VirTra (VTSI) Q4 2025 earnings summary

Executive summary

• 2025 saw significant delays in federal funding, impacting awards, procurement, and deliveries, but underlying demand and customer engagement remained strong, especially with law enforcement and military agencies.

• Bookings reached $7.3 million in Q4 2025, totaling $26.7 million for the year, with backlog at $25.6 million as of December 31, 2025.

• Funding programs such as JAG and COPS have reopened, signaling normalization and increased customer engagement.

• Operational readiness was enhanced, with optimized inventory and production processes to quickly fulfill orders as funding is released.

• Investments were made in sales and marketing, including hiring a director of marketing and expanding federal sales resources.

Financial highlights

• Full-year 2025 revenue was $22.4 million, down 15% from $26.4 million in 2024 (restated); Q4 2025 revenue was $2.9 million, down from $4.7 million in Q4 2024.

• Gross profit for 2025 was $15.2 million (68% margin), down from $19.4 million (74% margin) in 2024; Q4 gross profit was $1.7 million (58% margin).

• Net income for 2025 was $0.3 million ($0.02/share), compared to $1.4 million ($0.12/share) in 2024; Q4 net loss was $1 million.

• Full-year adjusted EBITDA was $1.6 million, down from $2.9 million in 2024; Q4 adjusted EBITDA was -$0.9 million.

• Year-end cash was $18.6 million, with $30.8 million in working capital.

Outlook and guidance

• Federal grant programs have reopened, and funding cycles for fiscal years 2025, 2026, and 2027 are progressing, expected to drive increased customer activity and revenue conversion in coming quarters.

• The company is positioned to convert backlog into revenue efficiently as funding is released.

• Military pipeline is robust, with ongoing evaluations and demonstrations across Army, Navy, and Marine Corps.