VirTra Reports Third Quarter and Nine Months 2025 Financial Results

Rhea-AI Summary

VirTra (Nasdaq: VTSI) reported Q3 2025 results for the quarter ended September 30, 2025, and nine months. Q3 revenue was $5.3M (down 29% YoY) and nine-month revenue was $19.5M (down 7% YoY). Q3 adjusted EBITDA was $0.1M (down 91% YoY); nine-month adjusted EBITDA was $2.49M (down 38% YoY). Q3 net loss was $0.4M (EPS -$0.03); nine-month net income was $1.1M (EPS $0.09). Cash was $20.8M, working capital $32.9M, and backlog $21.9M. Operational highlights: Q3 bookings $8.4M, a $4.8M multi-site Colombia contract, 20 simulators approved for the RCMP, and launch of the V-One portable simulator.

Positive

• Cash increased to $20.8M as of Sept 30, 2025
• Backlog rose to $21.9M, signaling revenue visibility
• Q3 bookings of $8.4M including a $4.8M Colombia contract
• Validated deployment of 20 simulators with RCMP

Negative

• Q3 revenue decline of 29% YoY to $5.3M
• Q3 adjusted EBITDA fell 91% YoY to $0.1M
• Nine‑month revenue down 7% YoY to $19.5M
• Gross margin compressed to 66% Q3 from 73% prior year

Insights

Senior Corporate Finance Analyst

Results show weaker near-term revenue and margins but a healthy balance sheet and growing backlog, leaving the near-term impact neutral.

VirTra reported third-quarter revenue of $5.3 million versus $7.5 million year‑ago, a -29% decline, with gross margin falling to 66% from 73%. Adjusted EBITDA dropped to $0.10 million in Q3 from $1.10 million a year earlier, while nine‑month adjusted EBITDA fell to $2.49 million from $4.00 million. The company still reported positive nine‑month net income of $1.1 million ($0.09 diluted EPS) and holds $20.8 million in cash with $32.9 million working capital, which supports near‑term operations.

The business mechanism is clear: timing of federal funding and customer acceptances compressed near‑term revenue recognition and profitability, while backlog rose to $21.9 million and international contracts and product introductions (including the V‑One Portable) expand addressable demand. Key dependencies and risks remain the timing of grant awards and customer acceptances; delayed federal awards directly reduced Q3 sales and margins. Watch backlog conversion, COPS grant announcements tied to agencies selected after the June 30 application close, and quarterly revenue trends over the next two to four quarters for evidence that timing issues resolve. The balance sheet cushions volatility, but near‑term operating leverage remains thin until bookings convert to recognized revenue.

CHANDLER, Ariz., Nov. 10, 2025 (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 third quarter ended September 30, 2025. The financial statements are available on VirTra’s website and here.

Third Quarter 2025 and Recent Operational Highlights

• Bookings totaled $8.4 million in Q3 2025.
• Secured a $4.8 million multi-site contract to deliver law enforcement training systems in Colombia.
• Validated and approved for full deployment of 20 simulators with the Royal Canadian Mounted Police, expanding VirTra’s installed base and training footprint across Canada.
• Introduced the V-One Portable Simulator, a compact, high-quality training solution tailored for smaller agencies and mobile training environments.
• Demonstrated the Soldier Virtual Training (SVT) System for the U.S. Army’s Program Executive Office for Simulation, Training and Instrumentation (PEO STRI), including APEX analytics integration and VBS4 interoperability.
  

Third Quarter and Nine Month 2025 Financial Highlights

	For the Three Months Ended				For the Nine Months Ended
All figures in millions, except per share data	September 30, 2025	September 30, 2024	% Δ		September 30, 2025	September 30, 2024*	% Δ
Total Revenue	$5.3	$7.5	-29%		$19.5	$20.9	-7%
Gross Profit	$3.5	$5.5	-36%		$13.5	$15.7	-14%
Gross Margin	66%	73%	N/A		69%	75%	N/A
Net Income (Loss)	($0.4)	$0.6	N/A		$1.1	$2.3	N/A
Diluted EPS	($0.03)	$0.05	N/A		$0.09	$0.21	N/A
Adjusted EBITDA	$0.10	$1.10	-91%		$2.49	$4.00	-38%

*The column for the nine months ended September 30, 2024 reflects restated financials.

Management Commentary

VirTra CEO John Givens stated, “In the third quarter, we continued to work through a slower federal funding cycle. The timing of federal awards and customer acceptances affected near-term revenue recognition, but it has not changed the level of engagement we are seeing from agencies. Our backlog increased again in Q3, and we entered the fourth quarter with a larger pipeline of opportunities tied to grant-driven purchasing.”

“We also made meaningful progress improving how we reach and support customers. We launched our revamped website in September, and we are already generating more qualified leads. Agencies are spending more time evaluating products and requesting information. At IACP last month, we introduced the V-One Portable Simulator for smaller agencies, and the early response reinforces the importance of making high-quality training accessible across budgetary ranges.”

“Our core law enforcement business remains a central focus. The Department of Justice’s COPS grant program has already identified the agencies slated to receive funding based on applications that close on June 30, and we believe VirTra will be among the beneficiaries once those announcements are made. International activity continues to gain momentum, including new deployments in Canada and a multi-site award in Colombia. As grant awards progress toward contract and customer acceptances resume, we believe we are well positioned to convert pent-up demand into revenue.”

Nine Months 2025 Financial Results

Total revenue for the first nine months was $19.5 million, compared to $20.9 million (restated) in the prior year period. The 7% decrease was primarily due to decreased revenues from simulators and accessories.

Gross profit for the first nine months was $13.5 million (69% of revenue), compared to $15.7 million (75% of revenue) in the prior year period.

Net operating expense for the first nine months was $11.7 million, an 11% decrease from $13.2 million in the prior year period, maintaining disciplined cost management.

Operating income for the first nine months was $1.8 million, compared to $3.3 million in the prior year period.

Net income for the first nine months was $1.1 million, or $0.09 per diluted share, compared to $2.3 million, or $0.21 per diluted share, in the prior year period.

Adjusted EBITDA, a non-GAAP metric, was $2.5 million for the first nine months of 2025, compared to $4.0 million in the prior year period.

Third Quarter 2025 Financial Results

Total revenue for the third quarter was $5.3 million, compared to $7.5 million in the prior year period. The decrease can primarily be attributed to lower revenues from the government sector due to funding delays.

Gross profit for the third quarter was $3.5 million (66% of total revenue), compared to $5.5 million (73% of total revenue) in the prior year period.

Net operating expense for the third quarter was $4.0 million, a 16% decrease from $4.7 million in the prior year period, maintaining cost discipline.  

Operating income for the third quarter was ($0.5) million compared to $0.8 million in the prior year period.

Net income for the third quarter was ($0.4) million, or ($0.03) per diluted share, compared to $0.6 million, or $0.05 per diluted share, in the prior year period.

Adjusted EBITDA, a non-GAAP metric, was $0.1 million for the third quarter, compared to $1.1 million in the prior year period.

Cash and cash equivalents were $20.8 million at September 30, 2025, compared to $18.0 million at December 31, 2024. Maintained working capital of $32.9 million, positioning the Company for sustained growth.

Financial Commentary

“Our results for the first nine months reflect the challenging federal funding environment we’ve been operating in,” said CFO Alanna Boudreau. “Despite that backdrop, we continued to manage the business with discipline. Operating expenses were down year over year, and gross margins remained solid. STEP renewals and new agreements added recurring revenue during the quarter, which helped offset the timing of capital orders. Our balance sheet remains strong with $20.8 million dollars in cash and $32.9 million in working capital. Our backlog increased to $21.9 million, giving us visibility into future quarters. We believe we are well positioned to support agencies as funding gains velocity and to continue investing in the areas that will drive long-term growth.”

Conference Call

VirTra’s management will hold a conference call today (November 10, 2025) 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: 13756733
  
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 November 24, 2025.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13756733

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 Three Months Ended																For the Nine Months Ended
																		(Restated)
		September 30,				September 30,				Increase				%				September 30,				September 30,				Increase				%
		2025				2024				(Decrease)				Change				2025				2024				(Decrease)				Change
Net Income (Loss)		$	(388,567	)		$	583,101			$	(971,668	)			-167	%		$	1,050,807			$	2,252,025			$	(1,201,218	)			-53	%
Adjustments:
Provision for income taxes			28,090				208,000				(179,910	)			-86	%			121,091				807,000				(685,909	)			-85	%
Depreciation and amortization			466,876				308,924				157,952				51	%			1,297,209				834,494				462,715				55	%
Interest (net)			(55,831	)			(55,919	)			88				0	%			(103,958	)			(144,876	)			40,918				-28	%
EBITDA			50,568				1,044,106				(993,539	)			-95	%			2,365,149				3,748,643				(1,383,494	)			-37	%
Right of use amortization			40,871				38,720				2,151				6	%			125,236				238,213				(112,977	)			-47	%
Adjusted EBITDA		$	91,438			$	1,082,826			$	(991,388	)			-92	%		$	2,490,385			$	3,986,856			$	(1,496,471	)			-38	%

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)
		September 30, 2025				December 31, 2024
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	20,767,105			$	18,040,827
Accounts receivable, net			5,008,846				8,005,452
Inventory, net			12,337,341				14,583,400
Unbilled revenue			1,595,419				2,570,441
Prepaid expenses and other current assets			2,546,410				1,273,115
Deferred contract costs – short-term			341,009				-
Total current assets			42,596,130				44,473,235
Long-term assets:
Property and equipment, net			16,346,665				16,204,663
Operating lease right-of-use asset, net			311,859				437,095
Intangible assets, net			2,628,683				558,651
Security deposits, long-term			15,979				35,691
Other assets, long-term			148,177				148,177
Deferred tax asset, net			3,482,134				3,595,574
Deferred contract costs – long-term			673,949				-
Total long-term assets			23,607,446				20,979,851
Total assets		$	66,203,576			$	65,453,086
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	1,184,863			$	957,384
Accrued compensation and related costs			916,841				1,253,544
Accrued expenses and other current liabilities			489,527				657,114
Note payable, current			226,910				230,787
Operating lease liability, short-term			195,085				192,410
Deferred revenue, short-term			6,670,352				6,355,316
Total current liabilities			9,683,578				9,646,555
Long-term liabilities:
Deferred revenue, long-term			2,175,811				2,282,996
Note payable, long-term			7,378,357				7,567,536
Operating lease liability, long-term			135,196				265,111
Total long-term liabilities			9,689,364				10,115,643
Total liabilities			19,372,942				19,762,198
Commitments and contingencies (See Note 11)
Stockholders’ equity:
Preferred stock $0.0001 par value; 2,500,000 authorized; no shares issued or outstanding			-				-
Common stock $0.0001 par value; 50,000,000 shares authorized; 11,283,107 shares issued and outstanding as of September 30, 2025 and 11,255,709 shares issued and outstanding as of December 31, 2024			1,128				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			33,004,048				32,915,112
Retained Earnings			13,825,458				12,774,651
Total stockholders’ equity			46,830,634				45,690,888
Total liabilities and stockholders’ equity		$	66,203,576			$	65,453,086

VIRTRA, INC. CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
		Three Months Ended								Nine Months Ended
		September 30, 2025				September 30, 2024				September 30, 2025				September 30, 2024
														(Restated)
Revenues:
Net sales		$	5,349,993			$	7,484,269			$	19,489,178			$	20,905,730
Total revenue			5,349,993				7,484,269				19,489,178				20,905,730
Cost of sales			1,831,969				1,986,296				5,961,795				5,168,978
Gross profit			3,518,024				5,497,973				13,527,383				15,736,752
Operating expenses:
General and administrative			3,278,663				3,615,947				9,788,609				10,925,915
Research and development			689,521				1,126,394				1,906,764				2,273,422
Net operating expense			3,968,184				4,742,341				11,695,373				13,199,337
Income (loss) from operations			(450,160	)			755,632				1,832,010				3,285,392
Other income (expense):
Other income			114,454				104,447				264,337				731,847
Other (expense)			(24,771	)			(68,978	)			(924,449	)			(210,237	)
Net other income (expense)			89,683				35,469				(660,112	)			521,610
Income (Loss) before provision for income taxes			(360,477	)			791,101				1,171,898				3,059,025
Provision (Benefit) for income taxes			28,090				208,000				121,091				807,000
Net income (loss)		$	(388,567	)		$	583,101			$	1,050,807			$	2,252,025
Net income (loss) per common share:
Basic		$	(0.03	)		$	0.05			$	0.09			$	0.21
Diluted		$	(0.03	)		$	0.05			$	0.09			$	0.21
Weighted average shares outstanding:
Basic			11,269,164				11,175,882				11,263,694				10,982,083
Diluted			11,269,164				11,175,882				11,263,694				10,982,083

VIRTRA, INC. CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
		Nine Months Ended September 30
		2025				2024
						(restated)
Cash flows from operating activities:
Net income		$	1,050,807			$	2,252,025
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			952,407				834,494
Right of use amortization			125,236				238,213
Employee stock compensation			88,938				-
Bad debt expense			-				-
Stock issued for service			-				-
Changes in operating assets and liabilities:
Accounts receivable, net			2,996,606				9,255,373
Inventory, net			2,246,059				(1,507,068	)
Deferred Contract Costs – short-term			(341,009	)			-
Deferred taxes			113,440				132,151
Deferred Contract Costs – long-term			(673,949	)			-
Unbilled revenue			975,022				(1,149,314	)
Prepaid expenses and other current assets			(1,273,295	)			(979,345	)
Other assets			19,712				-
Accounts payable and other accrued expenses			(276,810	)			(4,921,027	)
Operating lease right of use			(127,239	)			(61,704	)
Deferred revenue			207,851				(1,927,880	)
Net cash provided by operating activities			6,083,776				2,165,918
Cash flows from investing activities:
Internal intangible assets			(2,265,489	)			-
Purchase of property and equipment			(898,953	)			(1,692,249	)
Net cash (used in) investing activities			(3,164,442	)			(1,692,249	)
Cash flows from financing activities:
Principal payments of debt			(193,056	)			(183,221	)
Stock issued for options exercised			-				528,165
Net cash provided by (used in) financing activities			(193,056	)			344,944
Net increase (decrease) in cash			2,726,278				818,613
Cash and restricted cash, beginning of period			18,040,827				18,849,842
Cash and restricted cash, end of period		$	20,767,105			$	19,668,455
Supplemental disclosure of cash flow information:
Income taxes paid		$	599,237			$	5,315,442
Interest paid		$	175,008			$	182,419

FAQ

What were VirTra's (VTSI) Q3 2025 revenue and EPS?

Q3 2025 revenue was $5.3M and diluted EPS was ($0.03).

How did VirTra's nine‑month 2025 adjusted EBITDA compare year‑over‑year?

Nine‑month adjusted EBITDA was $2.49M, down 38% YoY from prior year.

What material contracts or bookings did VirTra announce in Q3 2025?

Q3 bookings totaled $8.4M, including a $4.8M multi‑site Colombia contract.

How strong is VirTra's balance sheet after Q3 2025 results?

VirTra reported $20.8M cash and $32.9M working capital as of Sept 30, 2025.

What product and international deployments did VirTra highlight in Q3 2025?

Company launched the V‑One portable simulator, demonstrated SVT for U.S. Army PEO STRI, and validated 20 simulators for RCMP.

When and how will VirTra discuss its Q3 2025 results?

Management held a conference call on Nov 10, 2025 at 4:30 p.m. ET with replay available through Nov 24, 2025.