Scholastic Q1 Earnings: Revenue Down 12%, Operating Loss Narrows

Scholastic reported a net loss in its Q1 FY2026 despite boosting revenue to $225.6 million, down 12% YoY. The company was affected by budgetary shifts in public schools. Revenue for its education solutions unit dropped 28% to $40 million. Scholastic reaffirmed its guidance for the fiscal year, expecting non-GAAP EBITDA of $160-$170 million and 2%-4% higher revenue YoY.

Scholastic Corporation (SCHL) reported a net loss for the first quarter of fiscal year 2026, despite a significant boost in revenue. The company's adjusted earnings per share (EPS) came in at a loss of $2.52, compared to the Zacks Consensus Estimate of a loss of $2.44 Scholastic (SCHL) Reports Q1 Loss, Misses Revenue Estimates^[1]. This represents a 3.28% earnings surprise, with the company missing the consensus estimate by 5.57% in revenue Scholastic (SCHL) Reports Q1 Loss, Misses Revenue Estimates^[1].

Revenue for the quarter ended August 2025 stood at $225.6 million, a 12% year-over-year (YoY) decline from $237.2 million in the same period last year Publisher Scholastic Q1 revenue misses estimates^[2]. The Children's Book Publishing and Distribution segment saw a 4% increase in revenue, driven by strong book fair engagement Publisher Scholastic Q1 revenue misses estimates^[2]. However, the Education Solutions segment experienced a significant 28% drop in revenue to $40 million, due to funding uncertainties impacting school purchases Publisher Scholastic Q1 revenue misses estimates^[2]. The Entertainment segment also saw a decrease of 18% in revenue, attributed to production delays Publisher Scholastic Q1 revenue misses estimates^[2].

Scholastic reaffirmed its full-year guidance, expecting non-GAAP EBITDA of $160-$170 million and 2%-4% higher revenue YoY Scholastic Corporation (SCHL) Q1 FY2026 earnings call transcript^[3]. The company cited strong fall bookings, franchise strength, and cost discipline as factors supporting its outlook. However, the stock is currently ranked as a "Strong Sell" by Zacks Investment Research, with a Zacks Rank #5, indicating that it is expected to underperform the market in the near future Scholastic (SCHL) Reports Q1 Loss, Misses Revenue Estimates^[1].

The publishing, education, and media company's shares have added about 27.6% since the beginning of the year, outperforming the S&P 500's gain of 12.2% Scholastic (SCHL) Reports Q1 Loss, Misses Revenue Estimates^[1]. Despite the strong performance, investors are closely watching the company's earnings outlook and management's commentary on the earnings call to gauge the stock's future trajectory.