320) (574,982) Net income (expense) (290,307) 254,636 Income before provision for income taxes 147,188 2,250,967 Provision (Benefit) for income taxes (111,258) 887,286 Net income$258,446 $1,363,681 Net income per common share: Basic$0.02 $0.12 Diluted$0.02 $0.12 Weighted average shares outstanding: Basic 11,272,483 11,162,917 Diluted 11,272,483 11,162,917
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited) Year Ended December 31, 2025 2024 (Restated) Cash flows from operating activities: Net income$258,446 $1,363,681 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,762,468 1,136,812 Right of use amortization 168,222 279,592 Employee stock compensation 140,983 777,093 Bad debt expense - (166,640)Stock issued for service - 160,104 Changes in operating assets and liabilities: Accounts receivable, net 2,005,229 8,633,309 Inventory, net 1,523,377 (2,178,520)Deferred taxes (539,889) 34,580 Deferred Contract Costs (863,070) - Unbilled revenue 1,702,225 (1,460,825)Prepaid expenses and other current assets (1,349,348) (366,313)Other assets (256,335) 53,493 Accounts payable and other accrued expenses (429,004) (5,606,536)Operating lease right of use (172,156) (292,495)Deferred revenue 636,819 (1,110,069)Net cash provided by operating activities 4,587,967 1,257,266 Cash flows used investing activities: Internal intangible assets (2,265,489) - Purchase of property and equipment (1,515,255) (1,845,572)Net cash used in investing activities (3,780,744) (1,845,572) Cash flows used financing activities: Principal payments of debt (253,452) (240,862)Stock issued for options exercised - 20,153 Net cash used in financing activities (253,452) (220,709) Net increase in cash 553,771 (809,015)Cash and restricted cash, beginning of period 18,040,827 18,849,842 Cash and restricted cash, end of period$18,594,598 $18,040,827 Supplemental disclosure of cash flow information: Income taxes paid$224,698 $5,505,793 Interest paid$234,268 $241,838