VirTra Reports Q1 2025 Financial Results with Revenue of $7.16M and Increased Net Income

VirTra, Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $7.16 million, a decrease of approximately 2.5% from $7.35 million in the same period of 2024. The company's net income for the quarter was $1.26 million, significantly higher than the $468,196 reported in the prior year, resulting in a net income per share of $0.11, compared to $0.04 in the previous year. The increase in profitability was attributed to a reduction in the cost of sales, which fell to $1.96 million from $2.63 million, leading to a gross profit of $5.20 million, up from $4.71 million.

The financial performance reflects several operational changes, including a strategic focus on cost management. General and administrative expenses decreased to $3.22 million from $3.37 million, while research and development costs also saw a reduction to $609,127 from $693,380. These adjustments contributed to an increase in income from operations, which rose to $1.37 million from $650,362 in the prior year. The company’s total assets increased to $66.80 million as of March 31, 2025, compared to $65.45 million at the end of 2024, driven by growth in accounts receivable and inventory.

VirTra's customer base remains predominantly government-focused, with government customers accounting for 72% of total net sales in the first quarter of 2025, compared to 91% in the same period of 2024. The company reported a notable increase in international sales, which rose to $1.94 million, representing 27% of total net sales, up from 7% in the previous year. This shift indicates a strategic expansion into international markets, which may enhance future revenue streams.

The company continues to invest in its product offerings, particularly in its Subscription Training Equipment Partnership (STEP) program, which generated $940,592 in revenue for the quarter, maintaining a similar contribution to total sales as in the previous year. VirTra's employee headcount remained stable, with no significant changes reported, suggesting a focus on optimizing existing resources rather than expanding the workforce at this time.

Looking ahead, VirTra anticipates continued growth driven by its strategic initiatives and market expansion efforts. The company aims to enhance its product adoption rates and increase its market share in both domestic and international markets. Management remains optimistic about the potential for increased revenue from new product launches and ongoing customer engagement, particularly within the government sector, which has historically been a strong revenue driver for the company.