VirTra, Inc.

Second-quarter revenue was $5.8 million, compared with $7.0 million in the prior-year period and $3.5 million in Q1 2026. Government revenue was $3.5 million versus $5.4 million a year ago, and international revenue was $2.2 million versus $1.4 million a year ago. Gross profit was $3.4 million, or 59% of revenue, versus $4.8 million, or 69% a year ago; net loss was $0.3 million, or $0.02 per diluted share, versus net income of $0.2 million, or $0.02 per diluted share. For the first six months, revenue was $9.2 million versus $14.1 million, gross profit was $5.5 million at 60% margin versus $10.0 million at 71%, and net loss was $1.6 million, or $0.14 per diluted share, versus net income of $1.4 million, or $0.13 per diluted share. Bookings were $5.5 million, backlog was approximately $24.9 million, adjusted EBITDA was $0.4 million in Q2, and cash and cash equivalents were $14.3 million at June 30. The company did not provide formal next-quarter or full-year financial guidance, but said it expects additional backlog conversion in the remainder of the year while timing will continue to depend on customer funding, procurement, installation schedules, and acceptance timelines.

John Givens framed the quarter as evidence that demand is intact and the main issue is timing, not lack of interest. He pointed to reopened grants, renewed federal activity, stronger bookings, and the U.S. Army marketplace acceptance across three categories as signs that the funding environment is moving in VirTra’s favor. He also highlighted the Orlando campus acquisition as a strategic expansion of the company’s defense footprint and said the business is seeing more proposal activity internationally and in military channels.

Alanna Boudreau emphasized that Q2 revenue improved sequentially to $5.8 million, with international revenue of $2.2 million helping offset the timing pressure in government revenue. She said gross profit was $3.4 million, or 59% of revenue, down from 69% a year ago, mainly due to lower volume and continued investment in content production and product development. She noted operating expense discipline, with net operating expense at $3.6 million versus $3.9 million last year, and said cash was $14.3 million at quarter-end after inventory builds and the Orlando facility purchase. She also said backlog was $24.9 million, split into $13.2 million capital, $3.8 million service, and $7.9 million STEP contracts.

Analysts asked what specific indicators are driving management’s greater confidence in the funding environment and how that translates into revenue. Givens cited three reopened grants dating back to October 2024, customer submissions now moving toward awards, military RFIs and RFPs, and acceptance into the U.S. Army marketplace in weapons skills, joint fires, and counter-UAS. On international, he said the business is inherently lumpy and not consistent because of long RFP and timing delays, but that overseas demand is being driven by UAS and other mission-critical needs, with some Q2 revenue coming from previously awarded orders that customers were only able to take delivery of later.