Virtuix Holdings Inc. Q1 FY27 Results

The first quarter of fiscal 2027 was one of the strongest commercial quarters in our Company’s recent history. New orders for Omni One systems increased 72% year-over-year, and have increased approximately 150% since the launch of Omni One for Quest in collaboration with Meta, a trend we have seen continue into the current quarter. While reported revenue was lower year-over-year, that comparison reflects the completion of our legacy preorder backlog: revenue in the prior-year period was driven largely by the fulfillment of the final batch of the large backlog of Omni One orders accumulated since the start of our preorder period in August 2023, whereas revenues this quarter resulted from sales to newly acquired customers. We believe new orders are the better forward indicator of the accelerating demand we are currently seeing. Our unit economics also continued to improve. Gross profit increased 29% year-over-year and gross margin expanded to 30% from 17%, primarily reflecting the higher selling price of the complete Omni One system in the first quarter of fiscal 2027 compared to the price of units delivered in the prior-year period. We ended the quarter with $7.4 million of cash. The launch of the Made for Meta certified Omni One for Quest has expanded our addressable market to millions of active Quest users and is already reshaping our order profile. We believe it represents an important step toward our goal of driving continued consumer sales growth and bringing our immersive, physically engaging entertainment experience to millions of households nationwide. We believe we are only scratching the surface of the potential of our Meta partnership, as we are exploring joint marketing opportunities and the bundling of Virtuix and Meta products. Our defense business continues to gain momentum. As lead systems integrator, we’re advancing the development of the U.S. Marine Corps Infantry Fireteam Trainer, while also expanding into the counter-drone training market through LeadTech’s C-UAS Personnel Trainer, and we completed our first deployment with the Air National Guard. We are also pursuing inorganic growth in the defense sector. Our special committee is actively reviewing acquisition opportunities in the defense training and simulation industry, with a focus on companies with annual revenues in the $10 million to $50 million range that would provide immediate access to government contract vehicles and recurring defense revenues. Beyond defense, we expanded into enterprise robotics through our first sale to Tesla’s Optimus program, were selected for NASA’s moon and mars mission, and earned our second consecutive Auggie Award, demonstrating the expanding commercial potential of Omni One. In healthcare, we signed a strategic partnership with Sirica Therapeutics and shipped two Omni One systems to Sirica’s San Francisco Bay Area treatment center to advance AI-driven autism therapy. Sirica announced plans to establish approximately 100 treatment centers nationwide, and we believe full-body movement within AI-enabled environments may play an increasingly important role across next-generation healthcare and therapeutic applications. Looking ahead, we are focused on converting the order momentum we are seeing in our consumer business into accelerating revenue growth, advancing our defense programs toward larger awards, completing one or more acquisitions in the defense space, and expanding into enterprise robotics and healthcare applications. Through our multi-use platform strategy, we intend to complement high-volume consumer sales with high-value defense and enterprise contracts, including recurring revenues from software licensing and customized simulation development. We look forward to additional updates in the coming months as we seek to bring long-term value to our stockholders.