Scholastic reports Q1 EPS ($2.52) vs. ($2.13) last year

Reports Q1 revenue $225.6M vs. $237.2M last year. CEO Peter Warwick said, “Scholastic (SCHL) made steady progress in Q1 of FY26, advancing strategic initiatives across all segments. The seasonally quiet summer period resulted in an operating loss consistent with expectations…These strategic developments all leverage the capabilities of 9 Story Media Group, now fully integrated into our business. In our Education division, results were pressured by a difficult and volatile funding environment, with schools delaying or reducing purchases. Even so, we advanced plans to strengthen this strategically important business, refining our product portfolio and better aligning our marketing and sales to address the pressing needs of educators and families to improve reading achievement among our nation’s children. We are focused on optimizing capital allocation and strengthening our balance sheet to enhance shareholder value. Recently launched processes to evaluate potential sale-leasebacks of key real estate assets have drawn substantial interest. With a sharpened strategy, valuable IP, and a focus on operational discipline, we are affirming our FY26 guidance, confident in our ability to deliver long-term growth and impact.”