Core Viewpoint - Educational Development Corporation (EDC) reported a decline in net revenues for the fiscal first quarter of 2026, while also managing to reduce losses compared to the previous year [1][2]. Financial Performance - Net revenues for the first quarter ended May 31, 2025, were $7.1 million, down from $10.0 million in the same quarter of the previous year [4]. - Loss before income taxes was $(1.4) million, an improvement from $(1.7) million year-over-year [4]. - The net loss for the quarter was $(1.1) million, compared to $(1.3) million in the prior year [4]. - Loss per share was $(0.13), an improvement from $(0.15) in the same quarter last year [4]. Strategic Initiatives - The company implemented product discount promotions to increase cash flow, which negatively impacted gross margins [2]. - EDC is focused on reducing excess inventory to strengthen its financial position and pay down debts [2]. - An amendment to the Hilti Complex Purchase Sale Agreement was executed to allow more time for due diligence, which is expected to help retire outstanding debt and provide flexibility for future operations [2]. Brand Partner Engagement - The average number of active PaperPie Brand Partners decreased to 7,700 from 13,400 year-over-year [4]. - The company is working to provide additional opportunities for Brand Partners to succeed, aiming to normalize business operations post-transaction [2]. Company Overview - EDC specializes in publishing books and educational products for children and is the owner of several brands including Kane Miller Books and SmartLab Toys [6]. - EDC products are sold through 4,000 retail outlets and via independent brand partners through various sales channels [6].
Educational Development Corporation Announces Fiscal 2026 First Quarter Results