Executive Summary
Virco Mfg Corporation reported a materially weaker QQ4 2025 performance, with revenue of $28.466 million, down 33.2% year over year and 65.6% quarter over quarter. Gross profit was $7.451 million, yielding a gross margin of 26.18%, but the company posted an operating loss of $8.119 million and a net loss of $5.73 million (EPS -0.35). EBITDA was negative at $6.418 million, underscoring pronounced fixed-cost pressures in a period of sharply lower top-line demand. These results reflect continued softness in the educational sector, a challenging order book, and a working-capital intensity that weighs on cash generation.
Key Performance Indicators
QoQ: -65.55% | YoY:-33.18%
QoQ: -79.69% | YoY:-53.63%
QoQ: -173.06% | YoY:-193.00%
QoQ: -168.21% | YoY:-144.66%
QoQ: -167.31% | YoY:-150.00%
Key Insights
Revenue: $28.466 million; YoY change: -33.18%; QoQ change: -65.55%
Gross Profit: $7.451 million; Gross Margin: 26.18%; YoY gross profit change: -53.63%; QoQ: -79.69%
Operating Income: -$8.119 million; Operating Margin: -28.52%; YoY change: -193.00%; QoQ: -173.06%
Net Income: -$5.730 million; Net Margin: -20.13%; YoY: -144.66%; QoQ: -168.21%
EPS: -$0.35; EPS (diluted): -$0.35; YoY: -150.00%; QoQ: -167.31%
EBITDA: -$6.418 million; EBITDA Margin: -22.55%
Cash Flow & Liquidity: Net cash fro...
Financial Highlights
Revenue: $28.466 million; YoY change: -33.18%; QoQ change: -65.55%
Gross Profit: $7.451 million; Gross Margin: 26.18%; YoY gross profit change: -53.63%; QoQ: -79.69%
Operating Income: -$8.119 million; Operating Margin: -28.52%; YoY change: -193.00%; QoQ: -173.06%
Net Income: -$5.730 million; Net Margin: -20.13%; YoY: -144.66%; QoQ: -168.21%
EPS: -$0.35; EPS (diluted): -$0.35; YoY: -150.00%; QoQ: -167.31%
EBITDA: -$6.418 million; EBITDA Margin: -22.55%
Cash Flow & Liquidity: Net cash from operating activities -$8.292 million; Free cash flow -$9.222 million; Cash at period end $26.867 million; Current ratio 2.98; Quick ratio 1.36; Cash ratio 0.78; Days sales outstanding 53.95; Days inventory outstanding 238.32; Days payable outstanding 49.65; Cash conversion cycle 242.62 days; Net debt $14.949 million; Total debt $41.816 million; Equity $109.265 million.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
28.47M |
-33.18% |
-65.55% |
| Gross Profit |
7.45M |
-53.63% |
-79.69% |
| Operating Income |
-8.12M |
-193.00% |
-173.06% |
| Net Income |
-5.73M |
-144.66% |
-168.21% |
| EPS |
-0.35 |
-150.00% |
-167.31% |
Key Financial Ratios
operatingProfitMargin
-28.5%
operatingCashFlowPerShare
$-0.52
freeCashFlowPerShare
$-0.57
dividendPayoutRatio
-7.03%
Management Commentary
No earnings call transcript was provided in the data set. Consequently, no management quotes or thematic highlights could be extracted. If a transcript becomes available, a themes-and-quotes recap would be added here (strategy, operations, market conditions, guidance).
Forward Guidance
No formal forward guidance was included in the provided data. Given the QQ4 2025 results, near-term visibility remains constrained by dependence on the education market cycle and a propensity for elevated working-capital needs. Investors should monitor: (1) any management commentary on stabilizing or improving demand from educational customers, (2) actions to reduce fixed costs or optimize SG&A, (3) inventory management and normalization of turnover, and (4) debt refinancing options or liquidity measures. Absent clearer guidance, the outlook hinges on a possible rebound in K-12 education funding or successful cost-improvement initiatives that can convert lower revenue into positive cash flow.