The return to seasonal losses in Q1 and declining backlog suggest the post-pandemic demand surge has fully normalized. Monitor Q2 and Q3 peak-season orders for confirmation of the 'new normal' baseline; a failure to return to profitability in those quarters would signal structural demand weakness. The $0.025 dividend is unchanged and provides a minimal yield cushion.
Price Chart
Executive Summary
Virco reported a Q1 FY2027 net loss of $2.8M ($-0.18 diluted EPS) vs net income of $0.7M ($0.05) a year ago, on a 9.1% revenue decline to $30.7M. Gross margin compressed from 47.5% to 41.4% due to lower factory absorption. Management cited a return to normal seasonality and the absence of a prior-year backlog overhang, with order rates roughly flat and the 'Shipments plus Backlog' metric down 1.8% to $103.7M. The board declared a $0.025 quarterly dividend, unchanged from prior periods.
Key Financial Metrics
Key Facts
- Net sales declined 9.1% YoY to $30.7M from $33.8M.
- Net loss of $2.8M ($-0.18 diluted EPS) vs net income of $0.7M ($0.05) in prior-year Q1.
- Gross margin fell to 41.4% from 47.5% due to lower factory overhead absorption.
- Operating loss widened to $3.66M from $0.09M a year ago.
- Cash on hand was $3.7M, up from $0.9M a year ago, but down from $14.4M at year-end.
- Board declared a $0.025 quarterly dividend, payable July 10, 2026.
- Company repurchased $0.2M in shares and paid $0.4M in dividends during the quarter.
- Inventories declined 7.7% YoY to $68.3M.
- Shipments plus Backlog metric down 1.8% to $103.7M from $105.6M.
Financial Impact
Revenue decline of $3.1M (9.1%) and swing from $0.7M net income to $2.8M net loss, with gross margin compression of 610 bps.
Risk Factors
- Continued demand normalization could lead to further revenue declines and operating losses in seasonally weak quarters.
- Gross margin pressure from lower factory utilization may persist if order rates do not recover in peak season.
- Cash burn in off-peak quarters could pressure liquidity if the seasonal cycle does not rebound as expected.
Market Snapshot
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3306027 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 15, 2026 19w ago | Insider Cluster | $6.30 $6.20 | ▼ −1.59% | ▼ −0.99% | $6.18 (−1.90%) |
Jun 15, 2026 19w ago | Insider Cluster | $6.30 $6.20 | ▼ −1.59% | ▼ −0.99% | $6.18 (−1.90%) |
Jun 3, 2026 20w ago | 8-K | $5.44 $5.69 | ▼ −4.60% | ▼ −4.20% | $6.18 (−13.60%) |
Jun 3, 2026 20w ago | Press Release | $5.44 $5.69 | ▼ −4.60% | ▼ −4.20% | $6.18 (−13.60%) |
Apr 13, 2026 28w ago | Insider Cluster | $6.01 $6.04 | ▲ +0.49% | ▼ −0.29% | $6.18 (+2.81%) |
Apr 13, 2026 28w ago | Insider Cluster | $6.01 $6.04 | ▲ +0.49% | ▼ −0.29% | $6.18 (+2.81%) |
Apr 13, 2026 28w ago | Insider Cluster | $6.01 $6.04 | ▲ +0.49% | ▼ −0.29% | $6.18 (+2.81%) |
Apr 10, 2026 28w ago | Insider Cluster | $5.62 $5.85 | ▲ +4.09% | ▲ +3.12% | $6.18 (+9.97%) |
Apr 8, 2026 28w ago | 8-K | $5.68 $5.52 | ▲ +2.82% | ▲ +3.39% | $6.18 (−8.80%) |
Apr 8, 2026 28w ago | Press Release | $5.68 $5.52 | ▲ +2.82% | ▲ +3.39% | $6.18 (−8.80%) |
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