10-Q · July 9, 2026
Educational Development Corporation (EDUC) reported Q1 FY2027 results with revenues of $4.8 million, falling short of the estimated $7.1 million, and an EPS loss of -$0.16 against expectations of -$0.13. The performance…
Earnings analysis · 10-Q
EDUC earnings analysis
Filed October 14, 2026 · Our reading of the company's report
The latest report
Educational Development Corporation reported second-quarter revenue of $4.07 million and EPS of $(0.19) per share; revenue declined 12% year over year, although the pre-tax loss improved. Management highlighted a…
Read full summary
Educational Development Corporation reported second-quarter revenue of $4.07 million and EPS of $(0.19) per share; revenue declined 12% year over year, although the pre-tax loss improved. Management highlighted a cost-reduction plan expected to lower annual G&A expense by more than $1.2 million and a potential deferred-tax-asset benefit of approximately $0.28 per share after profitability is achieved. No formal numeric revenue or EPS guidance was provided, and the filing did not include updated risk factors because the company is a smaller reporting company.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.19
What stood out
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Pre-tax loss improved year over year
Second-quarter revenue was $4.07 million and reported EPS was $(0.19) per share. Revenue declined 12% year over year, while management indicated that the pre-tax loss improved year over year.
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Cost-reduction plan targets $1.2 million
Management expects the cost-reduction plan to reduce annual general and administrative expenses by more than $1.2 million annually.
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Potential $0.28 per-share tax benefit
The company cited a potential deferred-tax-asset gain of approximately $0.28 per share once profitability is established.
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No material control deficiencies
Disclosure controls were assessed as effective as of the period end, and the company reported no material changes to internal control over financial reporting during the quarter.
What to watch
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Revenue contraction and continuing losses
Revenue was $4.07 million, representing a 12% year-over-year decline, while EPS was a loss of $(0.19) per share. The contraction indicates continued pressure on operating performance.
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Ongoing losses constrain liquidity
The company continues to report negative earnings, with second-quarter EPS of $(0.19) per share, limiting internally generated funding capacity and increasing reliance on cost reductions or external financing.
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No updated risk-factor disclosure
Item 1A states that risk-factor disclosure was “not required by smaller reporting company,” so the filing does not provide a refreshed risk-factor comparison versus the prior filing.
Management's outlook
No formal numeric revenue or EPS guidance was provided. Management expects the cost-reduction plan to reduce annual general and administrative expenses by more than $1.2 million and cited a potential deferred-tax-asset gain of approximately $0.28 per share once profitability is established.
Earlier filings 2
10-K · May 19, 2026
Educational Development Corporation (EDUC) reported a challenging fiscal 2026 with Q4 revenue of $4.2 million and a significant loss of $(0.37) EPS, reflecting a decline in performance compared to previous years. For…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.