Scholastic Corp Q4 Earnings: Revenue Surges 7% to $508.3M, EPS Falls Short at $0.59

Scholastic Corp reported Q4 revenue of $508.3m, surpassing estimates, but EPS fell to $0.59, a 52% decline from last year. The company's Children's Book Publishing and Distribution segment saw a 9% revenue increase, while the Education Solutions segment declined by 7%. Adjusted EBITDA for Q4 rose 1% to $91.2m. For the full fiscal year, revenue increased 2% to $1,625.5m, but the company recorded a net loss before taxes of $1.3m and a diluted EPS loss of $0.07. Scholastic Corp is targeting significant growth in fiscal 2026, with projected Adjusted EBITDA between $160m and $170m.

Scholastic Corp (NASDAQ: SCHL) reported its fourth-quarter (Q4) and full fiscal year 2025 results, showing a mixed performance. The company's Q4 revenue of $508.3 million surpassed estimates, but earnings per share (EPS) fell to $0.59, a 52% decline from the previous year. The Children's Book Publishing and Distribution segment saw a 9% revenue increase, while the Education Solutions segment declined by 7%. Adjusted EBITDA for Q4 rose 1% to $91.2 million [1].

For the full fiscal year, revenue increased 2% to $1,625.5 million, but the company recorded a net loss before taxes of $1.3 million and a diluted EPS loss of $0.07 [2]. Scholastic Corp is targeting significant growth in fiscal 2026, with projected Adjusted EBITDA between $160 million and $170 million [3].

The company's strong performance in the Children's Book Publishing and Distribution segment was driven by the latest installment in Suzanne Collins' Hunger Games series, "Sunrise on the Reaping," and Book Fairs revenues grew 5% to $177.8 million [3]. However, the Education Solutions segment faced challenges due to ongoing pressures on school spending.

Scholastic Corp also announced strategic initiatives, including the integration of 9 Story Media Group into the Entertainment division and a strategic reorganization of its Trade Publishing and School Reading Events divisions into a unified Children's Book Group [2]. The company is also evaluating options to optimize its real estate assets, including potential sale-leaseback transactions [2].

Looking ahead, Scholastic Corp expects revenue growth of 2% to 4% in fiscal 2026, despite anticipated headwinds from school spending and incremental expenses related to higher tariff rates [3]. The company's shares gained 4.7% after the announcement, trading at $24.22 in extended trading [4].

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX526B7A:0-publishing-firm-scholastic-beats-q4-revenue-beats-estimates-on-strength-in-children-s-book-publishing/
[2] https://www.tradingview.com/news/tradingview:60b7118d97302:0-scholastic-corporation-reports-q4-and-fiscal-2025-results/
[3] https://www.investing.com/news/earnings/scholastic-shares-jump-as-q4-results-top-expectations-outlook-strong-93CH-4151870
[4] https://www.benzinga.com/markets/earnings/25/07/46619466/scholastic-stock-soars-after-q4-results-are-at-head-of-the-class