CHANDLER, Ariz., Aug. 13, 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 second quarter and six months ended June 30, 2026. The financial statements are available on VirTra's website and here.
Second Quarter 2026 and Recent Operational Highlights
-- Bookings totaled $5.5 million during the second quarter.
-- Total backlog at June 30, 2026 was $24.9 million and included $13.2
million in capital, $3.8 million in service, and $7.9 million in STEP
contracts.
-- Accepted into the U.S. Army Marketplace across three mission-critical
capability areas: Weapons Skills Development, Joint Fires Training, and
Counter-Unmanned Aircraft Systems (C-UAS), positioning VirTra to compete
for future Army opportunities and demonstrating the breadth of its
military training and force-protection solutions.
-- Expanded its long-term investment in the defense training market through
the acquisition of a dual-building Orlando campus, increasing its
presence within Central Florida Research Park and enhancing its ability
to support customer engagement, partner collaboration, program execution,
and future growth within the military simulation and training ecosystem.
Second Quarter and Six Months 2026 Financial Highlights
For the Three Months
Ended For the Six Months Ended
------------------------- -------------------------
All
figures in
millions,
except per June June June June
share 30, 30, 30, 30,
data 2026 2025 % <DELTA> 2026 2025 % <DELTA>
---------- ------- ----- --------- ------- ----- ---------
Total
Revenue $5.8 $7.0 -17% $9.2 $14.1 -35%
Gross
Profit $3.4 $4.8 -29% $5.5 $10.0 -45%
Gross
Margin 59% 69% N/A 60% 71% N/A
Net Income
(Loss) ($0.3) $0.2 N/A ($1.6) $1.4 N/A
Diluted
EPS ($0.02) $0.02 N/A ($0.14) $0.13 N/A
Adjusted
EBITDA $0.4 $0.7 -45% ($0.4) $2.4 -117%
Management Commentary
VirTra CEO John Givens stated, "Our second quarter results reflect increased revenue conversion compared with the first quarter, particularly within our international business. While domestic funding availability and procurement timing continue to impact results, we saw encouraging activity during the quarter, including stronger bookings, momentum in our international business, and increased grant-related activity.
"We continue to see funding opportunities moving through the system, with customers actively submitting applications and advancing their procurement efforts. Recent grant funding releases and increased customer participation in grant programs provide additional evidence that agencies are moving forward, even though the pace of awards and delivery timelines remain difficult to predict. At the same time, we continue to make progress in the military market, as evidenced by our acceptance into the U.S. Army Marketplace across three mission-critical capability areas.
"While uncertainty around funding timelines continues, we believe the underlying demand environment remains healthy. We are encouraged by the level of activity we are seeing across our domestic, international, and military markets, as well as the continued strength of our backlog and opportunity pipeline. Our focus remains on supporting customers through the funding and procurement process, converting backlog into revenue, and positioning VirTra to capture the opportunities ahead."
Six Months 2026 Financial Results
Total revenue was $9.2 million, compared to $14.1 million in the prior year period. The decrease was due to several customers booked in Q3 and Q4 2025 being unable to accept delivery in the first six months of 2026.
Gross profit was $5.5 million (60% of revenue), compared to $10.0 million (71% of revenue) in the prior year period.
Net operating expense was $7.1 million, compared to $7.7 million in the prior year period.
Loss from operations was $(1.5) million, compared to income from operations of $2.3 million in the prior year period.
Net loss was $(1.6) million, or $(0.14) per diluted share, compared to net income of $1.4 million, or $0.13 per diluted share, in the prior year period.
Adjusted EBITDA, a non-GAAP metric, was $(0.5) million, compared to $2.4 million in the prior year period.
Second Quarter 2026 Financial Results
Total revenue was $5.8 million, compared to $7.0 million in the prior year period. The decrease is primarily due to a decrease in domestic sales, partially offset by international sales.
Gross profit was $3.4 million (59% of revenue), compared to $4.8 million (69% of revenue) in the prior year period.
Net operating expense was $3.6 million, compared to $3.9 million in the prior year period.
Loss from operations was $(0.2) million, compared to income from operations of $0.9 million in the prior year period.
Net loss was $(0.3) million, or $(0.02) per diluted share, compared to net income of $0.2 million, or $0.02 per diluted share, in the prior year period.
Adjusted EBITDA, a non-GAAP metric, was $0.4 million, compared to $0.7 million in the prior year period.
Financial Commentary
VirTra CFO Alanna Boudreau stated, "Second quarter revenue increased significantly compared to the first quarter, reflecting improved revenue conversion and supporting a return to positive adjusted EBITDA. We generated stronger bookings during the quarter and ended June with a backlog of approximately $24.9 million, providing visibility into future revenue opportunities.
"While funding and procurement timelines continue to influence the pace of conversion, we remain focused on disciplined expense management while investing in content development, technology, and strategic initiatives that support long-term growth. We also completed the acquisition of our Orlando facility during the quarter, which we expect will contribute positively to future financial performance through tenant lease income while strengthening our position within the military training and simulation market."
Conference Call
VirTra's management will hold a conference call today (August 13, 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: 13761921
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 August 27, 2026.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13761921
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 For Six Months Ended
-------------------------------------------- -----------------------------------------------
June 30, June 30, Increase % June 30, June 30, Increase %
2026 2025 (Decrease) Change 2026 2025 (Decrease) Change
--------- -------- ------------ ------ ----------- ---------- ----------- ------
Net Income
(Loss) $(261,258) $175,314 $ (436,572) -249% $(1,589,890) $1,439,374 $(3,029,264) -210%
Adjustments:
Provision for
income taxes 88,439 (9,000) 97,439 -1083% 142,438 93,000 49,438 53%
Depreciation
and
amortization 520,368 513,693 6,675 1% 990,394 829,841 160,553 19%
Interest (net) 6,426 (26,876) 33,302 -124% (15,346) (48,127) 32,781 -68%
EBITDA 353,975 653,131 (299,156) -46% (472,404) 2,314,088 (2,786,492) -120%
-------- ------- -------- ---------- --------- ----------
Right of use
amortization 29,280 42,501 (13,221) -31% 72,773 84,365 (11,592) -14%
Adjusted EBITDA $ 383,255 $695,632 $ (312,377) -45% $ (399,631) $2,398,453 $(2,798,084) -117%
======== ======= ======== ========== ========= ==========
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:
Gateway Group, Inc.
VTSI@gateway-grp.com
949-574-3860
VIRTRA, INC.
CONDENSED BALANCE SHEETS
(UNAUDITED)
December 31,
June 30, 2026 2025
-------------- ---------------
ASSETS
Current assets:
Cash and cash
equivalents $ 14,312,743 $ 18,594,598
Accounts receivable,
net 4,461,812 5,502,087
Inventory, net 14,193,484 13,060,024
Unbilled revenue 3,180,534 868,216
Prepaid expenses and
other current assets 1,668,188 2,622,462
Deferred Contract
Costs, short term 374,375 374,375
---------- -----------
Total current assets 38,191,136 41,021,762
---------- -----------
Long-term assets:
Property and
equipment, net 20,696,026 16,268,400
Operating lease
right-of-use asset,
net - 268,873
Intangible assets, net 2,534,037 2,513,186
Security deposits,
long-term - 15,979
Other assets,
long-term 452,697 424,226
Deferred tax asset,
net 4,007,463 4,135,463
Deferred Contract
Costs, long term 301,508 488,695
---------- -----------
Total long-term assets 27,991,731 24,114,822
---------- -----------
Total assets $ 66,182,867 $ 65,136,584
========== ===========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 612,981 $ 784,074
Accrued compensation
and related costs 659,091 461,430
Accrued expenses and
other current
liabilities 1,301,057 1,196,565
Notes payable, current 312,523 227,754
Operating lease
liability,
short-term - 196,311
Deferred revenue,
short-term 6,931,535 7,361,738
---------- -----------
Total current
liabilities 9,817,187 10,227,872
---------- -----------
Long-term liabilities:
Deferred revenue,
long-term 1,157,655 1,913,393
Notes payable,
long-term 11,107,199 7,314,085
Operating lease
liability, long-term - 89,053
---------- -----------
Total long-term
liabilities 12,264,854 9,316,531
---------- -----------
Total liabilities 22,082,041 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;
11,319,624 shares
issued and
outstanding as of
June 30, 2026 and
11,303,885 as of
December 31, 2025 1,135 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 33,154,621 33,056,091
Retained Earnings 10,945,070 12,534,960
---------- -----------
Total stockholders'
equity 44,100,826 45,592,181
---------- -----------
Total liabilities and
stockholders' equity $ 66,182,867 $ 65,136,584
========== ===========
VIRTRA, INC.
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended June
30, Six Months Ended June 30,
------------------------- -------------------------
2026 2025 2026 2025
------------ ----------- ------------ -----------
Revenues:
Net sales $ 5,763,358 $ 6,978,938 $ 9,237,504 $14,139,185
Total revenue 5,763,358 6,978,938 9,237,504 14,139,185
Cost of sales 2,347,656 2,166,461 3,687,998 4,129,828
---------- ---------- ---------- ----------
Gross profit 3,415,702 4,812,477 5,549,506 10,009,357
---------- ---------- ---------- ----------
Operating
expenses:
General and
administrative 3,167,673 3,289,995 6,128,846 6,509,946
Research and
development 435,493 608,116 936,165 1,217,243
---------- ---------- ---------- ----------
Net operating
expense 3,603,166 3,898,111 7,065,011 7,727,189
---------- ---------- ---------- ----------
Income (loss)
from
operations (187,464) 914,366 (1,515,505) 2,282,168
---------- ---------- ---------- ----------
Other income
(expense):
Other income 103,656 77,873 216,845 149,883
Other (expense) (89,011) (825,925) (148,792) (899,677)
---------- ---------- ---------- ----------
Net other income 14,645 (748,052) 68,053 (749,794)
---------- ---------- ---------- ----------
Income (Loss)
before
provision for
income taxes (172,819) 166,314 (1,447,452) 1,532,374
Provision
(Benefit) for
income taxes 88,439 (9,000) 142,438 93,000
---------- ---------- ---------- ----------
Net Income (loss) $ (261,258) $ 175,314 $(1,589,890) $ 1,439,374
========== ========== ========== ==========
Net Income (loss)
per common
share:
Basic $ (0.02) $ 0.02 $ (0.14) $ 0.13
========== ========== ========== ==========
Diluted $ (0.02) $ 0.02 $ (0.14) $ 0.13
========== ========== ========== ==========
Weighted average
shares
outstanding:
Basic 11,307,865 11,261,588 11,305,886 11,260,902
========== ========== ========== ==========
Diluted 11,307,865 11,261,588 11,305,886 11,260,902
========== ========== ========== ==========
VIRTRA, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended June 30,
----------------------------
2026 2025
------------ --------------
Cash flows from operating
activities:
Net (loss) $(1,589,890) $ 1,439,374
Adjustments to reconcile
net income (loss) to net
cash (used in) provided by
operating activities:
Depreciation and
amortization 990,394 829,841
Right of use amortization 72,774 84,365
Employee stock
compensation 98,535 212,823
Bad Debt Expense (18,172) -
Loss on disposal of lease 2,706 -
Changes in operating assets
and liabilities:
Accounts receivable, net 1,058,449 1,557,910
Inventory, net (1,133,461) 1,776,667
Other assets-LT 158,715 -
Deferred taxes 128,000 87,175
Unbilled revenue (2,312,318) 983,019
Other assets 954,274 19,712
Prepaid expenses and
other current assets - (1,337,108)
Accounts payable and
other accrued expenses 131,057 (273,918)
Operating lease right of
use (75,992) (87,907)
Deferred revenue (1,185,941) 755,476
---------- ----------
Net cash provided (used in)
by operating activities (2,720,870) 6,047,429
---------- ----------
Cash flows from investing
activities:
Internal intangible
assets (429,850) (2,265,489)
Purchase of property and
equipment (1,013,009) (996,452)
---------- ----------
Net cash (used in)
investing activities (1,442,859) (3,261,941)
---------- ----------
Cash flows from financing
activities:
Principal payments of
debt (122,116) (128,962)
---------- ----------
Net cash (used in)
financing activities (122,116) (128,962)
---------- ----------
Net (decrease) in cash (4,285,845) 2,656,526
Cash and restricted cash,
beginning of period 18,594,598 18,040,827
---------- ----------
Cash and restricted cash,
end of period $14,308,753 $20,697,353
========== ==========
Supplemental disclosure of
cash flow information:
Income taxes paid
(refunded) $(1,041,894) $ 720,951
Interest paid $ 134,961 $ 116,415
Noncash investing &
financing activities
disclosure:
Assumption of lease asset
(Lessor) $ 256,990 $ -
Mortgage to Purchase
Building $(4,000,000) $ -