Virco Mfg Corporation reported QQ1 2026 revenue of $33.754 million, down 27.8% year-over-year, with a QoQ rebound of 18.6%. The gross margin stood at a robust 47.46%, yielding gross profit of $16.02 million, but the quarter ended with an operating loss of $0.094 million and a net income of $0.732 million (EPS $0.0465). EBITDA was $2.913 million, and the EBITDAR ratio was 8.63%. The Company generated negative operating cash flow of $19.031 million and negative free cash flow of $21.475 million, driven largely by a substantial working capital outflow (change in working capital of $-21.145 million) and a heavy inventory position of $74.029 million. Virco’s cash balance remained tight at $0.935 million at quarter-end, versus $26.867 million at the start of the period, illustrating liquidity pressure despite a solid equity base.