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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on VTSI

VirTra, Inc.'s recent performance was negatively impacted by its Q3 2025 earnings report, which showed a loss of $0.03 per share, falling short of the Zacks Consensus Estimate of $0.05. This compares to earnings of $0.05 per share in the same period last year. The company's financial results, reported on November 10, 2025, seem to have overshadowed its successful demonstration of the next-generation Soldier Virtual Training (SVT) system for the U.S. Army's PEO STRI. Additionally, the appointment of Grant A. Barber to its Advisory Board on November 4, 2025, may not have had a significant impact on the stock.

1.c. Company Highlights

2. VirTra's Q3 2025 Earnings: Navigating Funding Delays and Growth Initiatives

VirTra's third-quarter 2025 revenue came in at $5.3 million, a decline from $7.5 million in the prior year period, primarily due to lower government sector revenues caused by funding delays. The company's gross profit for the quarter was $3.5 million, or 66% of total revenue, compared to $5.5 million or 73% of total revenue in the prior year period. The net loss for the quarter was $0.4 million or $0.03 per diluted share, compared to net income of $0.6 million or $0.05 per diluted share in the prior year period. The actual EPS of -$0.03 missed estimates of $0.05.

Publication Date: Nov -29

📋 Highlights
  • Revenue Decline:: Q3 revenue fell to $5.3M (vs. $7.5M YoY), driven by lower government sector revenues due to funding delays.
  • International Growth:: International revenue surged to $1.2M (+100% YoY), offsetting domestic losses.
  • Backlog Expansion:: Total backlog reached $21.9M, including $10.2M in capital contracts and $6.4M in STEP agreements.
  • Margin Pressure:: Gross profit margin declined to 66% (vs. 73% YoY), with net loss of $0.4M ($0.03/share) versus prior-year net income of $0.6M.
  • Strong Bookings:: Q3 bookings rose to $8.4M (+82% QoQ), led by a $4.8M international contract, with 2026 revenue visibility.

Bookings and Backlog

Despite the revenue decline, bookings for the third quarter were $8.4 million, up from $4.6 million in Q2, driven by a $4.8 million booking from an international customer. The company's backlog grew to $21.9 million, including $10.2 million in capital, $5.3 million in service, and $6.4 million in STEP contracts. This growth in backlog is a positive indicator of future revenue.

Operational Focus and Future Outlook

VirTra's management continues to focus on improving its sales process, products, and operations to strengthen its foundation. The recent entry into the GSA procurement cycle is expected to streamline sales processes and shorten delivery timelines. The company also introduced a new analytics platform, APEX, which tracks performance in real-time, measuring accuracy, reduction time, and decision-making. As John Givens, CEO, highlighted, the company is working on disciplined cost management and enhanced contract structures to support continued progress.

Valuation and Growth Prospects

With a P/S Ratio of 2.13, VirTra's stock is trading at a premium to its current revenue. Analysts estimate next year's revenue growth at 13.4%, which may justify the current valuation. However, the EV/EBITDA ratio of 15.84 suggests that the company's EBITDA growth will be crucial in supporting its valuation. The ROE of 0.83% indicates that the company's profitability is still a concern. As the company navigates funding delays and focuses on growth initiatives, its ability to execute and drive customer success will be critical in delivering sustainable growth.

Product Launch and Margin Expectations

The company is being cautious with its BXR product launch, which is fully developed with over 105 hours of certified training courses. Despite good market acceptance, funding headwinds have impacted sales. Regarding gross margins, the company expects them to stay similar to Q3, potentially decreasing slightly, with a target range of 60-65%. The company is willing to sacrifice some gross margin to gain market share, especially with new products.

3. NewsRoom

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of VirTra, Inc. - VTSI

Nov -20

Source: prnewswire.com

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ATTENTION VTSI Investors: Securities Fraud Investigation Underway - Contact Levi & Korsinsky

Nov -18

Source: newsfilecorp.com

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VirTra, Inc. (VTSI) Reports Q3 Loss, Lags Revenue Estimates

Nov -11

Source: zacks.com

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VirTra, Inc. (VTSI) Q3 2025 Earnings Call Transcript

Nov -11

Source: seekingalpha.com

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VirTra Reports Third Quarter and Nine Months 2025 Financial Results

Nov -10

Source: globenewswire.com

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VirTra Appoints Grant Barber to Advisory Board

Nov -04

Source: globenewswire.com

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VirTra, Inc. (VTSI) Stock Declines While Market Improves: Some Information for Investors

Oct -27

Source: zacks.com

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VirTra Sets Third Quarter 2025 Conference Call for Monday, November 10, 2025 at 4:30 p.m. ET

Oct -27

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.80%)

6. Segments

Simulators and Accessories

Expected Growth: 12.0%

VirTra's simulators and accessories growth is driven by increasing demand for realistic law enforcement training, rising adoption of virtual and augmented reality technologies, and growing need for de-escalation and crisis intervention training. Additionally, government funding for police training and the company's expanding product portfolio contribute to the 12.0% growth.

Design & Prototyping

Expected Growth: 11.5%

VirTra's Design & Prototyping segment growth of 11.5% is driven by increasing demand for simulation-based training solutions, expansion into new markets, and strategic partnerships. The company's innovative products and services, such as its Virtual Reality-based training platform, are gaining traction among law enforcement agencies and military organizations, contributing to the segment's growth.

Extended Service-type Warranties

Expected Growth: 10.5%

VirTra's Extended Service-type Warranties growth is driven by increasing demand for simulation-based training, expansion into new markets, and strategic partnerships. The company's focus on providing high-quality, realistic training experiences has led to strong customer retention and upselling opportunities, contributing to the 10.5% growth rate.

Customized Software and Content

Expected Growth: 13.5%

VirTra's customized software and content growth is driven by increasing demand for immersive training solutions, expansion into new markets such as law enforcement and military, and strategic partnerships. Additionally, the company's focus on research and development, innovative products, and strong sales and marketing efforts contribute to its 13.5% growth.

Installation and Training

Expected Growth: 12.5%

VirTra's Installation and Training segment growth of 12.5% is driven by increasing demand for simulation-based training solutions, expansion into new markets, and growing adoption of virtual reality technology in the law enforcement and military industries. Additionally, the company's strategic partnerships and investments in product development have enhanced its offerings, contributing to the segment's growth.

7. Detailed Products

VirTra 300

A 300-degree, immersive, and interactive simulator designed for law enforcement and military training

VirTra 180

A 180-degree, interactive simulator for law enforcement and military training

VirTra V-100

A single-screen, interactive simulator for law enforcement and military training

Subscription-Based Training Content

A library of scenario-based training content for law enforcement and military training

Custom Content Creation

Customized training content creation services for law enforcement and military agencies

Training and Support Services

On-site and remote training, technical support, and maintenance services

8. VirTra, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

VirTra, Inc. faces moderate threat from substitutes due to the availability of alternative simulation-based training solutions.

Bargaining Power Of Customers

VirTra, Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

VirTra, Inc. relies on a few key suppliers for its simulation technology, giving them some bargaining power, but the company's strong relationships and contracts mitigate this risk.

Threat Of New Entrants

The simulation-based training industry is attractive, and new entrants may be drawn to the market, posing a significant threat to VirTra, Inc.'s market share.

Intensity Of Rivalry

The simulation-based training industry is highly competitive, with several established players, leading to intense rivalry and competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 16.39%
Debt Cost 3.95%
Equity Weight 83.61%
Equity Cost 7.52%
WACC 6.94%
Leverage 19.61%

11. Quality Control: VirTra, Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Sturm Ruger

A-Score: 5.6/10

Value: 2.9

Growth: 2.8

Quality: 5.0

Yield: 8.0

Momentum: 7.5

Volatility: 7.7

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Park Aerospace

A-Score: 5.4/10

Value: 0.8

Growth: 2.4

Quality: 6.4

Yield: 7.0

Momentum: 9.5

Volatility: 6.0

1-Year Total Return ->

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Innovative Solutions and Support

A-Score: 5.3/10

Value: 4.3

Growth: 7.7

Quality: 7.2

Yield: 1.0

Momentum: 9.5

Volatility: 2.3

1-Year Total Return ->

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Cadre Holdings

A-Score: 4.1/10

Value: 1.5

Growth: 6.4

Quality: 5.6

Yield: 2.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

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Smith & Wesson Brands

A-Score: 4.0/10

Value: 4.1

Growth: 1.9

Quality: 4.3

Yield: 7.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

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VirTra

A-Score: 3.3/10

Value: 3.6

Growth: 5.9

Quality: 5.8

Yield: 0.0

Momentum: 2.5

Volatility: 1.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.0$

Current Price

5$

Potential

-0.00%

Expected Cash-Flows