Scholastic Reports Q1 Fiscal 2026 Results

Scholastic ( (SCHL) ) has released its Q1 earnings. Here is a breakdown of the information Scholastic presented to its investors.

Scholastic Corporation, a global leader in children’s publishing, education, and media, reported its fiscal 2026 first-quarter results, highlighting its strategic initiatives and financial performance. The company, known for its iconic children’s books and educational resources, operates in over 135 countries, fostering literacy and learning among young readers.

In the first quarter of fiscal 2026, Scholastic reported a 5% decrease in revenues to $225.6 million, primarily due to lower sales in the Education Solutions segment amidst a challenging funding environment. Despite the seasonal operating loss of $92.2 million, the company saw improvements in its adjusted EBITDA, which increased by 8% to a loss of $55.7 million, reflecting cost-saving measures and higher revenues in the Children’s Book Publishing and Distribution segment.

Key highlights include a 4% increase in revenues for the Children’s Book Publishing and Distribution segment, driven by strong performances in book fairs and school reading events. However, the Education Solutions segment faced a 28% decline in revenues due to funding uncertainties, while the Entertainment segment saw an 18% drop in revenues, attributed to production delays. International revenues rose by 4%, supported by growth in regions like Australia, the U.K., and Asia.

Looking ahead, Scholastic remains committed to enhancing shareholder value through strategic capital allocation and operational discipline. The company is exploring potential sale-leaseback transactions of key real estate assets to bolster liquidity, with a focus on debt reduction and share repurchases. Scholastic’s management is confident in its ability to achieve long-term growth and impact, affirming its fiscal 2026 guidance.