10-K · July 24, 2026
Scholastic’s FY2026 revenue declined 2.7% to $1.582B, driven primarily by a 13.6% Education contraction amid school-funding volatility, while Book Fairs growth and cost actions supported stable $15.2M operating income.…
Earnings analysis · 10-Q
SCHL earnings analysis
Filed September 25, 2026 · Our reading of the company's report
The latest report
Scholastic reported $216.8 million of revenue and $(3.63) diluted EPS, missing consensus, while Education revenue fell 24% to $30.4 million. Free cash flow was a $110.8 million use, and the company remains exposed to…
Read full summary
Scholastic reported $216.8 million of revenue and $(3.63) diluted EPS, missing consensus, while Education revenue fell 24% to $30.4 million. Free cash flow was a $110.8 million use, and the company remains exposed to debt, interest-rate and education-funding pressures. Management maintained fiscal 2027 targets of approximately 2% to 4% revenue growth, $135 million to $145 million of Adjusted EBITDA and $35 million to $40 million of free cash flow, but the current-quarter earnings and liquidity trends are negative.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
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
- $-3.63
- Segment
- Education: $30.4 million, down 24% year over year.
- Segment
- Entertainment: growth improved results; current-period revenue was not disclosed in the provided filing text.
What stood out
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Revenue, EPS and cash flow missed estimates
Revenue was $216.8 million and diluted EPS was $(3.63), below consensus estimates of $224.6892 million and $(3.42), respectively. Free cash flow was a use of $110.8 million.
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Entertainment growth partly offset Education decline
Education revenue declined 24% to $30.4 million year over year, while management indicated Entertainment growth improved results.
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Fiscal 2027 outlook maintained
Fiscal 2027 outlook was maintained at approximately 2% to 4% revenue growth, $135 million to $145 million of Adjusted EBITDA, and $35 million to $40 million of free cash flow.
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Share repurchases continued
The company had $183.0 million available for repurchases at June 30 and $157.4 million remaining at August 31, after repurchasing 630,850 shares in August at an average price of $40.66.
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Debt maturity and interest exposure disclosed
As of August 31, 2026, debt included $175.0 million of long-term debt at an average interest rate of 5.3%, plus $9.8 million of lines of credit and current long-term debt.
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No reported internal-control deficiency
Management concluded that disclosure controls were effective as of August 31, 2026, and reported no material change in internal control over financial reporting during the quarter.
What to watch
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Cash consumption and liquidity pressure
Free cash flow use widened to $110.8 million, while fiscal 2027 free cash flow guidance is only $35 million to $40 million, increasing liquidity and execution pressure.
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Education funding and demand weakness
Education revenue fell 24% to $30.4 million, indicating material exposure to education funding and demand weakness.
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Debt and interest-rate exposure
The company has $175.0 million of long-term debt at a 5.3% average interest rate, $9.8 million of current debt and credit lines, and $19.3 million of film-related obligations. Variable-rate borrowing exposes the company to higher interest expense if market rates rise.
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Repurchases during cash burn
The company repurchased 630,850 shares for an average price of $40.66 while reporting a $110.8 million free-cash-flow use, which could constrain liquidity if operating cash generation remains weak.
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Foreign-exchange volatility
Foreign-currency fluctuations affect cash flows and earnings; short-term forward exchange contracts were not significant as of August 31, 2026.
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On-demand film obligations
Film-related obligations totaled $19.3 million and are due on demand, with expected repayment dates used only for presentation by fiscal year.
Management's outlook
Fiscal 2027 outlook was maintained: revenue growth of approximately 2% to 4%, Adjusted EBITDA of approximately $135 million to $145 million, and free cash flow of approximately $35 million to $40 million. No numeric EPS guidance was provided.
Earlier filings 4
10-Q · March 20, 2026
Scholastic Corporation reported Q3 FY2026 with a diluted EPS of -$0.15, outperforming estimates of -$0.37 by $0.22. Revenue was slightly below expectations at $329 million compared to the estimated $331 million,…
10-Q · December 19, 2025
Scholastic Corporation's Q2 results for 2025 showed solid performance with an earnings per share (EPS) of $2.57, surpassing expectations by $0.50, while revenue was slightly lower than anticipated at $551 million versus…
10-Q · September 19, 2025
Scholastic Corporation reported a substantial decline in Q1 2026 with revenue dropping to $226 million, a decrease of 4.7% from the prior quarter and a dramatic 52.5% from the previous year’s Q1. The company faced…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.