Revenue: As of FY2026 Q3, the actual value is USD 47.64 M, missing the estimate of USD 85.9 M.EPS: As of FY2026 Q3, the actual value is USD -0.08.EBIT: As of FY2026 Q3, the actual value is USD -1.653 M.<h3>Segment Revenue</h3><ul><li>Net Sales: For the three months ended October 31, 2025, net sales were $47.6 million, a decrease of approximately 42.3% compared to $82.6 million in the same period of the prior year. For the nine months ended October 31, 2025, net sales were $173.5 million, a decrease of approximately 27.0% compared to $237.8 million in the same period of the prior year.</li></ul><h3>Operational Metrics</h3><ul><li>Net Income: The Company incurred a net loss of $1.3 million for the three months ended October 31, 2025, compared to net income of $8.4 million in the same period of the prior year. For the nine months ended October 31, 2025, net income was $9.6 million compared to $27.4 million in the same period of the prior year.</li><li>Gross Margin: Gross margin for the three months ended October 31, 2025 was 38.0%, compared to 44.4% in the prior year. For the nine months ended October 31, 2025, gross margin was 43.2% compared to 45.1% in the prior year.</li><li>SG&amp;A Expenses: Selling, general and administrative expenses for the three months ended October 31, 2025 were 41.5% of sales compared to 30.9% in the same period last year. For the nine months ended October 31, 2025, SG&amp;A expenses were 35.4% of sales compared to 30.0% in the same period last year.</li></ul><h3>Cash Flow</h3><ul><li>Operating Cash Flow: Net cash provided by operating activities for the nine months ended October 31, 2025 was $9.982 million, compared to $41.420 million in the same period of the prior year.</li><li>Free Cash Flow: The Company spent $5.1 million in capital expenditures, issued $1.2 million of cash dividends, and spent $4.0 million to repurchase shares for the nine months ended October 31, 2025.</li></ul><h3>Unique Metrics</h3><ul><li>Order Backlog: Order backlog at October 31, 2025 was approximately $26 million compared to $27 million in the prior year.</li></ul><h3>Future Outlook and Strategy</h3><ul><li>Core Business Focus: The Company plans to continue reinvesting in operating systems, employee training, and customer development and retention to respond to uncertainties such as tariffs and trade realignments.</li><li>Non-Core Business: The Company terminated the VIP Plan, a supplementary retirement plan, to reduce benefit obligations and administrative costs, with settlement expected in fiscal year 2027.</li><li>Priority: Management believes cash flows from operations and cash on hand, together with unused borrowing capacity, will be sufficient to fund debt service requirements, capital expenditures, and working capital needs for the next twelve months.</li></ul>

Virco Manufacturing | 10-Q: FY2026 Q3 Revenue Misses Estimate at USD 47.64 M