Revenue performance remains highly erratic, evidenced by a 51.5% year-over-year contraction in 2026Q1, despite the company maintaining gross margins above 60% in most periods.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 |
|---|
| Sales/Revenue | 18.72M | 22.4M | 26.35M | 38.79M | 28.3M | 24.43M | 19.09M | 18.71M | 18.08M | 16.52M | 15.65M | 13.34M | 9.86M | 9.82M | 8.83M | 7.86M | 6.59M | 4.61M | 2.91M | 2.25M | 1.89M | 977.36K | 1.33M | 984.49K | 2.28M | 2.46M | 410 | 5.43K |
| Revenue Growth % | -26.36% | -14.98% | -32.07% | 37.06% | 15.83% | 28.01% | 2.01% | 3.49% | 9.42% | 5.57% | 17.31% | 35.32% | 0.41% | 11.21% | 12.31% | 19.21% | 43.01% | 58.62% | 29.5% | 18.93% | 93.15% | -26.41% | 34.91% | -56.83% | -7.41% | 600647.32% | -92.45% | - |
| Cost of Goods Sold | 6.58M | 7.2M | 6.94M | 11.38M | 12.05M | 13.03M | 7.19M | 9M | 7.03M | 6.29M | 5.97M | 5.65M | 4.35M | 3.36M | 3.28M | 3.8M | 2.45M | 1.56M | 1.62M | 755.8K | 729.32K | 663.38K | 860.07K | 656.8K | 1.32M | 1.57M | 0 | 24.47K |
| COGS % of Revenue | - | 32.14% | 26.33% | 29.33% | 42.57% | 53.32% | 37.65% | 48.09% | 38.88% | 38.07% | 38.14% | 42.36% | 44.14% | 34.23% | 37.15% | 48.3% | 37.1% | 33.78% | 55.66% | 33.66% | 38.63% | 67.87% | 64.76% | 66.72% | 57.8% | 63.92% | - | 450.6% |
| Gross Profit | 12.14M | 15.2M | 19.41M | 27.41M | 16.25M | 11.41M | 11.9M | 9.71M | 11.05M | 10.23M | 9.68M | 7.69M | 5.51M | 6.46M | 5.55M | 4.06M | 4.15M | 3.05M | 1.29M | 1.49M | 1.16M | 313.98K | 468.12K | 327.69K | 962.37K | 888.66K | 410 | -19.04K |
| Gross Margin % | 64.86% | 67.86% | 73.67% | 70.67% | 57.43% | 46.68% | 62.35% | 51.91% | 61.12% | 61.93% | 61.86% | 57.64% | 55.86% | 65.77% | 62.85% | 51.7% | 62.9% | 66.22% | 44.34% | 66.34% | 61.37% | 32.13% | 35.24% | 33.28% | 42.2% | 36.08% | 100% | -350.6% |
| Gross Profit Growth % | - | -21.69% | -29.19% | 68.65% | 42.52% | -4.16% | 22.51% | -12.09% | 7.98% | 5.69% | 25.9% | 39.63% | -14.72% | 16.38% | 36.54% | -2.02% | 35.83% | 136.89% | -13.43% | 28.56% | 268.95% | -32.93% | 42.85% | -65.95% | 8.29% | 216647.56% | 102.15% | - |
| Operating Expenses | 14.4M | 14.77M | 17.42M | 17.03M | 13.66M | 9.95M | 10.67M | 9.45M | 10.05M | 8.93M | 7.56M | 6.2M | 4.24M | 4.86M | 5.41M | 4.75M | 2.63M | 1.58M | 775.86K | 2.08M | 2.81M | 1.91M | 2.82M | 1.01M | 2.12M | 2.44M | 417.73K | 342.84K |
| OpEx % of Revenue | - | 65.91% | 66.09% | 43.9% | 48.27% | 40.73% | 55.92% | 50.51% | 55.59% | 54.02% | 48.27% | 46.47% | 43.04% | 49.53% | 61.29% | 60.48% | 39.93% | 34.3% | 26.69% | 92.86% | 148.72% | 195.17% | 212.37% | 102.62% | 92.93% | 99.21% | 101885.61% | 6312.63% |
| Selling, General & Admin | 12.12M | 12.38M | 14.41M | 14.24M | 11.05M | 8.09M | 9.07M | 8.11M | 8.69M | 7.64M | 6.46M | 6.2M | 4.24M | 4.86M | 5.41M | 4.75M | 2.63M | 1.58M | 775.86K | 2.08M | 2.81M | 2.14M | 2.82M | 1.01M | 2.12M | 2.44M | 396.83K | 342.84K |
| SG&A % of Revenue | - | 55.27% | 54.7% | 36.7% | 39.06% | 33.09% | 47.52% | 43.32% | 48.07% | 46.25% | 41.25% | 46.47% | 43.04% | 49.53% | 61.29% | 60.48% | 39.93% | 34.3% | 26.69% | 92.86% | 148.72% | 218.7% | 212.37% | 102.62% | 92.93% | 99.21% | 96789.02% | 6312.63% |
| Research & Development | 2.28M | 2.38M | 3M | 2.79M | 2.61M | 1.87M | 1.6M | 1.35M | 1.36M | 1.29M | 1.1M | 1.67M | 1.08M | 1.51M | 1.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 10.64% | 11.4% | 7.2% | 9.21% | 7.64% | 8.4% | 7.19% | 7.51% | 7.78% | 7.03% | 12.49% | 10.91% | 15.4% | 14.7% | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 63.71K | 26.45K | 135.96K | -2.4K | -13.38K | -24.61K | 0 | 0 | 0 | 0 | 0 | 0 | -230K | 0 | 0 | 0 | 0 | 417.73K | 0 |
| Operating Income | -2.26M | 437.5K | 2M | 10.38M | 2.59M | 1.45M | 1.23M | 262.32K | 999.9K | 1.31M | 2.13M | 1.49M | 1.26M | 1.59M | 138.01K | -690.19K | 1.51M | 1.47M | 513.38K | -595.43K | -1.65M | -1.59M | -2.35M | -682.62K | -1.16M | -1.56M | -417.32K | -361.88K |
| Operating Margin % | -12.07% | 1.95% | 7.58% | 26.77% | 9.16% | 5.95% | 6.42% | 1.4% | 5.53% | 7.91% | 13.58% | 11.17% | 12.82% | 16.23% | 1.56% | -8.78% | 22.97% | 31.93% | 17.66% | -26.52% | -87.36% | -163.04% | -177.12% | -69.34% | -50.73% | -63.13% | -101785.61% | -6663.23% |
| Operating Income Growth % | - | -78.09% | -80.77% | 300.34% | 78.38% | 18.57% | 367.49% | -73.77% | -23.47% | -38.56% | 42.65% | 17.96% | -20.73% | 1055.09% | 120% | -145.56% | 2.89% | 186.82% | 186.22% | 63.89% | -3.49% | 32.27% | -244.64% | 40.99% | 25.6% | -272.62% | -15.32% | - |
| EBITDA | -768.9K | 2.37M | 3.41M | 11.81M | 3.89M | 2.04M | 1.9M | 854.25K | 1.29M | 1.58M | 2.32M | 1.68M | 1.46M | 1.81M | 365.5K | -487.5K | 2.17M | 2.01M | 553.88K | -407.79K | -1.39M | -1.02M | -2.25M | 228.82K | -609.67K | -427.75K | -396.43K | -356.52K |
| EBITDA Margin % | -4.11% | 10.57% | 12.95% | 30.44% | 13.76% | 8.36% | 9.97% | 4.57% | 7.14% | 9.55% | 14.82% | 12.56% | 14.76% | 18.46% | 4.14% | -6.2% | 32.87% | 43.53% | 19.05% | -18.16% | -73.68% | -104.76% | -169.56% | 23.24% | -26.73% | -17.37% | -96689.02% | -6564.61% |
| EBITDA Growth % | -122.77% | -30.61% | -71.1% | 203.31% | 90.55% | 7.37% | 122.75% | -33.87% | -18.11% | -31.98% | 38.41% | 15.09% | -19.67% | 395.81% | 174.97% | -122.49% | 7.99% | 262.43% | 235.83% | 70.68% | -35.85% | 54.53% | -1084.22% | 137.53% | -42.53% | -7.9% | -11.19% | - |
| D&A (Non-Cash Add-back) | 1.49M | 1.93M | 1.42M | 1.42M | 1.3M | 589.06K | 676.5K | 591.94K | 291.86K | 270.88K | 192.6K | 184.85K | 192.15K | 218.06K | 227.49K | 202.69K | 652.88K | 535K | 40.51K | 187.65K | 258.14K | 569.58K | 100.47K | 911.43K | 547.19K | 1.13M | 20.9K | 5.36K |
| EBIT | -2.17M | 437.5K | 2M | 10.38M | 2.59M | 1.45M | 1.23M | 262.32K | 999.9K | 1.31M | 2.13M | 1.49M | 1.26M | 1.59M | 113.39K | -690.19K | 1.07M | 1.48M | 9.48M | -801.28K | -1.65M | -1.59M | -2.35M | -682.62K | -1.07M | -1.56M | -658.15K | -361.88K |
| Net Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.08K | -57.45K | -226.73K | -322.77K | -527.87K | -939.75K | -957.9K | -856.68K | -1.55M | -1.46M | -228.09K | 0 |
| Interest Income | 0 | 0 | 0 | 0 | - | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 47.94K | 9.39K | 0 | 0 | 72 | 66 | 16 | 0 | 130 | 1.34K | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | - | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 50.01K | 66.84K | 226.73K | 322.77K | 527.94K | 939.81K | 957.91K | 856.68K | 1.55M | 1.46M | 228.09K | 0 |
| Other Income/Expense | -235.16K | -290.31K | 254.64K | 586.08K | -66.17K | 1.33M | 33.29K | 109.13K | 128.19K | -549.53K | 26.45K | 135.96K | -2.4K | -13.38K | -24.61K | -2.57K | -495.11K | -57.45K | 8.74M | -528.61K | 175.62K | -401.57K | 3.97M | 2.63K | -71.33K | 55.76K | 0 | 0 |
| Pretax Income | -2.49M | 147.19K | 2.25M | 10.97M | 2.53M | 2.79M | 1.26M | 371.45K | 1.13M | 756.99K | 2.15M | 1.63M | 1.26M | 1.58M | 113.4K | -692.76K | 1.02M | 1.42M | 9.25M | -801.28K | -500.99K | -825.31K | 2.57M | -679.99K | -1.14M | -1.5M | 0 | 0 |
| Pretax Margin % | -13.32% | 0.66% | 8.54% | 28.28% | 8.93% | 11.4% | 6.6% | 1.99% | 6.24% | 4.58% | 13.75% | 12.19% | 12.79% | 16.1% | 1.28% | -8.81% | 15.46% | 30.68% | 318.21% | -35.69% | -26.54% | -84.44% | 193.53% | -69.07% | -50.15% | -60.87% | - | - |
| Income Tax | -159.26K | -111.26K | 887.29K | 1.82M | 571.64K | 246.05K | -218.8K | 446.73K | 310K | -2.51M | 102.75K | 89.56K | 2.4K | 13.38K | 0 | 2.57K | 0 | 0 | 0 | 528.61K | -500.99K | 401.57K | -3.92M | 907.51K | 1.54M | 1.4M | -227.06K | 0 |
| Effective Tax Rate % | 6.39% | -75.59% | 39.42% | 16.58% | 22.62% | 8.83% | -17.37% | 120.27% | 27.48% | -330.95% | 4.77% | 5.51% | 0.19% | 0.85% | 0% | -0.37% | 0% | 0% | 0% | -65.97% | 100% | -48.66% | -152.45% | -133.46% | -134.29% | -93.35% | - | - |
| Net Income | -2.33M | 258.45K | 1.36M | 9.15M | 1.96M | 2.54M | 1.48M | -75.28K | 818.09K | 3.26M | 2.05M | 1.54M | 1.26M | 1.58M | 113.4K | -692.76K | 1.02M | 1.42M | 9.25M | -1.12M | -1.47M | -2M | 1.57M | -1.59M | -2.69M | -2.95M | -190.27K | -361.88K |
| Net Margin % | -12.47% | 1.15% | 5.18% | 23.59% | 6.91% | 10.4% | 7.75% | -0.4% | 4.52% | 19.74% | 13.1% | 11.52% | 12.79% | 16.1% | 1.28% | -8.81% | 15.46% | 30.68% | 318.21% | -50.07% | -78.06% | -204.13% | 117.91% | -161.52% | -118.08% | -119.96% | -46406.34% | -6663.23% |
| Net Income Growth % | -265.37% | -81.05% | -85.1% | 367.86% | -23% | 71.81% | 2063.95% | -109.2% | -74.92% | 59.13% | 33.38% | 21.86% | -20.21% | 1294.03% | 116.37% | -167.93% | -27.93% | -84.71% | 923.06% | 23.72% | 26.14% | -227.39% | 198.49% | 40.95% | 8.86% | -1452.87% | 47.42% | - |
| Net Income (Continuing) | -2.33M | 258.45K | 1.36M | 9.15M | 1.96M | 2.54M | 1.48M | -75.28K | 818.09K | 3.26M | 2.05M | 1.54M | 1.26M | 1.58M | 113.4K | -692.76K | 1.02M | 1.42M | 9.25M | -1.12M | -1.47M | -2M | 1.61M | -1.54M | -2.61M | -2.95M | -1.81M | -361.88K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.21 | 0.02 | 0.12 | 0.77 | 0.18 | 0.25 | 0.19 | -0.01 | 0.10 | 0.41 | 0.26 | 0.19 | 0.16 | 0.20 | 0.01 | -0.09 | 0.13 | 0.20 | 1.42 | -0.21 | -0.36 | -0.64 | 0.60 | -0.75 | -1.52 | -1.86 | -0.30 | -0.67 |
| EPS Growth % | -270.95% | -80.92% | -84.42% | 327.78% | -28% | 31.58% | - | -109.79% | -75.83% | 57.69% | 36.84% | 18.75% | -20% | 1298.6% | 116.34% | -167.31% | -35% | -85.92% | 776.19% | 41.67% | 43.75% | -206.67% | 180% | 50.66% | 18.28% | -520% | 55.22% | - |
| EPS (Basic) | - | 0.02 | 0.12 | 0.77 | 0.18 | 0.25 | 0.19 | -0.01 | 0.10 | 0.41 | 0.26 | 0.19 | 0.16 | 0.20 | 0.01 | -0.09 | 0.13 | 0.20 | 1.42 | -0.21 | -0.36 | -0.64 | 0.60 | -0.75 | -1.52 | -1.86 | -0.30 | -0.67 |
| Diluted Shares Outstanding | 11.3M | 11.27M | 11.16M | 10.96M | 10.87M | 10.06M | 7.84M | 7.75M | 8.25M | 7.9M | 7.93M | 7.91M | 7.91M | 7.91M | 7.91M | 7.91M | 7.63M | 7.03M | 6.5M | 5.38M | 4.06M | 3.11M | 2.62M | 2.12M | 1.77M | 1.59M | 633.6K | 541.93K |
| Basic Shares Outstanding | 11.3M | 11.27M | 11.16M | 10.96M | 10.86M | 10.01M | 7.76M | 7.75M | 7.9M | 7.9M | 7.92M | 7.91M | 7.91M | 7.91M | 7.91M | 7.91M | 7.63M | 7.03M | 6.5M | 5.38M | 4.06M | 3.11M | 2.58M | 2.12M | 1.77M | 1.59M | 626.71K | 541.93K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Lumpy government procurement cycles
As indicated by the most recent quarterly financial data, VirTra's top-line performance has faced significant headwinds, evidenced by a sharp -51.5% year-over-year revenue decline in 2026Q1, reflecting the inherent volatility of relying on project-based government contracts rather than a consistent, recurring subscription-based revenue stream.
The persistent revenue volatility suggests that the company remains highly susceptible to the timing of municipal and federal budget cycles. Investors should monitor whether the transition to the STEP subscription model can eventually smooth these lumpy revenue patterns or if the current contraction indicates a broader saturation of the core simulator market.
Based on reported income statements, VirTra maintains a robust gross margin profile, consistently hovering above 60% in most periods, which suggests that the company possesses significant pricing power for its specialized immersive training hardware and proprietary software content despite the recent downward pressure on total volume.
The ability to sustain high gross margins during periods of revenue contraction implies that the company's value proposition remains intact for its core customer base. However, the fluctuation in margins, such as the dip to 57.5% in 2025Q4, warrants further investigation into whether competitive pricing pressures or shifts in product mix are beginning to erode this structural advantage.
According to the provided financial filings, VirTra's operating leverage appears severely constrained, as the company struggled to maintain positive operating income in recent quarters, with operating margins swinging from a peak of 30.5% in 2023Q4 to a negative 38.2% in the most recent 2026Q1 period.
The high fixed-cost structure, particularly regarding R&D and specialized personnel, suggests that the company has not yet achieved the necessary scale to absorb its SG&A burden during revenue downturns. This indicates that profitability is highly sensitive to top-line growth, leaving little room for operational error in the current environment.
As highlighted by the recent shift to negative net income, the primary risk to the investment thesis is the company's inability to scale its operating expenses efficiently, which may indicate that the current business model is structurally ill-equipped to handle the volatility of government procurement cycles.
Short-sellers would likely focus on the widening gap between gross profit and operating income, which suggests that the company's overhead is growing faster than its ability to monetize its proprietary technology. Investors should monitor whether management can implement cost-discipline measures without compromising the R&D necessary to maintain its competitive moat.
Quick answers to the most common questions about buying VTSI stock.
For fiscal year 2025, VirTra, Inc. (VTSI) reported total revenue of $22.4M. This represents a 412387.4% increase compared to $0.0M in 1999.
VirTra, Inc. (VTSI) is profitable, generating $0.3M in net income for the fiscal year ending 2025 with a net profit margin of 1.2%.
VirTra, Inc. (VTSI) reported an operating income of $0.4M, resulting in an operating profit margin of 2.0%. This margin reflects the operational efficiency of the business before interest and taxes.
VirTra, Inc. (VTSI) generated $15.2M in gross profit for the year, representing a gross profit margin of 67.9%. This demonstrates the company's core pricing power and production efficiency.