VirTra Reports Second Quarter and Six Months 2026 Financial Results

VirTra Reports Second Quarter and Six Months 2026 Financial Results CHANDLER, Ariz. — August 13, 2026 — VirTra, Inc. (Nasdaq: VTSI) (“VirTra” or the “Company”), a global provider of judgmental use-of-force and firearms training simulators, reported results for the second quarter and six months ended June 30, 2026. The financial statements are available on VirTra’s website and here. Second Quarter 2026 and Recent Operational Highlights ● Bookings totaled $5.5 million during the second quarter. ● Total backlog at June 30, 2026 was $24.9 million and included $13.2 million in capital, $3.8 million in service, and $7.9 million in STEP contracts. ● Accepted into the U.S. Army Marketplace across three mission-critical capability areas: Weapons Skills Development, Joint Fires Training, and Counter-Unmanned Aircraft Systems (C-UAS), positioning VirTra to compete for future Army opportunities and demonstrating the breadth of its military training and force-protection solutions. ● Expanded its long-term investment in the defense training market through the acquisition of a dual-building Orlando campus, increasing its presence within Central Florida Research Park and enhancing its ability to support customer engagement, partner collaboration, program execution, and future growth within the military simulation and training ecosystem. Second Quarter and Six Months 2026 Financial Highlights For the Three Months Ended For the Six Months Ended All figures in millions, except per share data June 30, 2026 June 30, 2025 % Δ June 30, 2026 June 30, 2025 % Δ Total Revenue $ 5.8 $ 7.0 -17 % $ 9.2 $ 14.1 -35 % Gross Profit $ 3.4 $ 4.8 -29 % $ 5.5 $ 10.0 -45 % Gross Margin 59 % 69 % N/A 60 % 71 % N/A Net Income (Loss) $ (0.3 ) $ 0.2 N/A $ (1.6 ) $ 1.4 N/A Diluted EPS $ (0.02 ) $ 0.02 N/A $ (0.14 ) $ 0.13 N/A Adjusted EBITDA $ 0.4 $ 0.7 -45 % $ (0.4) $ 2.4 -117 % Management Commentary VirTra CEO John Givens stated, “Our second quarter results reflect increased revenue conversion compared with the first quarter, particularly within our international business. While domestic funding availability and procurement timing continue to impact results, we saw encouraging activity during the quarter, including stronger bookings, momentum in our international business, and increased grant-related activity. “We continue to see funding opportunities moving through the system, with customers actively submitting applications and advancing their procurement efforts. Recent grant funding releases and increased customer participation in grant programs provide additional evidence that agencies are moving forward, even though the pace of awards and delivery timelines remain difficult to predict. At the same time, we continue to make progress in the military market, as evidenced by our acceptance into the U.S. Army Marketplace across three mission-critical capability areas. “While uncertainty around funding timelines continues, we believe the underlying demand environment remains healthy. We are encouraged by the level of activity we are seeing across our domestic, international, and military markets, as well as the continued strength of our backlog and opportunity pipeline. Our focus remains on supporting customers through the funding and procurement process, converting backlog into revenue, and positioning VirTra to capture the opportunities ahead.” Six Months 2026 Financial Results Total revenue was $9.2 million, compared to $14.1 million in the prior year period. The decrease was due to several customers booked in Q3 and Q4 2025 being unable to accept delivery in the first six months of 2026. Gross profit was $5.5 million (60% of revenue), compared to $10.0 million (71% of revenue) in the prior year period. Net operating expense was $7.1 million, compared to $7.7 million in the prior year period. Loss from operations was $(1.5) million, compared to income from operations of $2.3 million in the prior year period. Net loss was $(1.6) million, or $(0.14) per diluted share, compared to net income of $1.4 million, or $0.13 per diluted share, in the prior year period. Adjusted EBITDA, a non-GAAP metric, was $(0.5) million, compared to $2.4 million in the prior year period. Second Quarter 2026 Financial Results Total revenue was $5.8 million, compared to $7.0 million in the prior year period. The decrease is primarily due to a decrease in domestic sales, partially offset by international sales. Gross profit was $3.4 million (59% of revenue), compared to $4.8 million (69% of revenue) in the prior year period. Net operating expense was $3.6 million, compared to $3.9 million in the prior year period. Loss from operations was $(0.2) million, compared to income from operations of $0.9 million in the prior year period. Net loss was $(0.3) million, or $(0.02) per diluted share, compared to net income of $0.2 million, or $0.02 per diluted share, in the prior year period. Adjusted EBITDA, a non-GAAP metric, was $0.4 million, compared to $0.7 million in the prior year period. Financial Commentary VirTra CFO Alanna Boudreau stated, “Second quarter revenue increased significantly compared to the first quarter, reflecting improved revenue conversion and supporting a return to positive adjusted EBITDA. We generated stronger bookings during the quarter and ended June with a backlog of approximately $24.9 million, providing visibility into future revenue opportunities. “While funding and procurement timelines continue to influence the pace of conversion, we remain focused on disciplined expense management while investing in content development, technology, and strategic initiatives that support long-term growth. We also completed the acquisition of our Orlando facility during the quarter, which we expect will contribute positively to future financial performance through tenant lease income while strengthening our position within the military training and simulation market.” Conference Call VirTra’s management will hold a conference call today (August 13, 2026) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results. VirTra’s CEO John Givens and Chief Financial Officer Alanna Boudreau will host the call, followed by a question-and-answer period. U.S. dial-in number: 1-877-407-9208 International number: 1-201-493-6784 Conference ID: 13760404 Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 949-574-3860. The conference call will be broadcast live and available for replay here and via the investor relations section of the Company’s website. A replay of the call will be available after 7:30 p.m. Eastern time on the same day through August 27, 2026. Toll-free replay number: 1-844-512-2921 International replay number: 1-412-317-6671 Replay ID: 13760404 About VirTra, Inc. VirTra (Nasdaq: VTSI) is a global provider of judgmental use-of-force and firearms training simulators for law enforcement, military, educational, and commercial markets. Since 1993, VirTra has been dedicated to saving lives by providing highly effective, realistic training designed to prepare officers for the most difficult real-world situations. About the Presentation of Adjusted EBITDA Adjusted earnings before interest, income taxes, depreciation, and amortization and before other non-operating costs and income (“Adjusted EBITDA”) is a non-GAAP financial measure. Adjusted EBITDA also includes non-cash stock option expense and other than temporary impairment loss on investments. Other companies may calculate Adjusted EBITDA differently. VirTra calculates its Adjusted EBITDA to eliminate the impact of certain items it does not consider to be indicative of its performance and its ongoing operations. Adjusted EBITDA is presented herein because management believes the presentation of Adjusted EBITDA provides useful information to VirTra’s investors regarding VirTra’s financial condition and results of operations and because Adjusted EBITDA is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in VirTra’s industry, several of which present a form of Adjusted EBITDA when reporting their results. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of VirTra’s results as reported under accounting principles generally accepted in the United States of America (“GAAP”). Adjusted EBITDA should not be considered as an alternative for net income, cash flows from operating activities and other consolidated income or cash flows statement data prepared in accordance with GAAP or as a measure of profitability or liquidity. A reconciliation of net income to Adjusted EBITDA is provided in the following tables: For Three Months Ended For Six Months Ended June 30, June 30, Increase % June 30, June 30, Increase % 2026 2025 (Decrease) Change 2026 2025 (Decrease) Change Net Income (Loss) $ (261,258) $ 175,314 $ (436,572 ) -249 % $ (1,589,890) $ 1,439,374 $ (3,029,264 ) -210 % Adjustments: Provision for income taxes 88,439 (9,000 ) 97,439 -1083 % 142,438 93,000 49,438 53 % Depreciation and amortization 520,368 513,693 6,675 1 % 990,394 829,841 160,553 19 % Interest (net) 6,426 (26,876 ) 33,302 -124 % (15,346) (48,127 ) 32,781 -68 % EBITDA 353,975 653,131 (299,156 ) -46 % (472,404) 2,314,088 (2,786,492 ) -120 % Right of use amortization 29,280 42,501 (13,221 ) -31 % 72,773 84,365 (11,592 ) -14 % Adjusted EBITDA $ 383,255 $ 695,632 $ (312,377 ) -45 % $ (399,631) $ 2,398,453 $ (2,798,084 ) -117 % Forward-Looking Statements The information in this discussion contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “should,” “could,” “predicts,” “potential,” “continue,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. The forward-looking statements are applicable only as of the date on which they are made, and we do not assume any obligation to update any forward-looking statements. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. In evaluating these statements, you should specifically consider various factors, uncertainties and risks that could affect our future results or operations. These factors, uncertainties and risks may cause our actual results to differ materially from any forward-looking statement set forth in the reports we file with or furnish to the Securities and Exchange Commission (the “SEC”). You should carefully consider these risk and uncertainties described and other information contained in the reports we file with or furnish to the SEC before making any investment decision with respect to our securities. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement. Investor Relations Contact: Alec Wilson and Greg Bradbury Gateway Group, Inc. VTSI@gateway-grp.com 949-574-3860 -Financial Tables to Follow- VIRTRA, INC. CONDENSED BALANCE SHEETS (UNAUDITED) June 30, 2026 December 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 14,312,743 $ 18,594,598 Accounts receivable, net 4,461,812 5,502,087 Inventory, net 14,193,484 13,060,024 Unbilled revenue 3,180,534 868,216 Prepaid expenses and other current assets 1,668,188 2,622,462 Deferred Contract Costs, short term 374,375 374,375 Total current assets 38,191,136 41,021,762 Long-term assets: Property and equipment, net 20,696,026 16,268,400 Operating lease right-of-use asset, net - 268,873 Intangible assets, net 2,534,037 2,513,186 Security deposits, long-term - 15,979 Other assets, long-term 452,697 424,226 Deferred tax asset, net 4,007,463 4,135,463 Deferred Contract Costs, long term 301,508 488,695 Total long-term assets 27,991,731 24,114,822 Total assets $ 66,182,867 $ 65,136,584 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 612,981 $ 784,074 Accrued compensation and related costs 659,091 461,430 Accrued expenses and other current liabilities 1,301,057 1,196,565 Notes payable, current 312,523 227,754 Operating lease liability, short-term - 196,311 Deferred revenue, short-term 6,931,535 7,361,738 Total current liabilities 9,817,187 10,227,872 Long-term liabilities: Deferred revenue, long-term 1,157,655 1,913,393 Notes payable, long-term 11,107,199 7,314,085 Operating lease liability, long-term - 89,053 Total long-term liabilities 12,264,854 9,316,531 Total liabilities 22,082,041 19,544,403 Commitments and contingencies (See Note 10) Stockholders’ equity: Preferred stock $0.0001 par value; 2,500,000 shares authorized; no shares issued or outstanding - - Common stock $0.0001 par value; 50,000,000 shares authorized; 11,319,624 shares issued and outstanding as of June 30, 2026 and 11,303,885 as of December 31, 2025 1,135 1,130 Class A common stock $0.0001 par value; 2,500,000 shares authorized; no shares issued or outstanding - - Class B common stock $0.0001 par value; 7,500,000 shares authorized; no shares issued or outstanding - - Additional paid-in capital 33,154,621 33,056,091 Retained Earnings 10,945,070 12,534,960 Total stockholders’ equity 44,100,826 45,592,181 Total liabilities and stockholders’ equity $ 66,182,867 $ 65,136,584 VIRTRA, INC. CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenues: Net sales $ 5,763,358 $ 6,978,938 $ 9,237,504 $ 14,139,185 Total revenue 5,763,358 6,978,938 9,237,504 14,139,185 Cost of sales 2,347,656 2,166,461 3,687,998 4,129,828 Gross profit 3,415,702 4,812,477 5,549,506 10,009,357 Operating expenses: General and administrative 3,167,673 3,289,995 6,128,846 6,509,946 Research and development 435,493 608,116 936,165 1,217,243 Net operating expense 3,603,166 3,898,111 7,065,011 7,727,189 Income (loss) from operations (187,464) 914,366 (1,515,505) 2,282,168 Other income (expense): Other income 103,656 77,873 216,845 149,883 Other (expense) (89,011) (825,925 ) (148,792) (899,677 ) Net other income 14,645 (748,052 ) 68,053 (749,794 ) Income (Loss) before provision for income taxes (172,819) 166,314 (1,447,452) 1,532,374 Provision (Benefit) for income taxes 88,439 (9,000 ) 142,438 93,000 Net Income (loss) $ (261,258) $ 175,314 $ (1,589,890) $ 1,439,374 Net Income (loss) per common share: Basic $ (0.02) $ 0.02 $ (0.14) $ 0.13 Diluted $ (0.02) $ 0.02 $ (0.14) $ 0.13 Weighted average shares outstanding: Basic 11,307,865 11,261,588 11,305,886 11,260,902 Diluted 11,307,865 11,261,588 11,305,886 11,260,902 VIRTRA, INC. CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30, 2026 2025 Cash flows from operating activities: Net (loss) $ (1,589,890) $ 1,439,374 Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: Depreciation and amortization 990,394 829,841 Right of use amortization 72,774 84,365 Employee stock compensation 98,535 212,823 Bad Debt Expense (18,172) - Loss on disposal of lease 2,706 - Changes in operating assets and liabilities: Accounts receivable, net 1,058,449 1,557,910 Inventory, net (1,133,461) 1,776,667 Other assets-LT 158,715 - Deferred taxes 128,000 87,175 Unbilled revenue (2,312,318) 983,019 Other assets 954,274 19,712 Prepaid expenses and other current assets - (1,337,108 ) Accounts payable and other accrued expenses 131,057 (273,918) Operating lease right of use (75,992) (87,907 ) Deferred revenue (1,185,941) 755,476 Net cash provided (used in) by operating activities (2,720,870) 6,047,429 Cash flows from investing activities: Internal intangible assets (429,850) (2,265,489) Purchase of property and equipment (1,013,009) (996,452 ) Net cash (used in) investing activities (1,442,859) (3,261,941 ) Cash flows from financing activities: Principal payments of debt (122,116) (128,962 ) Net cash (used in) financing activities (122,116) (128,962 ) Net (decrease) in cash (4,285,845) 2,656,526 Cash and restricted cash, beginning of period 18,594,598 18,040,827 Cash and restricted cash, end of period $ 14,308,753 $ 20,697,353 Supplemental disclosure of cash flow information: Income taxes paid (refunded) $ (1,041,894) $ 720,951 Interest paid $ 134,961 $ 116,415 Noncash investing & financing activities disclosure: Assumption of lease asset (Lessor) $256,990 $- Mortgage to Purchase Building $(4,000,000) $-