Educational Development Corporation Announces Fiscal 2026 Third Quarter and Year to Date Results

Core Insights - Educational Development Corporation (EDC) reported financial results for the fiscal third quarter ended November 30, 2025, highlighting significant changes in revenue and earnings compared to the previous year [1] Financial Performance - Net revenues for the third quarter were $7.0 million, a decrease of 36.5% from $11.1 million in the same quarter of the previous year [5][6] - Year-to-date net revenues totaled $18.7 million, down 32.3% from $27.6 million in the prior year [5][6] - Earnings before income taxes for the third quarter were $10.6 million, compared to a loss of $1.1 million in the previous year; excluding the gain from the building sale, the loss would have been $1.6 million [6][7] - Net income for the third quarter was $7.8 million, compared to a loss of $0.8 million in the same quarter last year [6][7] - Earnings per share for the third quarter were $0.91, compared to a loss of $0.10 on a fully diluted basis in the previous year [6][7] Strategic Developments - The company completed a strategic sale and leaseback of its headquarters and distribution warehouse for $32.2 million, using the proceeds to pay off outstanding loans, which is expected to improve annual cash flow by approximately $1.0 million [4] - EDC reduced overall inventory levels by $1.5 million and increased its cash position to $3.4 million by the end of the quarter, providing necessary liquidity for fiscal 2027 [4] - The company retained a 17-acre tract of excess land adjacent to the complex, valued at $2.0 million, enhancing its balance sheet [4] Operational Insights - Average active PaperPie Brand Partners decreased to 5,100 in the third quarter from 12,400 in the previous year [6] - The company initiated a strategic and conservative purchase plan for new titles post-quarter end, aiming to energize sales and execute its growth strategy [4]