What is the revenue and EPS growth rate for Educational year over year?

What is the market's earnings forecast for Educational next quarter?

What were the key takeaways from Educational’s earnings call?

What guidance did Educational's management provide for the next earnings period?

What does Educational do and what are its main business segments?

What is Educational's latest dividend and current dividend yield?

What is Educational's gross profit margin?

Did Educational beat or miss consensus estimates last quarter?

- **Revenue Decline**: Q2 revenue down 29% YoY to $4.6M, driven by 58% drop in active brand partners. 
- **Cost Control Success**: Reduced losses by 19% YoY despite lower sales; $4M inventory liquidation supports debt reduction. 
- **Real Estate Lifeline**: $32.2M Hilti Complex sale expected to close by Nov 25, resolving bank default and enabling $3-5M credit line. 
- **Growth Strategy**: Mobile-first tech upgrades and delayed new product launches aim to attract Gen Z/millennials and reverse brand partner decline.

**【CEO Opening Remarks】**
- Q2 revenue decreased to $4.6M (from $6.5M YoY) due to reduced brand partners (5,800 vs. 13,900) and aggressive discounting. 
- Focused on cost reduction (lower losses on lower sales) and targeting Gen Z/millennials with mobile-first tech improvements.
- New product launches delayed until spring 2026 to rebuild sales force confidence.

**【CFO Financial Commentary】**
- Year-to-date net revenue $11.7M (down 29% YoY). Loss before taxes $3.2M (19% improvement YoY). 
- Inventory reduced by $4M to $40.7M, used to pay down debt. 
- Bank credit agreement expired; loans in default but confident Hilti Complex sale ($32.2M target) will resolve by Nov 25. 

**【Sales & Marketing Update】**
- 2025 StoryMaker Summits held in 5 cities to train brand partners. 
- Top performers rewarded with Scotland incentive trips. 
- Seasonal selling campaigns and 2026 planning focused on brand partner retention and retail channel growth. 

**【Q&A Highlights】**
- **Real Estate Sale**: $100K earnest money; net proceeds to cover debt + ~$3M for new credit line. 100% confidence in closing. 
- **Cost Reductions**: Eliminating $1M in storage costs, $50-100K in operational savings. 
- **Brand Partner Recovery**: New titles + tech improvements expected to stem losses; gradual growth via targeted marketing. 
- **Dividend Plan**: No timeline, but goal to reinstate after inventory liquidation and business turnaround.

Educational Development Corporation (EDUC) Q2 2026 Earnings Call Transcript

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