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Oct 31, 2025
Virco Q3 2025 Earnings Report
Virco reported a net loss of $1.3 million in Q3 2025 as revenue declined sharply compared to the previous year.
Key Takeaways
Virco faced a challenging third quarter due to a slowdown in school furniture demand, leading to a significant drop in revenue and a net loss. The company cited the expiration of stimulus funds as a contributing factor but noted early signs of stabilization.
Revenue dropped to $47.6 million from $82.6 million last year.
The company reported a net loss of $1.3 million versus a profit of $8.4 million in Q3 2024.
Gross margin fell to 38.0%, down from 44.4% in the prior year.
Order backlog nearly matched last year, indicating early signs of demand stabilization.
Forward Guidance
Virco did not provide specific financial guidance but signaled stabilization in demand and a cautious outlook as bid season approaches.
Positive Outlook
- Unshipped backlog nearly matched prior year levels.
- Management sees potential recovery similar to post-pandemic rebound.
- Current ratio of 3.98 highlights improved liquidity.
- Backlog and shipments metric shows signs of stabilizing.
- Company is actively exploring adjacent market opportunities.
Challenges Ahead
- Revenue and net income declined significantly year-over-year.
- Expiration of ESSER stimulus funds has slowed demand.
- Production and sales levels are lower due to market downturn.
- SG&A expenses still represent over 41% of sales.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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