VIRC VIRCO MFG CORPORATION

BEARISH Impact: 6/10 8-K
Horizon weeks Filed Jun 3, 2026 Processed 2d 2h ago SEC 0001628280-26-040123
8-K Item 2.02: Earnings release

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Executive Summary

Virco reported a Q1 FY2027 net loss of $2.8M on revenue of $30.7M, a 9.1% YoY decline from $33.8M, swinging from a $0.7M profit in the prior-year period. Gross margin contracted sharply to 41.4% from 47.5% due to lower factory absorption, and cash dropped to $3.7M from $14.4M at year-end as the company funded seasonal working capital. The sequential deterioration from the prior quarter's full-year net income of $2.6M confirms the post-COVID demand normalization is ongoing, with shipments plus backlog down 1.8% YoY.

Key Financial Metrics

Gross Margin
41.4%

Actionable Insight

The sequential cash burn from $14.4M to $3.7M in one quarter is the most concerning signal — monitor the Q2 peak season for order conversion to assess whether the company can generate operating cash flow to rebuild liquidity. The 1.8% decline in shipments plus backlog suggests the demand normalization is not yet troughing.

Key Facts

  • Q1 net loss of $2.8M vs net income of $0.7M in the prior-year period
  • Revenue declined 9.1% YoY to $30.7M from $33.8M
  • Gross margin fell to 41.4% from 47.5% YoY
  • Cash balance dropped to $3.7M from $14.4M at year-end (Jan 31, 2026)
  • Shipments plus backlog, management's preferred forward metric, declined 1.8% to $103.7M
  • Board declared a $0.025/share quarterly dividend, payable July 10, 2026
  • Company repurchased $0.2M in shares and paid $0.4M in dividends during Q1

Financial Impact

Revenue decline of $3.1M YoY; net income swing of -$3.5M vs prior year; gross margin contraction of 610 bps

revenuenet incomegross margincash

Risk Factors

  • Cash burn rate may require debt or equity financing if seasonal working capital needs persist
  • Continued gross margin compression from under-absorbed factory overhead
  • Extended school ordering cycles could delay the typical Q2/Q3 revenue peak

Market Snapshot

Exchange
Nasdaq
Sector
Public Bldg & Related Furniture
Analyst Consensus
86% bullish (7 analysts)

Documents Analyzed

This report is based on 6 SEC documents filed with EDGAR.

DocumentAccession Number
8-K Filing (Primary)0001628280-26-040123
Document: virc-20260603.htm0001628280-26-040123
Document: 0001628280-26-040123-index-headers.html0001628280-26-040123
Document: 0001628280-26-040123-index.html0001628280-26-040123
Document: 0001628280-26-040123.txt0001628280-26-040123
8-K Data (Synthetic)0001628280-26-040123
8 reports for VIRC
Performance horizon

Track record builds as more directional reports settle.

Filters
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Reports for VIRC — sortable, filterable
Type Now
Jun 3, 2026
2d ago
8-K
BEARISH ★ 6/10
$5.44 awaiting T+20awaiting T+20$5.84 (−7.26%)
Jun 3, 2026
2d ago
Press Release
BEARISH ★ 6/10
$5.44 awaiting T+20awaiting T+20$5.84 (−7.26%)
Apr 13, 2026
7w ago
Insider Cluster
MIXED ★ 5/10
$5.85 $6.10▲ +4.27%▼ −3.45%$5.84 (−0.26%)
Apr 13, 2026
7w ago
Insider Cluster
MIXED ★ 6/10
$5.85 $6.10▲ +4.27%▼ −3.45%$5.84 (−0.26%)
Apr 13, 2026
7w ago
Insider Cluster
MIXED ★ 6/10
$5.85 $6.10▲ +4.27%▼ −3.45%$5.84 (−0.26%)
Apr 10, 2026
8w ago
Insider Cluster
MIXED ★ 5/10
$5.62 $6.17▲ +9.79%▲ +1.26%$5.84 (+3.83%)
Apr 8, 2026
8w ago
8-K
BEARISH ★ 7/10
$5.68 $6.10▼ −7.39%▲ +1.15%$5.84 (−2.73%)
Apr 8, 2026
8w ago
Press Release
BEARISH ★ 8/10
$5.68 $6.10▼ −7.39%▲ +1.15%$5.84 (−2.73%)
Showing 8 of 8

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