VirTra (NASDAQ:VTSI) Posts Quarterly Earnings Results, Beats Estimates By $0.25 EPS

VirTra (NASDAQ:VTSI) announced its earnings results on Thursday. The company reported $0.19 EPS for the quarter, topping the consensus estimate of ($0.06) by $0.25, FiscalAI reports. The company had revenue of $7.62 million for the quarter, compared to analysts’ expectations of $4.39 million. VirTra had a negative net margin of 17.04% and a negative return on equity of 6.59%.

Here are the key takeaways from VirTra’s conference call:

• Third-quarter revenue rose 42% year over year to $7.6 million, with net income of $2.2 million, gross margin of 70%, and operating income of approximately $2 million. It was the company’s third consecutive quarter of sequential revenue growth.
• Bookings increased to $10.3 million from $5.5 million in Q2, and backlog reached $27.6 million, supporting visibility into future business. Management said it expects further backlog conversion in Q4, though timing depends on procurement, installation, and customer acceptance.
• VirTra highlighted additional opportunities, including a five-year CBP contract with a maximum ceiling of $14 million and Army marketplace evaluations. The company emphasized that the CBP ceiling depends on customer orders and that Army marketplace participation does not guarantee a purchase.
• For the first nine months, revenue declined to $16.9 million from $19.5 million and net income fell to about $0.6 million from $1.1 million, reflecting delayed funding, procurement, and customer acceptance.
• Management cited customer deployment delays and potential supply constraints, including shortages of fiberglass used in circuit boards, as risks to fulfilling larger orders. VirTra is considering increased inventory purchases to mitigate supply-chain exposure.

VirTra Stock Up 6.1%

VTSI stock opened at $2.62 on Friday. The company has a market cap of $29.66 million, a PE ratio of -10.08 and a beta of 1.00. The business has a 50-day simple moving average of $2.76 and a 200 day simple moving average of $3.50. VirTra has a 52 week low of $2.42 and a 52 week high of $5.44. The company has a quick ratio of 2.44, a current ratio of 3.89 and a debt-to-equity ratio of 0.25.

Wall Street Analyst Weigh In

Separately, Weiss Ratings reissued a “sell (d)” rating on shares of VirTra in a research report on Monday, September 21st. One equities research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $5.00.

About VirTra

VirTra, Inc. develops and provides immersive training systems designed to help law enforcement, military, government, and commercial organizations prepare for high-stakes interactions. Its technology focuses on firearms proficiency, judgment and decision-making, de-escalation, communication, and use-of-force training through interactive video-based scenarios. The company’s product portfolio includes multi-screen and single-screen simulator platforms, firearms training systems, scenario-based software, and related weapons, accessories, and training content.