Executive Summary
Virco Mfg Corporation reported a resilient QQ2 2025 (Q2 2025) with revenue of $108.419 million, up 1.0% year-over-year and up 131.99% quarter-over-quarter, reflecting a seasonal uplift and better utilization of production capacity. Gross profit reached $50.218 million for a gross margin of 46.3%, and operating income was $21.894 million (operating margin 20.2%), delivering EBITDA of $23.766 million (EBITDA margin ~21.9%). Net income was $16.833 million, yielding a diluted EPS of $1.04. These results culminate in meaningful cash flow generation: net operating cash flow of $12.47 million and free cash flow of $10.67 million, supported by capital expenditures of about $1.80 million and a modest capital allocation approach (stock repurchases of ~$0.41 million and dividends of ~$0.33 million in the period).
Balance sheet metrics remain favorable: cash and cash equivalents of $7.77 million, total assets of $216.35 million, and total equity of $107.81 million. The company carries a net debt position of $35.13 million and a current ratio of 2.26, underscoring liquidity strength. The results reflect Virco’s niche positioning in the U.S. educational furniture market, with margins that historically reflect a high-value, specialty product mix and efficient overhead management.
Given the absence of explicit forward guidance in the provided materials, the QQ2 2025 performance signals continued earnings quality and operating leverage. Management commentary, where available, remains constructive on demand for classroom furnishings and replacement cycles, though the landscape is sensitive to public education budgets and school district capital cycles. Investors should monitor order backlogs, AR dynamics, and the pace of discretionary capex within K-12 and higher-education sectors, alongside ongoing efficiency gains that sustain margin resilience.
Key Performance Indicators
Key Insights
Revenue: $108.419 million; YoY growth 1.02%; QoQ growth 131.99%
Gross Profit: $50.218 million; Gross margin 46.32% (0.4632)
EBITDA: $23.766 million; EBITDA margin 21.92%
Operating Income: $21.894 million; Operating margin 20.19%
Net Income: $16.833 million; Net margin 15.53%
EPS (diluted): $1.04; YoY EPS growth 9.47%; QoQ growth 700%
Cash Flow: Net cash provided by operating activities $12.47 million; Free cash flow $10.67 million; Capital expenditures $1.80 million
Balance Sheet: Cash $7.77 mil...
Financial Highlights
Revenue: $108.419 million; YoY growth 1.02%; QoQ growth 131.99%
Gross Profit: $50.218 million; Gross margin 46.32% (0.4632)
EBITDA: $23.766 million; EBITDA margin 21.92%
Operating Income: $21.894 million; Operating margin 20.19%
Net Income: $16.833 million; Net margin 15.53%
EPS (diluted): $1.04; YoY EPS growth 9.47%; QoQ growth 700%
Cash Flow: Net cash provided by operating activities $12.47 million; Free cash flow $10.67 million; Capital expenditures $1.80 million
Balance Sheet: Cash $7.77 million; Total assets $216.35 million; Total liabilities $108.54 million; Total stockholders’ equity $107.81 million
Liquidity/Leverage: Current ratio 2.26; Quick ratio 1.203; Cash ratio 0.140; Total debt $42.90 million; Net debt $35.13 million; Debt to capitalization 28.5%; ROE 15.6%; ROA 7.78%; Asset turnover 0.50; Inventory turnover ~0.994; Receivables turnover 1.934; DSO ~46.5 days; DIO ~90.6 days; CCC ~137.1 days
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
108.42M |
1.02% |
131.99% |
| Gross Profit |
50.22M |
3.38% |
146.81% |
| Operating Income |
21.89M |
3.01% |
636.92% |
| Net Income |
16.83M |
8.36% |
686.59% |
| EPS |
1.04 |
9.47% |
700.00% |
Key Financial Ratios
operatingProfitMargin
20.2%
operatingCashFlowPerShare
$0.77
freeCashFlowPerShare
$0.66
dividendPayoutRatio
1.94%
Management Commentary
No earnings call transcript was provided in the dataset for QQ2 2025. Consequently, no management quotes or theme-by-theme highlights could be extracted from a transcript.
Forward Guidance
No formal forward guidance was disclosed in the QQ2 2025 materials. Based on the observed quarterly trajectory and sector dynamics, Virco could face a stable-to-modest revenue trajectory driven by education sector capital cycles, with continued emphasis on margin discipline and cash generation. Key factors for investors to monitor include: (1) public education funding and school district capital spend cycles, (2) order backlog and conversion of backlog to revenue, (3) working capital management (notably receivables and related timing), and (4) ongoing efficiency gains that support EBITDA and FCF margins. If management provides horizon guidance in subsequent quarters, compare to the current margin structure to assess sustainability.