VirTra Inc. (Nasdaq: VTSI) reported second quarter and six months ended June 30, 2026 financial results showing a contraction in revenue and profitability driven by domestic sales timing. The global provider of judgmental use-of-force and firearms training simulators saw total revenue fall 17% year-over-year to $5.8 million for the quarter.

Financial Performance

Total revenue for the six months ended June 30, 2026, was $9.2 million, compared to $14.1 million in the prior year period, representing a 35% decline. The decrease was attributed to several customers who booked orders in the third and fourth quarters of 2025 being unable to accept delivery in the first half of 2026. Management noted that while fundamental demand remains intact, the primary challenge is the timing associated with funding awards, procurement approvals, and customer acceptance processes.

Gross profit declined 45% year-over-year to $5.5 million for the first half, with gross margin contracting from 71% to 60%. For the second quarter specifically, gross profit was $3.4 million, down from $4.8 million in Q2 2025, with margins slipping from 69% to 59%. This margin compression reflects lower revenue volumes and ongoing investments in content production.

Net operating expense decreased slightly to $7.1 million for the first half, compared to $7.7 million in the prior year period. The company reported a loss from operations of $1.5 million for the six months, compared to income from operations of $2.3 million previously. Adjusted EBITDA turned negative for the half-year at ($0.4) million, compared to $2.4 million in the prior year period, though it remained positive at $0.4 million for the second quarter alone.

What the Numbers Show

The divergence between operating performance and non-GAAP metrics highlights the impact of structural costs on VirTra’s bottom line. While Adjusted EBITDA returned to positive territory in Q2 2026 ($0.4 million), GAAP net income swung to a loss of $0.3 million. This gap is largely driven by depreciation and amortization expenses, which totaled approximately $0.52 million in the quarter according to the reconciliation table, alongside a provision for income taxes of roughly $0.09 million despite the pre-tax loss position. The data indicates that while core operational cash generation improved sequentially, fixed overheads and tax provisions continue to weigh heavily on reported profitability.

Cash and cash equivalents stood at $14.3 million as of June 30, 2026, down from $18.6 million at December 31, 2025. The decline in cash was driven by investments in inventory supporting international deliveries and the acquisition of the Orlando campus. However, management emphasized that the property includes tenant leases expected to contribute positively to future financial performance through rental income.

Operational Highlights

VirTra secured $5.5 million in bookings during the second quarter, an increase from $3.8 million in the first quarter. Total backlog stood at $24.9 million as of June 30, 2026, comprising:

• $13.2 million in capital contracts
• $3.8 million in service contracts
• $7.9 million in STEP contracts

The company expanded its defense training market presence through two key developments. It was accepted into the U.S. Army Marketplace across three mission-critical capability areas: Weapons Skills Development, Joint Fires Training, and Counter-Unmanned Aircraft Systems (C-UAS). Additionally, VirTra acquired a dual-building Orlando campus, increasing its footprint within the Central Florida Research Park to support customer engagement and program execution.

Internationally, revenue rose to $2.2 million in Q2 2026 from $1.4 million in the prior year period, reflecting improved conversion of previously awarded deployments. CEO John Givens noted that international opportunities often involve long procurement cycles but remain set to strengthen, with favorable outcomes from recent proposal submissions.

Management Commentary

CEO John Givens noted that Q2 results reflected increased revenue conversion compared to the first quarter, particularly within international business. He highlighted encouraging activity including stronger bookings and momentum in grant-related activity, though he acknowledged that domestic funding availability and procurement timing continue to impact results. Givens stated that multiple grant programs have reopened and customers are actively submitting applications, signaling meaningful progress compared to the constrained funding environment of the past two years.

CFO Alanna Boudreau stated that second quarter revenue increased significantly compared to the first quarter, supporting a return to positive adjusted EBITDA. She emphasized disciplined expense management while investing in content development and technology. Boudreau noted that gross margins continued to reflect the impact of lower revenue volume and ongoing investments in content production, with approximately 10 new scenarios produced during the quarter, significantly above historical levels.

VirTra, Inc., a global provider of judgmental use-of-force and firearms training simulators, will hold a conference call on Thursday, August 13, 2026, to discuss its financial results for the second quarter ended June 30, 2026. The Nasdaq-listed company (VTSI) aims to provide investors with an update on its operational and financial performance for the period. This disclosure is critical for stakeholders tracking the firm’s progress in the immersive simulation training sector.

The conference call is scheduled to begin at 4:30 p.m. Eastern time (1:30 p.m. Pacific time). VirTra management will host the presentation, followed by a question-and-answer period. Financial results will be issued in a press release prior to the call, ensuring that key metrics are available to the market before the live discussion begins.

Conference Call Details

Investors can access the call via telephone or live webcast. The specific dial-in information and replay details are outlined below.

Participants are advised to call the conference telephone number 5-10 minutes prior to the start time. An operator will register each participant's name and organization. For technical difficulties, participants may contact Gateway Group at 949-574-3860.

Replay and Webcast Availability

The conference call will be broadcast live and available for replay via the investor relations section of the Company’s website. A replay of the call will be available after 7:30 p.m. Eastern time on the same day through August 27, 2026.

About VirTra, Inc.

VirTra is a global leader in immersive, simulation-based training solutions for de-escalation, judgmental use of force, and weapons proficiency. Serving law enforcement, military, educational, and commercial organizations, VirTra combines advanced technology, realistic scenarios, and proprietary training tools to help users improve decision-making, strengthen readiness, and perform more effectively under pressure. Since 1993, VirTra has remained committed to its mission of saving lives by preparing professionals for the complex, high-stakes situations they may face in the real world.