Virco Mfg Corporation reported a significant sequential acceleration in QQ2 2026, with revenue of $92.1 million up 172.8% QoQ from $33.8 million in QQ1, while year-over-year revenue declined 15.1%. The quarter delivered a robust gross margin of 44.4%, translating to gross profit of $40.9 million and an operating income of $15.37 million (operating margin 16.7%). Net income reached $10.19 million (net margin 11.1%), and earnings per share stood at $0.65. EBITDA was $15.93 million (EBITDA margin ~17.3%). Despite the YoY revenue decline, the QoQ rebound reflects lumpy order cycles typical in the education-furniture sector and a favorable mix and pricing dynamics in QQ2. Management commentary was not provided in the data, but the quarter shows meaningful cash generation with operating cash flow of $3.21 million and free cash flow of $1.83 million. The balance sheet remains solid, featuring a current ratio near 3x, total liquidity of $2.61 million cash and low net debt (~$39.28 million) against $115.38 million in equity, and a net-debt-to-EBITDA of roughly 2.46x. These fundamentals position Virco to weather seasonal procurement cycles and to capitalize on incremental demand in education-facility modernization if education budgets stabilize or expand.