Second-quarter revenue of $5.8 million, down 17% from a year earlier, is the number VirTra, Inc. (Nasdaq: VTSI) put on the tape August 13. The case for the Chandler, Arizona training simulator company rests on $24.9 million in ending backlog and acceptance into the U.S. Army Marketplace. What complicates it: a first-half net loss of $1.6 million driven by customers who could not accept delivery on schedule, with management unable to say when that pattern breaks.
The first six months are the harder read. Revenue of $9.2 million came in 35% below the year-ago $14.1 million. Gross margin compressed from 71% to 60%. Loss from operations was $1.5 million, compared to income from operations of $2.3 million in the same period of 2025. Net loss reached $1.6 million, or $0.14 per diluted share, against net income of $1.4 million, or $0.13 per diluted share, a year earlier. CEO John Givens stated the cause directly: customers booked in the third and fourth quarters of 2025 who could not accept delivery before June 30, 2026.
Within the second quarter, some pressure eased. CFO Alanna Boudreau stated that Q2 revenue increased significantly versus Q1, supporting a return to positive adjusted EBITDA. The quarterly adjusted EBITDA figure was $0.4 million, against $0.7 million a year ago. Bookings totaled $5.5 million. Total backlog at June 30 was $24.9 million, composed of $13.2 million in capital contracts, $3.8 million in service, and $7.9 million in STEP contracts. VirTra was also accepted into the U.S. Army Marketplace across Weapons Skills Development, Joint Fires Training, and Counter-Unmanned Aircraft Systems capabilities. The company acquired a dual-building Orlando campus inside Central Florida Research Park, which Boudreau said is expected to contribute tenant lease income while deepening VirTra's position in military simulation.
The counterargument is real, and Givens made it. He stated the demand environment remains healthy, pointing to grant funding releases, customers actively advancing procurement applications, and an international segment that partially offset domestic weakness in Q2. The $24.9 million backlog exists. The Army Marketplace entry is a competitive position the company did not hold a year ago.
On balance, the delivery gap is the story VirTra cannot rewrite. The line to watch is whether the $13.2 million in capital backlog converts fast enough to return the six-month adjusted EBITDA to positive territory. Givens acknowledged that the pace of awards and delivery timelines remains difficult to predict.