Core Insights - VirTra, Inc. reported a significant decline in total revenue for Q3 2025, amounting to $5.3 million, a 29% decrease from $7.5 million in Q3 2024, primarily due to lower revenues from the government sector caused by funding delays [3][9] - The company experienced a net loss of $0.4 million in Q3 2025, compared to a net income of $0.6 million in the same period last year, reflecting the challenges in revenue recognition [10][12] - Despite the current challenges, the company has a growing backlog of $21.9 million, indicating potential future revenue as federal funding cycles improve [12] Financial Highlights - Total revenue for the first nine months of 2025 was $19.5 million, down 7% from $20.9 million in the prior year, mainly due to decreased revenues from simulators and accessories [5] - Gross profit for the first nine months was $13.5 million, representing a gross margin of 69%, compared to $15.7 million and a 75% margin in the prior year [5] - Adjusted EBITDA for the first nine months was $2.5 million, a decrease of 38% from $4.0 million in the previous year [8] Operational Highlights - Bookings in Q3 2025 totaled $8.4 million, including a $4.8 million multi-site contract for law enforcement training systems in Colombia [7] - The company launched the V-One Portable Simulator aimed at smaller agencies, which has received positive early feedback [4][7] - International deployments are increasing, with new contracts in Canada and Colombia, indicating a growing global presence [4][7] Management Commentary - The CEO emphasized the impact of a slower federal funding cycle on revenue recognition but noted an increase in backlog and customer engagement [4] - The CFO highlighted disciplined cost management, with operating expenses down 11% year-over-year, and a strong balance sheet with $20.8 million in cash [12]