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 % <DELTA>
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 ($0.8) $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 $(0.8) 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)
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 $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 issued and
outstanding as of March 31,
2026 and December 31, 2025 1,130 1,130
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 33,098,555 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
(END) Dow Jones Newswires
May 11, 2026 16:05 ET (20:05 GMT)