VirTra, Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with revenues totaling $26.4 million, a decrease of 32% from $38.8 million in 2023. This drop was attributed to a challenging booking environment, which delayed contract signings until the latter half of the year, and the recognition of a large contract in 2023 that contributed $7.1 million to that year's revenue but only $2.8 million in 2024. Despite the revenue decline, the company managed to improve its gross profit margin to 74%, up from 71% in the previous year, indicating some operational efficiencies.
Operating expenses increased slightly to $17.4 million, up 2% from $17.0 million in 2023, primarily due to higher general and administrative costs and increased research and development expenditures. The net income for 2024 was reported at $1.4 million, a substantial decrease of 85% compared to $9.2 million in 2023. This decline was largely driven by the reduced revenue base, although the company noted improvements in its margins as a positive operational outcome.
In terms of strategic developments, VirTra has focused on expanding its product offerings and enhancing its market presence. The company has been actively pursuing new marketing strategies and product innovations to broaden its total addressable market. Additionally, VirTra has made efforts to strengthen its customer contracts, particularly through its Subscription Training Equipment Partnership (STEP) program, which has seen a total of $29.6 million in bookings for 2024. The company also reported a backlog of $22 million, indicating potential revenue for the upcoming year.
Operationally, VirTra employed 111 full-time staff as of March 2025, reflecting a stable workforce as the company continues to navigate market challenges. The company has also expanded its geographic footprint with a facility in Orlando, Florida, aimed at supporting its military business. The majority of its revenue continues to come from government contracts, which accounted for 87% of total sales in 2024, highlighting the company's reliance on this sector.
Looking ahead, VirTra's management expressed cautious optimism about future performance, noting that the majority of new bookings received in the fourth quarter of 2024 are expected to convert to revenue in 2025. However, uncertainties remain regarding potential budget cuts and funding freezes from government agencies, which could impact future sales. The company is also focused on improving its internal controls and financial reporting processes, as it has identified material weaknesses in its internal control over financial reporting that it aims to address in the coming year.
About VirTra, Inc
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