Company Performance - VirTra, Inc. (VTSI) reported quarterly earnings of $0.02 per share, missing the Zacks Consensus Estimate of $0.03 per share, and down from $0.11 per share a year ago, representing an earnings surprise of -33.33% [1] - The company posted revenues of $6.98 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 9.39%, compared to year-ago revenues of $6.07 million [2] - Over the last four quarters, VirTra has surpassed consensus EPS estimates just once, but has topped consensus revenue estimates three times [2] Future Outlook - The sustainability of VirTra's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3] - The current consensus EPS estimate for the coming quarter is $0.05 on revenues of $7.48 million, and for the current fiscal year, it is $0.27 on revenues of $29.19 million [7] - The estimate revisions trend for VirTra was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Electronics - Military industry, to which VirTra belongs, is currently in the top 41% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $7 million, a 15% increase from $6.1 million in the prior year period, driven by higher capital deliveries and stable recurring revenue [11][12] - Gross profit for Q2 was $4.8 million, representing 69% of total revenue, compared to $5.5 million or 91% in the prior year, reflecting a higher mix of capital sales [12][13] - Net income for Q2 was $200,000 or $0.01 per diluted share, down from $1.2 million or $0.10 per diluted share in the prior year [14] - Cash and cash equivalents totaled $20.7 million as of June 30, up from $17.6 million at the end of Q1 [14] Business Line Data and Key Metrics Changes - Government revenue for Q2 was $5.4 million, slightly up from $5.3 million in the prior year [12] - International revenue for Q2 was $1.4 million, significantly up from $600,000 in the prior year [12] - Bookings for Q2 totaled $4.6 million, up from $3.6 million in 2024 but down from $6.4 million in Q1 2025, attributed to timing of awards and customer deferrals [15] Market Data and Key Metrics Changes - The operating environment is influenced by federal and international funding delays, with agency procurement cycles slower than normal [4][10] - The reopening of the Department of Justice COPS grant program is expected to help unlock funding for agencies later in the year [4] Company Strategy and Development Direction - The company is focused on enhancing customer engagement and operational discipline to position itself well for future growth [3][5] - A redesigned website is expected to launch soon, aimed at improving lead capture and conversion tracking [5] - The company is reentering the GSA procurement channel to streamline contracting for eligible agencies [6] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the strength of their solutions and recurring revenue programs despite ongoing funding delays [3][4] - The company expects improved order activity in the coming quarters as funding flows improve [4][10] - The strong cash position and stable recurring revenue base provide a solid foundation for growth in the second half of 2025 [11][17] Other Important Information - The company has made investments to enhance manufacturing processes and quality control, improving product durability and performance [8][9] - The STEP program has transitioned to three-year agreements, improving revenue visibility and customer relationships [17] Q&A Session Summary Question: Clarification on IVAS involvement - Management confirmed that they remain involved in the IVAS program despite changes with Microsoft and Andro, and they expect to produce at a production level [20][21][22] Question: Impact of US Army selecting Bohemia - Management views the selection of Bohemia positively, as it enhances distribution opportunities for VirTra's products [24][25][26] Question: Customer traction with VXR - Management reported strong interest in the VXR platform across various sectors, particularly in healthcare, emphasizing its portability and immersive training capabilities [28][29][30] Question: Changes in STEP renewal rates - Management noted a consistent 95% renewal rate for STEP programs, with some customers renewing early to access new technology [35][36][37] Question: Geographic trends in bookings - Management indicated that while federal funding has been slow, there are emerging opportunities in grants and international markets [41][45]

[PART I: FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial statements and management's discussion for the period ended June 30, 2025 [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents VirTra, Inc.'s unaudited condensed consolidated financial statements for the period ended June 30, 2025, including balance sheets, statements of operations, cash flows, and accompanying notes [Condensed Balance Sheets](index=4&type=section&id=Condensed%20Balance%20Sheets) Presents the company's financial position, detailing assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 Condensed Balance Sheet Highlights (as of June 30, 2025) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $20,697,354 | $18,040,827 | | Total current assets | $44,149,274 | $44,473,235 | | Total assets | $67,369,972 | $65,453,086 | | **Liabilities & Equity** | | | | Total current liabilities | $10,028,833 | $9,646,555 | | Total liabilities | $20,026,886 | $19,762,198 | | Total stockholders' equity | $47,343,086 | $45,690,888 | - Total assets increased to **$67.4 million** from **$65.5 million** at year-end 2024, primarily driven by an increase in cash and intangible assets[8](index=8&type=chunk) - Stockholders' equity grew to **$47.3 million** from **$45.7 million**, mainly due to retained earnings from net income[8](index=8&type=chunk) [Condensed Statements of Operations](index=6&type=section&id=Condensed%20Statements%20of%20Operations) Details the company's revenues, expenses, and net income for the three and six months ended June 30, 2025 and 2024 Statements of Operations Highlights | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $6,978,938 | $6,075,040 | $14,139,185 | $13,421,461 | | Gross Profit | $4,812,477 | $5,524,616 | $10,009,357 | $10,238,779 | | Income from Operations | $914,366 | $1,131,421 | $2,282,169 | $1,781,782 | | Net Income | $175,314 | $1,200,727 | $1,439,375 | $1,668,923 | | Diluted EPS | $0.02 | $0.11 | $0.13 | $0.15 | - For Q2 2025, revenue increased **15%** year-over-year, but net income decreased significantly by **85%** from **$1.2 million** to **$175,314**, primarily due to a substantial increase in cost of sales and a swing to 'Other expense'[11](index=11&type=chunk) [Condensed Statements of Cash Flows](index=8&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Summarizes cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 Cash Flow Summary (Six Months Ended June 30) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $6,047,430 | $1,268,224 | | Net cash used in investing activities | ($3,261,941) | ($1,608,798) | | Net cash used in financing activities | ($128,962) | ($97,634) | | **Net increase (decrease) in cash** | **$2,656,527** | **($438,208)** | - Cash from operations increased significantly to **$6.0 million** for the first six months of 2025, compared to **$1.3 million** in the prior year period, mainly due to higher net income and improved accounts receivable collections[16](index=16&type=chunk) - Investing activities included **$2.3 million** for internal intangible assets and nearly **$1.0 million** for property and equipment purchases[16](index=16&type=chunk) [Notes to the Unaudited Financial Statements](index=9&type=section&id=Notes%20to%20the%20Unaudited%20Financial%20Statements) Provides detailed explanations of accounting policies, significant transactions, and financial statement line items - A restatement of 2024 revenue was noted, where **$747,977** was incorrectly recorded in Q1 2024 instead of 2023 due to an accounting software implementation issue[27](index=27&type=chunk) - For the six months ended June 30, 2025, government customers comprised **75%** of total net sales, while international customers grew to **23%** of sales, up from **9%** in the same period of 2024[33](index=33&type=chunk) - The company identified six business segments, with 'Simulators and Accessories' being the largest revenue contributor, followed by 'Extended Service-type warranties' and the 'STEP' subscription program[38](index=38&type=chunk)[39](index=39&type=chunk) - As of June 30, 2025, the company had significant customer concentration, with two customers accounting for **31%** and **13%** of total accounts receivable[51](index=51&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting revenue growth, profitability decline, liquidity, and backlog, noting future booking uncertainties [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Analyzes key financial metrics including net sales, gross profit, operating income, and net income for the recent periods Q2 2025 vs Q2 2024 Performance | Metric | Q2 2025 | Q2 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $6,978,938 | $6,075,040 | $903,898 | 15% | | Gross Profit | $4,812,477 | $5,524,616 | ($712,139) | -13% | | Gross Margin | 69% | 91% | -22 p.p. | N/A | | Operating Income | $914,366 | $1,131,421 | ($217,055) | -19% | | Net Income | $175,314 | $1,200,727 | ($1,025,413) | -85% | - The **294%** increase in Q2 cost of sales was attributed to a reclassification of COGS labor in 2024 that was an outlier, making the 2025 expense appear disproportionately high in comparison[90](index=90&type=chunk) - Net operating expenses decreased by **11%** in Q2 2025 due to company efforts to lower overhead and operating costs[93](index=93&type=chunk) - A significant swing in 'Other income (expense)' from a **$157K** gain in Q2 2024 to a **$748K** loss in Q2 2025, primarily from foreign exchange fluctuations, heavily impacted net income[95](index=95&type=chunk) [Liquidity, Capital Resources, Bookings, and Backlog](index=26&type=section&id=Liquidity,%20Capital%20Resources,%20Bookings,%20and%20Backlog) Assesses the company's cash position, working capital, new bookings, and total backlog, including future outlook - The company maintained a strong liquidity position with **$20.7 million** in cash and cash equivalents and **$34.1 million** in working capital as of June 30, 2025[100](index=100&type=chunk) - Bookings totaled **$4.6 million** for Q2 2025 and **$11 million** for the first six months of the year[104](index=104&type=chunk) - Total backlog stood at **$18.8 million** as of June 30, 2025, composed of **$7.1 million** in Capital, **$5.7 million** in Service, and **$6 million** in STEP agreements[105](index=105&type=chunk) - Management expressed uncertainty about future bookings due to potential budget cuts and funding freezes from the new federal administration[108](index=108&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that this disclosure is not required as it qualifies as a smaller reporting company - Disclosure is not required for smaller reporting companies[113](index=113&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were ineffective due to identified material weaknesses, with ongoing remediation efforts - Management concluded that disclosure controls and procedures were not effective as of June 30, 2025[114](index=114&type=chunk) - The ineffectiveness was due to previously identified material weaknesses: (i) lack of multiple levels of management review on complex issues and (ii) failure to implement adequate system and manual controls[114](index=114&type=chunk) - The company is in the process of implementing more formal review processes and increasing ERP training for staff to address these weaknesses[115](index=115&type=chunk) [PART II: OTHER INFORMATION](index=29&type=section&id=PART%20II%20OTHER%20INFORMATION) This section covers other required disclosures, including legal proceedings, equity sales, and senior securities, noting non-applicability for smaller reporting companies [Item 1. Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that there are no material pending legal proceedings, other than ordinary routine litigation incidental to its business - There are no material pending legal proceedings to which the company is a party[117](index=117&type=chunk) [Item 1A. Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) The company states that this disclosure is not required as it qualifies as a smaller reporting company - Disclosure is not required for smaller reporting companies[118](index=118&type=chunk) [Other Items (2, 3, 4, 5, 6)](index=29&type=section&id=Other%20Items%20(2,%203,%204,%205,%206)) The company reports no unregistered equity sales, no defaults on senior securities, and confirms mine safety disclosures are not applicable - The company reported no unregistered sales of equity securities, defaults upon senior securities, or other material information during the period[119](index=119&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk) [Signatures](index=30&type=section&id=Signatures) The report is duly signed by the Chief Executive Officer, John F. Givens II, and the Chief Financial Officer, Alanna Boudreau, on August 11, 2025

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) VirTra's Q2 and H1 2025 financial performance saw revenue growth but declines in net income and gross margins [Second Quarter and Six Months 2025 Highlights](index=1&type=section&id=Second%20Quarter%20and%20Six%20Months%202025%20Highlights) Q2 2025 revenue grew 15% to $7.0 million, and H1 revenue grew 5% to $14.1 million, with an $18.8 million backlog and 95% STEP renewal rates Financial Highlights (in millions, except per share data) | | For the Three Months Ended June 30, | % Δ | For the Six Months Ended June 30, | % Δ | | :--- | :--- | :--- | :--- | :--- | | **All figures in millions, except per share data** | **2025** | **2024** | | **2025** | **2024*** | | | 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 | *Six months 2024 reflects restated financials - Second quarter bookings increased to **$4.6 million** from $3.6 million in Q2 2024, contributing to a total of **$32.1 million** over the last twelve months[4](index=4&type=chunk) - The company's backlog totaled **$18.8 million** as of June 30, 2025, composed of **$7.1 million** in Capital, **$5.7 million** in Service, and **$6.0 million** in STEP contracts[4](index=4&type=chunk) - The STEP® recurring revenue program maintained high renewal rates of approximately **95%**, with an increasing number of customers converting to new three-year agreements[4](index=4&type=chunk) [Management and Financial Commentary](index=2&type=section&id=Management%20and%20Financial%20Commentary) Management noted Q2 revenue and bookings growth despite federal funding timing, anticipating improved demand in late 2025 and 2026, while focusing on cost control and international expansion - CEO John Givens noted that while Q2 bookings were sequentially lighter due to the pace of federal funding, activity is expected to improve later in 2025 and into 2026[5](index=5&type=chunk) - The company is focused on operational discipline, improving product quality, and controlling costs, which allows it to maintain competitive pricing[6](index=6&type=chunk) - CFO Alanna Boudreau emphasized the solid backlog of **$18.8 million** and noted that international markets remain an attractive avenue for growth[16](index=16&type=chunk) [Detailed Financial Results](index=2&type=section&id=Detailed%20Financial%20Results) This section details VirTra's Q2 and H1 2025 financial results, covering revenue, gross profit, operating expenses, and net income [Second Quarter 2025 Financial Results](index=2&type=section&id=Second%20Quarter%202025%20Financial%20Results) Q2 2025 revenue grew 15% to $7.0 million, but gross profit declined to $4.8 million (69% margin) and net income fell to $0.2 million, despite an 11% reduction in operating expenses Q2 2025 Financial Performance (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $7.0 million | $6.1 million | +15% | | Gross Profit | $4.8 million | $5.5 million | -13% | | Gross Margin | 69% | 91% | -22 p.p. | | Net Operating Expense | $3.9 million | $4.4 million | -11% | | Operating Income | $0.9 million | $1.1 million | -18% | | Net Income | $0.2 million | $1.2 million | -83% | | Diluted EPS | $0.02 | $0.11 | -82% | - The increase in revenue was primarily driven by higher capital deliveries and stable recurring revenue from STEP and service contracts[11](index=11&type=chunk) - The significant decrease in gross margin was because the prior year's quarter benefited from unusually low cost of sales related to capitalized development work[12](index=12&type=chunk) [Six Months 2025 Financial Results](index=2&type=section&id=Six%20Months%202025%20Financial%20Results) H1 2025 revenue increased 5% to $14.1 million, with gross profit at $10.0 million (71% margin) and net income of $1.4 million, supported by a 9% decrease in operating expenses H1 2025 Financial Performance (in millions) | Metric | H1 2025 | H1 2024 (Restated) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $14.1 million | $13.4 million | +5% | | Gross Profit | $10.0 million | $10.2 million | -2% | | Gross Margin | 71% | 76% | -5 p.p. | | Net Operating Expense | $7.7 million | $8.5 million | -9% | | Operating Income | $2.3 million | $1.8 million | +28% | | Net Income | $1.4 million | $1.7 million | -18% | | Diluted EPS | $0.13 | $0.15 | -13% | - The change in gross margin reflects a higher mix of capital sales relative to service and STEP revenue compared to the prior year period[8](index=8&type=chunk) - Net operating expense decreased by **9%** due to disciplined cost management while maintaining investment in core growth initiatives[9](index=9&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents VirTra's condensed balance sheets, statements of operations, and cash flows for the reported periods [Condensed Balance Sheets](index=6&type=section&id=Condensed%20Balance%20Sheets) As of June 30, 2025, VirTra's total assets increased to $67.4 million, with cash at $20.7 million, while total liabilities remained stable and equity grew to $47.3 million Condensed Balance Sheet (in millions) | Balance Sheet Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $20.7 million | $18.0 million | | Total current assets | $44.1 million | $44.5 million | | Total assets | $67.4 million | $65.5 million | | Total current liabilities | $10.0 million | $9.6 million | | Total liabilities | $20.0 million | $19.8 million | | Total stockholders' equity | $47.3 million | $45.7 million | [Condensed Statements of Operations](index=7&type=section&id=Condensed%20Statements%20of%20Operations) For H1 2025, total revenue was $14.1 million, yielding a gross profit of $10.0 million and net income of $1.4 million, or $0.13 per diluted share Condensed Statements of Operations (Six Months Ended June 30) | Income Statement (Six Months Ended June 30) | 2025 | 2024 (Restated) | | :--- | :--- | :--- | | Total revenue | $14,139,185 | $13,421,461 | | Gross profit | $10,009,357 | $10,238,779 | | Income from operations | $2,282,169 | $1,781,782 | | Net income | $1,439,375 | $1,668,923 | | Diluted EPS | $0.13 | $0.15 | [Condensed Statements of Cash Flows](index=8&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) H1 2025 saw net cash from operations at $6.0 million, leading to a $2.7 million net increase in cash, bringing the balance to $20.7 million Condensed Statements of Cash Flows (Six Months Ended June 30) | Cash Flow (Six Months Ended June 30) | 2025 | 2024 (Restated) | | :--- | :--- | :--- | | Net cash provided by operating activities | $6,047,430 | $1,268,224 | | Net cash used in investing activities | ($3,261,941) | ($1,608,798) | | Net cash used in financing activities | ($128,962) | ($97,634) | | Net increase (decrease) in cash | $2,656,527 | ($438,208) | | Cash at end of period | $20,697,354 | $18,411,634 | [Supplemental Information](index=3&type=section&id=Supplemental%20Information) This section provides additional financial details, including Adjusted EBITDA reconciliation, conference call information, and company overview [Adjusted EBITDA Reconciliation](index=4&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA for Q2 2025 was $0.7 million and for H1 2025 was $2.4 million, a decrease from prior year periods - Adjusted EBITDA is a non-GAAP financial measure used by management to eliminate the impact of certain items not considered indicative of ongoing operational performance[21](index=21&type=chunk) Adjusted EBITDA Reconciliation | Period | Net Income | Adjusted EBITDA | | :--- | :--- | :--- | | **Three Months Ended June 30, 2025** | $175,314 | $695,632 | | **Three Months Ended June 30, 2024** | $1,200,727 | $1,612,107 | | **Six Months Ended June 30, 2025** | $1,439,375 | $2,398,946 | | **Six Months Ended June 30, 2024** | $1,668,923 | $2,904,029 | [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) VirTra will host a conference call on August 11, 2025, at 4:30 p.m. ET to discuss financial results, with replay details provided - A conference call to discuss the results is scheduled for **August 11, 2025**, at **4:30 p.m. Eastern time**[17](index=17&type=chunk) - The report provides U.S. and international dial-in numbers, a conference ID (**13754706**), and details for a broadcast replay available through **August 25, 2025**[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) [About VirTra, Inc. & Forward-Looking Statements](index=4&type=section&id=About%20VirTra%2C%20Inc.%20%26%20Forward-Looking%20Statements) VirTra is a global provider of training simulators for law enforcement and military, with the report including a standard forward-looking statements disclaimer - VirTra provides judgmental use of force and firearms training simulators for law enforcement, military, educational, and commercial markets[20](index=20&type=chunk) - The report contains forward-looking statements subject to a "safe harbor" provision, and actual results may differ materially from expectations[22](index=22&type=chunk)

Core Insights - VirTra, Inc. reported a 15% year-over-year increase in total revenue for Q2 2025, reaching $7.0 million, and a 5% increase for the first six months, totaling $14.1 million [3][13][9] - The company maintained positive net income and strong gross margins despite a decrease in gross profit and net income compared to the previous year [6][11][15] - Management highlighted improvements in federal funding trends and the reopening of the Department of Justice COPS grant program as positive developments for future demand [6][17] Financial Performance - Total revenue for Q2 2025 was $7.0 million, up from $6.1 million in Q2 2024, while total revenue for the first six months was $14.1 million compared to $13.4 million in the prior year [3][9] - Gross profit for Q2 2025 was $4.8 million, representing a gross margin of 69%, down from $5.5 million and 91% in Q2 2024 [14][10] - Net income for Q2 2025 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 [15][11] Operational Highlights - Bookings for Q2 2025 were $4.6 million, an increase from $3.6 million in Q2 2024, contributing to a total of $32.1 million over the last twelve months [8] - The backlog as of June 30, 2025, totaled $18.8 million, with $7.1 million in Capital, $5.7 million in Service, and $6.0 million in STEP contracts [8] - The STEP® recurring revenue program maintained renewal rates around 95%, with an increasing number of customers transitioning to new three-year agreements [8] Cash Position and Working Capital - Cash and cash equivalents were $20.7 million as of June 30, 2025, up from $17.6 million at the end of Q1 2025 [16] - The company maintained robust working capital of $34.1 million, positioning it for sustained growth and operational agility [8][16] - Net operating expenses for the first six months decreased by 9% to $7.7 million, reflecting disciplined cost management [11]

Core Viewpoint - VirTra Inc. (VTSI) is expected to report its second-quarter 2025 results on August 11, 2025, after market close, with a trailing four-quarter average earnings surprise of 198.93% [1] Group 1: Revenue Factors - Increased revenues are anticipated from higher sales of simulators and accessories, as well as design and prototyping services, contributing positively to VTSI's second-quarter performance [2] - The successful delivery of the V-XR extended reality platform during the April-June 2025 quarter is likely to have further boosted quarterly revenues [2] - The use of AI tools for accelerated content development is expected to have generated higher volumes of certified training, attracting more customers and enhancing operational results [3] Group 2: Cost and Profitability Factors - A decrease in the cost of sales is expected due to improved operational efficiencies and reduced operating expenses, which should positively impact the second-quarter bottom line [5] - However, ongoing development of the IVAS program and initial production runs of the V-XR may have incurred upfront costs, potentially weighing on profitability and earnings [5] Group 3: Earnings Expectations - The Zacks Consensus Estimate for VTSI's revenues is projected at $6.38 million, reflecting a 5.1% increase from the same quarter last year [6] - The Zacks Consensus Estimate for earnings is set at 3 cents per share, indicating a decline of 72.7% compared to the prior-year figure [6] - The current Zacks Rank for VTSI is 3, indicating a hold position, and the Earnings ESP is 0.00%, suggesting uncertainty regarding an earnings beat this quarter [7][8] Group 4: Overall Outlook - The upcoming Q2 2025 results are characterized by mixed growth signals, with higher simulator sales and V-XR deliveries likely boosting revenues, while slower bookings due to budget delays may negatively impact revenues and earnings [9]

Company Overview - VirTra, Inc. (VTSI) closed at $6.95, down 1.97% from the previous trading session, underperforming the S&P 500, which lost 1.6% [1] - Over the past month, shares of VirTra, Inc. gained 6.94%, while the Aerospace sector and S&P 500 gained 3.87% and 2.25%, respectively [1] Upcoming Financial Results - VirTra, Inc. is set to announce its earnings on August 11, 2025, with projected earnings per share (EPS) of $0.03, indicating a 72.73% decrease from the same quarter last year [2] - The consensus estimate for revenue is $6.38 million, reflecting a 5.11% increase from the equivalent quarter last year [2] Annual Forecast - Zacks Consensus Estimates forecast annual earnings of $0.27 per share and revenue of $29.19 million, representing increases of 125% and 7.9%, respectively, compared to the previous year [3] - Recent changes to analyst estimates indicate optimism about the business and profitability [3] Valuation Metrics - VirTra, Inc. has a Forward P/E ratio of 26.26, which is in line with the industry average [6] - The Electronics - Military industry, part of the Aerospace sector, has a Zacks Industry Rank of 98, placing it in the top 40% of over 250 industries [6] Analyst Ratings - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks VirTra, Inc. as 3 (Hold) [5] - There has been no change in the Zacks Consensus EPS estimate over the past month [5]

Core Viewpoint - VirTra, Inc. will hold a conference call on August 11, 2025, to discuss its financial results for the second quarter ended June 30, 2025 [1]. Group 1: Conference Call Details - The conference call is scheduled for 4:30 p.m. Eastern time (1:30 p.m. Pacific time) [1][2]. - U.S. dial-in number is 1-877-407-9208, and the international dial-in number is 1-201-493-6784 [2]. - Participants are advised to call 5-10 minutes prior to the start time for registration [2]. Group 2: Replay Information - The conference call will be broadcast live and available for replay after 7:30 p.m. Eastern time on the same day through August 25, 2025 [3]. - Toll-free replay number is 1-844-512-2921, and the international replay number is 1-412-317-6671 [3]. Group 3: Company Overview - VirTra, Inc. is a global provider of judgmental use of force training simulators and firearms training simulators for law enforcement, military, educational, and commercial markets [3]. - The company focuses on providing intense training for de-escalation, judgmental use-of-force, and marksmanship through patented technologies and software [3]. - VirTra's mission is to save and improve lives worldwide through practical and effective virtual reality and simulator technology [3].

Group 1 - VirTra, Inc. (VTSI) stock increased by 2.22% to $6.44, outperforming the S&P 500 which gained 0.14% [1] - Prior to the recent trading session, VirTra's shares had gained 2.27%, lagging behind the Aerospace sector's gain of 3.6% and the S&P 500's gain of 3.97% [1] Group 2 - VirTra is projected to report earnings of $0.03 per share, reflecting a year-over-year decline of 72.73%, with revenue estimated at $6.38 million, up 5.11% from the prior-year quarter [2] - For the entire fiscal year, earnings are projected at $0.27 per share and revenue at $29.19 million, indicating increases of 125% and 7.9% respectively from the previous year [3] Group 3 - Recent changes in analyst estimates for VirTra indicate evolving short-term business trends, with positive revisions suggesting analyst optimism regarding the company's profitability [3] - The Zacks Rank system, which assesses estimate changes, currently ranks VirTra as 1 (Strong Buy), reflecting a strong potential for stock performance [5] Group 4 - VirTra has a Forward P/E ratio of 23.33, which aligns with its industry's Forward P/E of 23.33, indicating no significant deviation [6] - The Electronics - Military industry, part of the Aerospace sector, holds a Zacks Industry Rank of 1, placing it in the top 1% of over 250 industries [6]

Core Viewpoint - VirTra, Inc. (VTSI) is positioned as a strong investment option within the Zacks Electronics Military industry due to its military simulation training programs and extensive market reach, contributing to the company's overall expansion [1] Growth Forecast & Surprise History - The Zacks Consensus Estimate for VTSI's 2025 earnings per share (EPS) has risen by 58.8% to 27 cents over the past 60 days [2] - The total revenue estimate for VTSI in 2025 is projected at $29.2 million, reflecting a year-over-year growth of 7.9% [2] - VTSI has achieved an average earnings surprise of 198.93% over the last four quarters [2] Liquidity Position - VTSI's current ratio at the end of Q1 2025 was 4.54, significantly higher than the sector average of 1.14, indicating strong capability to meet short-term liabilities [3] Market Reach and Backlog - VirTra offers advanced combat training technologies that prepare military personnel for real-world scenarios, enhancing their safety and effectiveness [4] - The company operates globally, with products deployed in hundreds of agencies across 40 nations, demonstrating strong global demand [5] - VTSI has a stable backlog of $21.2 million as of March 31, 2025, indicating potential for strong sales growth [5] Debt Structure - VTSI's total debt to capital ratio stands at 13.77%, which is better than the industry's average of 14.13% [6] Stock Price Performance - Over the past three months, VTSI shares have increased by 54.5%, outperforming the sector's growth of 32.4% [7]