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]

Core Points - Educational Development Corporation (EDC) has amended its real estate contract with 10Mark 10K Industrial, LLC, extending the due diligence period and reducing the purchase price of the Hilti Complex to $32,200,000 [1][2] - The buyer has issued a notice to proceed with the purchase, waiving certain rights under the contract [2] - The sale proceeds will be used to pay off outstanding bank balances, improving the company's cash flow by eliminating monthly mortgage payments and reducing borrowings [3] Company Overview - EDC specializes in children's publishing and owns brands such as Kane Miller Books, Learning Wrap-Ups, and SmartLab Toys, with products sold through 4,000 retail outlets and independent brand partners [4] Property Details - The Hilti Complex consists of 402,000 square feet of rentable space on 37 acres, with significant portions leased to Hilti and Crusoe Energy [3]

Group 1 - Educational Development Corporation (EDUC) experienced a significant stock price increase of 46.42% to $2.00 in after-hours trading, following a 7.98% gain during the regular session [1][2] - The surge in stock price is attributed to the upcoming fiscal 2026 second-quarter earnings call scheduled for October 9, where CEO Craig White and CFO Dan O'Keefe will present results and answer questions [2] - EDUC specializes in educational program development and owns brands such as Kane Miller Books, Learning Wrap-Ups, and SmartLab Toys, while also exclusively distributing Usborne books in the U.S. through multi-level marketing channels [2] Group 2 - The stock trades within a 52-week range of $0.92 to $2.49, with a market capitalization of $11.77 million, and has gained 23.05% over the past month [3] - The highest stock price was $2.40 on September 25, 2024, but it has since dropped by 42.92%. From its lowest point of $1.05 on August 20, 2025, it has risen by 30.48%, currently sitting at $1.37. Overall, the stock has lost 32.04% over the past year [3] - Benzinga's Edge Stock Rankings indicate that EDUC is undergoing long-term consolidation while experiencing medium and short-term upward movement [4]

Group 1 - Educational Development Corporation (EDC) will host its Fiscal Year 2026 Second Quarter Earnings Call on October 9, 2025, at 3:30 PM CT (4:30 PM ET) [2][3] - The earnings call will feature presentations from key executives including the CEO, Chief Sales and Marketing Officer, and Chief Financial Officer, followed by a Q&A session [3] - Participants can join the call via phone at (800) 717-1738 with Conference ID 43999, and audio replays will be available post-event [3] Group 2 - EDC specializes in publishing children's books and owns brands such as Kane Miller Books, Learning Wrap-Ups, and SmartLab Toys [4] - The company is the exclusive U.S. distributor for Usborne Publishing Limited's children's books, with products sold through 4,000 retail outlets and independent brand partners [4]

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].

Core Viewpoint - Educational Development Corporation (EDC) has focused on cash flow management over profitability in fiscal 2025, leading to significant debt reduction and inventory management strategies [2][5]. Fiscal Year Summary Compared to the Prior Year - EDC reduced bank debts and vendor payables by a total of $16.9 million over fiscal years 2024 and 2025, with a reduction of $3.1 million in bank debts and $2.0 million in vendor payables during fiscal 2025 [2]. - Inventory levels decreased from $55.6 million to $44.7 million, generating $10.9 million in cash flow, with an excess inventory of approximately $30 million remaining [2]. - The company experienced a net loss of $(5.3) million for the fiscal year, compared to a net gain of $0.5 million in the previous year [4][6]. Fourth Quarter Summary Compared to the Prior Year Fourth Quarter - Net revenues for the fourth quarter were $6.6 million, down from $9.0 million in the previous year, while the average active PaperPie Brand Partners decreased from 15,500 to 9,400 [4][6]. - The loss before income taxes improved to $(1.5) million from $(2.2) million in the prior year’s fourth quarter, indicating a focus on cost reductions [4][6]. - Loss per share for the fourth quarter was $(0.16), an improvement from $(0.19) in the previous year [4][6]. Strategic Direction - EDC plans to strengthen its financial position through the sale and leaseback of its headquarters, which is expected to eliminate remaining bank debts and associated interest expenses [5]. - A Purchase Sale Agreement has been executed with TG OTC, LLC, with the transaction expected to close by early September 2025, allowing EDC to retain ownership of excess land [5].

Group 1 - Educational Development Corporation (EDC) has announced the date and time for its Fiscal Year 2025 Earnings Call, which will take place on May 21, 2025, at 3:30 PM CT [2] - The Annual Meeting of Shareholders is scheduled for July 2, 2025, at 10:00 AM CT, with shareholders of record entitled to vote on proxy matters [3] - Shareholders will receive an Important Notice regarding the availability of proxy materials around May 27, 2025, and can request printed materials if preferred [4] Group 2 - EDC specializes in publishing children's books and owns brands such as Kane Miller Books, Learning Wrap-Ups, and SmartLab Toys, as well as being the exclusive U.S. distributor for Usborne Publishing Limited [5] - EDC products are sold through approximately 4,000 retail outlets and via independent brand partners through various sales channels including social media and book fairs [5]