Federal delays hit VirTra (NASDAQ: VTSI) 2025 sales and profit
Rhea-AI Filing Summary
VirTra, Inc. reported weaker results for 2025 as federal funding disruptions delayed orders and deliveries. Full-year revenue fell to $22.4 million from $26.4 million, with net income declining to $0.3 million (diluted EPS $0.02) from $1.4 million (EPS $0.12).
Gross margin compressed from 74% to 68%, and Adjusted EBITDA decreased to $1.6 million from $2.9 million. Fourth-quarter revenue was $2.9 million versus $4.7 million, and the quarter recorded a net loss of $1.0 million (EPS -$0.09).
Despite softer earnings, VirTra ended 2025 with $18.6 million in cash and $30.8 million in working capital. Bookings reached $26.7 million for the year and backlog was $25.6 million, as the company highlighted reopening federal grant programs and ongoing demand from law enforcement and military customers.
Positive
- None.
Negative
- None.
Insights
Funding delays drove a meaningful 2025 earnings setback, partly cushioned by backlog and cash.
VirTra saw 2025 revenue drop 15% to $22.4 million and net income fall sharply to $0.3 million, mainly from reduced simulator and accessory sales tied to federal funding disruptions. Gross margin slipped to 68%, pressuring profitability.
Management links the downturn to delayed grants and procurement, not underlying demand, pointing to year-end backlog of $25.6 million and bookings of $26.7 million. Operating expense was cut 15%, and full-year operating cash flow improved to $4.6 million, supporting liquidity.
The company finished 2025 with $18.6 million in cash and $30.8 million in working capital, giving room to navigate award timing. Actual revenue recovery will depend on how quickly reopened programs such as JAG and COPS translate into awards and system deliveries over upcoming reporting periods.
8-K Event Classification
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported):
(Exact name of Registrant as Specified in Its Charter)
| (State or Other Jurisdiction | (Commission | (IRS Employer | ||
| of Incorporation) | File Number) | Identification No.) |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s
Telephone Number, Including Area Code:
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging
growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On March 26, 2026, VirTra, Inc. issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2025. A copy of this press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. The information contained in the website is not a part of this Current Report on Form 8-K.
The information under this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |
| 99.1 | Press release of the registrant dated March 26, 2026 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| VIRTRA, INC. | ||
| Date: March 26, 2026 | By: | /s/ John F. Givens II |
| Name: | John F. Givens II | |
| Title: | Chief Executive Officer | |
Exhibit 99.1
VirTra Reports Fourth Quarter and Full Year2025 Financial Results
CHANDLER, Ariz. — March 26, 2026 —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 | $ | 22.4 | $ | 26.4 | -15 | % | ||||||
| Gross Profit | $ | 15.2 | $ | 19.4 | -22 | % | ||||||
| Gross Margin | 68 | % | 74 | % | N/A | |||||||
| Net Income (Loss) | $ | 0.3 | $ | 1.4 | N/A | |||||||
| Diluted EPS | $ | 0.02 | $ | 0.12 | N/A | |||||||
| Adjusted 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.
VTSI@gateway-grp.com
949-574-3860
-Financial Tables to Follow-
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 $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 | ||||
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
How did VirTra (VTSI) perform financially in full-year 2025?
What were VirTra’s fourth quarter 2025 results?
Why did VirTra’s 2025 revenue and profit decline compared to 2024?
What is the status of VirTra’s bookings and backlog at the end of 2025?
How strong is VirTra’s balance sheet and cash position after 2025?
What margins did VirTra report for 2025 and how did they change?
What non-GAAP metric does VirTra emphasize and what was its 2025 level?
Filing Exhibits & Attachments
5 documents