Financial Data and Key Metrics Changes - Fiscal 2025 recorded revenue of $1.39 billion, a 13% increase from the previous year, driven by a 7% volume growth in avocados [7][17] - Fourth quarter revenue totaled $319 million, down 10% year-over-year due to a 27% decrease in average per-unit avocado sales prices [17] - Adjusted net income for the quarter was $22.2 million, or $0.31 per diluted share, compared to $19.6 million, or $0.28 per diluted share last year [18] - Adjusted EBITDA increased 12% to a record $41.4 million compared to $36.9 million last year [19] Business Line Data and Key Metrics Changes - The marketing and distribution segment achieved 7% avocado volume growth for the full year and 13% in the fourth quarter [9][20] - International farming segment sales increased 97% to $59.7 million, with segment-adjusted EBITDA more than tripling to $8.4 million [21] - Blueberry net sales increased 16% to $36.5 million, although segment-adjusted EBITDA decreased due to lower per-unit margins [22] Market Data and Key Metrics Changes - The North American market showed stable growth, while Europe and Asia experienced significant volume growth, with European volume sold increasing by 40% [8][10] - The company's international penetration was bolstered by consistent supply from Peruvian products, allowing for deeper relationships with large retailers [10] Company Strategy and Development Direction - The company is focused on leveraging its integrated global platform to drive growth and enhance free cash flow, with a significant emphasis on international expansion [15][16] - The management transition is seen as a strategic move to capitalize on the company's strong foundation and drive future growth [3][4] - The company aims to increase household penetration of avocados from approximately 70% to 73%-75% over the next couple of years [51][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate pricing volatility and supply disruptions, highlighting the team's execution capabilities [9][15] - The outlook for Fiscal 2026 anticipates a 10% increase in avocado industry volumes, although pricing is expected to be lower year-over-year [24] Other Important Information - The company reduced long-term debt by approximately $18 million during Fiscal 2025, resulting in a 25% decline in interest expense [23] - Capital expenditures for the year were $51.4 million, with expectations to decrease to approximately $40 million in Fiscal 2026 [24] Q&A Session Summary Question: Outlook for mangoes and potential growth - Management indicated that the growth trajectory for mangoes will be similar to previous years, focusing on market share penetration and global sourcing initiatives [28][29] Question: Risks in achieving free cash flow growth - Management highlighted strong operating performance as the primary driver of cash flow, with a focus on maintaining flexibility in capital expenditures [30][31] Question: Capital allocation with lower CapEx - The company is prioritizing growth and exploring various opportunities to maximize shareholder value, including potential share buybacks [32][33] Question: Changes in strategy with management transition - Management confirmed that the strategic direction remains consistent, with a focus on growth and capital deployment over the next five to ten years [34][36] Question: Insights on CapEx and growth opportunities - Approximately $20 million of the upcoming $40 million CapEx is expected to be growth-oriented, with investments in both farming operations and commercial expansion [41][42] Question: Household penetration goals for avocados - Management aims to increase household penetration to 73%-75% over the next couple of years, leveraging lower pricing environments to drive consumer engagement [47][52]

Financial Data and Key Metrics Changes - Fiscal 2025 recorded revenue of $1.39 billion, a 13% increase from the previous year, driven by a 7% volume growth in avocados [7][17] - Fourth quarter revenue totaled $319 million, down 10% year-over-year due to a 27% decrease in average per-unit avocado sales prices [17] - Adjusted net income for the quarter was $22.2 million, or $0.31 per diluted share, compared to $19.6 million, or $0.28 per diluted share last year [18] - Adjusted EBITDA increased 12% to a record $41.4 million compared to $36.9 million last year [19] Business Line Data and Key Metrics Changes - Marketing & Distribution segment achieved 7% avocado volume growth for the full year and 13% in the fourth quarter [9][20] - International Farming segment saw total sales increase by 97% to $59.7 million, with segment-adjusted EBITDA more than tripling to $8.4 million [21] - Blueberry segment net sales increased 16% to $36.5 million, although segment-adjusted EBITDA decreased due to lower per-unit margins [22] Market Data and Key Metrics Changes - North American market showed stable growth, while Europe and Asia experienced significant volume growth, with European volume sold increasing by 40% [8][10] - The company capitalized on its Peruvian product leverage to enhance international penetration and build relationships with large retailers [10] Company Strategy and Development Direction - The company is focused on growth, particularly in North America and international markets, with a strong emphasis on increasing household penetration for avocados [15][46] - The leadership transition is seen as a strategic move to continue the company's growth trajectory, with a focus on organic and inorganic opportunities [36][38] - The company plans to reduce capital expenditures to approximately $40 million, marking the end of a heavy capital investment cycle [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's operational capabilities and the potential for significant growth in the coming years [6][15] - The outlook for fiscal 2026 anticipates a 10% increase in avocado industry volumes, although pricing is expected to be lower year-over-year [25] - Management highlighted the importance of consumer engagement and strategic promotions to drive household penetration during lower pricing environments [50][51] Other Important Information - The company reduced long-term debt by approximately $18 million during Fiscal 2025, resulting in a healthy net leverage ratio well below one times EBITDA [23] - The company is committed to enhancing free cash flow generation in the coming years, supported by a disciplined focus on debt reduction [15][24] Q&A Session Summary Question: Outlook for mangoes and potential growth - Management indicated that the growth trajectory for mangoes will be similar to previous years, focusing on market share penetration and global sourcing initiatives [28][29] Question: Risks in achieving free cash flow growth - Management emphasized strong operating performance as the primary driver of cash flow, with a target of $40 million in capital expenditures for the upcoming year [30][31] Question: Capital allocation with lower CapEx - Management stated that growth remains the priority, with flexibility to explore various options for maximizing shareholder value, including share buybacks [32][33] Question: Changes in strategy with management transition - Management reassured that the strategic direction remains consistent, focusing on growth and capital deployment for the next five to ten years [35][38] Question: Insights on household penetration goals - Management expressed a goal to increase household penetration for avocados to 73%-75% over the next couple of years, leveraging lower pricing environments to drive consumer engagement [48][51]

Financial Data and Key Metrics Changes - For Q2 fiscal 2026, revenues increased by 1% on a reported basis and were flat on a currency-neutral basis, with Nike Direct down 9% and Nike Digital down 14% [36][39] - Gross margins declined by 300 basis points to 40.6% primarily due to increased product costs from higher tariffs and inventory obsolescence in Greater China [37][36] - Earnings per share was reported at $0.53, with inventory decreasing by 3% year-over-year [39][36] Business Line Data and Key Metrics Changes - The performance business saw significant traction, with Running growing over 20% for the second consecutive quarter [21][30] - Classic footwear franchises are projected to decline by more than $4 billion by fiscal year-end [31] - Wholesale grew by 8%, with North America experiencing over 20% growth in wholesale [14][36] Market Data and Key Metrics Changes - North America revenue grew by 9%, with wholesale up 24% and EBIT down 8% [40][39] - EMEA revenue was down 1%, with wholesale flat and EBIT declining by 12% [44] - Greater China revenue declined by 16%, with Nike Direct down 18% and EBIT down 49% [45][46] Company Strategy and Development Direction - The company is focused on right-sizing its Classics business, returning Nike Digital to a premium experience, and diversifying its product portfolio [6][9] - The "Sport Offense" strategy is aimed at driving growth through athlete-centered innovation across various channels and countries [7][9] - The company is committed to improving profitability and operating efficiency while investing in growth initiatives [27][56] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the recovery will not be linear, with different timelines for each brand and geography [34][79] - There is confidence in the long-term potential of the China market, despite current challenges [18][93] - The company expects Q3 revenues to be down low single digits, with modest growth in North America and continued headwinds in Greater China [53][54] Other Important Information - The company is implementing changes in leadership to enhance decision-making and strategy execution [12][27] - Significant investments are being made in marketing and product innovation to support growth [91][100] - The company is focused on cleaning up excess inventory and improving the marketplace experience [49][50] Q&A Session Summary Question: Can you elaborate on the turnarounds and opportunities remaining? - Management highlighted that growth is driven by Win Now Actions and the Sport Offense, with North America showing strong progress and China needing more time [68][70] Question: When will the recovery be more predictable? - Management indicated that each geography and brand is at different stages, making it difficult to provide a specific timeline for recovery [79][80] Question: What is the timeline for returning to double-digit EBIT margins? - Management stated that improving margins is a top priority, with a path back to double-digit EBIT margins expected as growth continues [87][88] Question: How deep is the reset necessary in China? - Management emphasized the need for a fresh approach in China, with ongoing actions to clean up the marketplace and improve brand positioning [96][93]

Financial Data and Key Metrics Changes - The company ended fiscal 2025 with cash and cash equivalents of $203.3 million, an increase of approximately $175 million from the end of fiscal 2024, primarily driven by successful equity capital raises [25][26] - Fiscal 2025 loss from operations was $46.2 million, an increase from the previous year due to higher general and administrative expenses and R&D expenses [26][27] - Net cash used in operating activities increased by approximately $11 million to $19.6 million, while net cash used in investing activities rose by approximately $14 million to $17.5 million [27] Business Line Data and Key Metrics Changes - The company made significant progress in advancing the Kronos MMR energy system, including securing strategic collaborations and achieving important NRC milestones [10][11] - The acquisition of Global First Power, rebranded as True North Nuclear, strengthened the company's position in Canada [10] - The company executed a feasibility study agreement with BitRupon to evaluate up to one gigawatt of power with the Kronos MMR [11] Market Data and Key Metrics Changes - The demand for reliable baseload power is expected to surge, driven by AI data centers, with electricity usage projected to increase by 5%-6% annually over the next five years [5][6] - There is a growing global commitment to triple nuclear capacity by 2050, indicating a long-term trend in nuclear energy growth [8] Company Strategy and Development Direction - The company aims to position itself at the center of a global nuclear renaissance, focusing on micro-reactors to meet the increasing demand for clean, reliable energy [4][8] - The strategy includes vertical integration to de-risk the nuclear fuel supply chain, with a focus on enrichment and conversion capabilities [23][24] Management's Comments on Operating Environment and Future Outlook - Management highlighted the unprecedented bipartisan policy support for nuclear energy in the U.S. and the growing global support, which is expected to accelerate the development of advanced reactors [9][10] - The company remains optimistic about its progress and the strong interest from potential customers in various sectors, including data centers and military applications [12][23] Other Important Information - The company raised over $600 million since its May 2024 IPO, indicating strong capital support from institutional investors [11] - The company is on track to submit a construction permit application for the U of I project in Q1 of 2026, with expectations for a quicker turnaround from the NRC compared to similar applications [32][33] Q&A Session Summary Question: Can you walk us through the timeline for the U of I site permit application? - The company is on track to submit the construction permit application in Q1 next year, with expectations for a turnaround substantially below 15 months due to the well-known technology being used [31][32] Question: What are the main objectives for vertical integration in 2026? - The company aims to centralize reactor core manufacturing while recognizing that certain specialized components will need to be sourced externally [35][36] Question: Can you provide more details on the Canadian project and its licensing process? - The company expects to finalize the site announcement in the first half of next year and will inherit previous licensing progress, allowing it to bypass initial phases [45][46] Question: What is the scope of the AFWERX direct-to-phase two project? - The AFWERX program aims to provide self-sufficient power solutions for military bases, with potential for mass production of reactor systems for various bases in the future [48][50] Question: Can you elaborate on the potential for state-level licensing of nuclear activities? - The company is exploring opportunities for states to take back control of licensing certain facilities, which could expedite the process and reduce the NRC's workload [54][57]

Financial Data and Key Metrics Changes - Fiscal 2025 recorded revenue of $1.39 billion, a 13% increase from the previous year, driven by a 7% volume growth in avocados [6][17] - Fourth quarter revenue totaled $319 million, down 10% year-over-year due to a 27% decrease in average per-unit avocado sales prices, despite a 13% volume growth [17][19] - Adjusted net income for the quarter was $22.2 million, or $0.31 per diluted share, compared to $19.6 million, or $0.28 per diluted share last year [18] - Adjusted EBITDA increased 12% to a record $41.4 million compared to $36.9 million last year [19] Business Line Data and Key Metrics Changes - The marketing and distribution segment achieved 7% avocado volume growth for the full year and 13% in the fourth quarter [9][20] - International farming segment sales increased 97% to $59.7 million, with segment-adjusted EBITDA more than tripling to $8.4 million [20][21] - Blueberry net sales increased 16% to $36.5 million, but segment-adjusted EBITDA decreased due to lower per-unit margins [22] Market Data and Key Metrics Changes - The North American market showed stable growth, while Europe and Asia experienced significant volume growth, with European volume sold increasing by 40% [8][10] - The company's Peruvian orchards returned to normal growing conditions, doubling exportable avocado production to approximately $105 million [10][11] Company Strategy and Development Direction - The company is focused on leveraging its global sourcing network and distribution infrastructure to drive growth and enhance household penetration in the avocado market [8][15] - There is a strong emphasis on expanding market share in mangoes and blueberries, with a goal to increase consumer awareness and household penetration [12][15] - The company plans to reduce capital expenditures to approximately $40 million for Fiscal 2026, marking the end of a heavy capital investment cycle [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate pricing volatility and supply disruptions, highlighting the team's execution capabilities [9][15] - The outlook for Fiscal 2026 anticipates a 10% increase in avocado industry volumes, but pricing is expected to be lower year-over-year by approximately 25% [25] - Management aims to achieve household penetration of avocados in the 73%-75% range over the next couple of years, leveraging lower pricing environments to drive consumer engagement [52][53] Other Important Information - A leadership transition was announced, with John Pawlowski set to become CEO, while Steve Barnard will transition to Executive Chairman [3][4] - The company has significantly reduced long-term debt by approximately $18 million during Fiscal 2025, resulting in a healthy net leverage ratio well below one times EBITDA [23] Q&A Session Summary Question: Outlook for mangoes and potential growth - Management indicated that the growth trajectory for mangoes will be similar to previous years, focusing on market share penetration and global sourcing initiatives [27][29] Question: Risks in achieving free cash flow growth - Management highlighted strong operating performance as the primary driver of cash flow, with a target of $40 million in capital expenditures for the upcoming year [30][31] Question: Capital allocation and use of cash going forward - The focus remains on growth opportunities, with flexibility to consider share buybacks and other investments to maximize shareholder value [32][33] Question: Changes in strategy with management transition - Management reassured that the strategic direction remains consistent, with a focus on growth and capital deployment for the next five to ten years [34][38] Question: Insights on household penetration goals for avocados - Management aims to increase household penetration to 73%-75% over the next couple of years, leveraging promotional strategies during lower pricing environments [47][53]

Financial Data and Key Metrics Changes - Revenues for Q2 were up 1% on a reported basis and flat on a currency-neutral basis, with Nike Direct down 9% and Nike Digital declining 14% [20][22] - Gross margins declined 300 basis points to 40.6% on a reported basis, primarily due to increased product costs from higher tariffs and inventory obsolescence in Greater China [21][19] - Earnings per share was $0.53, with inventory decreasing 3% versus the prior year [22] Business Line Data and Key Metrics Changes - The Nike brand grew this quarter, with 8% wholesale growth and a strong mix, while classic footwear franchises are expected to decline by over $4 billion by fiscal year-end [7][17] - Running grew by over 20% for the second consecutive quarter, with significant growth in Nike-owned stores, Nike Digital, and wholesale [12][24] - Nike's Classics business is being right-sized, and the company is diversifying its product portfolio [5][6] Market Data and Key Metrics Changes - North America saw a revenue growth of 9%, with wholesale growing 24% and EBIT declining 8% [23][22] - Greater China experienced a revenue decline of 16%, with Nike Direct down 18% and wholesale down 15% [26][22] - EMEA revenue was down 1%, with a decline in Nike Direct and Nike Stores, while wholesale was flat [25] Company Strategy and Development Direction - The company is focused on executing its "Win Now Actions" and "Sport Offense" strategies to drive growth through athlete-centered innovation and a diversified product portfolio [5][6] - There is a strong emphasis on reconnecting with partners and enhancing consumer experiences, particularly in North America [8][9] - The company is adapting its approach in Greater China to better fit the local market dynamics and improve brand positioning [10][54] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the recovery will not be linear, with different brands and geographies recovering at varying speeds [18][45] - There is confidence in the long-term potential of the China market, despite current challenges, and a commitment to returning to a premium brand position [10][54] - The company expects Q3 revenues to be down low single digits, with gross margins projected to decline approximately 175-225 basis points [31] Other Important Information - The company is making significant investments in product innovation, with new launches planned across various sports and categories [12][59] - A leadership change was made to enhance operational efficiency and integrate technology across the company [15][16] Q&A Session Questions and Answers Question: Can you elaborate on the turnarounds and where opportunities remain? - Management highlighted that the path back to sustainable growth is through the Win Now Actions, with North America showing strong momentum and a healthier base for growth [36][38] Question: When will the recovery be more visible and less linear? - Management indicated that each geography and brand is at different stages, making it difficult to provide a specific timeline for recovery [44][45] Question: What is the timeline for returning to double-digit EBIT margins? - Management stated that improving margins is a top priority, with a clear path back to double-digit EBIT margins through growth and operational efficiency [48][50] Question: How deep of a reset is necessary in China? - Management acknowledged the need for a reset in China, focusing on cleaning up the marketplace and enhancing brand presentation [52][54]

Financial Data and Key Metrics Changes - The company ended fiscal 2025 with cash and cash equivalents of $203.3 million, an increase of approximately $175 million from the end of fiscal 2024, primarily driven by successful equity capital raises [25][26] - Fiscal 2025 loss from operations was $46.2 million, an increase from the previous year due to higher general and administrative expenses and R&D expenses [26] - Fiscal 2025 net loss totaled $40.1 million, up approximately $30 million from the prior year, reflecting increased operating expenses [26] Business Line Data and Key Metrics Changes - Significant progress was made in advancing the Kronos MMR energy system, including securing strategic collaborations and achieving important NRC milestones [9][10] - The company executed a feasibility study agreement with BitRupon to evaluate up to one gigawatt of power with the Kronos MMR, indicating a growing pipeline of commercial opportunities [10][24] Market Data and Key Metrics Changes - The demand for reliable baseload power is increasing, driven by the growth of AI data centers and industrial reshoring, with electricity usage projected to increase by 5%-6% annually over the next five years [5][6] - There is a global commitment to triple nuclear capacity by 2050, solidifying growth in nuclear energy as a long-term trend [7] Company Strategy and Development Direction - The company aims to position itself at the center of a global nuclear renaissance, focusing on micro-reactors to meet the growing demand for clean, reliable baseload power [4][6] - The strategy includes vertical integration to de-risk the nuclear fuel supply chain, with a focus on enrichment and conversion capabilities [23][24] Management's Comments on Operating Environment and Future Outlook - Management highlighted the unprecedented bipartisan policy support for nuclear energy in the U.S. and the growing global support, which is expected to accelerate the development of advanced reactors [7][8] - The company remains optimistic about its opportunities in military applications and the potential for large-scale deployments of the Kronos MMR [8][23] Other Important Information - The company raised over $600 million since its May 2024 IPO, indicating strong institutional support and access to capital markets [10][25] - The company is actively working to reestablish formal licensing activities with the Canadian Nuclear Safety Commission, which could expedite its Canadian project [9][46] Q&A Session Summary Question: Timeline for the U of I site permit application - Management confirmed they are on track to submit the construction permit application to the NRC in Q1 of next year, with expectations for a turnaround time substantially below 15 months due to the use of well-known technologies [32][33][34] Question: Vertical integration strategy objectives for 2026 - Management indicated a focus on building internal capabilities for reactor components while recognizing the need for specialized external partnerships for certain materials [37][39] Question: Progress on the Canadian project and licensing - Management explained that the Canadian project is expected to inherit previous licensing progress, allowing them to bypass initial phases and expedite commercialization [46][47] Question: Scope of the AFWERX direct-to-phase two project - Management detailed that the AFWERX program aims to provide self-sufficient power for military bases, with potential for mass production of reactor systems for various bases in the future [48][50]

Financial Data and Key Metrics Changes - Total revenues for fiscal 2025 were over $6.2 billion, with net income of nearly $430 million, resulting in a 10% increase in book value per share [4][24] - In Q4 2025, total revenues were just under $1.7 billion, with adjusted diluted earnings per share of $1.92, and a 15% decrease in housing revenues [5][21] - Housing gross profit margin was 17%, with adjusted housing gross profit margin at 17.8%, reflecting a 310 basis point decrease due to pricing pressure and higher land costs [22] Business Line Data and Key Metrics Changes - The company delivered 12,902 homes in fiscal 2025, with a decrease in housing revenues by 10% to $6.21 billion [24] - In Q4 2025, the company produced 3,619 home deliveries, with an average selling price declining 7% to $466,000 [21] - The cancellation rate was stable at 18%, supporting net orders at an average absorption pace of three per month per community [9] Market Data and Key Metrics Changes - The company owned or controlled approximately 65,000 lots at year-end, with 43% controlled [15] - The average cash down payment for buyers was 17%, equating to nearly $80,000, with an average household income of $130,000 and a FICO score of 743 [14] - The company plans to open between 35 and 40 new communities in Q1 2026, expecting to reach a peak community count during the spring selling season [11] Company Strategy and Development Direction - The company is focused on increasing the built-to-order (BTO) sales mix from 57% in Q4 2025 to historical levels of 70% or higher [12] - A disciplined approach to pricing is emphasized, avoiding inflated prices masked by heavy incentives, which is seen as a competitive advantage [6][7] - The company aims to enhance shareholder value through continued share repurchases and a healthy dividend yield of approximately 1.6% [28][29] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the housing market, citing favorable demographics and structural undersupply as key demand drivers [5][6] - The company expects Q1 2026 to be the bottom for margins, with improvements anticipated as the year progresses [60] - Management highlighted the importance of maintaining high customer satisfaction and operational execution to drive results [14][18] Other Important Information - The company returned over $600 million in capital to shareholders in fiscal 2025, including approximately $540 million in share repurchases [17][29] - A new $1 billion share repurchase authorization was approved to support the capital return strategy [29] - The company invested $665 million in land acquisition and development in Q4 2025, with a focus on capital efficiency [17][28] Q&A Session Summary Question: Can you help understand the conservatism in the gross margin guide? - Management acknowledged the need to clear older inventory built at higher costs, impacting margins, and emphasized that the guidance is realistic rather than conservative [32][34] Question: Why exclude accelerated stock compensation from adjusted EPS? - The company aimed to provide a like-for-like number for better comparison, given the timing of the equity expense [36][37] Question: What are the finished and under-construction specs at the end of the quarter? - The company reported about 1,700 homes in inventory, with over 1,000 at or near the finished stage [40][41] Question: How does the new community facilitate the shift to BTO? - New communities allow for a stronger focus on BTO sales without competing with existing specs, enhancing the value proposition for customers [46] Question: What is the expectation for pricing in fiscal 2026? - The pricing expectation is driven by a mix of higher-end communities opening, rather than an assumption of price increases [72] Question: How will capital return to shareholders look beyond Q1? - The company plans to maintain a similar capital return strategy of $50 million to $100 million per quarter, evaluating opportunities as the year progresses [75]

Financial Data and Key Metrics Changes - In the second quarter, revenues increased by 1% to $551.1 million, with operating income improving to $95 million from $78.9 million in the prior year period, reflecting cost-saving initiatives [22][23] - Adjusted EBITDA grew to $122.5 million, up from $108.7 million a year ago, while net income rose to $66.3 million compared to $52 million in the prior year [22][23] - Adjusted earnings per diluted share increased to $2.57 from $1.82 last year [23] Business Line Data and Key Metrics Changes - Children's Book Publishing and Distribution revenues increased by 4% to $380.9 million, driven by strong performance in Book Fairs, which generated $242 million, a 5% increase [23][24] - Book Clubs revenue decreased to $28.5 million from $33.2 million, reflecting lower teacher sponsorships [23] - Trade Publishing revenues rose by 7% to $110.4 million, supported by new releases, including the latest Dog Man title [24] - Scholastic Education segment revenues fell to $62.2 million from $71.2 million, reflecting lower spending on supplemental curriculum products [25] Market Data and Key Metrics Changes - International segment revenues increased to $89.5 million from $86.7 million, with adjusted operating income improving to $12.8 million from $7.1 million [26] - The company anticipates modest declines in revenues and profitability in the international segment following strong performance in fiscal 2025 [27] Company Strategy and Development Direction - The company has focused on transforming into a more growth-oriented, shareholder-focused entity, with significant changes in leadership and organizational structure [4][5] - Strategic initiatives include the acquisition of Nine Story Media Group and a disciplined approach to capital allocation, returning nearly $500 million to shareholders since fiscal 2022 [7][8] - The company aims to leverage its unique strengths, including its brand and intellectual property, to drive long-term growth and value creation [9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the second half of fiscal 2026, anticipating revenue growth in school reading events and entertainment divisions, despite modest declines in trade and international revenues [31] - The company expects to benefit from improved execution and new products in the education segment, with a focus on stabilizing the top line [18][31] - Management highlighted the importance of the spring selling season and the potential for increased federal funding to support growth [57] Other Important Information - The company closed two sale-leaseback transactions, unlocking over $400 million in net proceeds, which will be used for share repurchases and other capital allocation priorities [8][29] - The board has authorized an increase in the open market share repurchase program to $150 million [29][30] Q&A Session Summary Question: Can you provide any color or timing around the $80 million increase in the buyback authorization? - Management indicated that the increase in buyback authorization is a first step following the successful sale-leaseback transaction, with plans to continue returning cash to shareholders [41][43] Question: What is driving the decline in the education business? - Management noted that the education segment is experiencing softness due to funding issues, but expects an uplift in the second half based on improved sales pipeline and federal fund disbursements [47][48] Question: Is trade channel sales expected to be flat to moderately lower for fiscal 2026? - Management confirmed that trade channel sales are anticipated to be in line with the previous year, despite tough comparisons due to major releases last year [49][50] Question: How do dividends play into the capital allocation strategy? - Management stated that the goal is to return capital efficiently, with a consistent quarterly dividend payout of about $0.20 per share [63][64] Question: Is there a decline in Adjusted EBITDA expected in the second half? - Management clarified that Adjusted EBITDA is expected to show growth when adjusted for prior year comparisons, despite the impact of sale-leaseback transactions [65]

Scholastic (NasdaqGS:SCHL) Q2 2026 Earnings Call December 18, 2025 04:30 PM ET Company ParticipantsHaji Glover - CFO and EVPPeter Warwick - President and CEOJeffrey Mathews - EVP, Chief Growth Officer, and Interim President of Scholastic EducationDrew Crum - Managing DirectorConference Call ParticipantsBrendan McCarthy - Equity Research AnalystJeffrey MathewsHello and welcome, everyone, to Scholastic's Fiscal 2026 Second Quarter Earnings Call. Today on the call, I'm joined by Peter Warwick, our President an ...