Scholastic Reports Fourth Quarter and Fiscal 2025 Results

Core Insights - Scholastic Corporation reported solid financial results for fiscal 2025, with Adjusted EBITDA in line with original guidance and a focus on cost management and profit growth for fiscal 2026 [1][2][6] - The company returned over $90 million to shareholders during the fiscal year, including dividends and share repurchases [21][22] Financial Performance - In Q4 of fiscal 2025, revenues increased by 7% to $508.3 million, driven by strong performance in Children's Book Publishing and Distribution, and the contribution from 9 Story Media Group [7][17] - Operating income rose 13% to $53.5 million, while Adjusted EBITDA increased by 1% to $91.2 million [8][17] - For the full year, revenues reached $1,625.5 million, a 2% increase from the previous year, with Adjusted EBITDA growing by 6% to $145.4 million [17][18] Segment Performance - The Children's Book Publishing and Distribution segment saw revenues rise by 9% to $288.2 million in Q4, while Education Solutions revenues decreased by 7% to $125.7 million due to market headwinds [9][13] - The Entertainment segment's revenues surged to $14.8 million, primarily due to the acquisition of 9 Story Media Group [14] - International revenues increased by 9% to $76.8 million, reflecting strong performance in trade channels [15] Strategic Initiatives - The company is implementing a strategic reorganization to enhance long-term growth and profitability, including a focus on product development aligned with educators' needs [4][5] - Scholastic is targeting Adjusted EBITDA of $160 million to $170 million for fiscal 2026, with revenue growth expected between 2% to 4% [6][17] Capital Position and Shareholder Returns - Scholastic distributed $22.6 million in dividends and repurchased shares worth $70 million during fiscal 2025 [21] - The company is exploring sale-leaseback transactions for its real estate assets to enhance liquidity for capital allocation priorities [22]