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Financial Data and Key Metrics Changes - In the third quarter, net revenues decreased to $7 million from $11.1 million year-over-year [5] - Average active brand partners fell to 5,100 from 12,400 [5] - Earnings before income taxes improved to $10.6 million from a loss of $1.1 million in the prior year [5] - Net earnings for the quarter were $7.8 million compared to an $800,000 loss last year [5] - Year-to-date net revenues were $18.7 million, down from $27.6 million [6] - Year-to-date earnings before income taxes were $7.4 million compared to a loss of $5.3 million last year [6] - Year-to-date net earnings totaled $5.4 million compared to a $3.9 million loss last year [6] Business Line Data and Key Metrics Changes - The company launched the Gathered Goods fundraising program, which is expected to improve margins and scalability [8][10] - The Book Friday promotion drove strong engagement, reinforcing the value of the catalog [9] - Despite a decline in brand partner count, remaining partners are more productive and engaged [10] Market Data and Key Metrics Changes - The company reported a decrease in inventory levels from $44.7 million to $39.1 million, generating $5.6 million in cash flow from inventory reductions [6][7] - At the end of the quarter, cash was $3.4 million, receivables were $800,000, and accounts payable were $2.0 million [7] Company Strategy and Development Direction - The sale of the Hilti Complex allows the company to move forward without bank restrictions, focusing on growth and profitability [3][12] - The company plans to increase brand partner counts and has a refreshed marketing strategy targeting Gen Z [14] - An AI task force has been established to explore automation and transformational ideas [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth due to a committed leader base and more productive brand partners [11] - The company is preparing to execute a growth plan now that bank restrictions have been lifted [12][15] - Management acknowledged the challenges faced in recent years but is confident in the company's ability to emerge stronger [16][17] Other Important Information - The company has no bank debts following the sale of the Hilti Complex, which is expected to positively impact cash flows by approximately $1 million per year [12] - Inventory is fully insured at replacement cost, with about 50% related to Usborne [25][30] Q&A Session Summary Question: Has the sale of the building reinvigorated the salesforce? - Management noted increased activity in leader promotions and excitement among brand partners, indicating a positive shift [19][20] Question: Is there a new credit line in place? - Management is in discussions with banks for a new relationship but currently has sufficient cash [22][23] Question: Is the inventory fully insured? - Yes, inventory is insured at replacement cost [24][25] Question: What percentage of inventory could become outdated? - Historically, the company has not written down inventory and does not typically offload titles [26][27] Question: What is the status of the relationship with Usborne Publishing? - There has been no negative change, and Usborne is eager for the company to resume ordering titles [32][33] Question: What are the plans for the excess land beside the Hilti Complex? - The company is holding onto the land for now, with potential development options being considered [34]

Financial Data and Key Metrics Changes - In the third quarter, net revenues decreased to $7 million from $11.1 million year-over-year, while year-to-date revenues fell to $18.7 million from $27.6 million [5][6] - Average active brand partners dropped to 5,100 in Q3 from 12,400, and year-to-date average active brand partners decreased to 6,200 from 13,300 [5][6] - Earnings before income taxes improved to $10.6 million from a loss of $1.1 million in Q3 last year, while year-to-date earnings before income taxes were $7.4 million compared to a loss of $5.3 million [5][6] - Net earnings for the quarter were $7.8 million compared to an $800,000 loss last year, and year-to-date net earnings were $5.4 million compared to a $3.9 million loss [5][6] - Earnings per share rose to $0.91 from a loss of $0.10 in Q3 last year, and year-to-date earnings per share increased to $0.63 from a loss of $0.47 [5][6] Business Line Data and Key Metrics Changes - The company launched the Gathered Goods fundraising program, which allows for custom products and better margin control, marking a strategic shift from the previous Cards for a Cause program [8][10] - The Book Friday promotion was highlighted as a significant marketing strategy, driving customer engagement despite a decline in brand partner count [9][10] Market Data and Key Metrics Changes - The company reported a decrease in inventory levels from $44.7 million at the beginning of fiscal year 2026 to $39.1 million at the end of November, generating $5.6 million in cash flow from inventory reductions [6][7] - The company maintained a cash position of $3.4 million and had no bank debt following the sale of the Hilti Complex [6][7] Company Strategy and Development Direction - The company aims to return to growth and profitability in fiscal 2027, focusing on increasing brand partner counts and launching new products to energize sales [3][12] - A refreshed marketing strategy targeting Gen Z is being developed to attract new brand partners [13][14] - The company is exploring AI applications to automate tasks and enhance operational efficiency [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a committed leader base and more productive brand partners as key factors for growth [11][12] - The management acknowledged the challenges faced in recent years due to bank restrictions but is now positioned for growth following the sale of the Hilti Complex [12][16] Other Important Information - The company has a 17-acre tract of excess land beside the Hilti Complex, which is being held for potential future development or sale [32] Q&A Session Summary Question: Has the sale of the building reinvigorated the salesforce? - Management noted increased activity in leader promotions and excitement among brand partners following the sale, indicating a positive shift [18][19] Question: Is there a new credit line in place? - Management is in discussions with banks for a new banking relationship but currently maintains a sufficient cash position [20][22] Question: Is the inventory fully insured? - The inventory is insured at replacement cost, ensuring that the value on the books matches the insurance coverage [23][24] Question: What percentage of inventory could be out of date? - Management stated that historically, they have not written down inventory and do not typically offload titles, indicating confidence in inventory value [25][26] Question: What is the status of the relationship with Usborne Publishing? - There has been no negative change in the relationship, and Usborne is eager for the company to resume ordering titles [30][31] Question: What are the plans for the excess land beside the Hilti Complex? - The land is currently being held with potential for development or sale, and there has been interest from external parties [32]

Financial Data and Key Metrics Changes - In Q3 2026, net revenues decreased to $7 million from $11.1 million in Q3 2025, a decline of approximately 37.5% [5] - Average active brand partners fell to 5,100 from 12,400 year-over-year [5] - Earnings before income taxes improved to $10.6 million from a loss of $1.1 million in the prior year, but excluding the building sale gain of $12.2 million, the loss would have been $1.6 million [5] - Net earnings for the quarter were $7.8 million compared to a loss of $800,000 in Q3 2025 [5] - Year-to-date net revenues were $18.7 million, down from $27.6 million in the previous year [6] - Year-to-date earnings before income taxes were $7.4 million compared to a loss of $5.3 million last year [6] - Cash position at the end of the quarter was $3.4 million with no bank debt [7] Business Line Data and Key Metrics Changes - The company launched a new fundraising program called Gathered Goods, which aims to improve margins and expand digital fundraising opportunities [9][10] - The decline in brand partner count is not proportional to revenue decline, indicating that remaining partners are more productive [11] Market Data and Key Metrics Changes - The company is focusing on adapting its marketing strategy to attract the next generation of brand partners, particularly Gen Z [15] Company Strategy and Development Direction - The sale of the Hilti Complex has removed bank restrictions, allowing the company to focus on growth and profitability [3] - The company plans to increase brand partner counts and has initiated a new product reorder and title purchase plan [14] - An AI task force has been established to explore automation and efficiency improvements [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth due to a committed leader base and more productive brand partners [12] - The company is preparing for a growth plan now that bank restrictions have been lifted, with a focus on new product launches and marketing strategies [13][15] Other Important Information - The company has maintained a strong relationship with Usborne Publishing, with no negative changes reported [33] - Inventory is fully insured at replacement cost, and approximately 50% of the inventory is related to Usborne [30][31] Q&A Session Summary Question: Has the sale of the building reinvigorated the salesforce? - Management noted increased activity in leader promotions and excitement among brand partners, indicating a positive shift [20][21] Question: Is there a new credit line in place? - The company is in discussions with banks for a new banking relationship but is currently in a stable cash position [22][23] Question: Is the inventory fully insured? - Yes, the inventory is insured at replacement cost [26] Question: What percentage of inventory could become outdated? - Historically, the company has not written down inventory, and titles can remain in stock for over 10 years without issues [28] Question: What is the status of the relationship with Usborne Publishing? - There has been no change, and Usborne is eager for the company to resume ordering titles [32] Question: What are the plans for the excess land beside the Hilti Complex? - The company is holding onto the land for now, with potential development options being considered [35]

Tulsa, Oklahoma--(Newsfile Corp. - January 8, 2026) - Educational Development Corporation (NASDAQ: EDUC) ("EDC", or the "Company"), a publishing company specializing in books and educational products for children, today reports financial results for the fiscal third quarter ended November 30, 2025.Third Quarter Summary Compared to the Prior Year Third QuarterNet revenues were $7.0 million compared to $11.1 million.Average active PaperPie Brand Partners totaled 5,100 compared to 12,400.Earnings (loss) befor ...

Financial Performance - Net revenues for the third quarter were $7.0 million, a decrease of 37.5% compared to $11.1 million in the prior year[5] - Earnings before income taxes for the third quarter were $10.6 million, compared to a loss of $(1.1) million in the prior year, with a gain from the building sale of $12.2 million[5] - Net earnings for the third quarter totaled $7.8 million, compared to a loss of $(0.8) million in the prior year[5] - Year-to-date net revenues were $18.7 million, down 32.3% from $27.6 million in the prior year[5] Operational Metrics - Average active PaperPie Brand Partners decreased to 5,100 from 12,400, reflecting a decline of 58.9% year-over-year[5] - Inventory levels were reduced by $1.5 million during the third quarter, contributing to an improved cash position[4] Cash and Liquidity - Cash position at the end of the quarter was $3.4 million, providing necessary liquidity for fiscal 2027[4] - The strategic sale and leaseback of the Hilti Complex generated $32.2 million, which was used to pay off outstanding loans, improving annual cash flow by approximately $1.0 million[4] - The company retained a 17-acre tract of excess land adjacent to the Hilti Complex, valued at $2.0 million, enhancing the balance sheet[4] Strategic Initiatives - The company plans to implement a strategic purchase plan for new titles to energize sales and support growth in the PaperPie division[4]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Enviri Corporation (NVRI) is up 32% at $18.00 [3] - Mobile-Network Solutions (MNDR) is up 32% at $4.04 [3] - Epsium Enterprise Limited (EPSM) is up 13% at $4.17 [3] - Azenta, Inc. (AZTA) is up 10% at $33.12 [3] - Shuttle Pharmaceuticals Holdings, Inc. (SHPH) is up 10% at $2.03 [3] - Inhibikase Therapeutics, Inc. (IKT) is up 9% at $1.67 [3] - OMS Energy Technologies Inc. (OMSE) is up 7% at $5.48 [3] - Montauk Renewables, Inc. (MNTK) is up 6% at $1.71 [3] - AN2 Therapeutics, Inc. (ANTX) is up 6% at $1.15 [3] - Brera Holdings PLC (SLMT) is up 5% at $2.21 [3] Premarket Losers - New Fortress Energy Inc. (NFE) is down 17% at $1.20 [4] - Educational Development Corporation (EDUC) is down 16% at $1.05 [4] - Q/C Technologies, Inc. (QCLS) is down 15% at $2.78 [4] - AnaptysBio, Inc. (ANAB) is down 14% at $32.21 [4] - Psyence Biomedical Ltd. (PBM) is down 14% at $1.47 [4] - ALT5 Sigma Corporation (ALTS) is down 13% at $1.45 [4] - Elastic N.V. (ESTC) is down 11% at $72.50 [4] - Twin Vee Powercats Co. (VEEE) is down 9% at $1.63 [4] - Gloo Holdings, Inc. Class A Common Stock (GLOO) is down 7% at $8.35 [4] - Metalpha Technology Holding Limited (MATH) is down 6% at $2.95 [4]

Summary of Perfect Corp Conference Call Company Overview - **Company Name**: Perfect Corp - **Ticker Symbol**: PERF - **Market Capitalization**: $175 million with 101 million shares outstanding at $1.75 per share [3] - **Cash Position**: $170 million with no debt [3] - **Founded**: 2015, based in Taipei, Taiwan [3] - **Employee Count**: Approximately 410, with about half in R&D [3] - **Revenue Distribution**: 50% from the US, 25% from the EU, and 20% from Japan [3] Business Model - **B2B and B2C Segments**: - B2B: Provides beauty and fashion software solutions to major brands (e.g., Estée Lauder, Shiseido) [3][5] - B2C: Offers apps available on iOS and Android, focusing on virtual try-on and photo/video editing [3][5] - **Revenue Shift**: - B2B revenue was approximately 75%-80% at the end of 2022, projected to drop to about 30% by the end of 2025 due to faster growth in B2C [5][29] Financial Performance - **Revenue Growth Guidance**: Expected growth of 13%-14.5% for the year, with a positive outlook for surpassing this guidance [26] - **Operating Income**: First positive operating income of $500,000 reported in the third quarter [27] - **Net Income**: Approximately $5 million with margins around 10% [28] - **Subscriber Count**: 940,000 paying subscribers, primarily from developed countries [11] - **Average Selling Price (ASP)**: Increased by $20 due to the introduction of a premium model [9] Technology and Innovation - **Focus on GenAI**: GenAI technology for photo and video editing is a key growth driver [4][20] - **Patents**: Over 55 patents related to their technology [13] - **AI Integration**: Plans to embed AI agents in all apps by 2026, focusing on personalized beauty and fashion advice [18] Market Dynamics - **B2B Challenges**: Financial pressures on brand clients due to macroeconomic factors have slowed B2B growth [5][6] - **B2C Growth**: Rapid growth in B2C driven by changing consumer habits, especially during the pandemic [5] - **Competitive Landscape**: Limited large competitors in the B2B space, with many smaller players in the B2C segment [34] Strategic Initiatives - **M&A Activity**: Recent acquisition of Wannabe, enhancing virtual try-on capabilities for luxury brands [21] - **API Business Growth**: Increased interest from non-beauty companies integrating Perfect Corp's API for virtual try-on solutions [26] Customer Engagement - **User Demographics**: 75%-80% of users are female, primarily in their teens to 20s [34] - **Retention Rate**: High retention rate of over 90% for B2B clients [12][25] Future Outlook - **Growth Avenues**: Continued focus on GenAI technology, skincare analysis, and virtual try-on for accessories [30] - **Potential for Dividends or Buybacks**: Management is considering options based on cash availability [30] Key Risks - **B2B Revenue Dependency**: Slower growth in B2B could impact overall revenue if not offset by B2C growth [6][29] - **Market Competition**: Potential for larger players to enter the market or acquire the company [34] This summary encapsulates the key points discussed during the conference call, highlighting the company's current status, market dynamics, financial performance, and future strategies.

Core Points - Educational Development Corporation (EDC) completed the sale of its headquarters and distribution warehouse, the Hilti Complex, for $32.2 million, which will be used to eliminate outstanding debt [2][3][4] - The sale strengthens the company's cash flows and financial position, allowing for improved annual cash flow generation by approximately $1.0 million due to the elimination of principal and interest payments [4] - EDC retains a 17-acre tract of excess land adjacent to the complex, valued at $2.0 million, further enhancing its balance sheet [4] Financial Impact - Proceeds from the sale were utilized to pay off Term Loans and Revolving Loan outstanding in the Credit Agreement with the bank [3] - The transaction is viewed as a strategic achievement that capitalizes on the appreciated value of the Hilti Complex [4] - The company expects continued improvement in cash flow from operations as it converts excess inventory into cash over the next several years [4] Company Background - EDC specializes in publishing children's books and owns brands such as Kane Miller Books, Learning Wrap-Ups, and SmartLab Toys [5] - The company is also the exclusive U.S. distributor of Usborne Publishing Limited children's books, with products sold through 4,000 retail outlets and various independent brand partners [5]

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