VirTra (VTSI) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $7.62M, up 42% YoY, with $10.3M in bookings, $2.16M net income and diluted EPS of $0.19.

• Q3 marked a third consecutive quarter of sequential revenue growth; gross margin reached 70% and operating income was $2.01M versus a $450K loss YoY.

• Backlog was $27.6M at September 30, up from $25.6M at December 31, 2025.

• Nine-month revenue was $16.86M, down 13% YoY, as customer delivery deferrals limited conversion of previously booked orders.

Financial highlights

• Q3 net sales were $7.62M vs. $5.35M YoY; nine-month sales were $16.86M vs. $19.49M.

• Q3 gross profit was $5.33M vs. $3.5M YoY; nine-month gross profit was $10.88M vs. $13.5M.

• Q3 operating expenses were $3.3M vs. $4.0M YoY; nine-month operating expenses were $10.4M vs. $11.7M.

• Q3 net income was $2.16M vs. a $389K loss; nine-month net income was $573K vs. $1.1M.

• Q3 Adjusted EBITDA was $2.56M vs. $91K YoY; nine-month Adjusted EBITDA was $2.16M vs. $2.49M.

Outlook and guidance

• Management expects additional backlog conversion in Q4; procurement, installation schedules and customer acceptance affect timing.

• Management estimates 25–30% of capital backlog will convert to revenue in 2026; most capital contracts are expected to extend into 2027 at customer request.

• Management cited a growing pipeline and focus on backlog conversion, cost control and operating discipline; customer readiness can constrain revenue timing.

• G&A spending is considered near a suitable run rate, with capacity for growth without significant near-term increases.