VirTra Inc (VTSI)
NASDAQ:VTSI
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VirTra
(NASDAQ:VTSI)
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Rating:56Neutral
Price Target:
$5.00
▲(6.38% Upside)
Action:ReiteratedDate:04/10/26
The score is driven primarily by mixed financial performance: a much stronger balance sheet and improved 2025 cash flow offset by declining revenue and sharply weaker profitability. Technicals are notably weak (downtrend with negative momentum), and valuation is unattractive given the very high P/E with no dividend support. The earnings call adds some support via strong backlog/bookings and liquidity, but conversion timing and margin pressure remain key risks.
Positive Factors
Conservative balance sheet / very low leverage
Debt reduced to roughly $0.3M in 2025 and debt-to-equity near 0.01x materially lowers financial risk. This durable balance-sheet strength gives management flexibility to fund working capital, invest in products and sales, and withstand procurement timing swings without needing external financing.
Negative Factors
Declining revenue and compressed net margins
Revenue fell and net margin dropped to ~1% in 2025 from higher levels in prior years, signaling weaker earnings quality. Persistently lower top-line and compressed margins reduce return on capital and require sustained volume recovery or structural cost improvement to restore durable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / very low leverage
Debt reduced to roughly $0.3M in 2025 and debt-to-equity near 0.01x materially lowers financial risk. This durable balance-sheet strength gives management flexibility to fund working capital, invest in products and sales, and withstand procurement timing swings without needing external financing.
Read all positive factors
VirTra (VTSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$50.87M
Dividend YieldN/A
Average Volume (3M)71.19K
Price to Earnings (P/E)―
Beta (1Y)1.48
Revenue Growth-14.98%
EPS Growth-80.84%
CountryUS
Employees111
SectorTechnology
Sector Strength88
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.03
Shares Outstanding11,303,885
10 Day Avg. Volume106,486
30 Day Avg. Volume71,189
Financial Highlights & Ratios
PEG Ratio-2.26
Price to Book (P/B)1.04
Price to Sales (P/S)2.11
P/FCF Ratio15.41
Enterprise Value/Market Cap0.79
Enterprise Value/Revenue1.79
Enterprise Value/Gross Profit2.64
Enterprise Value/Ebitda16.93
Forecast
1Y Price Target
$6.25Price Target Upside32.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.14
Revenue Forecast (FY)$28.20M
VirTra Business Overview & Revenue Model
Company Description
VirTra, Inc. provides force training simulators and firearms training simulators for law enforcement, military, educational, and commercial markets worldwide. It offers V-300 simulator, a 300 degree wrap-around screen for simulation training; V-18...
How the Company Makes Money
VirTra makes money primarily by selling training simulator systems and associated software to government and institutional customers. A major revenue stream is the one-time sale of simulator hardware packages (e.g., immersive simulation environmen...
VirTra Earnings Call Summary
Earnings Call Date:Mar 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Neutral
The call presents a mixed but constructive picture: near-term financial results were materially impacted by an extended federal funding freeze (significant revenue, gross profit and adjusted EBITDA declines), but the company reports strong underlying demand evidenced by $26.7M bookings and $25.6M backlog, healthy liquidity ($18.6M cash, $30.8M working capital), targeted investments in sales/marketing and product enhancements (Apex Analytics, VBS4 integration, drone training, VXR growth), and early signs of funding reopening (JAG and COPS funds). Management emphasizes readiness to convert backlog as funding timelines normalize, while acknowledging timing uncertainty and continued conversion risk. Overall, positives (demand, backlog, liquidity, product progress, cost management) are balanced by near-term revenue and margin pressures driven by external funding timing.Positive Updates
Strong Backlog and Bookings
Year-end backlog of $25,600,000 and full-year bookings of $26,700,000, indicating sustained underlying demand despite timing delays in deliveries and funding.
Negative Updates
Revenue Declines Due to Funding Freeze
Total revenue for Q4 was $2.9M vs $4.7M prior year (down $1.8M, -38.3% YoY). Full-year revenue was $22.4M vs $26.4M in 2024 (down $4.0M, -15.2% YoY), primarily driven by extended federal funding delays and deferred deliveries.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Backlog and Bookings
Year-end backlog of $25,600,000 and full-year bookings of $26,700,000, indicating sustained underlying demand despite timing delays in deliveries and funding.
Read all positive updates
Company Guidance
The company’s guidance emphasized that funding is beginning to normalize and that conversions of awards into orders and revenue should play out over the coming quarters: Q4 revenue was $2.9M (FY 2025 revenue $22.4M vs. $26.4M in 2024), with Q4 bookings $7.3M and full-year bookings $26.7M, leaving backlog of $25.6M (Capital $13.8M, Service $5.1M, STEP $6.7M). Q4 gross profit was $1.7M (58%) and FY gross margin was 68% (vs. 74% prior year); FY adjusted EBITDA was $1.6M (Q4 adjusted EBITDA -$0.9M); Q4 operating loss was $1.6M (FY operating income $0.4M), Q4 net loss $1.0M or $0.09/sh and FY net income $3.0M or $0.02/sh. Management noted $18.6M cash, $30.8M working capital, GSA reentry expected by Q3, renewed JAG/COPS grant access, expanded federal sales and marketing, and readiness to fulfill orders quickly as funding is released.VirTra Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Mar 2024 | Mar 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 22.40M | 26.35M | 38.79M | 28.30M | 24.43M |
| Gross Profit | 15.20M | 19.41M | 27.41M | 16.25M | 11.41M |
| EBITDA | 2.37M | 3.41M | 11.81M | 3.89M | 2.04M |
| Net Income | 258.45K | 1.36M | 9.15M | 1.96M | 2.54M |
Balance Sheet | |||||
| Total Assets | 66.25M | 65.45M | 70.38M | 53.81M | 49.58M |
| Cash, Cash Equivalents and Short-Term Investments | 18.59M | 18.04M | 18.85M | 13.48M | 19.71M |
| Total Debt | 7.83M | 8.26M | 8.79M | 9.56M | 9.37M |
| Total Liabilities | 20.66M | 19.76M | 27.01M | 20.13M | 18.35M |
| Stockholders Equity | 45.59M | 45.69M | 43.37M | 33.68M | 31.23M |
Cash Flow | |||||
| Free Cash Flow | 3.07M | -588.31K | 5.55M | -6.03M | -3.86M |
| Operating Cash Flow | 4.59M | 1.26M | 6.68M | -2.69M | -125.74K |
| Investing Cash Flow | -3.78M | -1.85M | -1.13M | -3.34M | -3.74M |
| Financing Cash Flow | -253.45K | -220.71K | -188.18K | -190.42K | 16.73M |
VirTra Technical Analysis
Positive
4.70
Price Trends
4.26
Positive
4.49
Positive
5.18
Negative
Market Momentum
0.08
Negative
62.52
Neutral
76.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VTSI, the sentiment is Positive. The current price of 4.7 is above the 20-day moving average (MA) of 4.16, above the 50-day MA of 4.26, and below the 200-day MA of 5.18, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 62.52 is Neutral, neither overbought nor oversold. The STOCH value of 76.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VTSI.
VirTra Risk Analysis
VirTra disclosed 25 risk factors in its most recent earnings report. VirTra reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Uncertainty in the development, deployment, and use of AI in our products and services, as well as our business more broadly, could adversely affect our business and reputation. Q4, 2025
VirTra Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $129.90M | 32.24 | 7.17% | ― | 33.23% | 4.98% | |
63 Neutral | $99.57M | 4.74 | 9.39% | ― | -10.61% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $50.87M | -14.94 | 0.55% | ― | -14.98% | -80.84% | |
52 Neutral | $242.97M | -1.70 | -108.48% | ― | -27.58% | 67.49% | |
50 Neutral | $75.06M | 101.30 | 19.39% | ― | 20.04% | 7.53% | |
47 Neutral | $73.10M | -0.47 | -455.80% | ― | 713.80% | 98.13% |
* Technology Sector Average
VTSI
VirTra
4.50
<0.01
0.22%
SIF
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16.02
13.26
480.01%
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1.90
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48.44%
OPXS
Optex Systems Holdings
10.82
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62.46%
CODA
Coda Octopus Group
11.52
4.87
73.23%
SIDU
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3.09
1.58
104.64%
VirTra Corporate Events
Executive/Board Changes
VirTra Announces Board Resignation and New Director Appointment
Neutral
Feb 17, 2026
On February 16, 2026, VirTra, Inc. announced that long-serving director Jeffrey D. Brown resigned from the board for personal reasons after joining in 2011, stepping down as chair of the Audit Committee and as a member of the Compensation and Nomi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.