VirTra Reports Fourth Quarter and Full Year 2025 Financial Results
Rhea-AI Summary
VirTra (Nasdaq: VTSI) reported 2025 results: revenue $22.4M (‑15% YoY), gross profit $15.2M (68% margin), net income $0.3M ($0.02 diluted EPS) and adjusted EBITDA $1.6M (down 45% YoY). Bookings were $7.3M in Q4 and $26.7M for 2025 with $25.6M backlog. Cash was $18.6M and working capital $30.8M at year end.
Management cited federal funding timing disruptions that pressured near‑term revenue but said bookings, backlog growth and product expansion position the company for improvement as funding normalizes.
Positive
- Backlog of $25.6M at Dec 31, 2025
- 2025 bookings totaled $26.7M, with $7.3M in Q4
- Cash balance of $18.6M and $30.8M working capital at year end
- Gross margin remained strong at 68% for 2025
Negative
- Total revenue declined 15% YoY to $22.4M
- Adjusted EBITDA fell 45% YoY to $1.6M
- Q4 revenue dropped to $2.9M from $4.7M (≈38% decline)
- Operating income fell to $0.4M from $2.0M in prior year
Market Reaction – VTSI
Following this news, VTSI has declined 9.45%, reflecting a notable negative market reaction. Argus tracked a trough of -3.8% from its starting point during tracking. Our momentum scanner has triggered 6 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $4.01. This price movement has removed approximately $5M from the company's valuation.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.
Key Figures
Market Reality Check
Peers on Argus
VTSI was down 2.59% pre-release while peers were mixed: AWRE +9.75%, HKIT +13.52%, RDZN +4.55%, ZENV -21.84%, and MFI flat. This points to a stock-specific reaction rather than a broad software or training-simulation sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 10 | Q3 2025 earnings | Negative | -7.9% | Q3 revenue and EBITDA fell sharply, producing a quarterly net loss. |
| Aug 11 | Q2 2025 earnings | Positive | -25.0% | Revenue and bookings grew with positive net income despite lower margins. |
| May 12 | Q1 2025 earnings | Positive | +37.3% | Net income rose, bookings surged 120%, and gross margins improved. |
| Mar 27 | FY/Q4 2024 results | Negative | -17.3% | Revenue declined and Q4 swung to a net loss versus prior-year profit. |
| Nov 12 | Q3 2024 earnings | Positive | +22.9% | Bookings rose, gross margin improved, and revenue held roughly flat. |
Earnings releases have typically driven substantial moves, with most reactions aligning with the underlying tone of results; the main exception was a sharp selloff following generally positive Q2 2025 metrics.
Over the past year, VirTra’s earnings reports have shown a mix of growth and funding-driven slowdowns. Q1 2025 delivered strong net income of $1.3 million and surging bookings, followed by Q2 2025 revenue growth to $7.0 million but margin pressure. Q3 2025 then saw revenue of $5.3 million and a quarterly net loss. The current full-year 2025 report continues this pattern of softer revenue and profitability amid elevated backlog and government funding delays, extending themes highlighted in the 2024 annual results.
Historical Comparison
Earnings releases for VTSI have produced sizeable single-day moves, with an average change of 1.97% and mostly directionally consistent reactions to the tone of results.
Across FY 2024 and the 2025 quarterly updates, VirTra has moved from higher revenue and profitability to softer sales and margins influenced by federal funding delays, while consistently highlighting growing bookings, backlog, and new product adoption.
Market Pulse Summary
The stock is down -9.4% following this news. A negative reaction despite stable profitability would fit prior episodes where earnings volatility and funding delays weighed on sentiment, as seen with the Q2 2025 selloff. The 2025 report shows revenue at $22.4M and Adjusted EBITDA of $1.6M, both below 2024, alongside lower gross margin. While cash of $18.6M and working capital of $30.8M provide flexibility, extended government funding cycles and softer quarterly results could reinforce downside pressure.
Key Terms
adjusted EBITDA financial
non-GAAP financial
AI-generated analysis. Not financial advice.
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 Ended | |||
| All figures in millions, except per share data | December 31, 2025 | December 31, 2024* | % Δ |
| Total Revenue | - | ||
| Gross Profit | - | ||
| Gross Margin | N/A | ||
| Net Income (Loss) | N/A | ||
| Diluted EPS | N/A | ||
| Adjusted EBITDA | - | ||
*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
“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
Gross profit for year was
Net operating expense for the year was
Operating income for the year was
Net income for the year was
Adjusted EBITDA, a non-GAAP metric, was
Fourth Quarter 2025 Financial Results
Total revenue for the fourth quarter was
Gross profit for the fourth quarter was
Net operating expense for the fourth quarter was
Operating income for the fourth quarter was (
Net income for the fourth quarter was (
Cash and cash equivalents were
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.
VTSI@gateway-grp.com
949-574-3860
| VIRTRA, INC. 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 | - | - | |||||
| Common stock | 1,130 | 1,125 | |||||
| Class A common stock | - | - | |||||
| Class B common stock | - | - | |||||
| 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 | |||
| VIRTRA, INC. 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 | |||||
| VIRTRA, INC. 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 | |||
FAQ
What were VirTra's full year 2025 revenue and EPS (VTSI)?
How large was VirTra's backlog and bookings in 2025 (VTSI)?
What caused VirTra's revenue decline in 2025 and Q4 (VTSI)?
How strong is VirTra's balance sheet after 2025 results (VTSI)?
Did VirTra report profitability or positive EBITDA in 2025 (VTSI)?
What operational progress did VirTra announce that could affect future growth (VTSI)?
