How did Virco Mfg.'s revenue and expenses trend in Q3 2025?

Virco Mfg.'s revenue and expenses in Q3 2025 showed a decline in revenue and an increase in expenses compared to the same period in the previous year, resulting in a decrease in net income and profit margin. 1. **Revenue Trend**: The company's revenue for Q3 2025 was $82.6 million, which is a 1.9% decrease from the $84.25 million recorded in Q3 2024. This decline in revenue can be attributed to various factors, including market conditions and seasonal patterns. 2. **Expense Trend**: The Net interest income for Q3 2025 was $24 thousand, whereas in the previous year, it was $765 thousand. This significant swing from net interest income to net interest expense reflects the fact that the company was effectively debt-free during the bulk of the third quarter and did not utilize its seasonal line of credit to finance operations. Additionally, Selling, General, and Administrative (SG&A) expenses increased by 8.8% to $25,565,000, which is 30.9% of revenue, compared to $23,505,000, or 27.9% of revenue, in the same period of the prior year. This increase in SG&A expenses, primarily due to higher freight and installation costs, contributed to the overall expense trend. 3. **Net Income and Profit Margin**: As a result of the revenue decline and expense increase, Virco Mfg. reported a net income of $8.4 million for Q3 2025, which is a 17% decrease from the $10.2 million recorded in Q3 2024. The profit margin also decreased from 12% in Q3 2024 to 10% in Q3 2025. The diluted earnings per share (EPS) was $0.52, compared to $0.62 in the same period the previous year. |code|Ticker|Name|Date|Total Revenue|Total Expenses|Net Income|market_code| |---|---|---|---|---|---|---|---| |VIRC|VIRC.O|Virco Mfg.|2024 Q4|4.2601E7|0|-2342000|185| |VIRC|VIRC.O|Virco Mfg.|2025 Q1|4.6735E7||2140000|185| |VIRC|VIRC.O|Virco Mfg.|2025 Q2|1.08419E8||1.6833E7|185| |VIRC|VIRC.O|Virco Mfg.|2025 Q3|8.262E7||8401000|185| In conclusion, Virco Mfg. experienced a decline in revenue and an increase in expenses, leading to a decrease in net income and profit margin in Q3 2025 compared to Q3 2024.