VirTra Reports First Quarter 2026 Financial Results
Rhea-AI Summary
VirTra (Nasdaq: VTSI) reported Q1 2026 revenue of $3.5 million, down 51% year-over-year, with gross margin at 61%. The company posted a net loss of $1.3 million or $(0.12) per diluted share and adjusted EBITDA of $(0.8) million.
Bookings reached $3.8 million and backlog was $25.2 million at March 31, 2026. According to VirTra, revenue timing was affected by customers’ delivery readiness and a higher mix of STEP subscription revenue, while management cited growing pipelines and expects better sales momentum in the second half of 2026.
AI-generated analysis. Not financial advice.
Positive
- Bookings of $3.8 million in Q1 2026 support future revenue
- Total backlog of $25.2 million as of March 31, 2026
- Net operating expense decreased to $3.5 million from $3.8 million year-over-year
- STEP subscription model represented a larger share of revenue, adding recurring visibility
- Qualified sales leads approximately doubled over the past three months, according to VirTra
Negative
- Total revenue declined 51% year-over-year to $3.5 million
- Gross margin fell to 61% from 73% in the prior-year quarter
- Net loss of $1.3 million versus net income of $1.3 million a year earlier
- Adjusted EBITDA declined to ($0.8 million) from $1.7 million year-over-year
- Some Q3 and Q4 booking customers could not accept delivery, delaying revenue recognition
Key Figures
Market Reality Check
Peers on Argus
While VTSI fell 4.11%, several software/application peers also weakened: MFI -0.67%, HKIT -1.45%, RDZN -4.76%, and ZENV -21.84%, partially offset by AWRE +1.57%. This points to a mix of stock-specific and broader sector pressure.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 26 | Earnings results | Negative | -12.0% | Full-year 2025 revenue, margin, and earnings declined amid funding disruptions. |
| Nov 10 | Earnings results | Negative | -7.9% | Q3 2025 revenue and adjusted EBITDA fell sharply year over year with net loss. |
| Aug 11 | Earnings results | Positive | -25.0% | Q2 2025 revenue and bookings grew, with positive net income and EBITDA. |
| May 12 | Earnings results | Positive | +37.3% | Q1 2025 net income and bookings rose strongly despite modest revenue decline. |
| Mar 27 | Earnings results | Negative | -17.3% | FY 2024 revenue dropped and Q4 swung to loss despite strong bookings growth. |
Earnings releases have often coincided with negative price reactions, especially when revenue or margins contract, with one notable selloff even on a positive report.
Over the past year, VirTra’s earnings history shows a mix of growth and funding-driven slowdowns. Reports for Q2 2025 and Q1 2025 highlighted revenue growth and strong bookings, while Q3 2025, FY 2024, and FY 2025 flagged revenue declines, margin compression, and intermittent losses tied to funding delays. Today’s Q1 2026 update, with lower revenue and a net loss, extends this theme of timing-related volatility despite a solid backlog and product initiatives.
Historical Comparison
In the past year, VirTra’s earnings releases saw an average move of about -5%, with most reports selling off on weaker revenue or margins and only one strong positive reaction.
Recent earnings show a shift from stronger quarters like Q1–Q2 2025 toward softer periods in Q3 2025 and FY 2025, as federal funding delays pushed orders into backlog. The current Q1 2026 results, with lower revenue and profitability, fit this pattern of timing-driven variability despite a growing backlog and expanding product footprint.
Market Pulse Summary
This announcement details a sharp year‑over‑year revenue decline to $3.5M, a swing to a net loss of $1.3M, and negative Adjusted EBITDA, partly driven by customers delaying deliveries. At the same time, VirTra reported a sizeable backlog of $25.2M and ongoing product and market expansion. Investors monitoring this story often track bookings, backlog conversion into revenue, and the balance between recurring STEP revenue and capital system sales.
Key Terms
adjusted ebitda financial
gross margin financial
non-gaap financial
diluted eps financial
AI-generated analysis. Not financial advice.
CHANDLER, Ariz., May 11, 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 first quarter ended March 31, 2026. The financial statements are available on VirTra’s website and here.
First Quarter 2026 and Recent Operational Highlights
- Bookings totaled
$3.8 million in Q1 2026. - Total backlog was
$25.2 million at March 31, 2026. - 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.
- Advanced engagement across law enforcement, corrections, federal, and international markets, including increased activity tied to federal grant programs and customer procurement processes.
- Expanded engagement with U.S. military branches, including demonstrations with Army and Marine Corps groups.
- APEX Data Reporting and Analytics Integration: A Milestone in Customer Engagement - The integration of APEX data analytics is positively impacting our customers, with successful demonstrations conducted for U.S. military groups and a recent international contract win, underscoring VirTra's ability to deliver actionable training insights and enhance military simulation capabilities.
First Quarter 2026 Financial Highlights
| For the Three Months Ended | |||
| All figures in millions, except per share data | March 31, 2026 | March 31, 2025 | % Δ |
| Total Revenue | $3.5 | - | |
| Gross Profit | $2.1 | - | |
| Gross Margin | 61% | N/A | |
| Net Income (Loss) | ( | N/A | |
| Diluted EPS | ( | N/A | |
| Adjusted EBITDA | ( | N/A | |
Management Commentary
VirTra CEO John Givens stated, “Since quarter-end, we have continued to see customer activity move forward across our core markets. Agencies are re-engaging as funding programs reopen, customers are working through grant applications and procurement steps, and our team is staying closely involved to help move these opportunities forward. While the timing of revenue conversion remains dependent on external funding and customer processes, the progression we are seeing today supports our expectation for improved sales momentum as we move through the second half of 2026.
“We are also seeing tangible progress from a more targeted commercial strategy. Over the past three months, qualified leads have approximately doubled, supported by improved lead capture, more focused customer segmentation, needs-based marketing campaigns, and a more disciplined process for moving prospects from initial interest into the sales pipeline. We continue to see interest in new capabilities such as drone defense training, advanced analytics, and portable simulation platforms, which expand the ways customers can apply VirTra’s technology.
“Across our target markets, customers are preparing for more dynamic threats, including emerging needs around drone defense and de-escalation, which come with a broader range of training requirements. VirTra’s role is to help them train more effectively, more consistently, and with better data, and we believe we are well-positioned as funding and procurement conditions continue to normalize.”
First Quarter 2026 Financial Results
Total revenue was
Gross profit was
Net operating expense was
Loss from operations was
Net loss was
Adjusted EBITDA, a non-GAAP metric, was
Financial Commentary
VirTra CFO Alanna Boudreau stated, “Our first quarter results reflect continued revenue timing variability, particularly in capital system sales, as customers work through funding and procurement processes. During the quarter, Subscription Training Equipment Partnership (STEP) revenue represented a larger percentage of total revenue due to the lower level of capital system sales. STEP provides recurring revenue visibility and remains an attractive access model for agencies, though revenue from these agreements is recognized over the life of the contract, which can pressure reported gross margin in periods where STEP represents a larger share of revenue. We continued to manage expenses carefully while maintaining a strong balance sheet.”
Conference Call
VirTra’s management will hold a conference call today (May 11, 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: 13760404
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 May 25, 2026.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13760404
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 Three Months Ended | ||||||||||||||||
| March 31, | March 31, | Increase | % | |||||||||||||
| 2026 | 2025 | (Decrease) | Change | |||||||||||||
| Net Income (Loss) | $ | (1,328,632 | ) | $ | 1,264,060 | $ | (2,592,692 | ) | -205 | % | ||||||
| Adjustments: | ||||||||||||||||
| Provision for income taxes | 54,000 | 102,000 | (48,000 | ) | -47 | % | ||||||||||
| Depreciation and amortization | 470,027 | 316,640 | 153,387 | 48 | % | |||||||||||
| Interest (net) | (21,772 | ) | (21,251 | ) | (521 | ) | 2 | % | ||||||||
| EBITDA | (826,377 | ) | 1,661,449 | (2,487,826 | ) | -150 | % | |||||||||
| Right of use amortization | 43,494 | 41,864 | 1,630 | 4 | % | |||||||||||
| Adjusted EBITDA | $ | (782,883 | ) | $ | 1,703,313 | $ | (2,486,196 | ) | -146 | % | ||||||
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.
VTSI@gateway-grp.com
949-574-3860
| -Financial Tables to Follow- | ||||||||
| VIRTRA, INC. CONDENSED BALANCE SHEETS (UNAUDITED) | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 17,850,178 | $ | 18,594,598 | ||||
| Accounts receivable, net | 4,917,675 | 5,502,087 | ||||||
| Inventory, net | 14,368,385 | 13,060,024 | ||||||
| Unbilled revenue | 322,874 | 868,216 | ||||||
| Prepaid expenses and other current assets | 1,437,190 | 2,622,462 | ||||||
| Deferred Contract Costs, short term | 374,375 | 374,375 | ||||||
| Total current assets | 39,270,677 | 41,021,762 | ||||||
| Long-term assets: | ||||||||
| Property and equipment, net | 16,006,755 | 16,268,400 | ||||||
| Operating lease right-of-use asset, net | 225,379 | 268,873 | ||||||
| Intangible assets, net | 2,397,689 | 2,513,186 | ||||||
| Security deposits, long-term | 15,980 | 15,979 | ||||||
| Other assets, long-term | 424,225 | 424,226 | ||||||
| Deferred tax asset, net | 4,415,171 | 4,135,463 | ||||||
| Deferred Contract Costs, long term | 395,102 | 488,695 | ||||||
| Total long-term assets | 23,880,301 | 24,114,822 | ||||||
| Total assets | $ | 63,150,978 | $ | 65,136,584 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 971,964 | $ | 784,074 | ||||
| Accrued compensation and related costs | 567,909 | 461,430 | ||||||
| Accrued expenses and other current liabilities | 1,217,590 | 1,196,565 | ||||||
| Note payable, current | 225,981 | 227,754 | ||||||
| Operating lease liability, short-term | 197,538 | 196,311 | ||||||
| Deferred revenue, short-term | 6,813,186 | 7,361,738 | ||||||
| Total current liabilities | 9,994,168 | 10,227,872 | ||||||
| Long-term liabilities: | ||||||||
| Deferred revenue, long-term | 1,559,691 | 1,913,393 | ||||||
| Note payable, long-term | 7,248,704 | 7,314,085 | ||||||
| Operating lease liability, long-term | 42,402 | 89,053 | ||||||
| Total long-term liabilities | 8,850,797 | 9,316,531 | ||||||
| Total liabilities | 18,844,965 | 19,544,403 | ||||||
| Commitments and contingencies (See Note 10) | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock | - | - | ||||||
| Common stock | 1,130 | 1,130 | ||||||
| Class A common stock | - | - | ||||||
| Class B common stock | - | - | ||||||
| Additional paid-in capital | 33,098,555 | 33,056,091 | ||||||
| Retained Earnings | 11,206,328 | 12,534,960 | ||||||
| Total stockholders’ equity | 44,306,013 | 45,592,181 | ||||||
| Total liabilities and stockholders’ equity | $ | 63,150,978 | $ | 65,136,584 | ||||
| VIRTRA, INC. CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenues: | ||||||||
| Net sales | $ | 3,474,146 | $ | 7,160,247 | ||||
| Total revenue | 3,474,146 | 7,160,247 | ||||||
| Cost of sales | 1,340,342 | 1,963,367 | ||||||
| Gross profit | 2,133,804 | 5,196,880 | ||||||
| Operating expenses: | ||||||||
| General and administrative | 2,961,172 | 3,219,950 | ||||||
| Research and development | 500,673 | 609,127 | ||||||
| Net operating expense | 3,461,845 | 3,829,077 | ||||||
| Income (loss) from operations | (1,328,041 | ) | 1,367,803 | |||||
| Other income (expense): | ||||||||
| Other income | 113,190 | 72,010 | ||||||
| Other (expense) | (59,781 | ) | (73,753 | ) | ||||
| Net other income | 53,409 | (1,743 | ) | |||||
| (Loss) before provision for income taxes | (1,274,632 | ) | 1,366,060 | |||||
| Provision (Benefit) for income taxes | 54,000 | 102,000 | ||||||
| Net (loss) | $ | (1,328,632 | ) | $ | 1,264,060 | |||
| Net (loss) per common share: | ||||||||
| Basic | $ | (0.12 | ) | $ | 0.11 | |||
| Diluted | $ | (0.12 | ) | $ | 0.11 | |||
| Weighted average shares outstanding: | ||||||||
| Basic | 11,303,885 | 11,162,037 | ||||||
| Diluted | 11,303,885 | 11,162,037 | ||||||
| VIRTRA, INC. CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||||
| Three Months Ended March 31 | |||||||||
| 2026 | 2025 | ||||||||
| Cash flows from operating activities: | |||||||||
| Net (loss) | $ | (1,328,632 | ) | $ | 1,264,060 | ||||
| Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | |||||||||
| Depreciation and amortization | 470,027 | 316,640 | |||||||
| Right of use amortization | 43,494 | 41,864 | |||||||
| Employee stock compensation | 42,464 | 29,514 | |||||||
| Bad debt expense | (9,408 | ) | (15,334 | ) | |||||
| Loss on disposal of PP&E | 3,990 | - | |||||||
| Changes in operating assets and liabilities: | |||||||||
| Accounts receivable, net | 593,819 | (884,782 | ) | ||||||
| Inventory, net | (1,308,361 | ) | (404,091 | ) | |||||
| Deferred taxes | (279,708 | ) | (516,055 | ) | |||||
| Deferred Contract Costs - LT | 93,593 | - | |||||||
| Unbilled revenue | 545,342 | 461,463 | |||||||
| Prepaid expenses and other current assets | 1,185,272 | (343,571 | ) | ||||||
| Accounts payable and other accrued expenses | 315,395 | 448,503 | |||||||
| Operating lease right of use | (45,424 | ) | (43,223 | ) | |||||
| Deferred revenue | (902,254 | ) | (289,297 | ) | |||||
| Net cash provided by (used in) operating activities | (580,391 | ) | 65,691 | ||||||
| Cash flows from investing activities: | |||||||||
| Purchase of property and equipment | (96,875 | ) | (428,371 | ) | |||||
| Net cash provided by (used in) investing activities | (96,875 | ) | (428,371 | ) | |||||
| Cash flows from financing activities: | |||||||||
| Principal payments of debt | (67,154 | ) | (65,521 | ) | |||||
| Net cash (used in) financing activities | (67,154 | ) | (65,521 | ) | |||||
| Net (decrease) in cash | (744,420 | ) | (428,201 | ) | |||||
| Cash and restricted cash, beginning of period | 18,594,598 | 18,040,827 | |||||||
| Cash and restricted cash, end of period | $ | 17,850,178 | $ | 17,612,626 | |||||
| Supplemental disclosure of cash flow information: | |||||||||
| Income taxes paid (refunded) | $ | (1,041,894 | ) | $ | 20,951 | ||||
| Interest paid | $ | 55,534 | $ | 56,974 | |||||
