VirTra, Inc. (VTSI) Earnings
VirTra, Inc. is expected to report next earnings on August 10, 2026 (in NaN days), with a consensus EPS estimate of $-0.09. VTSI has beaten EPS estimates in 6 of its last 11 reported quarters (average surprise -126.3% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 11, 2026 | $-0.09 | $-0.12 | -33.3% | $3M | +27.2% |
| Mar 26, 2026 | $-0.02 | $-0.09 | -350.0% | $3M | -45.8% |
| Mar 27, 2025 | $0.07 | $-0.08 | -214.3% | $5M | -36.9% |
| Apr 1, 2024 | $0.13 | $0.25 | +92.3% | $8M | -5.4% |
| Nov 14, 2023 | $-0.05 | $0.15 | +400.0% | $8M | -19.3% |
| Aug 14, 2023 | $0.06 | $0.09 | +50.0% | $10M | +39.7% |
| Mar 31, 2023 | $0.01 | $0.13 | +1399.4% | $10M | +33.7% |
| Nov 14, 2022 | $-0.02 | $-0.07 | -250.0% | $5M | -26.8% |
| Aug 11, 2022 | — | $0.05 | — | $7M | — |
| Mar 31, 2022 | $0.05 | $0.00 | -97.5% | $9M | +40.8% |
| Nov 15, 2021 | $0.06 | $0.12 | +100.0% | $6M | +2.9% |
| Aug 12, 2021 | $0.01 | $0.05 | +400.0% | $5M | +38.7% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 11, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Market and Sales Environment - After a period of frozen activity, government funding programs have reopened, and customers are progressing through grant applications, procurement, and delivery readiness steps. Revenue recognition depends on multi-step customer processes (funding approval, award, PO issuance, delivery acceptance) that are not fully within Vertra's control, but the reactivation of activity creates a more constructive outlook for the second half of 2026. - A revised, more targeted commercial strategy has resulted in approximately doubled qualified leads over the past three months, driven by improved lead capture on the updated company website, better customer segmentation, needs-based marketing, and a more disciplined pipeline progression process. This allows the sales team to prioritize higher-quality opportunities and tailor outreach to specific customer use cases. - Product Development Highlights - The APEX data analytics platform continues to gain traction, with early customer feedback indicating it improves training outcomes for accuracy, reaction time, and decision-making. APEX was selected for the INL-Columbia government contract to enable centralized long-term performance tracking and trending analysis. - The next-generation drone defense training system was demonstrated at the American Corrections Association Winter Conference, receiving positive feedback. The system addresses growing perimeter and contraband threats from unauthorized drones for correctional facilities, and has generated multiple ongoing commercial discussions. - Long-Term Market Development - Military and federal market opportunities are progressing as expected, with movement from early discussions to requirements development and potential RFP pathways across multiple Army and Marine Corps branches. Vertra's technology is aligned with evolving training requirements, though revenue timing for these long-cycle opportunities remains unclear. - Cost Management - Management has maintained disciplined cost control during the period of delayed revenue conversion, ending Q1 with $17.9 million in cash and cash equivalents to provide financial flexibility for current operations and future growth investments.
Guidance
- Management expects sales momentum to improve in the second half of 2026 as increased customer activity converts to orders, deliveries, and revenue, following multi-step funding and procurement processes. Q1 2026 is viewed as a base revenue level, with sequential growth expected as activity progresses. - No formal full-year revenue or earnings guidance was provided, but management confirms that underlying business activity is trending positive and positions the company for improved financial performance through 2026 as backlog converts. - Discretionary operating spending will be maintained at current reduced (10% year-over-year) levels until top-line growth is clearly established, with incremental investments to be added as conversion activity picks up.
Segment performance
Total Q1 2026 revenue was $3.5 million, down from $7.2 million in Q1 2025. By market segment: - Government: $2.7 million in revenue (77.1% of total revenue), down from $5.2 million in Q1 2025 - International: $0.7 million in revenue (20% of total revenue), down from $1.9 million in Q1 2025 - Commercial: ~$84,000 in revenue (2.4% of total revenue), consistent with Q1 2025 By revenue program type: - Subscription Training Equipment Partnership (STEP): $1 million in revenue (28% of total revenue), up from $0.9 million (13% of total revenue) in Q1 2025. The higher revenue share is due to lower capital system sales in the quarter, as STEP revenue is recognized over contract terms. Gross profit was $2.1 million (61% margin), down from $5.2 million (73% margin) in Q1 2025. Total operating expenses were $3.5 million, down from $3.8 million year-over-year. Q1 2026 operating loss was $1.3 million, compared to $1.4 million operating income in Q1 2025. Net loss was $1.3 million ($0.12 per diluted share), compared to net income of $1.3 million ($0.11 per diluted share) year-over-year. Adjusted EBITDA was negative $0.8 million, compared to positive $1.7 million in Q1 2025. Total backlog at end-Q1 2026 was $25.2 million, split into $13.2 million capital, $4.4 million service, and $7.6 million STEP. Q1 2026 bookings totaled $3.8 million.
Risks & headwinds
- Revenue timing is heavily dependent on external government funding and procurement processes, including grant approval timelines, continuing resolutions, and appropriations, which remain uncertain and outside of Vertra's control. Some federal law enforcement agencies still lack approved funding as of end-Q1 2026. - Conversion of increased lead activity and pipeline opportunities to recognized revenue will take 6 to 12 months, so improvements in customer activity will not translate to immediate revenue growth. - Long-cycle military and federal opportunities do not guarantee near-term revenue, and outcomes remain uncertain.
Analyst Q&A
Q: With qualified leads doubling in the last three months, what is the historical conversion timeline from qualified lead to purchase order, and is this timeline compressing now that funding has reopened? /
A: The typical conversion timeline ranges from 6 to 12 months, varying based on customer type and whether the agency already has secured funding or must go through a full budget cycle. Management expects mild compression this year due to a backlog of unallocated funding from prior fiscal years that is now being released across all market segments. The doubling of qualified stems from improved marketing, the new website, and better lead qualification processes rather than a change in underlying conversion speed.
Q: Can you share additional details on the international APEX win for INL-Columbia, and what is the expansion opportunity for APEX? /
A: The contract is with the U.S. State Department's International Narcotics and Law Enforcement Agency, which requires centralized long-term data collection to monitor training usage and effectiveness in partner countries, unlike standard simulator systems that only store on-site short-term performance data. Government and law enforcement customers increasingly want this trending data to demonstrate return on investment for training programs, creating broad broader demand for the APEX platform across market segments.
Q: Why did backlog decrease slightly even though bookings were slightly above revenue in the quarter? /
A: Backlog is calculated as beginning backlog plus new bookings minus recognized revenue for the quarter. Some new bookings convert to revenue in the same quarter they are received, which accounts for the slight net decrease in end-of-quarter backlog, with no major cancellations or negative adjustments driving the change.
Q: What drove the 10% sequential increase in inventory, and is it built in anticipation of future pipeline growth? /
A: Higher inventory is driven by three factors: 1) advance purchasing of computer components to lock in lower prices before expected price increases, 2) work-in-progress for development work on contracts such as the INL-Columbia APEX project, and 3) building full component inventory to eliminate past delays from back-ordered parts, allowing the company to fulfill orders immediately once they are ready. It reflects both preparation for expected pipeline growth and mitigation of supply chain risks.