Second Quarter Revenue Increases 15% Year-Over-Year; Six-Month Revenue Up 5%
Delivers Continued Positive Net Income and Strong Gross Margins as Federal Funding Trends Improve
CHANDLER, Ariz., Aug. 11, 2025 (GLOBE NEWSWIRE) -- VirTra, Inc. (Nasdaq: VTSI) (“VirTra” or the “Company”), a global provider of judgmental use of force training simulators and firearms training simulators for the law enforcement and military markets, reported results for the second quarter and six months ended June 30, 2025. The financial statements are available on VirTra’s website and here.
Second Quarter 2025 and Recent Operational Highlights:
- Second quarter bookings of $4.6 million rose from $3.6 million in Q2 2024 and contributed to $32.1 million over the last twelve months, reflecting sustained demand across law enforcement and military customers despite persistent federal funding uncertainty.
- Backlog totaled $18.8 million as of June 30, 2025, including $7.1 million in Capital, $5.7 million in Service, and $6.0 million in STEP contracts.
- STEP® recurring revenue program maintained renewal rates around 95%, with a growing portion of customers converting to new three-year agreements. These updated terms better align with technology refresh cycles and provide VirTra with earlier renewal opportunities.
- Maintained robust working capital at $34.1 million, positioning the Company for sustained growth and operational agility.
| Second Quarter and Six Month 2025 Financial Highlights: | |||||||||||||
| For the Three Months Ended | For the Six Months Ended | ||||||||||||
| All figures in millions, except per share data | June 30, 2025 | June 30, 2024 | % Δ | June 30, 2025 | June 30, 2024 | % Δ | |||||||
| Total Revenue | $7.0 | $6.1 | 15% | $14.1 | $13.4 | 5% | |||||||
| Gross Profit | $4.8 | $5.5 | -13% | $10.0 | $10.2 | -2% | |||||||
| Gross Margin | 69% | 91% | N/A | 71% | 76% | N/A | |||||||
| Net Income | $0.2 | $1.2 | N/A | $1.4 | $1.7 | N/A | |||||||
| Diluted EPS | $0.02 | $0.11 | N/A | $0.13 | $0.15 | N/A | |||||||
| Adjusted EBITDA | $0.7 | $1.6 | N/A | $2.4 | $2.9 | N/A | |||||||
| *The column for the six months ended June 30, 2024 reflects restated financials. | |||||||||||||
Management Commentary
VirTra CEO John Givens stated, “In the second quarter, VirTra delivered year-over-year growth in both revenue and bookings in the second quarter, along with continued profitability and a strong cash position. While bookings were lighter sequentially, this primarily reflected timing of orders and the pace of federal funding, with activity expected to improve as we exit the year and move into 2026. The recent reopening of the Department of Justice COPS grant program is a positive development, and we are seeing agencies re-engage as they pursue available funding. We’ve been working to help policymakers understand the value of immersive training and to support funding initiatives that benefit our customers. These efforts, together with broader improvements in the funding environment, should help stimulate demand through the remainder of 2025 and into 2026.
“Operationally, we continue to run the business with discipline, consistently improving product quality while controlling costs. Customers are recognizing the durability and performance of our hardware, which, along with our operational efficiencies, allows us to remain highly competitive on pricing. These efforts position us to respond effectively as funding conditions improve and demand strengthens.”
Six Months 2025 Financial Results
Note: Financials for the first six months of 2024 presented below reflect a restatement made in Q4 2024 to adjust the timing of revenue recognition associated with a 2021 international sale.
Total revenue for the first six months was $14.1 million, compared to $13.4 million in the prior year period. The 5% increase was primarily driven by higher capital system deliveries, supported by stable recurring revenue from STEP and service contracts.
Gross profit for the first six months was $10.0 million (71% of total revenue), compared to $10.2 million (76% of total revenue) in the prior year period. The change in gross margin reflects a higher mix of capital sales relative to service and STEP revenue. The prior year period benefitted from unusually high gross margins due to capitalized labor related to the development of the V-XR and IVAS programs, as well as a greater mix of high-margin service and STEP revenue.
Net operating expense for the first six months was $7.7 million, a 9% decrease from $8.5 million in the prior year period, reflecting disciplined cost management while maintaining investment in core growth initiatives.
Operating income for the first six months was $2.3 million, compared to $1.8 million in the prior year period.
Net income for the first six months was $1.4 million, or $0.13 per diluted share, compared to $1.7 million, or $0.15 per diluted share, in the prior year period.
Adjusted EBITDA, a non-GAAP metric, was $2.4 million for the first six months of 2025, compared to $2.9 million in the prior year period.
Second Quarter 2025 Financial Results
Total revenue for the second quarter of 2025 was $7.0 million, compared to $6.1 million in the prior year period. The 15% increase was primarily driven by higher capital deliveries and stable recurring revenue from STEP and service contracts.
Gross profit for the second quarter was $4.8 million (69% of total revenue), compared to $5.5 million (91% of total revenue) in the prior year period. The prior year quarter benefited from unusually low cost of sales related to capitalized development work.
Net operating expense for the second quarter was $3.9 million, an 11% decrease from $4.4 million in the prior year period, reflecting ongoing cost discipline.
Operating income for the second quarter was $0.9 million compared to $1.1 million in the prior year period.
Net income for the second quarter was $0.2 million, or $0.02 per diluted share, compared to $1.2 million, or $0.11 per diluted share, in the prior year period.
Adjusted EBITDA, a non-GAAP metric, was $0.7 million for the second quarter, compared to $1.6 million in the prior year period.
Cash and cash equivalents were $20.7 million at June 30, 2025, compared to $17.6 million at March 31, 2025. Working capital was $34.1 million, and the Company maintained a debt-light balance sheet, positioning it well for near- and long-term execution.
Financial Commentary
CFO Alanna Boudreau stated, “Our first half results were highlighted by continued strong gross margins and cost discipline. Backlog remains solid at $18.8 million, supported by a balanced mix of capital, service, and STEP contracts. International markets remain an attractive avenue for growth, and we continue to pursue multiple active opportunities. With a strong balance sheet, VirTra maintains the financial strength and flexibility to support our growth strategy and navigate the timing of government funding cycles.”
Conference Call
VirTra’s management will hold a conference call today (August 11, 2025) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results. VirTra’s Chief Executive Officer 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: 13754706
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 25, 2025.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13754706
About VirTra, Inc.
VirTra (Nasdaq: VTSI) is a global provider of judgmental use of force training simulators, firearms training simulators for the law enforcement, military, educational and commercial markets. The company’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship, and related training that mimics real-world situations. VirTra’s mission is to save and improve lives worldwide through practical and highly effective virtual reality and simulator technology. Learn more about the company at www.VirTra.com.
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 Six Months Ended | ||||||||||||||||||||||||||||||
| (Restated) | |||||||||||||||||||||||||||||||
| June 30, | June 30, | Increase | % | June 30, | June 30, | Increase | % | ||||||||||||||||||||||||
| 2025 | 2024 | (Decrease) | Change | 2025 | 2024 | (Decrease) | Change | ||||||||||||||||||||||||
| Net Income (Loss) | $ | 175,314 | $ | 1,200,727 | $ | (1,025,413 | ) | -85% | $ | 1,439,375 | $ | 1,668,923 | $ | (229,548 | ) | -14% | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||
| Provision for income taxes | (9,000 | ) | 87,564 | $ | (96,564 | ) | -110% | 93,000 | 599,000 | $ | (506,000 | ) | -84% | ||||||||||||||||||
| Depreciation and amortization | 513,693 | 288,777 | $ | 224,916 | 310% | 830,333 | 525,570 | $ | 304,763 | 186% | |||||||||||||||||||||
| Interest (net) | (26,876 | ) | (34,379 | ) | $ | 7,503 | -22% | (48,127 | ) | (88,957 | ) | $ | 40,830 | -46% | |||||||||||||||||
| EBITDA | $ | 653,131 | $ | 1,542,689 | $ | (889,558 | ) | -14% | $ | 2,314581 | $ | 2,704,536 | $ | 281,038 | ) | -10% | |||||||||||||||
| Right of use amortization | 42,501 | 69,418 | $ | (26,917 | ) | 84,365 | 199,493 | (389,955 | ) | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 695,632 | $ | 1,612,107 | $ | (916,475 | ) | -57% | $ | 2,398,946 | $ | 2,904,029 | $ | (505,083 | ) | 3% | |||||||||||||||
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 risks 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:
Matt Glover and Alec Wilson
Gateway Group, Inc.
VTSI@gateway-grp.com
949-574-3860
| - Financial Tables to Follow - | ||||||||
| VIRTRA, INC. | ||||||||
| CONDENSED BALANCE SHEETS | ||||||||
| June 30, 2025 | December 31, 2024 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 20,697,354 | $ | 18,040,827 | ||||
| Accounts receivable, net | 6,447,542 | 8,005,452 | ||||||
| Inventory, net | 12,806,733 | 14,583,400 | ||||||
| Unbilled revenue | 1,587,422 | 2,570,441 | ||||||
| Prepaid expenses and other current assets | 2,610,223 | 1,273,115 | ||||||
| Total current assets | 44,149,274 | 44,473,235 | ||||||
| Long-term assets: | ||||||||
| Property and equipment, net | 16,451,233 | 16,204,663 | ||||||
| Operating lease right-of-use asset, net | 352,730 | 437,095 | ||||||
| Intangible assets, net | 2,744,180 | 558,651 | ||||||
| Security deposits, long-term | 15,979 | 35,691 | ||||||
| Other assets, long-term | 148,177 | 148,177 | ||||||
| Deferred tax asset, net | 3,508,399 | 3,595,574 | ||||||
| Total long-term assets | 23,220,698 | 20,979,851 | ||||||
| Total assets | $ | 67,369,972 | $ | 65,453,086 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,034,497 | $ | 957,384 | ||||
| Accrued compensation and related costs | 1,005,621 | 1,253,544 | ||||||
| Accrued expenses and other current liabilities | 554,006 | 657,114 | ||||||
| Note payable, current | 227,849 | 230,787 | ||||||
| Operating lease liability, short-term | 194,917 | 192,410 | ||||||
| Deferred revenue, short-term | 7,011,943 | 6,355,316 | ||||||
| Total current liabilities | 10,028,833 | 9,646,555 | ||||||
| Long-term liabilities: | ||||||||
| Deferred revenue, long-term | 2,381,845 | 2,282,996 | ||||||
| Note payable, long-term | 7,441,512 | 7,567,536 | ||||||
| Operating lease liability, long-term | 174,696 | 265,111 | ||||||
| Other long-term liabilities | - | - | ||||||
| Total long-term liabilities | 9,998,053 | 10,115,643 | ||||||
| Total liabilities | 20,026,886 | 19,762,198 | ||||||
| Commitments and contingencies (See Note 9) | ||||||||
| 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; 11,261,588 shares issued and outstanding as of June 30, 2025, and 11,255,709 shares issued and outstanding as of December 31, 2024 | 1,126 | 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 | 33,127,935 | 32,915,112 | ||||||
| Retained Earnings | 14,214,025 | 12,774,651 | ||||||
| Total stockholders’ equity | 47,343,086 | 45,690,888 | ||||||
| Total liabilities and stockholders’ equity | $ | 67,369,972 | $ | 65,453,086 | ||||
| VIRTRA, INC. | ||||||||||||||||
| CONDENSED STATEMENTS OF OPERATIONS | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |||||||||||||
| (Restated) | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Net sales | $ | 6,978,938 | $ | 6,075,040 | $ | 14,139,185 | $ | 13,421,461 | ||||||||
| Total revenue | 6,978,938 | 6,075,040 | 14,139,185 | 13,421,461 | ||||||||||||
| Cost of sales | 2,166,461 | 550,424 | 4,129,828 | 3,182,682 | ||||||||||||
| Gross profit | 4,812,477 | 5,524,616 | 10,009,357 | 10,238,779 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| General and administrative | 3,289,995 | 3,537,910 | 6,509,945 | 6,908,332 | ||||||||||||
| Research and development | 608,116 | 855,285 | 1,217,243 | 1,548,665 | ||||||||||||
| Net operating expense | 3,898,111 | 4,393,195 | 7,727,188 | 8,456,997 | ||||||||||||
| Income (loss) from operations | 914,366 | 1,131,421 | 2,282,169 | 1,781,782 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Other income | 77,873 | 156,870 | 149,883 | 486,141 | ||||||||||||
| Gain on forgiveness of note payable | - | - | - | |||||||||||||
| Other (expense) income | (825,925 | ) | - | (899,677 | ) | - | ||||||||||
| Net other income (expense) | (748,052 | ) | 156,870 | (749,794 | ) | 486,141 | ||||||||||
| Income (Loss) before provision for income taxes | 166,314 | 1,288,291 | 1,532,375 | 2,267,923 | ||||||||||||
| Provision (Benefit) for income taxes | (9,000 | ) | 87,564 | 93,000 | 599,000 | |||||||||||
| Net income (loss) | $ | 175,314 | $ | 1,200,727 | $ | 1,439,375 | $ | 1,668,923 | ||||||||
| Net income (loss) per common share: | ||||||||||||||||
| Basic | $ | 0.02 | $ | 0.11 | $ | 0.13 | $ | 0.15 | ||||||||
| Diluted | $ | 0.02 | $ | 0.11 | $ | 0.13 | $ | 0.15 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 11,261,588 | 11,063,366 | 11,260,902 | 10,885,964 | ||||||||||||
| Diluted | 11,261,588 | 11,065,866 | 11,260,902 | 10,885,964 | ||||||||||||
| VIRTRA, INC. | ||||||||
| CONDENSED STATEMENTS OF CASH FLOWS | ||||||||
| Six Months Ended June 30 | ||||||||
| 2025 | 2024 | |||||||
| (Restated) | ||||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 1,439,375 | $ | 1,668,923 | ||||
| Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||||||||
| Depreciation and amortization | 829,841 | 525,077 | ||||||
| Right of use amortization | 84,365 | 197,312 | ||||||
| Employee stock compensation | 212,823 | 352,005 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | 1,557,910 | 7,347,700 | ||||||
| Inventory, net | 1,776,667 | (1,065,835 | ) | |||||
| Deferred taxes | 87,175 | (149,958 | ) | |||||
| Unbilled revenue | 983,019 | (280,044 | ) | |||||
| Prepaid expenses and other current assets | (1,337,108 | ) | (1,046,213 | ) | ||||
| Other assets | 19,712 | - | ||||||
| Accounts payable and other accrued expenses | (273,918 | ) | (4,967,236 | ) | ||||
| Operating lease right of use | (87,907 | ) | (207,208 | ) | ||||
| Deferred revenue | 755,476 | (1,106,299 | ) | |||||
| Net cash provided by operating activities | 6,047,430 | 1,268,224 | ||||||
| Cash flows from investing activities: | ||||||||
| Internal intangible assets | (2,265,489 | ) | - | |||||
| Purchase of property and equipment | (996,452 | ) | (1,608,798 | ) | ||||
| Net cash (used in) investing activities | (3,261,941 | ) | (1,608,798 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Principal payments of debt | (128,962 | ) | (117,785 | ) | ||||
| Stock issued for options exercised | - | 20,151 | ||||||
| Net cash (used in) financing activities | (128,962 | ) | (97,634 | ) | ||||
| Net increase (decrease) in cash | 2,656,527 | (438,208 | ) | |||||
| Cash and restricted cash, beginning of period | 18,040,827 | 18,849,842 | ||||||
| Cash and restricted cash, end of period | $ | 20,697,354 | $ | 18,411,634 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Income taxes paid (refunded) | $ | 720,951 | $ | 5,314,387 | ||||
| Interest paid | $ | 116,415 | $ | 84,403 | ||||
