Revenue contraction and high fixed costs have severely impacted profitability, with operating margins falling to -11.9% in 2027Q1 from a peak of 20.2% in 2025Q2.
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 | Jan'17 | Jan'16 | Jan'15 | Jan'14 | Jan'13 | Jan'12 | Jan'11 | Jan'10 | Jan'09 | Jan'08 | Jan'07 | Jan'06 | Jan'05 | Jan'04 | Jan'03 | Jan'02 | Jan'01 | Jan'00 | Jan'99 | Jan'98 | Jan'97 |
|---|
| Sales/Revenue | 196.59M | 199.65M | 266.24M | 269.12M | 231.06M | 184.83M | 152.79M | 193M | 200.72M | 189.29M | 173.42M | 168.59M | 164.05M | 155.04M | 157.91M | 166.44M | 181M | 190.51M | 212M | 229.56M | 223.11M | 214.45M | 199.85M | 191.85M | 244.35M | 257.46M | 287.34M | 268.08M | 275.1M | 258.2M | 236.3M |
| Revenue Growth % | -22.38% | -25.01% | -1.07% | 16.47% | 25.02% | 20.96% | -20.83% | -3.84% | 6.04% | 9.15% | 2.86% | 2.77% | 5.81% | -1.82% | -5.12% | -8.04% | -5% | -10.14% | -7.65% | 2.89% | 4.04% | 7.3% | 4.17% | -21.49% | -5.09% | -10.4% | 7.19% | -2.55% | 6.55% | 9.27% | 5.35% |
| Cost of Goods Sold | 118.68M | 118.41M | 151.55M | 153.06M | 145.72M | 123.9M | 97.87M | 121.33M | 133.63M | 123.82M | 110.87M | 108.98M | 108.65M | 102.49M | 107.3M | 118.28M | 129.62M | 129.42M | 143.4M | 145.9M | 144.5M | 149.78M | 143.41M | 137.42M | 167.57M | 180.28M | 190.35M | 165.25M | 173.5M | 167.8M | 159.8M |
| COGS % of Revenue | - | 59.31% | 56.92% | 56.87% | 63.07% | 67.03% | 64.05% | 62.86% | 66.58% | 65.41% | 63.93% | 64.64% | 66.23% | 66.1% | 67.95% | 71.07% | 71.62% | 67.93% | 67.64% | 63.56% | 64.76% | 69.85% | 71.76% | 71.63% | 68.58% | 70.02% | 66.25% | 61.64% | 63.07% | 64.99% | 67.63% |
| Gross Profit | 77.91M | 81.24M | 114.69M | 116.06M | 85.34M | 60.93M | 54.92M | 71.67M | 67.08M | 65.47M | 62.54M | 59.61M | 55.4M | 52.55M | 50.61M | 48.16M | 51.37M | 61.09M | 68.6M | 83.66M | 78.61M | 64.67M | 56.44M | 54.43M | 76.78M | 77.19M | 96.99M | 102.83M | 101.6M | 90.4M | 76.5M |
| Gross Margin % | 39.63% | 40.69% | 43.08% | 43.13% | 36.93% | 32.97% | 35.95% | 37.14% | 33.42% | 34.59% | 36.07% | 35.36% | 33.77% | 33.9% | 32.05% | 28.93% | 28.38% | 32.07% | 32.36% | 36.44% | 35.24% | 30.15% | 28.24% | 28.37% | 31.42% | 29.98% | 33.75% | 38.36% | 36.93% | 35.01% | 32.37% |
| Gross Profit Growth % | - | -29.17% | -1.18% | 35.99% | 40.07% | 10.93% | -23.37% | 6.85% | 2.46% | 4.68% | 4.92% | 7.6% | 5.41% | 3.84% | 5.09% | -6.26% | -15.9% | -10.95% | -18% | 6.43% | 21.57% | 14.57% | 3.69% | -29.11% | -0.52% | -20.42% | -5.68% | 1.21% | 12.39% | 18.17% | 15.91% |
| Operating Expenses | 77.82M | 77.58M | 86.83M | 84.18M | 74.7M | 61.27M | 54.19M | 66.45M | 66.01M | 61.53M | 56.6M | 53.65M | 52.74M | 52.59M | 52.37M | 56.22M | 58.89M | 61.41M | 64.49M | 69.21M | 66.83M | 70.27M | 68.23M | 70.59M | 72.8M | 72.1M | 96.76M | 83.54M | 71.4M | 62.6M | 58.2M |
| OpEx % of Revenue | - | 38.86% | 32.62% | 31.28% | 32.33% | 33.15% | 35.47% | 34.43% | 32.89% | 32.51% | 32.64% | 31.82% | 32.15% | 33.92% | 33.16% | 33.77% | 32.54% | 32.24% | 30.42% | 30.15% | 29.95% | 32.77% | 34.14% | 36.8% | 29.79% | 28.01% | 33.67% | 31.16% | 25.95% | 24.24% | 24.63% |
| Selling, General & Admin | 75.82M | 76.08M | 85.53M | 82.88M | 74.7M | 61.27M | 56.37M | 66.45M | 66.01M | 61.53M | 56.6M | 53.65M | 52.74M | 52.59M | 52.37M | 56.22M | 58.89M | 61.49M | 64.49M | 69.21M | 66.83M | 70.27M | 68.23M | 70.59M | 72.8M | 72.1M | 83.35M | 73.55M | 64.3M | 55.5M | 51.7M |
| SG&A % of Revenue | - | 38.11% | 32.13% | 30.8% | 32.33% | 33.15% | 36.89% | 34.43% | 32.89% | 32.51% | 32.64% | 31.82% | 32.15% | 33.92% | 33.16% | 33.77% | 32.54% | 32.28% | 30.42% | 30.15% | 29.95% | 32.77% | 34.14% | 36.8% | 29.79% | 28.01% | 29.01% | 27.44% | 23.37% | 21.5% | 21.88% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1.5M | 1.5M | 1.3M | 1.3M | 0 | 0 | -2.18M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -80K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 13.41M | 9.99M | 7.1M | 7.1M | 6.5M |
| Operating Income | 93K | 3.66M | 27.86M | 31.88M | 10.64M | -336K | 735K | 5.92M | 2.33M | 5.14M | 5.94M | 5.95M | 2.37M | -1.43M | -2.48M | -12.63M | -7.51M | -324K | 4.11M | 14.45M | 11.78M | -5.61M | -11.79M | -16.16M | 3.98M | 5.08M | 229K | 19.28M | 30.2M | 27.8M | 18.3M |
| Operating Margin % | 0.05% | 1.83% | 10.46% | 11.85% | 4.61% | -0.18% | 0.48% | 3.06% | 1.16% | 2.72% | 3.43% | 3.53% | 1.45% | -0.92% | -1.57% | -7.59% | -4.15% | -0.17% | 1.94% | 6.29% | 5.28% | -2.61% | -5.9% | -8.42% | 1.63% | 1.97% | 0.08% | 7.19% | 10.98% | 10.77% | 7.74% |
| Operating Income Growth % | - | -86.87% | -12.6% | 199.48% | 3267.86% | -145.71% | -87.57% | 153.75% | -54.65% | -13.53% | -0.07% | 150.76% | 265.76% | 42.37% | 80.33% | -68.12% | -2217.9% | -107.88% | -71.53% | 22.63% | 310.2% | 52.45% | 27.05% | -505.85% | -21.66% | 2119.65% | -98.81% | -36.15% | 8.63% | 51.91% | 75.96% |
| EBITDA | 6.17M | 9.8M | 33.55M | 36.97M | 15.19M | 4.23M | 5.83M | 11.68M | 8.12M | 10.61M | 10.97M | 10.71M | 6.78M | 2.78M | 1.89M | -7.61M | -2.16M | 5.06M | 9.79M | 21.09M | 18.98M | 3.24M | -1.99M | -4.56M | 17.64M | 20.9M | 13.64M | 29.28M | 37.3M | 34.9M | 24.8M |
| EBITDA Margin % | 3.14% | 4.91% | 12.6% | 13.74% | 6.57% | 2.29% | 3.81% | 6.05% | 4.05% | 5.6% | 6.33% | 6.35% | 4.13% | 1.79% | 1.19% | -4.57% | -1.19% | 2.66% | 4.62% | 9.19% | 8.51% | 1.51% | -1% | -2.37% | 7.22% | 8.12% | 4.75% | 10.92% | 13.56% | 13.52% | 10.5% |
| EBITDA Growth % | -79.88% | -70.79% | -9.26% | 143.47% | 258.67% | -27.31% | -50.15% | 43.86% | -23.42% | -3.32% | 2.48% | 57.89% | 144.06% | 47.37% | 124.79% | -252.41% | -142.62% | -48.27% | -53.6% | 11.12% | 486.26% | 262.63% | 56.3% | -125.83% | -15.58% | 53.19% | -53.41% | -21.51% | 6.88% | 40.73% | 56.96% |
| D&A (Non-Cash Add-back) | 6.08M | 6.14M | 5.69M | 5.1M | 4.54M | 4.57M | 5.09M | 5.77M | 5.79M | 5.47M | 5.03M | 4.76M | 4.41M | 4.21M | 4.37M | 5.02M | 5.35M | 5.39M | 5.67M | 6.64M | 7.2M | 8.84M | 9.8M | 11.61M | 13.66M | 15.81M | 13.41M | 9.99M | 7.1M | 7.1M | 6.5M |
| EBIT | -564K | 3.76M | 28.77M | 31.92M | 10.02M | -2.53M | -1.44M | 5.19M | 1.07M | 3.96M | 5.94M | 5.95M | 2.37M | -1.43M | -2.48M | -12.63M | -7.51M | -324K | 2.96M | 14.45M | 11.78M | -5.61M | -11.79M | -16.16M | 3.98M | 5.08M | 229K | 19.28M | 30.2M | 27.8M | 18.3M |
| Net Interest Income | -21K | -300K | -349K | -2.68M | -1.98M | -1.2M | -1.54M | -2.46M | -2.19M | -1.54M | -1.22M | -1.28M | -1.45M | -1.3M | -1.56M | -1.12M | -1.08M | -1.13M | -1.45M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 21K | 300K | 349K | 2.68M | 1.98M | 1.2M | 1.54M | 2.46M | 2.19M | 1.54M | 1.22M | 1.28M | 1.45M | 1.3M | 1.56M | 1.12M | 1.08M | 1.13M | 1.45M | 2.28M | 3.79M | 3.26M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -1.33M | -196K | 565K | -2.64M | -2.6M | -3.39M | -3.71M | -3.19M | -3.45M | -2.73M | -1.22M | -1.28M | -1.45M | -1.3M | -1.56M | -1.12M | -1.08M | -1.13M | -2.6M | -2.26M | -3.79M | -4.08M | -2.09M | -10.48M | -3.56M | -4.65M | 6.76M | -2.59M | -1.3M | -5.1M | -3.3M |
| Pretax Income | -1.24M | 3.46M | 28.42M | 29.24M | 8.04M | -3.73M | -2.98M | 2.73M | -1.12M | 2.41M | 4.73M | 4.67M | 918K | -2.73M | -4.04M | -13.75M | -8.59M | 164K | 1.51M | 12.19M | 7.99M | -9.68M | -13.88M | -26.64M | 423K | 436K | 6.99M | 16.69M | 28.9M | 22.7M | 15M |
| Pretax Margin % | -0.63% | 1.73% | 10.68% | 10.87% | 3.48% | -2.02% | -1.95% | 1.41% | -0.56% | 1.28% | 2.73% | 2.77% | 0.56% | -1.76% | -2.56% | -8.26% | -4.74% | 0.09% | 0.71% | 5.31% | 3.58% | -4.52% | -6.95% | -13.88% | 0.17% | 0.17% | 2.43% | 6.23% | 10.51% | 8.79% | 6.35% |
| Income Tax | -295K | 895K | 6.78M | 7.33M | -8.5M | 11.41M | -744K | 345K | 497K | 5.62M | -18.03M | 118K | 69K | -1M | -209K | 55K | 9.01M | -136K | 299K | -10.03M | 446K | -109K | 115K | -4.68M | 141K | 190K | 2.67M | 6.53M | 11.3M | 8.8M | 5.7M |
| Effective Tax Rate % | 23.89% | 25.84% | 23.85% | 25.07% | -105.73% | -306.01% | 25% | 12.65% | -44.49% | 232.93% | -381.49% | 2.53% | 7.52% | 36.7% | 5.17% | -0.4% | -104.89% | -82.93% | 19.81% | -82.24% | 5.58% | 1.13% | -0.83% | 17.56% | 33.33% | 43.58% | 38.26% | 39.1% | 39.1% | 38.77% | 38% |
| Net Income | -940K | 2.57M | 21.64M | 21.91M | 16.55M | -15.14M | -2.23M | 2.38M | -1.61M | -3.21M | 22.76M | 4.55M | 849K | -1.73M | -3.83M | -13.8M | -17.59M | 300K | 1.21M | 22.22M | 7.54M | -9.57M | -13.99M | -21.96M | 282K | 246K | 4.02M | 10.17M | 17.6M | 13.9M | 9.3M |
| Net Margin % | -0.48% | 1.29% | 8.13% | 8.14% | 7.16% | -8.19% | -1.46% | 1.23% | -0.8% | -1.7% | 13.12% | 2.7% | 0.52% | -1.12% | -2.43% | -8.29% | -9.72% | 0.16% | 0.57% | 9.68% | 3.38% | -4.46% | -7% | -11.45% | 0.12% | 0.1% | 1.4% | 3.79% | 6.4% | 5.38% | 3.94% |
| Net Income Growth % | -104.65% | -88.14% | -1.21% | 32.41% | 209.32% | -578.14% | -193.7% | 247.58% | 49.7% | -114.1% | 400.33% | 435.81% | 149.08% | 54.83% | 72.25% | 21.55% | -5964.67% | -75.21% | -94.55% | 194.49% | 178.81% | 31.59% | 36.27% | -7887.59% | 14.63% | -93.87% | -60.5% | -42.24% | 26.62% | 49.46% | 78.85% |
| Net Income (Continuing) | -941K | 2.57M | 21.64M | 21.91M | 16.55M | -15.14M | -2.23M | 2.38M | -1.61M | -3.21M | 22.76M | 4.55M | 849K | -1.73M | -3.83M | -13.8M | -17.59M | 300K | 1.21M | 22.22M | 7.54M | -9.57M | -13.99M | -21.96M | 282K | 246K | 4.31M | 10.17M | 17.6M | 13.9M | 9.3M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.06 | 0.16 | 1.32 | 1.34 | 1.02 | -0.95 | -0.14 | 0.15 | -0.10 | -0.21 | 1.49 | 0.30 | 0.06 | -0.12 | -0.27 | -0.97 | -1.25 | -0.05 | 0.08 | 1.53 | 0.55 | -0.73 | -1.07 | -1.68 | 0.02 | 0.02 | 0.29 | 0.72 | 1.20 | 0.95 | 0.64 |
| EPS Growth % | -104.31% | -87.88% | -1.49% | 31.37% | 207.37% | -578.57% | -193.33% | 250% | 52.38% | -114.09% | 396.67% | 400% | 150% | 55.56% | 72.16% | 22.4% | -2400% | -162.5% | -94.77% | 178.18% | 175.34% | 31.78% | 36.31% | -8500% | 0% | -93.1% | -59.72% | -40% | 26.32% | 48.44% | 77.78% |
| EPS (Basic) | - | 0.16 | 1.32 | 1.34 | 1.03 | -0.95 | -0.14 | 0.15 | -0.10 | -0.21 | 1.51 | 0.31 | 0.06 | -0.12 | -0.27 | -0.97 | -1.25 | -0.05 | 0.08 | 1.54 | 0.56 | -0.73 | -1.07 | -1.68 | 0.02 | 0.02 | 0.29 | 0.74 | 1.22 | 0.96 | 0.64 |
| Diluted Shares Outstanding | 15.73M | 15.77M | 16.37M | 16.39M | 16.19M | 15.95M | 15.76M | 15.69M | 15.42M | 15.24M | 15.27M | 15.12M | 14.99M | 14.62M | 14.39M | 14.23M | 14.13M | 14.15M | 14.43M | 14.54M | 13.61M | 13.11M | 13.11M | 13.1M | 13.46M | 13.67M | 13.89M | 14.09M | 14.67M | 14.7M | 14.51M |
| Basic Shares Outstanding | 15.73M | 15.76M | 16.36M | 16.3M | 16.14M | 15.95M | 15.76M | 15.59M | 15.42M | 15.24M | 15.07M | 14.91M | 14.76M | 14.42M | 14.19M | 14.23M | 14.13M | 14.15M | 14.39M | 14.4M | 13.59M | 13.11M | 13.11M | 13.1M | 13.34M | 13.45M | 13.75M | 13.89M | 14.43M | 14.42M | 14.51M |
| Dividend Payout Ratio | - | 61.37% | 6.76% | 1.49% | - | - | - | - | - | - | - | - | - | - | - | - | - | 473.67% | 119.42% | 1.62% | - | - | - | - | 359.57% | 384.15% | 21.56% | 7.87% | 3.98% | 5.04% | 7.53% |
K-12 budget cyclicality
According to the most recent quarterly filings, VIRC experienced a significant revenue contraction, with the latest period showing a 9.1% year-over-year decline, following a sharp 42.3% drop in 2026Q3, signaling that the post-pandemic surge in school furniture procurement has likely reached a definitive exhaustion point.
The consistent deceleration in top-line growth suggests that the expiration of federal ESSER funding is creating a structural headwind for the company's project-based model. Investors should monitor whether the current revenue levels represent a new, lower baseline or if further downside remains as school districts tighten discretionary spending.
As reported in financial statements, VIRC's gross margin has demonstrated extreme sensitivity to volume, swinging from a peak of 47.5% in 2026Q1 down to 23.9% in 2026Q4, which highlights the company's inability to maintain pricing power during periods of low manufacturing utilization.
The wide variance in gross margins indicates that the company's high fixed-cost manufacturing base is poorly suited for the current demand environment. This volatility suggests that profitability is highly dependent on achieving specific seasonal volume thresholds, leaving the bottom line vulnerable to even minor shifts in school district procurement timing.
Based on VIRC's reported figures, the company's operating margin has collapsed into negative territory, reaching -11.9% in 2027Q1, demonstrating that the firm's fixed SG&A and logistics costs are currently scaling inversely to the declining revenue base, thereby eroding shareholder value during the off-peak season.
The inability to flex operating expenses downward in proportion to revenue declines suggests a rigid cost structure that may be difficult to optimize in the short term. This operational leverage, which serves the company well during peak summer months, appears to be a significant drag on earnings during the remainder of the year.
While the company maintains a low debt-to-equity ratio of 0.38, the income statement data suggests that the business model's extreme reliance on a narrow summer delivery window creates a persistent risk of quarterly losses that could eventually exhaust the firm's current cash reserves.
Short-term observers may focus on the company's ability to survive the off-season, but the fundamental concern remains the lack of revenue diversification outside the K-12 sector. The current trend of recurring quarterly operating losses warrants further investigation into whether the company can sustain its specialized logistics model without a more consistent, year-round revenue stream.
Quick answers to the most common questions about buying VIRC stock.
For fiscal year 2026, Virco Mfg. Corporation (VIRC) reported total revenue of $199.7M. This represents a 15.5% decline compared to $236.3M in 1997.
Virco Mfg. Corporation (VIRC) is profitable, generating $2.6M in net income for the fiscal year ending 2026 with a net profit margin of 1.3%.
Virco Mfg. Corporation (VIRC) reported an operating income of $3.7M, resulting in an operating profit margin of 1.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Virco Mfg. Corporation (VIRC) generated $81.2M in gross profit for the year, representing a gross profit margin of 40.7%. This demonstrates the company's core pricing power and production efficiency.