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what it is
Virco makes the chairs, desks, tables, and storage that fill American classrooms and school offices.
how it gets paid
Last year Virco Mfg made $266M in revenue. Classroom chairs and seating was the main engine at $96M, or 36% of sales.
why growth slowed
Revenue fell 1.1% last year. The key number was $173M of revenue.
what just happened
Virco's was huge, with revenue hitting $173M and EPS jumping to about $0.61.
At a glance
C++ balance sheet — some cracks in the foundation
20/100 earnings predictability — expect surprises
25.3x trailing p/e — priced about right
1.6% dividend yield — cash in your pocket every quarter
19.3% return on capital — nothing to write home about
xvary composite: 33/100 — weak
What they do
Virco makes the chairs, desks, tables, and storage that fill American classrooms and school offices.
Virco wins by doing the unglamorous part at scale. It runs 2.3 million square feet of manufacturing, assembly, warehouse, and operations space across two locations, according to the company. Scale advantage (bigger production footprint than smaller rivals → lower unit costs and better delivery control → you matter when districts need thousands of desks fast) is the whole story here.
How they make money
$266M
annual revenue · their business grew -1.1% last year
Classroom chairs and seating
$96M
Student desks and combo units
$64M
Tables and work surfaces
$48M
Administrative office furniture
$34M
Mobile furniture, storage, and handling
$24M
The products that matter
classroom chairs & desks
School Furniture
$186M · about 70% of segment revenue shown
This is the center of gravity at $186M, and it is where the 20–30% backlog decline hurts most. If school orders stay weak, this is the line that drags everything else with it.
core demand engine
office & institutional seating
Commercial Furniture
$53M · about 20% of segment revenue shown
At $53M, this business gives Virco some diversification, but not enough. It still depends on the same public and institutional spending environment pressuring the core business.
partial offset
event & assembly furniture
Folding Chairs & Tables
$27M · about 10% of segment revenue shown
This is a $27M product line, which makes it too small to change the investment case on its own. It adds cyclical exposure without adding much insulation.
small swing factor
Key numbers
25.3x
trailing p/e
P/E (price divided by past earnings → how expensive the stock looks on old profits → you are paying 25.3 times trailing earnings for a furniture maker with lumpy school demand).
12.6%
operating margin
Operating margin (profit after running the business → how much money stays after core costs → Virco keeps $12.60 for every $100 of sales before interest and taxes).
19.3%
return on capital
Return on capital (profit generated from the money tied up in the business → efficiency of the machine → 19.3% is strong for a company selling desks and chairs).
$35M
long-term debt
Long-term debt (money owed beyond one year → fixed financial pressure → $35M matters when the whole company is worth only about $100M).
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 4 — safer than 20% of stocks
- price stability 20 / 100
- long-term debt $35M (26% of capital)
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for VIRC right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Virco's was huge, with revenue hitting $173M and EPS jumping to about $0.61.
The business is seasonal, and this was the heavy shipping quarter. Revenue rose 264% vs. prior year, while gross margin reached 43.2%, showing better volume absorption and pricing.
$173M
revenue
$0.61
eps
43.2%
gross margin
the number that mattered
The key number was $173M of quarterly revenue, because that is roughly 65% of Virco's entire $266M annual sales base packed into one quarter.
source: company earnings report, 2026
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What could go wrong
the #1 risk is education funding weakness hitting school furniture orders.
med
Education funding volatility
Virco's own disclosure says the business is significantly impacted by fluctuations in education funding. That matters because School Furniture is about 70% of the segment revenue shown on this page.
If districts delay spending, the biggest piece of the business slows first.
med
Backlog deterioration
The page already flags a 20–30% drop in backlog. That is not a theoretical risk. It is the operating reality the company is trying to manage right now.
If that decline persists into the next ordering season, the current 25.3x multiple looks generous.
med
Tariff and supply-chain pressure
The auditor warned that adverse volatility for fiscal 2026 could be severe because of supply-chain challenges and tariffs. Weak volume and rising input costs are a bad pairing.
Margin pressure can show up even if revenue merely stays flat from here.
med
Small-cap liquidity
This is a roughly $100M company with 47% institutional ownership mentioned elsewhere on the page. In a stock this small, a few holders can matter a lot.
You can be right on the business and still get a volatile stock path.
A 20–30% order decline plus $35M of long-term debt is not a collapse scenario. It is a reminder that this company has less room for error than the 25.3x multiple implies.
source: institutional data · regulatory filings · risk analysis
Pay attention to
demand
Backlog direction
The 20–30% decline is the cleanest read on whether the business is stabilizing or still slipping. If this number does not improve, the rest of the story gets harder.
profitability
Quarterly net income
Q1 2025 net income fell to $0.7M from $2.1M. You want to see that gap stop widening before paying up for a recovery.
costs
Tariff pass-through
The company needs to absorb or pass through tariff and supply-chain pressure without losing more demand. That is harder than it sounds in a price-sensitive category.
calendar
Next school buying season
This business is seasonal. The next ordering window will tell you whether the recent slowdown was a pause or the start of a weaker cycle.
Analyst rankings
earnings predictability
20 / 100
Low predictability means quarterly results can move around more than you want. In human-speak, analysts do not have a clean line of sight here.
risk rank
4
A rank of 4 means the stock scores worse on risk than most of the market. You are getting operating uncertainty and small-cap volatility together.
balance sheet
C++
That is below average balance sheet grade. Plain English: the company can function, but it does not have the kind of balance sheet that makes investors relaxed during a downturn.
source: institutional data
Institutional activity
institutional ownership data for VIRC is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$6
current price
n/a
target midpoint · n/a from current
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