Virco Mfg Corporation reported a solid QQ3 2025 with a revenue figure of $82.62 million, delivering a gross margin of 44.39% and an operating margin of 13.45%. Net income was $8.40 million and earnings per share stood at $0.52. EBITDA reached $12.46 million. Operating cash flow was $33.46 million, while free cash flow amounted to $30.98 million, underscoring meaningful cash-generation strength despite seasonal demand patterns.
The quarter benefited from disciplined cost management and a favorable cash conversion cycle, resulting in a net debt position of $3.58 million and a cash balance of $38.86 million at quarter end. Virco’s balance sheet exhibits liquidity and low leverage, with a current ratio of 2.88, a quick ratio of 1.70, and a debt-to-capitalization ratio of 0.268. Relative to peers within the sector, Virco trades at a defensible multiple (P/E ~6.8x; P/B ~1.97x) and demonstrates a robust FCF profile, positioning the company to weather near-term volume headwinds and pursue selective opportunistic investments or shareholder-friendly actions.
However, year-over-year (YoY) and quarter-over-quarter (QoQ) comparisons show revenue, gross profit, and profitability metrics all declined versus the prior-year period and the immediate prior quarter, driven largely by seasonality in education-related orders and a higher SG&A burden in the quarter. Management commentary (when available) would typically address mix shifts, program wins, and cost-control initiatives shaping the trajectory into the key back-to-school cycle. Given the absence of formal forward guidance in the dataset, investors should monitor demand signals in K-12 and higher-education segments, product mix optimization, and any changes in public funding that could influence orders in upcoming quarters.