Virtuix Maps VR Growth Push as CEO Addresses Sharp Stock Slide

Key Points

• Virtuix’s CEO addressed a sharp stock drop, saying the shares fell about 50% in a week “on no news” and attributing heavier trading to a Zacks stock list and possible short interest. He also clarified a completed 10b5-1 trading plan involving the sale of 500,000 of his shares.
• Omni One remains the core consumer growth engine, with Virtuix selling the VR treadmill directly to consumers and targeting roughly a 40% gross margin on hardware plus recurring revenue from game sales and subscriptions. The company says Meta’s Made for Meta program could be a major catalyst.
• Defense is becoming a major strategic focus, with Virtuix already working with multiple U.S. military branches and pursuing Marine Corps training projects. The board has also formed a committee to evaluate defense acquisition targets that could expand revenue and government-contract access.

Virtuix NASDAQ: VTIX executives outlined the company’s consumer, enterprise and defense strategy during an investor webinar, while also addressing recent volatility in the company’s share price.

Founder, CEO and Chairman Jan Goetgeluk said the stock’s recent decline was “gut-wrenching,” noting that the shares fell about 50% “on no news” over a one-week period. He said Virtuix had seen increased trading activity after Zacks included the company in a portfolio of “10 stocks under $10,” which he said appeared to attract short interest. Goetgeluk also addressed a 10b5-1 trading plan he had established months earlier, saying it involved selling 500,000 of his 4.5 million shares and that the plan is now finished.

“At the end of the day, we’re executing,” Goetgeluk said, adding that the company is focused on building products and scaling its business.

Omni One Remains Central to Consumer Strategy

Goetgeluk said Virtuix is scaling around Omni One, its omnidirectional treadmill system for virtual reality gaming. The company sells Omni One directly to consumers through its website and offers versions priced from $2,095 for Omni One Core to $3,495 for the complete system with a headset. He said the company targets about a 40% gross margin on the upfront hardware sale and also generates recurring revenue from game sales and an online subscription.

The CEO described Omni One as a gaming system with health benefits, saying that an action game played for about an hour on the device can burn up to 700 calories. He said one user lost 40 pounds in four months using the product.

Chief Marketing Officer Lauren Premo said Virtuix’s consumer marketing is primarily online, focused on paid social media, influencers and content creators, and referrals from existing customers. She cited Facebook, Instagram, YouTube, TikTok and Roku among the marketing channels being tested or used.

Goetgeluk said the company’s participation in Meta’s Made for Meta program is expected to be a major catalyst for the consumer business because Quest headset users will be able to use existing headsets and games with Virtuix’s treadmill. He said Meta is not a competitor because Virtuix does not make headsets, but instead provides movement technology for VR experiences.

Production Capacity in Place

President and Chief Operating Officer David Allan said Virtuix has a roughly 40,000-square-foot facility dedicated to producing Omni One. Allan said the facility currently operates with about 20 people and can scale to about 3,000 units per month by adding a second shift.

Goetgeluk said that production level would represent about $100 million in annual revenue potential. Allan added that the company’s “biggest challenge right now is building more demand.”

Goetgeluk said Virtuix has begun shipping in Europe and is no longer in pre-sales there. He said the United States remains the company’s largest and core market, while Europe and other future international markets are expected to supplement growth.

Defense Market Emerges as Major Focus

Goetgeluk said Virtuix is seeing significant momentum in defense applications, including systems sold to the U.S. Army, U.S. Air Force, the Military Academy at West Point and the U.S. Air Force Academy. He also said the company has a development agreement with the U.S. Navy and was selected as lead integrator on an infantry training project with the U.S. Marine Corps.

The Marine Corps project involves a four-person simulator for a fire team, allowing Marines to practice missions together in a virtual environment using Virtuix technology and representative weapons. Goetgeluk said the first system is expected to be delivered in the fourth quarter of this year. If successful, he said the system could potentially be rolled out to about 20 Marine Corps training centers, though pricing has not been determined.

Virtuix is also developing a Virtual Terrain Walk system that uses AI-driven 3D reconstruction to create virtual replicas of real-world mission areas. Goetgeluk said the system is intended for mission planning, allowing warfighters to virtually walk through terrain before entering it physically.

He said the company is working with all four main branches of the U.S. military and is also looking at potential applications for agencies such as the FBI, CIA and other law enforcement organizations.

Acquisition Committee to Evaluate Defense Targets

Goetgeluk said Virtuix’s board has formed a special committee to evaluate acquisition targets in the defense sector. He said the committee includes himself, Allan and Audit Committee Chairman Randolph Read.

The company is looking at defense training companies with revenue in the $10 million to $50 million range, according to Goetgeluk. He said acquisitions could help Virtuix gain “past performance” credentials, access to government contract vehicles, sales channels and cross-selling opportunities.

Goetgeluk said government contracts can be both a scale and margin opportunity, adding that many contracts include upfront system sales as well as recurring revenue from software licensing, maintenance, training and simulation work.

Enterprise Opportunities Include Medical and Robotics

Beyond consumer and defense markets, Goetgeluk said Virtuix is seeing enterprise interest in industrial training, safety training, medical applications and robotics. Enterprise systems sell for about $5,000 and include additional support and access to the company’s software development kit, he said.

Goetgeluk said medical applications, particularly autism and neurodivergent therapies, are being explored, with some units being sold or delivered to centers and universities. In robotics, he pointed to a University of Central Florida project in which a person used Omni One to teleoperate a humanoid robot. He also said Virtuix is working with 1HMX, which pairs the treadmill with haptic gloves in a system called Nexus NX1.

The company said it has 25 issued patents and recently had a 26th patent allowed. Goetgeluk said Virtuix will report year-end earnings in the second half of June.

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.

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