Scholastic Reports Modest Growth Amid Market Challenges

Scholastic ( (SCHL) ) has released its Q3 earnings. Here is a breakdown of the information Scholastic presented to its investors.

Scholastic Corporation, a leading global children’s publishing, education, and media company, has reported its fiscal 2025 third-quarter results, showcasing a blend of modest revenue growth and improved operating results despite market challenges.

In the third quarter, Scholastic achieved a 4% increase in revenues to $335.4 million, driven by strong performances in School Book Fairs and Clubs, and the addition of 9 Story Media Group. The company also returned over $35 million to shareholders and expanded its share repurchase authorization to $100 million, reflecting its commitment to shareholder value.

Key financial highlights include a 32% improvement in operating loss to $23.9 million and a significant increase in Adjusted EBITDA to $6.0 million, up 183% from the previous year. The Children’s Book Publishing and Distribution segment saw a 5% revenue increase, while the Education Solutions division faced a 16% revenue decline due to market slowdowns. The Entertainment segment benefited from the acquisition of 9 Story Media Group, contributing to a revenue boost.

Looking ahead, Scholastic maintains a cautious outlook, forecasting full-year Adjusted EBITDA at the low end of its guidance and anticipating modest revenue growth. The company remains focused on long-term growth and profitability, with strategic cost actions and capital allocation priorities in place to navigate ongoing market pressures.