Core Insights - Educational Development Corporation (EDC) reported financial results for the fiscal second quarter ended August 31, 2025, showing a decline in net revenues and active brand partners compared to the previous year [1][6][10] Financial Performance - Net revenues for the second quarter were $4.6 million, down from $6.5 million in the prior year, representing a decrease of approximately 29% [6][8] - Year-to-date net revenues totaled $11.7 million, compared to $16.5 million in the same period last year, reflecting a decline of about 29% [6][8] - The average number of active PaperPie Brand Partners decreased to 5,800 from 13,900 year-over-year for the second quarter [6][8] - The company reported a net loss of $(1.3) million for the second quarter, an improvement from a net loss of $(1.8) million in the prior year [6][8] - Loss per share improved to $(0.15) from $(0.22) on a fully diluted basis for the second quarter [6][8] Strategic Initiatives - The CEO announced the sale of the Hilti Complex, expected to be completed in mid-November, with proceeds aimed at paying off outstanding bank debt [4] - The company is focusing on reducing overall inventory levels while planning to purchase out-of-stock items and new titles to drive revenue growth [4] - EDC aims to return to profitability by reducing operating costs and increasing sales through strategic initiatives with the IT department to enhance Brand Partner success [4][6]