The Fort Worth Press - Emerging Growth Research Reiterates Buy-Emerging Rating and $9.00 Price Target on Virtuix Following Strong Fiscal Q1 2027 Results

The quarterly update highlights what Emerging Growth Research believes is the beginning of an important growth inflection for Virtuix following a transformational fiscal 2026. While fiscal Q1 2027 revenue was technically down year-over-year due primarily to the comparison against a large legacy preorder backlog in the prior-year period, revenue of $0.8 million substantially exceeded the firm's $0.5 million estimate. The report also points to accelerating new orders following Virtuix's June 2026 partnership with Meta, continued expansion of its defense opportunity, and significant longer-term revenue potential.

Emerging Growth Research believes Virtuix is transitioning into a growth company, supported by its market-leading, patent-protected, AI-driven technology platform and multi-market strategy spanning consumer virtual reality, defense, robotics, space, and healthcare. The firm's bullish outlook is further supported by the Company's recurring software and gaming revenue opportunities, new Meta distribution channel, U.S. defense initiatives, and potential strategic defense acquisitions.

Key Highlights from the Quarterly Update

• Fiscal Q1 2027 Revenue Exceeded Expectations

Virtuix reported fiscal Q1 2027 revenue of approximately $0.8 million, compared with $1.0 million in the prior-year period. Although revenue declined 26% year-over-year, Emerging Growth Research notes that the comparison was affected by the prior year's large legacy preorder backlog. Importantly, the latest quarter reflected new orders and revenue from customers following the Company's Meta partnership and exceeded the firm's $0.5 million estimate.

New orders increased approximately 72% year-over-year during the quarter and approximately 150% since the June 2026 launch of the Meta partnership, providing evidence that consumer demand is gaining momentum heading into the holiday sales season.

• Meta Partnership Provides Significant Consumer Market Access

Virtuix's partnership with Meta provides access to approximately 20 million Meta Quest headset users, including approximately 6 million active users. Omni One is now featured on Meta's website, creating a substantially broader distribution channel for Virtuix's flagship platform.

Emerging Growth Research believes this relationship could become an important catalyst for consumer adoption, with Virtuix also expanding its presence in Europe and in Canada through an online presence.

• Defense Opportunity Continues to Expand

Virtuix continues to advance its AI-powered Virtual Terrain Walk platform for national defense applications. The Company was selected by the U.S. Air Force SBIR program for Phase 1 funding, while the Marines, Army, and Navy are also beginning to use Omni One for various applications.

In addition, management is evaluating potential defense acquisitions in the approximately $10 million to $50 million revenue range, which Emerging Growth Research believes could accelerate Virtuix's penetration of the government contracting market and potentially create transformational growth opportunities.

• Gross Margin Improved Significantly

Gross profit increased to approximately $0.23 million in fiscal Q1 2027 from $0.18 million in fiscal Q1 2026, while gross margin expanded from 17% to approximately 30%.

Although operating expenses increased as Virtuix absorbs the costs associated with being a newly public company, operating losses improved sequentially from fiscal Q4 2026. Adjusted EBITDA also improved sequentially, while EPS improved to $(0.22) from $(0.30) in the prior quarter.

• Potential "Hockey Stick" Revenue Growth Ahead

Emerging Growth Research now estimates approximately 19% revenue growth in fiscal 2027, followed by approximately 275% growth in fiscal 2028, with the potential for substantially higher growth thereafter as consumer adoption accelerates and defense opportunities begin contributing more meaningfully.

The firm believes Virtuix could reach a significant revenue inflection point beginning in calendar 2027 and that longer-term estimates may prove conservative if the Company successfully executes across its consumer and defense opportunities.

• Shares Remain Significantly Undervalued

Despite the Company's growth opportunities, Emerging Growth Research believes VTIX shares continue to trade at a substantial valuation discount.

Based on its valuation analysis, the firm's 2028E peer Price/Sales methodology produces a $6.45 per share valuation, while its discounted cash flow analysis produces an $11.47 per share valuation. The average of the two methodologies is approximately $8.96 per share, which the firm rounds to its $9.00 price target.

At the August 25, 2026 closing price of $1.21, Emerging Growth Research believes VTIX shares reflect a significant discount to the Company's potential future growth and intrinsic value.

• Near-Term Risks Remain

The report identifies several risks, including execution of consumer adoption and growth initiatives, uncertainty surrounding defense contracting, expansion into new robotics, space and healthcare applications, geopolitical and tariff exposure related to manufacturing and international expansion, and potential additional share supply following the expiration of the Company's post-IPO lockup period.

The report also notes that additional financing may ultimately be required as Virtuix continues investing in higher SG&A expenses, although debt and warrants are expected to convert or expire during calendar 2026.

Emerging Growth Research believes these risks are outweighed by Virtuix's expanding consumer and defense opportunities, proprietary technology, new Meta distribution relationship, and potential for substantial revenue growth beginning in fiscal 2027 and accelerating thereafter.

The report concludes that Virtuix's combination of AI-driven extended reality technology, consumer VR adoption, defense applications, recurring software and gaming revenue, and potential strategic M&A creates a compelling long-term growth opportunity. Emerging Growth Research reiterates its Buy-Emerging rating and $9.00 price target.

For a copy of the full Fiscal Q1 2027 Quarterly Update, please visit:

https://storage.googleapis.com/accesswire/media/1212036/vtixq1fy27-quarerly-update-082626.pdf

or

https://emerginggrowth.com/profile/vtix/ (Quarterly Update available on the Company profile page on the right as you scroll down)

About Virtuix Holdings Inc.

Virtuix Holdings Inc. (NASDAQ:VTIX) is a leading manufacturer of AI-driven, full-body simulation systems for consumer, enterprise, and defense markets. The Company's premier portfolio of "Omni" omni-directional treadmills enables players to walk and run in 360 degrees without boundaries inside AI-generated worlds. With a focus on immersive entertainment, defense training, and enterprise applications, Virtuix continues to push the boundaries of full-body XR and AI-driven immersive experiences for users worldwide. For more information, please visit www.Virtuix.com.

About Emerging Growth Research

Emerging Growth Research is an independent equity research firm focused on providing institutional-quality analysis on emerging and growth-stage companies. Through its comprehensive research platform, Emerging Growth Research delivers objective investment analysis designed to enhance transparency, improve investor understanding, and broaden market awareness. The firm provides ongoing research coverage for companies presenting on the Emerging Growth Conference platform.

Contact:
Emerging Growth Research
[email protected]
www.EmergingGrowth.com

Forward-Looking Statements

This press release contains forward-looking statements concerning business operations, financial performance, revenue projections, defense contracting opportunities, merger and acquisition prospects, valuation estimates, and future growth expectations. These statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied. Important risk factors include, but are not limited to, consumer adoption rates, defense contract timing and procurement delays, geopolitical and tariff exposure, potential share dilution, the expiration of the IPO lock-up period, and the Company's ability to successfully execute its growth strategy across both consumer and defense markets.

SOURCE: Virtuix Holdings Inc.

View the original press release on ACCESS Newswire

M.Delgado--TFWP