VirTra Reports Third Quarter and Nine Months 2025 Financial Results
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 | ||||
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