Executive Summary
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.
Key Performance Indicators
QoQ: 18.58% | YoY:-27.78%
QoQ: 115.00% | YoY:-21.27%
QoQ: 98.84% | YoY:-103.16%
QoQ: 112.77% | YoY:-65.79%
QoQ: 113.29% | YoY:-64.23%
Key Insights
Revenue: $33.754 million; YoY -27.78%, QoQ +18.58%.
Gross Profit: $16.020 million; YoY -21.27%, QoQ +115.00%; Gross Margin ~47.46%.
Operating Income: -$0.094 million; YoY -103.16%, QoQ +98.84%.
Net Income: $0.732 million; YoY -65.79%, QoQ +112.77%.
EPS: $0.0465; YoY -64.23%, QoQ +113.29%.
EBITDA: $2.913 million; EBITDARatio 0.086.
Cash Flow: Operating cash flow -$19.031 million; Free cash flow -$21.475 million.
Liquidity: Cash & equivalents $0.935 million; Total current assets $94.282...
Financial Highlights
Revenue: $33.754 million; YoY -27.78%, QoQ +18.58%.
Gross Profit: $16.020 million; YoY -21.27%, QoQ +115.00%; Gross Margin ~47.46%.
Operating Income: -$0.094 million; YoY -103.16%, QoQ +98.84%.
Net Income: $0.732 million; YoY -65.79%, QoQ +112.77%.
EPS: $0.0465; YoY -64.23%, QoQ +113.29%.
EBITDA: $2.913 million; EBITDARatio 0.086.
Cash Flow: Operating cash flow -$19.031 million; Free cash flow -$21.475 million.
Liquidity: Cash & equivalents $0.935 million; Total current assets $94.282 million; Total current liabilities $31.189 million; Current ratio ~3.03.
Balance Sheet: Total assets $183.782 million; Total liabilities $78.182 million; Total stockholders’ equity $105.600 million; Net debt $40.328 million.
Capex: $2.444 million; No acquisitions disclosed; Dividends/stock activity: net cash used for financing $-4.457 million; Net change in cash $-25.932 million.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
33.75M |
-27.78% |
18.58% |
| Gross Profit |
16.02M |
-21.27% |
115.00% |
| Operating Income |
-94.00K |
-103.16% |
98.84% |
| Net Income |
732.00K |
-65.79% |
112.77% |
| EPS |
0.05 |
-64.23% |
113.29% |
Management Commentary
Transcript highlights not provided in the dataset. No management quotes or thematic excerpts from an earnings call are available within the provided materials.
Forward Guidance
No formal forward guidance was included in the supplied dataset. Based on QQ1 2026 results, near-term factors to monitor include: (1) working capital normalization and inventory reduction to improve operating cash flow, (2) stabilization or improvement in demand in Virco’s core educational furniture market, (3) trajectory of price/mixed-margin effects given product mix, and (4) continued balance sheet resilience with manageable debt levels. Given the revenue decline versus prior year and negative free cash flow, management may need to articulate targets for order backlogs, inventory turns, and capital allocation to restore cash generation. Investors should monitor quarterly progression in working capital, inventory levels (current $74.0M), and any announced capacity or dealer-network initiatives that could restore revenue growth while preserving margins.