Virtuix (NASDAQ:VTIX) reported first-quarter fiscal 2027 net sales of $767,000, down 26% from $1 million a year earlier, while management emphasized that new orders and gross margin improved following the late-June launch of its Omni One for Quest product in collaboration with Meta.
The quarter ended June 30, 2026. Founder, Chief Executive Officer and Chairman Jan Goetgeluk said the company’s filing was delayed by several days following the appointment of EisnerAmper as its new independent registered public accounting firm. The company has since filed its Form 10-Q.
Orders Rise Following Meta Product Launch
New Omni One system orders increased 72% year over year, according to the company. Virtuix also said new orders were up about 150%, or roughly 2.5 times, compared with the same period last year since its June launch of Omni One for Quest.
Omni One for Quest is certified through Meta’s Made for Meta program and enables customers to use Virtuix’s omnidirectional treadmill with Meta Quest headsets and existing game libraries. Goetgeluk said Meta has sold more than 20 million Quest headsets and estimated that the platform has about 6 million active users.
“New orders are the better forward indicator of the demand we are seeing today,” Goetgeluk said, noting that the prior-year period included final shipments from a backlog of legacy preorders accumulated beginning in August 2023. The current quarter’s revenue came from newly acquired customers, he said.
Management said it is exploring joint marketing and product-bundling opportunities with Meta, including a package combining Omni One for Quest and a Quest headset. In response to an analyst question, Goetgeluk said the company ships orders “within days” and that the Meta-related demand momentum has continued into the current quarter.
The company said its existing production facility can support current demand. Goetgeluk said Virtuix has capacity to produce about 3,000 units per month, which he said would translate to approximately $100 million in annual revenue.
Margin Expansion Accompanies Higher Selling Prices
Gross profit increased 29% to $227,000 from $176,000 in the prior-year quarter. Gross margin rose to 30% from 17%, which Chief Financial Officer Thomas McGinnis attributed to higher selling prices for complete Omni One systems compared with the prior-year period.
Goetgeluk said older preorder units were sold at lower prices, while pricing was later increased. He said Omni One for Quest is priced at $2,595, Omni One Core at $2,495, and the complete system at $2,995. Management said it is targeting consumer-unit gross margins approaching 40% on a per-unit basis, though the reported quarterly gross margin was 30%.
Operating expenses increased 86% to $4.1 million, primarily due to the costs of operating as a public company following Virtuix’s Nasdaq listing in January 2026. General and administrative expenses rose to $3.1 million from $1 million, including $1.2 million in professional services, $200,000 in insurance and $700,000 in non-cash stock compensation.
Net loss widened to $7.2 million from $2.3 million. McGinnis said approximately $4 million of the quarterly loss consisted of non-cash charges, including interest expense associated largely with amortization of debt discounts on convertible notes, financing expense related to warrant modifications and a loss on extinguishment of debt. Adjusted EBITDA loss was $3.1 million, compared with a $1.9 million loss a year earlier.
Cash and cash equivalents totaled $7.4 million at June 30, down from $9.5 million at March 31. Net cash used in operating activities was $3.3 million for the quarter. In a later exchange with an analyst, Goetgeluk said the company’s cash burn could be inferred at roughly $1 million per month, while noting that expenses had increased following the public listing.
Defense Programs Expand Across Military Branches
Virtuix said it is serving as lead systems integrator for a U.S. Marine Corps Infantry Fireteam Trainer project, supported by KBR. The system is designed to allow a four-Marine team to train together using omnidirectional treadmills, M4 rifle surrogates and Meta Quest headsets.
The company selected ABRT to provide a tracked weapon system, instructor tool and immersive content for the program. Goetgeluk said delivery to Quantico, Virginia, is expected in the fourth quarter of calendar 2026.
Virtuix also said its technology was integrated into LeadTech’s Counter-UAS Personnel Trainer, an AI-enabled counter-drone training platform that will be evaluated by the Marine Corps Training and Education Command. The company reported active defense engagements involving the Air Force, Marine Corps, Army, Navy and Air National Guard.
Among those activities, Virtuix holds an Air Force SBIR Phase I award for its Virtual Terrain Walk system, sold test units to the U.S. Air Force Academy and Yokota Air Force Base, and delivered a system to a Pennsylvania Air National Guard unit. It has also sold Omni One to the U.S. Military Academy at West Point and signed a cooperative research and development agreement with the Naval Postgraduate School.
Management said larger defense awards are more likely in fiscal 2028, although it expects some defense revenue during fiscal 2027 from existing projects and the Phase I award.
Enterprise and Healthcare Initiatives Add New Markets
During the quarter, Virtuix sold its first Omni One Enterprise system to Tesla for use by its Optimus humanoid robot division in robot teleoperation. The company also said NASA selected Omni One for a Moon and Mars exploration analog mission, where it will support simulated extravehicular activities during a year-long study.
In healthcare, Virtuix partnered with Sirica Therapeutics to advance AI-driven autism therapy for children and delivered two Omni One systems to Sirica’s San Francisco Bay Area treatment center. Goetgeluk said Sirica has announced plans to establish about 100 treatment centers nationwide.
Looking ahead, management identified consumer growth with Meta and advancement of defense programs as its primary near-term priorities. The company is also evaluating potential defense acquisitions involving businesses with annual revenue between $10 million and $50 million, seeking government contract vehicles, sales channels, recurring revenue and past-performance credentials.
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.
