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- **$400M Capital Return**: Completed sale-leaseback and announced $300M share buyback, including $200M tender offer at $36-$40/share.
- **Q4 Growth Drivers**: Book Fairs (+2% QoQ), Education recovery, and Entertainment expansion targeting 2% revenue growth.
- **Profitability Targets**: FY26 EBITDA $146M-$156M, free cash flow >$430M; long-term leverage 2-2.5x.
- **Key Risks**: Trade Publishing calendar timing, Education funding uncertainty, $10M tariff impact.
- **Strategic Wins**: 85M YouTube views (+200% YoY), Wings of Fire #1 bestseller, and Clifford media expansion.


**【CEO Opening Remarks】**
- Completed sale-leaseback transactions for NYC headquarters and Jefferson City facility, generating $400M net proceeds.
- Announced $300M share repurchase program, including $200M modified Dutch Auction tender offer at $36-$40 per share.
- Reaffirmed fiscal 2026 adjusted EBITDA guidance of $146M-$156M and free cash flow >$430M.
- Long-term net leverage target set at 2-2.5x adjusted EBITDA.

**【CEO Segment Performance】**
- **Children's Book Group**: Book Fairs revenue up 2% QoQ, driven by higher revenue per fair and Discovery Fair pilots. Trade Publishing down 10% QoQ due to calendar timing and weather impacts.
- **Entertainment**: Revenues +25% YoY, with 85M YouTube views (+200% YoY) and 100M+ minutes watched on ScholasticTV app. New Clifford media projects in development.
- **Education**: Revenue down 2% YoY but operating loss improved 18% YoY. Summer Reading and state programs expected to drive Q4 recovery.
- **International**: Flat revenue YoY, with strength in Australia and UK offsetting franchise timing headwinds.

**【CFO Financial Review】**
- Q3 revenue $329.1M (-2% YoY), adjusted EBITDA breakeven (vs. $6M YoY). Free cash flow $407M (vs. -$30.7M YoY) due to sale-leaseback proceeds.
- Unallocated costs +$3.6M YoY from lease expenses. Interest expense down 80% YoY.
- Q4 expects $80M adjusted EBITDA, driven by Book Fairs, Entertainment, and cost savings.

**【Q&A Highlights】**
- **Q4 Revenue Growth**: 2% YoY target achievable via Book Fairs (+2% QoQ), Education stabilization, and Entertainment growth.
- **Education Pipeline**: Summer Reading, state programs, and Science of Reading-aligned products expected to +10% YoY in Q4.
- **Entertainment Profitability**: Q4 EBITDA breakeven, with FY27 projects in development pipeline.
- **Leverage Outlook**: Post-tender offer, net leverage ~1x; targeting 2-2.5x over time.
- **Tariffs**: $10M incremental cost impact FY26, no material pass-through to customers.


Scholastic Corporation(SCHL)-20260320-2026 Q3 Earnings call transcript

- **Record Capital Return**: $400M real estate sale proceeds to fuel $150M share buyback and debt reduction.
- **Strong Q2 Growth**: Adjusted EBITDA +13%, driven by fairs (+5%) and Entertainment expansion (3 new series).
- **Franchise Dominance**: Dog Man 14th title sells 2M+ copies, Scholastic TV app engagement exceeds 3.5M views.
- **Education Resilience**: 80%+ cost reduction in Education, targeting spring recovery with federal funding.

**【CEO Opening Remarks】**
- Announced 13% adjusted EBITDA growth in Q2 and reaffirmed FY26 guidance post-sale leaseback transactions.
- Highlighted 4-year transformation: Board refresh, business reorganization, strategic investments (e.g., 9 Story Media), and $500M+ shareholder returns.
- Emphasized disciplined capital allocation, closing $400M real estate sale-leasebacks and expanding share buyback to $150M.

**【CEO Strategic Update】**
- **Children's Book Publishing**: Strong back-to-school season with 5% Book Fair revenue growth, driven by fair count and revenue per fair. Trade Publishing led by Dog Man and Hunger Games franchises, with 14th Dog Man title selling 2M+ copies.
- **Entertainment**: Momentum in content production (3 new animated series) and digital expansion (Scholastic TV app downloads >350K, views >3.5M).
- **Education Solutions**: Challenging funding environment but improving pipeline; restructuring reduced costs, targeting spring recovery.
- **International**: Franchise strength (Dog Man) and emerging markets growth, with adjusted operating income up 80% YoY.

**【CFO Financial Review】**
- **Q2 Results**: Revenues $551.1M (+1%), operating income $95M (+20%), adjusted EBITDA $122.5M (+13%), net income $66.3M (+28%).
- **Segment Performance**: 
  - **Children's Book**: $380.9M (+4%), driven by fairs and trade franchises.
  - **Entertainment**: $15.1M (+1%), offset by lower episode deliveries.
  - **Education**: $62.2M (-13%), constrained by funding delays.
  - **International**: $89M (+3%), benefiting from franchise momentum.
- **Liquidity**: $400M+ from real estate sales, with $150M share buyback authorization and debt reduction plans.
- **Guidance**: FY26 adjusted EBITDA $146-156M (including partial year impact of transactions), free cash flow >$430M.

**【Q&A Highlights】**
- **Share Buybacks**: Undervalued shares; $150M buyback to begin soon, with potential for special dividends.
- **Debt Target**: Aiming for 1.75x debt/EBITDA, paying down credit facility.
- **Revenue Outlook**: Flat to + trade sales vs. strong FY25 comp, offset by fair growth and Entertainment recovery.
- **Book Fairs**: Strong spring trends (cancellations down, revenue per fair up), driven by effective marketing and selection.
- **Education**: Cautious optimism for spring with pipeline growth and cost efficiency.

Scholastic Corporation (SCHL) Q2 2026 Earnings Call Transcript

- **Children's Book Growth**: 4% revenue rise driven by +18% book fair sales; Dog Man and Hunger Games franchises lead.
- **Digital Expansion**: Entertainment's 1.2M YouTube subscribers and streaming app launch to drive high-margin revenue.
- **Cost Management**: $15-20M savings offset Education decline; $10M tariff impact monitored.
- **Real Estate Progress**: Potential asset monetization amid strong investor interest.


**【CEO Summary Section】**
- **Back-to-School Momentum**: Q1 marked a productive summer with initiatives for the back-to-school season, including real estate monetization progress and cost discipline.
- **Segment Highlights**:
  - **Children's Book**: 4% revenue growth driven by book fairs; Dog Man and Hunger Games franchises performed strongly.
  - **Entertainment**: Digital-first strategy with 1.2M YouTube subscribers; Scholastic streaming app launch in partnership 2027.
  - **Education**: Challenging funding environment but positive feedback on new products like Knowledge Library.

**【CFO Financial Commentary】**
- **Q1 Results**: Revenue $225.6M (-5%), operating loss $81.9M (improved 4% YoY). Adjusted EBITDA loss $55.7M (narrowed 8% YoY).
- **Segment Performance**:
  - **Children's Book**: Book fair revenue +18%, trade publishing flat due to strong Hunger Games/Harry Potter sales.
  - **Education**: Revenue -28% YoY, operating loss -24% due to cost cuts.
  - **Entertainment**: Revenue -16% YoY, focus on high-margin digital content.
  - **International**: Revenue +4% YoY (U.K., Australia growth); EBITDA loss -45% YoY.
- **Cash Flow**: Q1 free cash used $100.2M; FY26 guidance for $30-40M free cash flow.

**【Q&A Highlights】**
- **Education Spending**: Schools cautious on non-core purchases; federal funding delays impact spending certainty.
- **Digital Revenue**: Entertainment's YouTube strategy to scale in 2027; 9-story media integration driving high-margin streams.
- **Cost Management**: $15-20M cost savings; tariff impact of $10M FY26.
- **Guidance Risks**: Consumer and school spending trends; Education Solutions' funding environment.

**【Key Takeaways】**
- **Revenue Growth Drivers**: Children's Book segment led by book fairs and franchises; Entertainment's digital expansion.
- **Cost Efficiency**: Successful SG&A reductions offsetting Education revenue decline.
- **Real Estate Progress**: Potential monetization of NYC and Jefferson City assets; interest from investors.
- **Tariff Impact**: $10M incremental costs FY26; monitoring policy changes.

**【Core Details】**
- **Children's Book Publishing**:
  - Book fair revenue +18% YoY; Scholastic dollar redemptions strong.
  - Trade publishing flat due to Hunger Games/Harry Potter demand.
  - FY26 highlights: Dog Man 25th title, Harry Potter manga, Sunrise collector's edition.
- **Entertainment**:
  - YouTube views >1.8M for Paris & Pups; Clifford YouTube growth to 10M/month.
  - Scholastic streaming app launch with 400+ hours of content.
- **Education**:
  - State funding delays and cancellations pressured sales.
  - Knowledge Library and core products show resilience.
- **International**:
  - U.K., Australia growth; ESL programs expansion in India.
  - FY26 margin improvement through cost optimization.

**【Risks】**
- **Education Uncertainty**: Federal and state funding delays affecting spending.
- **Tariff Volatility**: $10M FY26 impact; policy changes could exacerbate costs.
- **Entertainment Revenue**: Digital content monetization timing and scale.
- **Real Estate Execution**: Monetization of assets amid uncertain real estate market.


Scholastic Corporation (SCHL) Q1 2026 Earnings Call Transcript

- **Revenue Resilience**: FY25 revenue grew 2% to $1.625B, driven by Children's Book (+1%) and Entertainment (+3,100%).
- **Profit Expansion**: Adjusted EBITDA up 6% to $145.4M, targeting 20% growth to $160-170M in FY26.
- **Cost Efficiency**: $25M annualized cost savings, with $15-20M more expected in FY26.
- **Strategic Momentum**: 9 Story Media Group integration boosts streaming revenue, with FY25 Entertainment segment revenue surging 3,100%.
- **Literacy Growth**: State-sponsored literacy programs (e.g., Southeast states) driving Education segment profitability despite flat revenue.

**【CEO Summary Section】**
- **Revenue Growth**: Fiscal 2025 revenue increased 2% to $1.625 billion, driven by strong performance in Children's Book Publishing and Distribution (+1%), Entertainment (+3,100%), and International (+2%).
- **Adjusted EBITDA**: Grew 6% to $145.4 million, with Q4 EBITDA up 1% to $91.2 million.
- **Cost Management**: Achieved $25 million annualized cost savings ($15M realized in FY25), targeting $15-20M additional savings in FY26.
- **Strategic Acquisitions**: Integration of 9 Story Media Group enhanced streaming platform monetization, with FY25 Entertainment segment revenue up 3,100%.
- **Key Releases**: Trade Publishing success with Suzanne Collins' *Sunrise on the Reaping* (1.2M U.S. copies in 1 month) and Dav Pilkey's *Dog Man: Big Jim Begins*.
- **FY26 Outlook**: Target 2-4% revenue growth, 20% EBITDA growth to $160-170M, and modest International revenue decline.

**【CFO Financial Commentary】**
- **Q4 Results**: Revenue $508.3M (+7%), Adjusted EBITDA $91.2M (+1%). Full year Adjusted EBITDA $145.4M (+6%).
- **Segment Performance**: 
  - **Children's Book**: Q4 revenue +9% to $288.2M, FY25 +1% to $963.9M.
  - **Education**: Q4 revenue -7% to $125.7M, FY25 -12% to $309.8M (impacted by curriculum market softness).
  - **Entertainment**: Q4 revenue +2,400% to $14.8M (9 Story contribution).
- **Free Cash Flow**: FY25 $29.2M vs. FY24 $73.4M (tariff impacts, production loans).
- **Tariff Impact**: FY26 expects $10M incremental tariff expense, offset by pricing and supply chain efficiency.
- **Capital Allocation**: Returned $92M to shareholders in FY25 (dividends + buybacks), with $70M buyback authorization remaining.

**【Q&A Key Highlights】**
- **Cost Savings**: $25M annualized savings ($15M realized in FY25), targeting $15-20M more in FY26 from non-revenue generating expenses.
- **Education Segment**: FY26 flat revenue target due to cyclicality, but state literacy partnerships (e.g., Southeast states) show growth potential.
- **Entertainment Growth**: FY26 return to revenue growth with 9 Story integration, though FY26 EBITDA expected flat due to production timing.
- **Real Estate Monetization**: Exploring sale-leaseback for NYC office and MO distribution center; potential value accretion but no guarantees.
- **Literacy Programs**: Science of Reading-aligned products (e.g., Knowledge Library) gaining traction, with state-sponsored book distribution expanding.


Scholastic Corporation (SCHL) Q4 2025 Earnings Call Transcript

- **Q3 Revenue Growth**: 4% YoY to $335.4M, driven by Book Fairs (+8%) and 9 Story Media Group.
- **Adjusted EBITDA Guidance**: $140M (low end of range) due to Education Solutions headwinds.
- **Key Successes**: Dog Man: Big Jim Begins sold 2.5M copies globally; YouTube views up 40x YoY.
- **Cost Management**: $35M+ returned to shareholders via buybacks and dividends; FY25 free cash flow $20-30M.
- **Risks**: Education Solutions delays, tariff exposure ($mid-single-digit million in FY2026).

**【CEO Opening Remarks】**
- Q3 revenue increased 4% YoY to $335.4M, driven by strong performance in Children's Books and the 9 Story Media Group acquisition.
- Adjusted EBITDA guidance revised to $140M (low end of original $140-150M range) due to macroeconomic headwinds in Education Solutions.
- FY25 full-year revenue expected to grow modestly, with cost-saving initiatives to offset external pressures.

**【Children's Books Segment】**
- Book Fairs revenue +8% YoY to $110.7M, with fair count up 90,000 vs. prior year target.
- Book Clubs revenue +14% YoY to $15.2M, driven by higher order volumes and teacher engagement.
- Trade Publishing revenue stable at $77.4M, with Dog Man: Big Jim Begins selling 2.5M copies globally.

**【Entertainment Segment】**
- Q3 revenue $12.8M (9 Story contribution), with YouTube views up 40x YoY to nearly 10M/month.
- Scholastic IP channels on YouTube generated 3M+ monthly viewing hours, supporting e-commerce and ad revenue.
- New We Believe media property launching Q2 2025 with Easter-themed e-commerce integration.

**【Education Solutions】**
- Q3 revenue down 16% YoY to $57.2M due to delayed school purchases amid federal policy uncertainty.
- Strategic review underway to optimize long-term potential, with focus on state literacy partnerships.

**【Financial Highlights】**
- GAAP net loss $1.3M vs. $23.3M YoY, driven by cost-saving initiatives.
- Free cash flow used $30.7M Q3, with $100M share buyback authorization remaining.
- FY25 free cash flow forecast $20-30M, reflecting working capital investments.

**【Tariff & Supply Chain】**
- Minimal tariff exposure for FY25 and H1 2026, with potential $mid-single-digit million impact in FY2026.
- Mitigation strategies include alternative sourcing, product spec changes, and modest price increases.

**【Q&A Key Takeaways】**
- Frontlist success (e.g., Hunger Games, Dog Man) drives backlist sales, offsetting retail softness.
- Education Solutions cautious spending expected to persist, with strategic review focusing on core programs.
- Real estate assets (NYC HQ, MO warehouses) provide liquidity flexibility, though no sale plans announced.


Actual											-0.34	-0.23	-0.9	1.15	-0.14	0.9	-0.79	1.93	-0.44	1.72			-0.55	2.26	-2.2	2.45	-0.8	1.73	-2.13	1.82	-0.05	0.87	-2.52	2.57	-0.15
Forecast											-0.64	-0.93	-1.74	1.38	-0.55	0.53								1.7	-1.35	2.65	-0.8	2.66	-2.48	2.3	-0.78	0.85	-2.44	2.065	-0.365
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+46.88%	+75.27%	+48.28%	-16.67%	+74.55%	+69.81%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+32.94%	-62.96%	-7.55%	0.00%	-34.96%	+14.11%	-20.87%	+93.59%	+2.35%	-3.28%	+24.46%	+58.90%

Actual	--	--	--	--	--	--	--	--	--	--	373.30M	284.00M	215.20M	406.20M	277.50M	401.40M	259.80M	524.20M	344.50M	514.40M	--	--	324.90M	528.30M	228.50M	562.60M	323.70M	474.90M	237.20M	544.60M	335.40M	508.30M	225.60M	551.10M	329.10M
Forecast	--	--	--	--	--	--	--	--	--	--	342.10M	272.60M	219.00M	528.00M	279.90M	375.20M	--	--	--	--	--	--	--	541.76M	268.79M	625.23M	329.21M	552.50M	233.49M	553.97M	347.68M	494.59M	238.91M	556.72M	331.03M
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+9.12%	+4.18%	-1.74%	-23.07%	-0.86%	+6.98%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-2.48%	-14.99%	-10.02%	-1.67%	-14.04%	+1.59%	-1.69%	-3.53%	+2.77%	-5.57%	-1.01%	-0.58%

SCHL

SCHL fundamentals

SCHL Q3 2026 Earnings

Earnings Call

You can ask Aime

SCHL

SCHL fundamentals

SCHL Q3 2026 Earnings

Earnings Call

SCHL Earnings Call Summary for Q3/20264:30 PM on Mar 19, 2026

SCHL Earnings Call Summary for Q2/20264:30 PM on Dec 18, 2025

SCHL Earnings Call Summary for Q1/20264:30 PM on Sep 18, 2025

SCHL Earnings Call Summary for Q4/20254:30 PM on Jul 24, 2025

SCHL Earnings Call Summary for Q3/20254:30 PM on Mar 20, 2025

You can ask Aime