VirTra(VTSI) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenue for Q3 2025 was $5.3 million, a decrease of 29% compared to $7.5 million in Q3 2024[4] - Gross profit for Q3 2025 was $3.5 million, representing a gross margin of 66%, down from 73% in the prior year[4] - Net income for Q3 2025 was a loss of $0.4 million, or $(0.03) per diluted share, compared to a profit of $0.6 million, or $0.05 per diluted share in Q3 2024[4] - Total revenue for the first nine months of 2025 was $19.5 million, a 7% decrease from $20.9 million in the same period of 2024[10] - Adjusted EBITDA for Q3 2025 was $0.1 million, a decline of 91% from $1.1 million in Q3 2024[4] - Net income for the nine months ended September 30, 2025, was $1,050,807, compared to $2,252,025 for the same period in 2024, representing a decrease of 53.4%[30] Cash and Assets - Cash and cash equivalents were $20.8 million as of September 30, 2025, up from $18.0 million at the end of 2024[16] - Cash and cash equivalents increased to $20,767,105 as of September 30, 2025, from $18,040,827 at the end of 2024, marking a rise of 15.1%[26] - Total assets as of September 30, 2025, were $66,203,576, slightly up from $65,453,086 at the end of 2024, indicating a growth of 1.1%[26] Expenses - Net operating expenses for the first nine months of 2025 were $11.7 million, an 11% decrease from $13.2 million in the prior year[11] - Operating expenses for the three months ended September 30, 2025, were $3,968,184, a decrease of 16.3% from $4,742,341 in the same period of 2024[28] - Research and development expenses for the nine months ended September 30, 2025, were $1,906,764, down from $2,273,422 in 2024, reflecting a decrease of 16.1%[28] Bookings and Backlog - The company secured bookings totaling $8.4 million in Q3 2025, including a $4.8 million contract for law enforcement training systems in Colombia[8] - The backlog increased to $21.9 million, providing visibility into future revenue opportunities[17] Other Financial Metrics - Total liabilities decreased to $19,372,942 as of September 30, 2025, from $19,762,198 at the end of 2024, a reduction of 2.0%[26] - The company reported a net cash provided by operating activities of $6,083,776 for the nine months ended September 30, 2025, compared to $2,165,918 in 2024, an increase of 180.5%[30] Product Development - The company launched the V-One Portable Simulator, aimed at smaller agencies, enhancing product accessibility[8]