VirTra, Inc. (NASDAQ:VTSI), a provider of firearms and use-of-force training simulators, reported a 42% increase in third-quarter 2026 revenue to $7.6 million, compared with $5.3 million in the corresponding period last year, supported by higher government and international sales.
The company returned to quarterly profitability, reporting net income of $2.2 million, or $0.19 per diluted share, compared with a net loss of $0.4 million, or $0.03 per diluted share, a year earlier.
Bookings reached $10.3 million during the quarter ended September 30, an increase of 87% from $5.5 million in the preceding quarter.
Third-Quarter Profitability Improves
Gross profit increased 52% to $5.3 million from $3.5 million, while gross margin rose to 70% from 66% in the prior-year period.
Net operating expenses declined to $3.3 million from $4.0 million, contributing to operating income of $2.0 million, compared with an operating loss of $0.5 million a year earlier.
Adjusted EBITDA, a non-GAAP measure, increased to $2.6 million from $0.9 million.
VirTra ended September with $18.4 million in cash and a total order backlog of $27.6 million, comprising $14.1 million in capital contracts, $3.9 million in service contracts and $9.6 million in STEP contracts.
Nine-Month Revenue Declines 13%
For the first nine months of 2026, VirTra reported revenue of $16.9 million, down 13% from $19.5 million in the corresponding period of 2025.
The company attributed the decline to delivery delays involving several customers whose orders were booked during the second half of 2025.
Nine-month gross profit decreased to $10.9 million from $13.5 million, with gross margin narrowing to 65% from 69%.
Operating income was $0.5 million, compared with $1.8 million a year earlier, while net income declined to $0.6 million, or $0.05 per diluted share, from $1.1 million, or $0.09 per diluted share.
Adjusted EBITDA for the nine-month period was $2.2 million, compared with $2.5 million in 2025.
Federal and Military Contract Awards
VirTra highlighted several government contract developments during the quarter, including a five-year sole-source agreement with U.S. Customs and Border Protection carrying a potential value of up to $14 million.
The contract covers the modernisation, maintenance and support of the agency’s nationwide simulator training network.
The company also received a $1.5 million sole-source contract from the U.S. Army to supply a V-300 training system and related equipment for firearms training programmes in Tajikistan.
Additionally, VirTra’s training systems are now available for evaluation through the U.S. Army Marketplace across weapons skills development, joint fires training and counter-unmanned aircraft systems applications.
Management Discusses Demand and Funding Conditions
Chief Executive Officer John Givens said the company’s quarterly performance reflected higher revenue, increased customer orders and improved profitability.
“We are particularly encouraged by the acceleration in customer orders, which, together with our improving revenue performance, provides tangible evidence that demand is translating into business results,” Givens said.
He also noted that government grant programmes were reopening following nearly two years of limited activity, although the timing of funding awards and customer deployments remains uncertain.
Chief Financial Officer Alanna Boudreau said the company’s $27.6 million backlog provides visibility into potential future revenue, while customer procurement schedules continue to affect the timing of deliveries and revenue recognition.
VirTra said it remains focused on converting its backlog into revenue, managing operating expenses and expanding its presence across law enforcement, federal, military and international markets.