VirTra (NASDAQ:VTSI) Issues Quarterly Earnings Results

VirTra (NASDAQ:VTSI) released its quarterly earnings results on Thursday. The company reported $0.19 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.06) by $0.25, FiscalAI reports. The firm had revenue of $7.62 million during the quarter, compared to analyst estimates 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 Trading Up 6.1%

Shares of VTSI stock traded up $0.15 during mid-day trading on Thursday, hitting $2.62. The company’s stock had a trading volume of 2,588,914 shares, compared to its average volume of 56,422. The company’s fifty day simple moving average is $2.77 and its 200-day simple moving average is $3.51. VirTra has a 52 week low of $2.42 and a 52 week high of $5.44. The company has a debt-to-equity ratio of 0.25, a quick ratio of 2.44 and a current ratio of 3.89. The company has a market cap of $29.66 million, a PE ratio of -10.08 and a beta of 1.00.

Wall Street Analyst Weigh In

Separately, Weiss Ratings reaffirmed a “sell (d)” rating on shares of VirTra in a research note on Monday, September 21st. One investment analyst has rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $5.00.

VirTra Company Profile

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.