The sequential cash burn from $14.4M to $3.7M in one quarter is the most concerning signal — monitor the Q2 peak season for order conversion to assess whether the company can generate operating cash flow to rebuild liquidity. The 1.8% decline in shipments plus backlog suggests the demand normalization is not yet troughing.
Price Chart
Executive Summary
Virco reported a Q1 FY2027 net loss of $2.8M on revenue of $30.7M, a 9.1% YoY decline from $33.8M, swinging from a $0.7M profit in the prior-year period. Gross margin contracted sharply to 41.4% from 47.5% due to lower factory absorption, and cash dropped to $3.7M from $14.4M at year-end as the company funded seasonal working capital. The sequential deterioration from the prior quarter's full-year net income of $2.6M confirms the post-COVID demand normalization is ongoing, with shipments plus backlog down 1.8% YoY.
Key Financial Metrics
Key Facts
- Q1 net loss of $2.8M vs net income of $0.7M in the prior-year period
- Revenue declined 9.1% YoY to $30.7M from $33.8M
- Gross margin fell to 41.4% from 47.5% YoY
- Cash balance dropped to $3.7M from $14.4M at year-end (Jan 31, 2026)
- Shipments plus backlog, management's preferred forward metric, declined 1.8% to $103.7M
- Board declared a $0.025/share quarterly dividend, payable July 10, 2026
- Company repurchased $0.2M in shares and paid $0.4M in dividends during Q1
Financial Impact
Revenue decline of $3.1M YoY; net income swing of -$3.5M vs prior year; gross margin contraction of 610 bps
Risk Factors
- Cash burn rate may require debt or equity financing if seasonal working capital needs persist
- Continued gross margin compression from under-absorbed factory overhead
- Extended school ordering cycles could delay the typical Q2/Q3 revenue peak
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-040123 |
| Document: virc-20260603.htm | 0001628280-26-040123 |
| Document: 0001628280-26-040123-index-headers.html | 0001628280-26-040123 |
| Document: 0001628280-26-040123-index.html | 0001628280-26-040123 |
| Document: 0001628280-26-040123.txt | 0001628280-26-040123 |
| 8-K Data (Synthetic) | 0001628280-26-040123 |
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| Type | Now | ||||
|---|---|---|---|---|---|
Jun 15, 2026 19w ago | Insider Cluster | $6.30 $6.20 | ▼ −1.59% | ▼ −0.99% | $6.20 (−1.59%) |
Jun 15, 2026 19w ago | Insider Cluster | $6.30 $6.20 | ▼ −1.59% | ▼ −0.99% | $6.20 (−1.59%) |
Jun 3, 2026 20w ago | 8-K | $5.44 $5.69 | ▼ −4.60% | ▼ −4.20% | $6.20 (−13.97%) |
Jun 3, 2026 20w ago | Press Release | $5.44 $5.69 | ▼ −4.60% | ▼ −4.20% | $6.20 (−13.97%) |
Apr 13, 2026 28w ago | Insider Cluster | $6.01 $6.04 | ▲ +0.49% | ▼ −0.29% | $6.20 (+3.14%) |
Apr 13, 2026 28w ago | Insider Cluster | $6.01 $6.04 | ▲ +0.49% | ▼ −0.29% | $6.20 (+3.14%) |
Apr 13, 2026 28w ago | Insider Cluster | $6.01 $6.04 | ▲ +0.49% | ▼ −0.29% | $6.20 (+3.14%) |
Apr 10, 2026 28w ago | Insider Cluster | $5.62 $5.85 | ▲ +4.09% | ▲ +3.12% | $6.20 (+10.32%) |
Apr 8, 2026 28w ago | 8-K | $5.68 $5.52 | ▲ +2.82% | ▲ +3.39% | $6.20 (−9.15%) |
Apr 8, 2026 28w ago | Press Release | $5.68 $5.52 | ▲ +2.82% | ▲ +3.39% | $6.20 (−9.15%) |
US Market Status
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