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VIRC

Virco Mfg. Corporation

VIRC

Virco Mfg. Corporation • NASDAQ
$7.04 ▲ 1.44% (+0.10)
Market Cap $110.69 M
52w High $17.31
52w Low $6.42
Dividend Yield 0.10%
P/E 8.28
Volume 16.45K
Outstanding Shares 15.72M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2026 $92.086M ▲ $25.503M ▲ $10.186M ▲ 11.061% ▲ $0.65 ▲ $15.928M ▲
Q1-2026 $33.754M ▲ $16.114M ▲ $732K ▲ 2.169% ▲ $0.046 ▲ $2.913M ▲
Q4-2025 $28.466M ▼ $15.57M ▼ $-5.73M ▼ -20.129% ▼ $-0.35 ▼ $-6.418M ▼
Q3-2025 $82.62M ▼ $25.565M ▼ $8.401M ▼ 10.168% ▼ $0.52 ▼ $12.456M ▼
Q2-2025 $108.419M $28.324M $16.833M 15.526% $1.04 $23.766M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2026 $2.61M ▲ $198.641M ▲ $83.265M ▲ $115.376M ▲
Q1-2026 $935K ▼ $183.782M ▼ $78.182M ▼ $105.6M ▼
Q4-2025 $26.867M ▼ $191.946M ▼ $82.681M ▼ $109.265M ▼
Q3-2025 $38.858M ▲ $210.145M ▼ $94.286M ▼ $115.859M ▲
Q2-2025 $7.771M $216.348M $108.536M $107.812M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2026 $10.186M ▲ $3.205M ▲ $-1.072M ▲ $-458K ▲ $1.675M ▲ $1.833M ▲
Q1-2026 $732K ▲ $-19.031M ▼ $-2.444M ▼ $-4.457M ▼ $-25.932M ▼ $-21.475M ▼
Q4-2025 $-5.73M ▼ $-8.292M ▼ $-921K ▲ $-2.778M ▼ $-11.991M ▼ $-9.222M ▼
Q3-2025 $8.401M ▼ $33.457M ▲ $-1.901M ▼ $-469K ▲ $31.087M ▲ $30.978M ▲
Q2-2025 $16.833M $12.47M $-1.8M $-3.543M $7.127M $10.672M

Five-Year Company Overview

Income Statement

Income Statement Revenue has grown meaningfully over the past five years and now appears to be plateauing at a higher level, which suggests Virco has successfully scaled its core K‑12 furniture business. Profitability has improved from break‑even and losses a few years ago to steady, modest profits more recently, indicating better pricing, cost control, or mix. Margins look healthier than they were earlier in the period, but they are still in a range where swings in school budgets, input costs, or factory utilization could quickly affect earnings. Overall, the income statement shows a company that has transitioned from recovery mode to more stable, but still sensitive, profitability.

Balance Sheet

Balance Sheet The balance sheet has strengthened: total assets and shareholders’ equity have both risen over the period, signaling that retained profits are building the company’s capital base. Cash levels have improved from very low starting points, which gives more flexibility to handle seasonal swings and invest in operations. Debt has come down compared with earlier years and then ticked up again, suggesting management is using borrowing tactically rather than structurally, but the company is not debt‑free. In general, Virco looks financially sturdier than it did a few years ago, though it still depends on careful working‑capital and borrowing management given the seasonal and project‑driven nature of school furniture demand.

Cash Flow

Cash Flow Cash generation from the core business has improved: operating cash flow has turned consistently positive after earlier flat years, which lines up with the move back to profitability. Free cash flow has been mostly positive as well, even after funding a modest pickup in capital spending on factories and equipment. The one recent year of slightly negative free cash flow appears more like a small investment-driven dip than a structural problem. Overall, the cash flow profile points to a business that can generally fund its own operations and moderate reinvestment, but is not generating excess cash on a large scale.

Competitive Edge

Competitive Edge Virco holds a focused, defensible niche in K‑12 educational furniture, with deep relationships in U.S. school systems built over many decades. Its key advantage is vertically integrated, domestic manufacturing with heavy use of automation and robotics, giving it control over quality, lead times, and customization that import‑reliant rivals may struggle to match. The “Made in USA” angle, specialized school-centric product lines, and bundled services like planning, delivery, and installation create switching costs and make Virco more of a full‑solution provider than a simple furniture vendor. The main risks to this position are concentrated exposure to public education budgets, competition from lower‑cost imports when price is the primary decision factor, and the need to keep large U.S. plants efficiently utilized through economic and funding cycles.

Innovation and R&D

Innovation and R&D Innovation at Virco is tightly tied to manufacturing processes and school‑specific product design rather than flashy consumer trends. The company has invested in robotics, vision‑guided assembly, and in‑house capabilities like plastic molding and finishing, which can lower unit costs and support quality and customization. On the product side, Virco regularly refreshes lines that support flexible and collaborative learning spaces, and it holds a meaningful portfolio of design and technology patents. Service innovation—especially PlanSCAPE project management and take‑back recycling programs—deepens customer relationships and reinforces the brand’s value beyond the physical chair or desk. Future innovation opportunities revolve around expanding “one‑stop” school solutions, further factory upgrades, and possibly bringing more components in‑house to reduce tariff and supply‑chain exposure.

Summary

Virco today looks like a mature, specialized manufacturer that has emerged from a period of thin or negative profits into a phase of steadier, moderate profitability. The financial statements show rising revenue, healthier margins, improving equity, and generally positive free cash flow, all of which point to a more resilient business than a few years ago, though still exposed to swings in school funding and demand seasonality. Strategically, the company’s strongest assets are its U.S.-based, automated manufacturing, long‑standing presence in the K‑12 market, and an expanded service offering that turns furniture sales into broader projects and relationships. The main uncertainties center on how reliably public education spending will support continued growth, how well Virco can keep its plants efficiently loaded, and whether it can sustain innovation and service differentiation faster than lower‑cost or more diversified competitors can catch up.

NEWS

September 5, 2025 · 8:30 AM UTC

Virco Reports Solid Operating and Net Income for Second Quarter and First Six Months, Despite Significant Reduction in Revenue

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