Virtuix (NASDAQ:VTIX) executives outlined what they described as a “transformative” nine-month period ended December 31, 2025, on the company’s first earnings call as a publicly traded firm. Management highlighted year-over-year revenue growth, a swing to positive gross margins, and several strategic milestones, including a Nasdaq listing and participation in Meta’s Made for Meta program.
Business overview and strategy
Founder, CEO, and Chairman Jan Goetgeluk said Virtuix develops full-body virtual reality systems that enable “natural full-body movement in 360 degrees” for consumer gaming as well as enterprise and defense applications. The company’s portfolio includes Omni One and Omni One Core for consumers, Omni One Enterprise for industrial training and other enterprise uses, and the Virtual Terrain Walk (VTW) system for defense simulation. Goetgeluk said the portfolio is covered by 25 patents.
Executives repeatedly emphasized a “multi-use” revenue strategy: high-volume consumer sales supplemented by high-value defense and enterprise opportunities, with recurring revenue from consumer subscriptions and software/game sales and from software licensing and custom simulation development for defense and enterprise customers.
Nine-month financial performance: revenue growth and margin improvement
Goetgeluk said revenue for the nine months ended December 31, 2025 increased 41% year-over-year to $3 million, citing strong demand for Omni One and a strong 2025 holiday season. He also noted that new orders for Omni One and Omni One Core rose 60% in December 2025 compared to December 2024.
McGinnis said the revenue increase was primarily driven by new Omni One sales, fulfillment of legacy pre-orders from a pre-order period that ended in September 2024, and a pricing increase that took effect in November 2024. (During the call, McGinnis stated net sales for the nine months were “$30 million,” though the discussion elsewhere on the call referenced $3 million; the company did not address the discrepancy during the prepared remarks.)
On profitability metrics, management highlighted a sharp improvement in gross margins. Goetgeluk said gross margin turned positive at 29%, compared with -17% in the prior-year period. McGinnis attributed the improvement to a higher average selling price and the completion of deliveries of “nearly all discounted units” sold to equity crowdfunding investors, which had weighed on prior-period margins. McGinnis reported gross profit improved by $1.2 million to $876,000, compared with a gross loss of $352,000 in the prior-year period.
Operating expenses for the nine-month period decreased 45% to $6.3 million, according to McGinnis, who cited cost discipline. He said general and administrative expenses declined largely because the prior-year period included a one-time non-cash stock-based compensation expense of approximately $4.7 million. R&D expense declined following the completion of Omni One development, while selling expenses increased by $1 million, driven by digital advertising for a Regulation Crowdfunding campaign with StartEngine that ended around June 2025 and increased holiday-season ad spending.
Net loss for the nine months improved to $6.9 million from $12 million, with Goetgeluk and McGinnis both pointing to the prior-year stock compensation charge as a factor in the year-over-year comparison.
Quarterly results and demand commentary
For the fiscal third quarter ended December 31, 2025, McGinnis reported net sales of $960,000, a 24% decline from $1.2 million in the prior-year quarter. He said the prior-year quarter included shipments from a “large backlog” of Omni One pre-orders dating back to August 2023, while the most recent quarter reflected sales to newly acquired customers, including orders tied to the 2025 holiday season.
Despite lower quarterly revenue, McGinnis said gross profit improved to $289,000 from a gross loss of $19,000 in the prior-year quarter, and gross margin expanded to 30% from -2%. He attributed the improvement primarily to the selling price increase for the complete Omni One system—from $2,595 to $3,495 effective November 2024—and lower per-unit manufacturing overhead due to higher production levels during 2025.
Quarterly operating expenses increased to $2.1 million from $1.8 million, with selling expenses rising to $734,000 from $246,000 due to higher holiday advertising spend. McGinnis said Q3 net loss widened to $2.7 million from $2.0 million, driven by higher interest expense and amortization of debt discount associated with Streeterville notes, along with higher selling expenses, which more than offset the gross profit improvement.
Asked whether strong December demand carried into the current quarter, Goetgeluk said he could not comment on current-quarter results but described continued consumer growth as a key focus.
Strategic milestones: Meta ecosystem, Europe launch, defense and robotics
Goetgeluk called Virtuix’s participation in Meta’s Made for Meta program “one of the most strategically significant developments” in the company’s history. He said Omni One has joined Meta’s certified ecosystem for Quest headsets and games, which he described as giving exposure to the largest XR user base. Goetgeluk cited estimates of more than 20 million Quest headsets sold and roughly six million active Quest users, and said certified integration would allow Quest users to use Virtuix’s product with existing headsets and games. He added that Virtuix will provide specific product updates and timelines later, and said he did not expect materially different unit economics from Quest compatibility versus current economics.
On international expansion, management said Omni One Core sales launched across Europe with dedicated storefronts for the U.K., Germany, France, and other EU markets, supported by a partnership with Unbound XR. Goetgeluk said initial shipments were scheduled between April 13 and 24. In response to an analyst question about what a successful first year in Europe would look like, Goetgeluk framed the rollout as a “step-by-step approach,” starting with Omni One Core and later potentially adding Quest compatibility.
Virtuix also highlighted partnerships and product positioning initiatives discussed during the call:
- CES collaboration: The company exhibited with Pimax and showcased Omni One with Pimax’s Dream Air headset, which Goetgeluk said demonstrated compatibility with PCVR games.
- HSA/FSA eligibility: Goetgeluk said Omni One became eligible for purchase through HSA/FSA accounts via Truemed, which he said can provide about a 30% savings using pre-tax dollars. Later, he estimated roughly 10%–20% of customers use HSA/FSA for purchases.
- Defense (VTW): Goetgeluk said Virtuix integrated AI-driven Gaussian splatting into VTW, describing it as a way to convert 360-degree camera or drone footage into photorealistic navigable 3D environments in hours rather than weeks or months. He said test units were purchased by Yokota Air Force Base, the U.S. Air Force Academy, and the U.S. Military Academy at West Point, and that VTW can support 12 or more soldiers simultaneously for mission planning and rehearsals.
- Robotics/embodied AI: Goetgeluk said Virtuix demonstrated humanoid robot teleoperation using Omni One Enterprise with the University of Central Florida’s Institute for Simulation and Training. He also cited a partnership with 1HMX on the Nexus NX1 system integrating the Omni One Enterprise treadmill with HaptX Gloves G1.
Balance sheet, liquidity, and debt
McGinnis said Virtuix had $1.1 million of cash on hand as of December 31, 2025, compared with $478,000 as of March 31, 2025. He emphasized that liquidity improved after the period ended, citing an $8 million initial advance received on January 27, 2026 in connection with the company’s direct listing under an equity purchase agreement with Streeterville Capital. He also said Streeterville exercised 405,000 warrants for $3.2 million in proceeds, and Western Technology Investment exercised 334,961 warrants for $300,000.
Total assets were $6.4 million at December 31, 2025, up from $5.8 million at March 31, 2025, while total liabilities increased to $9.3 million from $6.6 million, driven by additional notes payable and increased deferred revenue, partially offset by lower accounts payable and accrued expenses.
McGinnis detailed several debt obligations, including secured convertible promissory notes to Streeterville Capital with a principal balance of $3.3 million and interest at 6% per annum, as well as other convertible notes due March 31, 2026. He said Streeterville notes are structured to automatically convert into equity and “will not result in a cash outlet.” He also said certain holders of the second 2025 notes had already converted, reducing principal by approximately $715,000 after December 31, leaving about $950,000 outstanding, with the company seeking additional conversions or planning repayment by March 31 if needed. For the unsecured 2024 notes, McGinnis said the company was evaluating financing alternatives that could include exchanging notes for equity or equity-linked securities.
Looking ahead, Goetgeluk said priorities include growing consumer revenue, expanding the defense pipeline—particularly with the U.S. Army and Marine Corps—continuing enterprise expansion in embodied AI and industrial training, improving gross margins through volume leverage and cost optimization, and focusing on a path to profitability through revenue growth and operating expense discipline.
About Virtuix (NASDAQ:VTIX)
Virtuix (NASDAQ:VTIX) is a company that develops and commercializes hardware and software for immersive virtual reality (VR) locomotion and related experiences. Its core focus is on enabling natural movement inside virtual environments through purpose-built platforms and systems that pair motion-control hardware with software integrations for games, training and location-based entertainment.
The company is best known for its Omni family of omnidirectional locomotion platforms, which are designed to allow users to walk, run and maneuver in 360 degrees within a virtual space while remaining stationary in the real world.
