Revenue Growth and Strategic …

• Revenue: Increased 4% to $335.4 million.

• Operating Loss: Improved to $20.9 million from $30.6 million in the prior year period.

• Adjusted EBITDA: $6 million, compared to a loss of $7.2 million a year ago.

• Net Loss: Improved to $1.3 million from a loss of $23.3 million in the prior year period.

• Children’s Book Publishing and Distribution Revenue: Increased 5% to $203.3 million.

• Book Fairs Revenue: $110.7 million, an increase of 8%.

• Book Club Revenue: $15.2 million, an increase of 14%.

• Trade Publishing Revenue: $77.4 million, in line with the prior year.

• Entertainment Segment Revenue: $12.8 million, reflecting the contribution of 9 Story Media Group.

• Education Solutions Revenue: Decreased 16% to $57.2 million.

• International Segment Revenue: $59.3 million, with a $2.9 million increase excluding foreign currency impact.

• Free Cash Flow: Used $30.7 million, compared to $7.1 million in the prior year period.

• Net Debt: $189.4 million, compared to a net cash position of $107.7 million at the end of fiscal 2024.

• Share Repurchases: 1.45 million shares for $30 million.

• Adjusted EBITDA Forecast: Approximately $140 million, at the low end of guidance.

• Full Year Free Cash Flow Outlook: Between $20 million and $30 million.

Release Date: March 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Scholastic Corp (NASDAQ:SCHL) achieved modest revenue growth and improved operating results in the third quarter of fiscal 2025.

• The Children’s Book Publishing and Distribution segment saw increased revenues and profits, driven by improved results in Book Fairs and Book Clubs.

• The acquisition of 9 Story Media Group contributed positively to the Entertainment segment’s revenue and adjusted EBITDA.

• Scholastic Corp (NASDAQ:SCHL) returned over $35 million to shareholders through share repurchases and dividends last quarter.

• The company maintains a strong balance sheet with modest debt and significant options to unlock additional liquidity.

• There is increasing pressure on spending by families and schools on books and educational materials.

• The Education Solutions segment experienced a decline in sales and profits due to lower spending on supplemental curriculum.

• Uncertainty around federal education policy and funding mechanisms is causing schools to delay or pause purchases of instructional materials.

• The Entertainment segment faced delays in production green lights, impacting near-term demand for production service work.

• Scholastic Corp (NASDAQ:SCHL) anticipates minimal tariff-related exposure on inventory costs, but there is potential for increased costs in the future due to tariffs on non-book products.