Overview

• Firearms training simulator provider VirTra Q3 revenue fell 29% yr/yr, missing analyst expectations due to funding delays

• Adjusted EBITDA for Q3 dropped 91% yr/yr, reflecting challenging funding environment

• Company secured $4.8 mln contract in Colombia, expanding international presence

Outlook

• Company sees increased backlog and pipeline tied to grant-driven purchasing

• VirTra expects to benefit from DOJ COPS grant program funding

Result Drivers

• FUNDING DELAYS - Slower federal funding cycle affected revenue recognition, impacting Q3 results

• INTERNATIONAL EXPANSION - Secured $4.8 mln contract in Colombia and expanded presence in Canada

• NEW PRODUCT LAUNCH - Introduced V-One Portable Simulator for smaller agencies

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for VirTra Inc is $8.25, about 34.7% above its November 7 closing price of $5.39

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release: ID:nGNX95z88S

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)