VirTra (Nasdaq: VTSI) posts Q1 2026 loss as revenue drops to $3.5M
Rhea-AI Filing Summary
VirTra, Inc. reported a weak first quarter 2026, with total revenue of $3.5 million compared to $7.2 million a year earlier, a 51% decline. Gross profit fell to $2.1 million, and gross margin compressed to 61% from 73%.
The company swung to a net loss of $1.3 million, or $(0.12) per diluted share, from net income of $1.3 million, or $0.11 per share, in the prior-year period. Adjusted EBITDA declined to $(0.9) million from $1.7 million. Management cited customers’ funding and procurement timing as key drivers but highlighted $3.8 million in Q1 bookings and a $25.2 million backlog, along with a cash balance of $17.9 million supporting ongoing operations.
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Insights
VirTra posted sharply lower Q1 2026 results, with a swing to loss.
VirTra saw Q1 2026 revenue drop to $3.5 million from $7.2 million, driven mainly by delayed customer acceptances. Gross margin slipped from 73% to 61%, reflecting lower volume and mix, pressuring profitability.
The company moved from net income of $1.3 million to a net loss of $1.3 million, while Adjusted EBITDA deteriorated from $1.7 million to $(0.9) million. Management points to funding and procurement cycles and notes increased STEP subscription contribution, which spreads revenue over contract lives.
Despite weaker earnings, VirTra ended the quarter with cash and cash equivalents of $17.9 million and reported $25.2 million in backlog as of March 31, 2026. Bookings of $3.8 million and commentary about activity in law enforcement and military markets frame the quarter as timing-driven, with future performance dependent on converting backlog and pipeline.
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
Subscription Training Equipment Partnership (STEP) financial
backlog financial
deferred revenue financial
right-of-use asset financial
Earnings Snapshot
Management commentary indicated an expectation for improved sales momentum in the second half of 2026, contingent on external funding and customer procurement processes.
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FORM
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Item 2.02. Results of Operations and Financial Condition.
On May 11, 2026, VirTra, Inc. issued a press release announcing its financial results for the first quarter ended March 31, 2026. 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 May 11, 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: May 11, 2026 | By: | /s/ John F. Givens II |
| Name: | John F. Givens II | |
| Title: | Chief Executive Officer | |
Exhibit 99.1
VirTra Reports First Quarter 2026 Financial Results
CHANDLER, Ariz. — May 11, 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 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. | |
| ● |
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 | $ | 7.2 | -51 | % | ||||||
| Gross Profit | $ | 2.1 | $ | 5.2 | -59 | % | ||||||
| Gross Margin | 61 | % | 73 | % | N/A | |||||||
| Net Income (Loss) | $ | (1.3 | ) | $ | 1.3 | N/A | ||||||
| Diluted EPS | $ | (0.12 | ) | $ | 0.11 | N/A | ||||||
| Adjusted EBITDA | $ | (0.9 | ) | $ | 1.7 | 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 $3.5 million, compared to $7.2 million in the prior year period. The decrease was due to a number of our Q3 and Q4 booking customers being unable to accept delivery in Q1 of 2026.
Gross profit was $2.1 million (61% of revenue), compared to $5.2 million (73% of revenue) in the prior year period.
Net operating expense was $3.5 million, compared to $3.8 million in the prior year period, maintaining disciplined cost management.
Loss from operations was $(1.3) million, compared to income from operations of $1.4 million in the prior year period.
Net loss was $(1.3) million, or $(0.12) per diluted share, compared to net income of $1.3 million, or $0.11 per diluted share, in the prior year period.
Adjusted EBITDA, a non-GAAP metric, was $(0.9) million, compared to $1.7 million in the prior year period.
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)
VIRTRA, INC.
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
VIRTRA, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
FAQ
How did VirTra (VTSI) perform financially in Q1 2026?
VirTra generated $3.5 million in Q1 2026 revenue, down from $7.2 million a year earlier. The company reported a net loss of $1.3 million, versus net income of $1.3 million in Q1 2025, reflecting lower system sales and margin compression.
How did VirTra’s Adjusted EBITDA change in Q1 2026?
VirTra’s Adjusted EBITDA was $(0.9) million in Q1 2026, down from $1.7 million in Q1 2025. The decline was driven by reduced capital system sales and revenue timing, partially offset by disciplined operating expense management.
What were VirTra’s bookings and backlog as of March 31, 2026?
In Q1 2026, VirTra reported bookings of $3.8 million and a total backlog of $25.2 million as of March 31, 2026. These figures indicate contracted work not yet recognized as revenue, influenced by customer funding and procurement schedules.
What is VirTra’s cash position after Q1 2026?
VirTra ended Q1 2026 with cash and cash equivalents of $17.85 million, slightly below $18.59 million at December 31, 2025. Operating activities used about $0.6 million of cash during the quarter, while investing and financing uses were relatively modest.
How did VirTra’s gross margin change year over year in Q1 2026?
VirTra’s gross margin declined to 61% in Q1 2026 from 73% in Q1 2025. Gross profit decreased from $5.2 million to $2.1 million, mainly due to lower revenue and a different mix of capital system and STEP subscription sales.