VirTra Shares Are Down Today: What's Going On?

VirTra INC. VTSI shares are trading lower Friday after the company reported worse-than-expected fourth-quarter financial results.

What To Know: The company's revenue for the fourth quarter fell to $5.4 million, a 50% decline from the previous year's $10.9 million. Full-year revenue for 2024 also dropped by 32% to $26.4 million. Net income for the quarter turned negative, with a reported loss of $0.9 million compared to a $3.5 million profit in the prior year. Adjusted EBITDA for the quarter was negative $1.8 million, reflecting ongoing financial pressures.

Despite the revenue decline, VirTra highlighted a 37% sequential increase in fourth-quarter bookings to $12.2 million and an expanding backlog that reached $22 million by year-end. The company attributed the revenue shortfall to federal budget delays that slowed contract execution and order conversion. Management noted that while bookings showed improvement, many contracts were signed too late in the quarter to be reflected in fourth-quarter revenue.

CEO John Givens acknowledged the challenges posed by federal funding uncertainties but emphasized the company's efforts to engage with policymakers to improve funding access for law enforcement agencies. VirTra is also advancing military initiatives, including its work on the U.S. Army's Integrated Visual Augmentation System program, which was completed ahead of schedule.

The company maintains a cash position of $18 million and believes its growing backlog positions it well for future revenue growth.

VTSI Price Action: Virtra shares were down 15.3% at $4.370 at the time of writing, according to Benzinga Pro.