First Quarter 2026 and Recent Operational Highlights
- Bookings totaled
$3.8 million in Q1 2026. - Total backlog was
$25.2 million atMarch 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 withArmy andMarine 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, underscoringVirTra'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 | % ? | ||
| Total Revenue | $3.5 | -51% | |
| Gross Profit | $2.1 | -59% | |
| Gross Margin | 61% | 73% | N/A |
| Net Income (Loss) | ( | N/A | |
| Diluted EPS | ( | N/A | |
| Adjusted EBITDA | ( | N/A | |
Management Commentary
“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
Gross profit was
Net operating expense was
Loss from operations was
Net loss was
Adjusted EBITDA, a non-GAAP metric, was
Financial Commentary
VirTra CFO
Conference Call
VirTra’s management will hold a conference call today (
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
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13760404
About
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.
| For Three Months Ended | ||||||||||||||||
| 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
Investor Relations Contact:
VTSI@gateway-grp.com
949-574-3860
| -Financial Tables to Follow- | ||||||||
CONDENSED BALANCE SHEETS (UNAUDITED) | ||||||||
| 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 | - | - | ||||||
| Common stock | 1,130 | 1,130 | ||||||
| Class A common stock | - | - | ||||||
| Class B common stock | - | - | ||||||
| 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 | ||||
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||
| Three Months Ended | ||||||||
| 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 | ||||||
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||||
| Three Months Ended | |||||||||
| 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 | |||||
