VirTra (VTSI) AI Stock Analysis

• Market Cap: $55.03M
• Dividend Yield: N/A
• Average Volume (3M): 47.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: -23.87%
• EPS Growth: -109.71%
• Country: US
• Employees: 111
• Sector: Technology
• Sector Strength: 88
• Industry: Aerospace & Defense
• EPS (TTM): -0.03
• Shares Outstanding: 11,300,607
• 10 Day Avg. Volume: 40,477
• 30 Day Avg. Volume: 47,873
• PEG Ratio: -0.65
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 2.86
• P/FCF Ratio: -128.08
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 1.92
• Enterprise Value/Gross Profit: 2.82
• Enterprise Value/Ebitda: 23.56
• 1Y Price Target: $8.25
• Price Target Upside: 70.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.26
• Revenue Forecast (FY): $28.52M

• Rating: 55 Neutral
• Price Target: $5.50 ▲(13.40% Upside)

VirTra's overall stock score reflects a challenging financial and technical environment. The most significant factors include the company's strong gross profit margins and backlog growth, offset by revenue declines, profitability issues, and bearish technical indicators. The negative P/E ratio and lack of dividend yield further weigh on the valuation.

Positive Factors

Strong Backlog Growth

A growing backlog indicates strong future revenue potential as funding improves, providing a stable base for future financial performance.

International Revenue Expansion

Significant growth in international markets like Canada and Colombia diversifies revenue streams and reduces dependency on domestic markets.

New Product Launches

New products expand the addressable market and enhance training capabilities, potentially driving future revenue growth and market position.

Negative Factors

Revenue Decline

A decline in revenue, primarily due to federal funding delays, impacts short-term financial performance and may hinder growth if not addressed.

Decreased Profit Margins

Reduced profit margins indicate increased costs or pricing pressures, potentially affecting long-term profitability if trends continue.

Cash Flow Challenges

Declining free cash flow growth suggests potential cash management issues, which could impact the company's ability to fund operations and growth.

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-180 simulator, a 180 degree screen for smaller spaces or budgets; V-100, a single-screen firearms training simulator system; V-100 MIL, a single-screen small arms training simulator; and V-ST PRO, a realistic single screen firearms shooting and skills training simulator. The company also provides Virtual Interactive Coursework Training Academy, which enables law enforcement agencies to teach, train, test, and sustain departmental training requirements; and Subscription Training Equipment Partnership, a program that allows agencies to utilize VirTra's simulator products, accessories, and V-VICTA interactive coursework on a subscription basis. In addition, it offers V-Author software that allows users to create, edit, and train with content specific to agency's objectives; a range of simulated recoil kits/weapons; Threat-Fire, a return fire device that applies real-world stress on the trainees during simulation training; and TASER, an OC spray and low-light training devices. It sells its simulators and related products through a direct sales force and distribution partners. The company was formerly known as VirTra Systems, Inc. and changed its name to VirTra, Inc. in October 2016. VirTra, Inc. was founded in 1993 and is headquartered in Chandler, Arizona.

How the Company Makes Money

VirTra generates revenue primarily through the sale of its training simulators and related software solutions. The company offers a range of products that are sold directly to law enforcement agencies, military organizations, and other sectors requiring specialized training. Key revenue streams include initial equipment sales, ongoing maintenance contracts, software updates, and training services. Additionally, VirTra benefits from partnerships with government agencies and educational institutions, which often lead to bulk orders and long-term contracts, further enhancing its financial stability. The company may also explore additional revenue through licensing its technology and providing training for trainers, thereby expanding its market reach.

VirTra Financial Statement Overview

Summary

VirTra's financial statements present a mixed picture. The company maintains strong gross profit margins and a stable balance sheet with low leverage. However, challenges in revenue growth and profitability are evident, and cash flow management requires attention to ensure liquidity and support future growth.

Income Statement

VirTra's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 8.11%, reflecting challenges in maintaining sales momentum. However, the company maintains a strong gross profit margin of 70.04%, indicating efficient cost management. The net profit margin is slightly positive at 1.47%, but the negative net income suggests profitability issues. EBIT and EBITDA margins are moderate, suggesting operational efficiency but room for improvement.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.17, indicating conservative leverage. The equity ratio is strong, showcasing a solid asset base supported by equity. However, the return on equity is low at 0.83%, suggesting limited profitability from equity investments. Overall, the balance sheet is stable but could benefit from improved returns.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 24.65% in the TTM, indicating potential liquidity challenges. The operating cash flow to net income ratio is 0.60, showing moderate cash generation relative to net income. The free cash flow to net income ratio is 0.80, suggesting that cash flow generation is not fully aligned with profitability. The company needs to enhance cash flow management to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.19M	26.35M	38.79M	28.30M	24.43M	19.09M
Gross Profit	16.46M	19.41M	27.41M	16.25M	11.41M	11.90M
EBITDA	1.97M	3.41M	11.81M	3.89M	2.04M	1.90M
Net Income	-585.51K	1.36M	9.15M	1.96M	2.54M	1.48M
Balance Sheet
Total Assets	66.20M	65.45M	70.38M	53.81M	49.58M	22.75M
Cash, Cash Equivalents and Short-Term Investments	20.77M	18.04M	18.85M	13.48M	19.71M	6.84M
Total Debt	7.94M	8.26M	8.79M	9.56M	9.37M	2.50M
Total Liabilities	19.37M	19.76M	27.01M	20.13M	18.35M	11.09M
Stockholders Equity	46.83M	45.69M	43.37M	33.68M	31.23M	11.66M
Cash Flow
Free Cash Flow	1.35M	-588.31K	5.55M	-6.03M	-3.86M	2.25M
Operating Cash Flow	4.67M	1.26M	6.68M	-2.69M	-125.74K	2.25M
Investing Cash Flow	-3.32M	-1.85M	-1.13M	-3.34M	-3.74M	1.85M
Financing Cash Flow	-255.36K	-220.71K	-188.18K	-190.42K	16.73M	1.33M

VirTra Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VTSI, the sentiment is Negative. The current price of 4.85 is below the 20-day moving average (MA) of 4.90, below the 50-day MA of 5.45, and below the 200-day MA of 5.57, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 40.00 is Neutral, neither overbought nor oversold. The STOCH value of 29.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VTSI.

VirTra Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPXS	75 Outperform	$99.07M	18.32	25.14%	―	21.00%	20.18%
CODA	72 Outperform	$98.43M	29.57	6.23%	―	29.34%	13.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SIF	57 Neutral	$42.74M	-57.87	-7.07%	―	-17.56%	91.53%
VTSI	55 Neutral	$55.03M	―	-1.26%	―	-23.87%	-109.71%
XTIA	41 Neutral	$45.32M	-0.03	-640.32%	―	―	―
SIDU	38 Underperform	$26.11M	-0.57	-142.81%	―	-30.18%	80.43%

VirTra Corporate Events

VirTra Elects New Board and Auditors in 2025

On October 14, 2025, VirTra, Inc. conducted its annual meeting of stockholders, where five directors were elected to the board for a one-year term, and the appointment of Haynie & Company as the independent auditors for the fiscal year ending December 31, 2025, was ratified. These decisions are expected to influence the company’s governance and financial oversight, potentially impacting its strategic direction and stakeholder confidence.