Educational 2026 Q2 Earnings Narrowed Losses Amid Revenue Decline

Educational (EDUC) reported its fiscal 2026 Q2 earnings on Oct 9, 2025, showcasing a narrowed net loss despite a significant revenue decline. The results marked a 28.2% reduction in net losses compared to the prior year, although revenue dropped sharply by 29.0%. No specific guidance was provided for future performance, and the CEO outlined a path toward profitability through asset sales and cost-cutting measures.

Revenue
The total revenue of Educational decreased by 29.0% to $4.62 million in 2026 Q2, down from $6.51 million in 2025 Q2.

Earnings/Net Income
Educational narrowed losses to $0.15 per share in 2026 Q2 from a loss of $0.22 per share in 2025 Q2 (31.8% improvement). Meanwhile, the company successfully narrowed its net loss to $-1.29 million in 2026 Q2, reducing losses by 28.2% compared to the $-1.80 million net loss reported in 2025 Q2. The earnings per share showed a positive trend despite the overall revenue decline.

Price Action
The stock price of Educational has edged up 1.90% during the latest trading day, has surged 23.85% during the most recent full trading week, and has surged 47.71% month-to-date.

Post Earnings Price Action Review
Educational’s stock has shown a strong rebound post-earnings, with gains of nearly 48% month-to-date, suggesting positive investor sentiment amid the company’s efforts to stabilize its operations. Craig White, President, CEO & Chairman of the Board, noted that Q2 2026 saw decreased sales driven by reduced brand partner levels in the PaperPie division and short-term discounting to generate cash and reduce debt. He emphasized a conservative approach to new product introductions to re-energize the sales force. Challenges in the direct sales industry and a lack of new titles over 18 months were acknowledged, with a focus on attracting younger demographics like young millennials and Gen Z through improved, mobile-first technology. Craig expressed cautious optimism, highlighting cost reductions and a path to profitability through revenue growth driven by new brand partner acquisitions. He also shared confidence in the sale of the Hilti Complex to resolve the bank default and enable future growth. Craig White outlined expectations for the upcoming sale of the Hilti Complex, projected to close by November 25, 2025, with brokers targeting an earlier date. The company anticipates sufficient proceeds from the sale to pay off bank loans and fund growth initiatives, including introducing new titles and refining marketing and IT strategies. While no specific revenue or EPS guidance was provided, the CEO emphasized plans to stabilize the business post-transaction, reduce costs, and focus on reinvigorating brand partner growth through new products and targeted efforts to attract younger demographics.

Additional News
UNESCO launched the second phase of its program to address antisemitism in Europe to ensure safe learning spaces for young people. Bangladesh was elected president of UNESCO’s 43rd General Conference. A webinar on "AI Ethics in Global Education: How Can We Anchor Responsible Innovation in Local Contexts?" was held on October 7, 2025, highlighting efforts to integrate ethical AI practices into educational systems. Additionally, UNESCO initiated a call for proposals aimed at fostering sustainable ocean relationships in Southeast Asia through education for sustainable development (ESD). These developments underscore the global emphasis on leveraging education for inclusive and ethical technological advancement.