Virco sales plunge 25% as disaster recovery orders roll off; workforce cut 10%

Filed April 8, 2026 · Period ending January 31, 2026 · Compared to 10-K Apr 14, 2025 · ~2 min read

Key Changes

• high

  Net sales fell 25% to $199.7M as $23M in one-time disaster recovery orders from fiscal 2025 did not repeat. Excluding that non-recurring event, underlying sales declined ~18% due to macroeconomic uncertainty and reduced government spending on school furniture.

  MD&A: Revenue verify on EDGAR →
• high

  Pre-tax profit collapsed 88% from $28.4M to $3.5M; diluted EPS dropped from $1.32 to $0.16. Operating cash flow swung from $33.1M inflow to $0.8M outflow, driven by lower earnings and working capital changes.

  MD&A: Profitability & Cash Flow verify on EDGAR →
• high

  Gross margin compressed 240 basis points to 40.7% as lower sales volume and reduced production (to control inventory) hurt overhead absorption, partially offset by price increases and modest manufacturing cost reductions.

  MD&A: Gross Margin verify on EDGAR →