Overview

• Use-of-force simulator maker's Q1 revenue fell 51% yr/yr as customers delayed deliveries

• Company posted Q1 net loss of $1.3 mln, down from net income a year ago

• Adjusted EBITDA swung to a loss as recurring STEP revenue made up a larger share

Outlook

• VirTra expects improved sales momentum in the second half of 2026

• Company says revenue timing remains dependent on external funding and procurement processes

• VirTra sees increased customer activity as funding programs reopen and procurement steps progress

Result Drivers

• DELIVERY DELAYS - Co said Q1 revenue decline was due to Q3 and Q4 booking customers being unable to accept delivery in Q1 2026

• REVENUE MIX SHIFT - STEP subscription revenue made up a larger share of total revenue, which is recognized over contract life and can pressure gross margin, per CFO

• REVENUE TIMING VARIABILITY - Co cited continued variability in revenue timing as customers worked through funding and procurement processes

Company press release: ID:nGNX9tCRFb

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$3.50 mln	$2.73 mln (2 Analysts)
Q1 EPS		-$0.12
Q1 Net Income		-$1.30 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for VirTra Inc is $6.25, about 48.8% above its May 8 closing price of $4.20

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