VirTra, Inc. reported a revenue of $22.4 million for the fiscal year ending December 31, 2025, a decrease of 15% from $26.4 million in 2024. The decline in revenue was attributed to external challenges, including government shutdowns and a transition in federal leadership that led to reduced funding for Department of Defense programs. Additionally, the company faced delays in revenue recognition due to a backlog of international orders, which are expected to be fulfilled over extended timelines. The gross profit for the year was $15.2 million, resulting in a gross profit margin of 68%, down from 74% in the previous year.
Operating expenses decreased to $14.8 million from $17.4 million in 2024, primarily due to a reduction in general and administrative costs and a decrease in research and development expenses, which fell by 21% to $2.4 million. The net income for 2025 was $258,446, a significant drop of 81% compared to the $1.4 million reported in 2024. This decline was largely driven by the reduced revenue and increased costs associated with content creation and engineering enhancements.
In terms of operational developments, VirTra's customer base remains concentrated, with approximately 79% of total revenues derived from government contracts. The company reported a backlog of $25.6 million as of December 31, 2025, which includes $13.8 million in capital sales and $6.7 million in Subscription Training Equipment Partnership (STEP) agreements. The company also noted that it received $26.7 million in total bookings for the year, indicating a potential for revenue growth in the upcoming periods as these contracts are fulfilled.
VirTra continues to focus on expanding its market share and product offerings, with plans to leverage advancements in artificial intelligence to enhance its training solutions. The company is also open to strategic partnerships and acquisitions to broaden its reach and capabilities. As of March 23, 2026, VirTra employed 94 full-time and 4 part-time employees, reflecting a stable workforce as it navigates through the current market conditions.
Looking ahead, VirTra's management expressed optimism about converting the backlog into revenue in 2026, although they acknowledged that contract terms and delivery dates may be subject to change. The company remains committed to improving its financial position and operational efficiency while adapting to the evolving needs of its customer base in the law enforcement and military sectors.
About VirTra, Inc
VirTra, Inc. designs and manufactures judgmental use-of-force and firearms training simulators for law enforcement, military, and commercial markets. Its products include immersive virtual reality systems, scenario authoring software, and realistic recoil kits, providing safe, effective, and customizable training solutions. The company leverages patented technology, extensive content libraries, and global distribution to enhance decision-making, de-escalation, and marksmanship skills in a competitive industry.
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