Virco Mfg Corporation reported a resilient QQ2 2025 (Q2 2025) with revenue of $108.419 million, up 1.0% year-over-year and up 131.99% quarter-over-quarter, reflecting a seasonal uplift and better utilization of production capacity. Gross profit reached $50.218 million for a gross margin of 46.3%, and operating income was $21.894 million (operating margin 20.2%), delivering EBITDA of $23.766 million (EBITDA margin ~21.9%). Net income was $16.833 million, yielding a diluted EPS of $1.04. These results culminate in meaningful cash flow generation: net operating cash flow of $12.47 million and free cash flow of $10.67 million, supported by capital expenditures of about $1.80 million and a modest capital allocation approach (stock repurchases of ~$0.41 million and dividends of ~$0.33 million in the period).
Balance sheet metrics remain favorable: cash and cash equivalents of $7.77 million, total assets of $216.35 million, and total equity of $107.81 million. The company carries a net debt position of $35.13 million and a current ratio of 2.26, underscoring liquidity strength. The results reflect Virco’s niche positioning in the U.S. educational furniture market, with margins that historically reflect a high-value, specialty product mix and efficient overhead management.
Given the absence of explicit forward guidance in the provided materials, the QQ2 2025 performance signals continued earnings quality and operating leverage. Management commentary, where available, remains constructive on demand for classroom furnishings and replacement cycles, though the landscape is sensitive to public education budgets and school district capital cycles. Investors should monitor order backlogs, AR dynamics, and the pace of discretionary capex within K-12 and higher-education sectors, alongside ongoing efficiency gains that sustain margin resilience.