Virco Q2 Profit Falls 15% as Sales Slip 5%; Credit Line Extended to 2031
VIRC sits 23% above its 52-week low of $5.155.
Summary
Virco reported lower Q2 profit and sales, amended its credit agreement to extend the facility to 2031 with more flexible terms, and declared a $0.025 quarterly dividend.
Key Events · Earnings and Guidance · VIRC
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Q2 Net Income Falls 15%
Net income of $8.6M on sales of $87.5M for the quarter ended July 31, 2026, compared to $10.2M on $92.1M a year earlier. Six-month net income was $5.8M vs $10.9M.
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Gross Margin Compresses
Gross margin declined to 40.0% from 44.4% year-over-year, driven by lower sales volume and higher material and overhead costs.
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Credit Agreement Amended
Amendment No. 8 effective September 3, 2026 extends the PNC facility to September 3, 2031, sets a $40.0M maximum revolving advance amount, increases the receivables advance rate to 90%, and adds a $3.0M equipment loan sublimit.
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Quarterly Dividend Declared
Board declared a $0.025 per share dividend payable October 9, 2026 to shareholders of record September 18, 2026.
Analysis · VIRC · Manufacturing
Second-quarter net income dropped to $8.6 million from $10.2 million a year earlier, with sales down 5% to $87.5 million and gross margin compressing to 40.0% from 44.4%. The company also disclosed a material amendment to its PNC credit agreement effective September 3, 2026, extending the facility to 2031, increasing the receivables advance rate to 90%, and adding a $3.0 million equipment loan sublimit — changes that improve liquidity flexibility but also reflect a more lenient covenant structure. The board declared a $0.025 quarterly dividend, maintaining the payout despite weaker results.
How filings like this one have moved
In the 30 days to Sep 10, 2026, 30% of the 1973 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.12%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, VIRC was trading at $6.35 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $99.9M. The 52-week trading range was $5.16 to $8.90. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.