This article uses theories of public governance to explain the performance of Wisconsin's virtual charter school sector. Specifically, longitudinal student-level data from Wisconsin is used to determine the characteristics and performance of students transferring into and out of virtual charter schools. The results show that students with lower test scores are more likely to transfer school sectors. Regression modeling indicates that students suffer immediate-term academic losses when they transfer into virtual charter schools, and immediate-term academic gains when they return to traditional public schools. The results highlight the explanatory power of modern theories of public governance, but call into question the assumption that market-based governance reforms will produce performance gains. The results also speak to the performance of virtual charter schools generally, and to the possible impacts and lessons of the Covid-19 related shift to virtual education in the U.S.