Virco Mfg. Corporation reported a net loss of $1.3 million in the third quarter, with a decline in gross profit and net income compared to the previous year.
Revenue through nine months decreased by 27.0% to $173.5 million, while the current ratio improved to 3.98.
Backlog pulled nearly even on a year-over-year basis as order rates stabilized, indicating a potential market stabilization.
Net Loss in Third Quarter
Virco reported a net loss of $1.3 million, contrasting with a net profit in the same period of the prior year.
Revenue Decline
Revenue for the nine months decreased by 27.0% to $173.5 million compared to the previous year.
Improving Current Ratio
The current ratio reached 3.98, showcasing positive balance sheet metrics despite the challenging market conditions.
Stabilizing Order Rates
Order rates started to stabilize as the Company's unshipped backlog nearly matched the previous year's backlog by the end of the third quarter.
Cash Dividend Declared
The board declared a quarterly cash dividend of $0.025 per share, payable on January 9, 2026, to shareholders of record as of December 19, 2025.
- The company faced a notable downturn in the market for moveable school furniture, fixtures, and equipment due to the expiration of pandemic recovery stimulus funds.
- Management adjusted output downward to cope with lower sales levels and highlighted challenges in operating metrics compared to the previous year.
- Despite the market challenges, the current balance sheet improvement indicates strategic management decisions to preserve income for risk mitigation and future opportunities.
Despite the challenges and market downturn, Virco Mfg. Corporation is strategically positioning itself with a focus on stability and future recovery. The improvements in balance sheet metrics and stabilization of order rates provide optimism for navigating through the present challenges.