VirTra (VTSI) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $5.8 million, up from $3.5 million in Q1 but down 17% year-over-year, mainly due to delayed revenue recognition from customer delivery deferrals.

• Bookings reached $5.5 million in Q2 2026, with backlog steady at $24.9 million as of June 30, 2026, spanning capital, service, and STEP contracts.

• Improved revenue conversion and renewed customer activity, especially in international and federal markets.

• Acquisition of Orlando campus expanded presence in the military training market and is expected to generate lease income.

• Accepted into the U.S. Army Marketplace in three categories, expanding military market opportunities.

Financial highlights

• Q2 2026 revenue: $5.8M (down 17% YoY); H1 2026 revenue: $9.24M (down 35% YoY).

• Q2 gross profit: $3.4M (59% margin), down from $4.8M (69% margin) YoY; H1 2026 gross profit: $5.55M (down 45% YoY).

• Net loss: $0.3M or $0.02/share in Q2, versus net income of $0.2M or $0.02/share YoY; H1 2026 net loss: $1.59M.

• Adjusted EBITDA: $0.4M in Q2 (down from $0.7M YoY); H1 2026: $(0.5)M vs. $2.4M prior year.

• Cash and equivalents: $14.3M as of June 30, 2026; working capital: $28.4M.

Outlook and guidance

• Backlog and pipeline remain strong at $24.9M, with most new capital bookings expected to convert to revenue in 2026.

• Management expects resumed deliveries and funding releases to support revenue recovery in the second half.

• Funding and procurement timing remain key variables for near-term performance.

• International and military opportunities expected to contribute to long-term growth.

• Current capital resources are expected to support operations for more than 12 months.