Despite the revenue decline, VirTra highlighted several operational achievements. Bookings for the fourth quarter totaled $7.3 million, contributing to total bookings of $26.7 million for the year. The company also reported a total backlog of $25.6 million as of December 31, 2025. Notably, VirTra demonstrated its next-generation Drone Defense Training System, which is designed to help corrections professionals respond to unauthorized drone activities. Additionally, the company gained traction with its APEX data analytics platform, securing an international contract win and conducting multiple demonstrations for U.S. military groups.
VirTra's CEO, John Givens, commented on the results, stating that the company faced challenges due to an extended federal funding disruption, which impacted the timing of awards and system deliveries. However, he noted that underlying customer demand remains strong, as evidenced by the growth in bookings and backlog. The company is optimistic about the reopening of key federal grant programs, which could drive increased activity across its customer base in the coming quarters.
The financial highlights for the year included a gross profit of $15.2 million, representing a gross margin of 68%, down from 74% in the previous year. The net income for the year was $0.3 million, or $0.02 per diluted share, compared to $1.4 million, or $0.12 per diluted share, in the prior year. Adjusted EBITDA was reported at $1.6 million, a decrease from $2.9 million in the previous year. The company maintained a disciplined approach to cost management, with net operating expenses decreasing by 15% to $14.8 million.
Looking ahead, VirTra is focused on converting its backlog and pipeline activity into revenue as funding conditions normalize. The company plans to continue enhancing its sales organization and product offerings to better serve its customers in the law enforcement and military sectors.
