Core Insights - Scholastic reported $329.1 million in revenue for the quarter ended February 2026, reflecting a year-over-year decline of 1.9% and an EPS of -$0.15 compared to -$0.05 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $331.04 million by 0.59%, while the EPS exceeded the consensus estimate of -$0.37 by 58.9% [1] Revenue Breakdown - Entertainment revenues reached $16 million, surpassing the two-analyst average estimate of $13.05 million, marking a year-over-year increase of 25% [4] - Education Solutions revenues were reported at $56.1 million, slightly above the average estimate of $53.29 million, but showed a year-over-year decline of 1.9% [4] - International revenues totaled $58 million, slightly below the average estimate of $59 million, with a year-over-year decrease of 2.2% [4] - Children's Book Publishing and Distribution revenues were $197.6 million, falling short of the average estimate of $204.7 million, representing a year-over-year decline of 2.8% [4] Stock Performance - Scholastic shares have returned +2.4% over the past month, contrasting with the Zacks S&P 500 composite's -3.6% change, indicating potential outperformance in the near term [3]

Core Viewpoint - Educational Development Corporation (EDC) has entered into a new Credit Agreement with Regent Bank, establishing a revolving loan of up to $2,000,000 to support its growth strategy and enhance borrowing capacity [1][3]. Group 1: Loan Agreement Details - The new Credit Agreement includes a revolving promissory note with a principal amount of up to $2,000,000, with interest calculated monthly on outstanding borrowings [1]. - The agreement is secured by the company's assets, including accounts receivable, inventory, equipment, and excess land [1]. - No funds have been drawn from the agreement initially [1]. Group 2: Transition to Regent Bank - EDC will transition its treasury and other financial services to Regent Bank alongside the new Loan Agreement [2]. - The new relationship with Regent Bank is expected to provide increased borrowing capacity and reduced interest rates compared to the previous lender [3]. Group 3: Company Overview - EDC specializes in publishing children's books and is the exclusive U.S. distributor of Usborne Publishing Limited and the owner of Kane Miller Books [4]. - The company's catalog features nearly 2,000 titles, with new additions released semi-annually, and products are sold through 4,000 retail outlets and independent consultants [4].

Core Insights - Scholastic reported revenue of $551.1 million for the quarter ended November 2025, reflecting a 1.2% increase year-over-year, with EPS at $2.57 compared to $1.82 in the same quarter last year, indicating a strong earnings performance despite a slight revenue miss against estimates [1] Revenue Breakdown - International revenues reached $89.5 million, exceeding the average estimate of $89.29 million, marking a year-over-year increase of 3.2% [4] - Entertainment revenues were reported at $15.1 million, falling short of the $16.45 million average estimate [4] - Education Solutions revenues totaled $62.2 million, below the estimated $64.8 million, representing a significant year-over-year decline of 12.6% [4] - Children's Book Publishing and Distribution revenues were $380.9 million, slightly below the estimated $383.12 million, but showing a year-over-year increase of 3.8% [4] Stock Performance - Scholastic's shares have returned 2.7% over the past month, outperforming the Zacks S&P 500 composite, which saw a 0.9% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Core Insights - Scholastic reported a revenue of $225.6 million for the quarter ended August 2025, reflecting a decline of 4.9% year-over-year and a surprise of -5.57% compared to the Zacks Consensus Estimate of $238.91 million [1] - The company's EPS was -$2.52, worsening from -$2.13 in the same quarter last year, with an EPS surprise of -3.28% against the consensus estimate of -$2.44 [1] Revenue Breakdown - International revenues reached $59.4 million, exceeding the average estimate of $56.67 million from two analysts [4] - Entertainment revenues were reported at $13.6 million, falling short of the average estimate of $16.35 million from two analysts [4] - Education Solutions generated $40.1 million, significantly below the average estimate of $53.75 million from two analysts [4] - Children's Book Publishing and Distribution revenues were $109.4 million, closely aligning with the average estimate of $109.37 million from two analysts [4] Stock Performance - Scholastic's shares have returned +7.7% over the past month, outperforming the Zacks S&P 500 composite's +2.5% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - Scholastic Corp. reported strong second-quarter results, with adjusted earnings of 87 cents per share, surpassing the analyst consensus estimate of 85 cents [1] - Quarterly revenue reached $508.3 million, exceeding the Street estimate of $494.58 million [1] Financial Performance - The company achieved solid financial results in fiscal 2025, with strong Adjusted EBITDA aligning with original guidance [2] - Continued strength in Children's Book Publishing and Distribution, along with disciplined cost management, helped mitigate macroeconomic pressures on school spending affecting the Education division [3] Future Outlook - Scholastic anticipates "significant growth" in fiscal 2026 Adjusted EBITDA, projecting it to be between $160 million and $170 million, driven by core business strength and cost savings, despite ongoing challenges in school spending [4] - Revenue growth is expected to be between 2% to 4% in fiscal 2026 [4] Stock Performance - Following the earnings report, Scholastic stock rose by 12.39%, reaching $24.22 in extended trading [4]

Financial Performance - Scholastic's Q3 2025 revenues increased by 4% year-over-year, reaching $335.4 million compared to $323.7 million in Q3 2024 [8] - The company's operating loss improved by 32%, with a loss of $23.9 million in Q3 2025 compared to a loss of $34.9 million in Q3 2024 [8] - Adjusted EBITDA for Q3 2025 was $6.0 million, a 183% increase compared to $(7.2) million in Q3 2024 [8, 18] - Diluted loss per share improved by 86%, from $(0.91) in Q3 2024 to $(0.13) in Q3 2025 [8] Segment Performance - Children's Book Publishing and Distribution revenues increased by 5%, totaling $203.3 million in Q3 2025 compared to $193.1 million in Q3 2024 [6, 10] - Education Solutions revenues decreased by 16%, amounting to $57.2 million in Q3 2025 compared to $68.5 million in Q3 2024 [6, 10] - Entertainment revenues significantly increased, reaching $12.8 million in Q3 2025 compared to $0.5 million in Q3 2024, driven by the acquisition of 9 Story Media Group [6, 10] - International revenues increased by 5% excluding FX impact [6] Fiscal Year 2025 Outlook - The company refined its FY25 Adjusted EBITDA outlook to approximately $140 million [4, 14] - Modest revenue growth is expected year-over-year [4, 14] - Free cash flow outlook remains between $20 million and $30 million [14]