Core Insights - VirTra, Inc. has received a $4.8 million multi-site award from the Bogotá Law Enforcement and Professional Division, part of the U.S. Department of State's Bureau of International Narcotics and Law Enforcement Affairs (INL), expected to be completed by mid-2026 [1][2] Group 1: Award Details - The award aims to enhance law enforcement training in Colombia, aligning with U.S. foreign assistance goals focused on police training and capacity building [2] - VirTra will provide seven four-screen V-ST PRO systems, along with Recoil Kits (RKs) and Advanced Skills Magazines (ASMs), to improve marksmanship training across various sites [3][4] Group 2: Technology and Training Capabilities - The V-ST PRO system features VirTra's proprietary V-Marksmanship program, allowing for diverse target training and scenarios that are challenging to replicate in traditional settings [3] - The simulator technology includes components that simulate reloads, malfunctions, and weapon handling skills, providing realistic training environments [4] Group 3: Company Growth and Future Prospects - The award signifies a milestone in VirTra's international growth and reflects the confidence global agencies have in its training technology [5] - The company recently announced full deployment with the Royal Canadian Mounted Police (RCMP) and is strengthening relationships with law enforcement agencies worldwide [5]

Core Insights - VirTra, Inc. has achieved full deployment of 20 training simulators for the Royal Canadian Mounted Police (RCMP) after successful field testing and validation [1][4] - The deployment follows the completion of the approval and certification process, indicating potential for future system purchases across Canada [2][4] - The training systems received positive feedback for their accuracy, reliability, and real-world readiness during rigorous testing [3][4] Company Overview - VirTra is a global provider of judgmental use-of-force training simulators and firearms training simulators for law enforcement, military, educational, and commercial markets [6] - The company's technologies focus on de-escalation, judgmental use-of-force, and marksmanship training that mimics real-world situations [6] - VirTra aims to save and improve lives worldwide through practical and effective virtual reality and simulator technology [6] Leadership Perspective - John Givens, Chairman and CEO of VirTra, emphasized the company's commitment to delivering advanced technology and reliable tools that enhance officer confidence and skill [5] - The partnership with the RCMP reinforces VirTra's position as a trusted partner for law enforcement training globally [5]

Company Performance - VirTra, Inc. (VTSI) stock decreased by 1.79% to $5.49, underperforming the S&P 500 which fell by 0.29% [1] - Over the past month, the stock has declined by 3.79%, while the Aerospace sector gained 5% and the S&P 500 increased by 3.08% [1] Earnings Expectations - Analysts expect VirTra, Inc. to report earnings of $0.05 per share, indicating no growth compared to the prior-year quarter [2] - Revenue is anticipated to be $7.48 million, showing stability relative to the same quarter last year [2] Full Year Projections - For the full year, earnings are projected at $0.33 per share, reflecting a growth of 175% from the previous year [3] - Revenue is estimated at $29.79 million, representing a 10.12% increase from the prior year [3] Analyst Estimate Revisions - Recent changes in analyst estimates suggest a positive outlook for VirTra, Inc., as these revisions often align with short-term business trends [3][4] - The Zacks Rank system, which incorporates these estimate changes, provides actionable insights for investors [4] Valuation Metrics - VirTra, Inc. has a Forward P/E ratio of 16.94, which is in line with the industry average [6] - The Electronics - Military industry, part of the Aerospace sector, holds a Zacks Industry Rank of 106, placing it in the top 43% of over 250 industries [6] Zacks Industry Rank Insights - The Zacks Industry Rank evaluates the strength of industry groups based on the average Zacks Rank of individual stocks [7] - Historically, the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

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]