Educational Development (EDUC) AI Stock Analysis

• Market Cap: $11.67M
• Dividend Yield: N/A
• Average Volume (3M): 498.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.30
• Revenue Growth: -30.65%
• EPS Growth: -62.03%
• Country: US
• Employees: 101
• Sector: Communication Services
• Sector Strength: 97
• Industry: Publishing
• EPS (TTM): -0.15
• Shares Outstanding: 8,583,201
• 10 Day Avg. Volume: 82,726
• 30 Day Avg. Volume: 498,823
• PEG Ratio: <0.01
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 4.33
• Enterprise Value/Market Cap: 3.38
• Enterprise Value/Revenue: 1.35
• Enterprise Value/Gross Profit: 2.22
• Enterprise Value/Ebitda: -18.05
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $1.50 ▲(11.11% Upside)

Educational Development Corporation's stock score reflects significant financial and operational challenges, with declining revenues and profitability being the most impactful factors. While there are some positive signs in cash flow management and cost reduction efforts, the negative valuation metrics and technical indicators suggest caution. The earnings call further underscores the need for strategic shifts to address these issues and return to growth.

Educational Development Business Overview & Revenue Model

Company Description

Educational Development (EDUC) is a leading provider of educational materials and services focused on enhancing learning experiences for children and educators. Operating primarily in the education sector, EDUC offers a diverse range of products including books, digital learning resources, and curriculum development tools. The company caters to schools, parents, and educational institutions, aiming to foster a love for learning through high-quality and engaging educational content.

How the Company Makes Money

EDUC generates revenue through multiple streams, primarily by selling educational materials directly to schools, teachers, and parents. The company may also offer subscription-based access to digital learning platforms and resources, providing ongoing value to its users. Additionally, EDUC could partner with educational institutions and organizations to develop customized curriculum solutions, earning revenue through contractual agreements. Key partnerships with educational publishers and technology providers may further enhance its product offerings and revenue potential. Overall, EDUC's earnings are bolstered by its commitment to quality education and its ability to adapt to the evolving needs of the education sector.

Educational Development Financial Statement Overview

Summary

Educational Development is facing financial challenges with declining revenues and profitability, as evidenced by negative margins and revenue growth. The balance sheet shows moderate leverage but negative returns on equity, indicating inefficiencies in generating profits. Cash flow management shows some positive signs, but overall, the company needs to address its profitability and revenue growth issues to improve its financial health.

Income Statement

The company's income statement shows a declining trend in revenue with a negative revenue growth rate of -6.75% in the TTM period. Gross profit margins have decreased slightly over time, and the net profit margin is negative, indicating losses. The EBIT and EBITDA margins are also negative, reflecting operational challenges. Overall, the income statement suggests financial difficulties with declining revenues and profitability.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.81 in the TTM period, indicating a balanced approach to leveraging. However, the return on equity is negative, reflecting the company's inability to generate profits from its equity base. The equity ratio is not explicitly provided, but the overall financial position suggests a need for improvement in profitability and asset utilization.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 31.88% in the TTM period, indicating some improvement in cash generation. The operating cash flow to net income ratio is low, suggesting challenges in converting income into cash. The free cash flow to net income ratio is relatively high, indicating better cash management despite net losses. Overall, cash flow management shows some strengths but is overshadowed by profitability issues.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2019
Income Statement
Total Revenue	29.19M	34.19M	87.83M	142.23M	204.64M	118.81M
Gross Profit	17.75M	21.03M	56.07M	97.93M	144.60M	79.75M
EBITDA	-2.19M	-2.94M	1.22M	14.28M	19.43M	10.01M
Net Income	-4.55M	-5.26M	-2.50M	8.31M	12.62M	6.68M
Balance Sheet
Total Assets	74.24M	78.31M	99.94M	109.93M	88.85M	69.27M
Cash, Cash Equivalents and Short-Term Investments	754.20K	428.40K	689.10K	361.20K	1.81M	3.20M
Total Debt	30.77M	32.40M	45.53M	42.68M	16.23M	19.78M
Total Liabilities	36.02M	37.75M	54.70M	63.17M	48.59M	43.34M
Stockholders Equity	38.21M	40.57M	45.23M	46.77M	40.26M	25.93M
Cash Flow
Free Cash Flow	3.79M	2.77M	-1.52M	-24.86M	3.67M	2.55M
Operating Cash Flow	4.34M	3.21M	58.50K	-21.14M	7.82M	3.95M
Investing Cash Flow	-497.50K	-429.60K	-1.76M	-3.94M	-4.15M	-1.40M
Financing Cash Flow	-3.70M	-3.08M	2.03M	23.63M	-4.86M	-2.07M

Educational Development Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.35
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDUC, the sentiment is Negative. The current price of 1.35 is below the 20-day moving average (MA) of 1.47, below the 50-day MA of 1.38, and above the 200-day MA of 1.34, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.45 is Neutral, neither overbought nor oversold. The STOCH value of 18.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EDUC.

Educational Development Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GCI	60 Neutral	$747.31M	9.82	44.25%	―	-8.56%	―
SCHL	58 Neutral	$696.59M	―	-1.14%	2.89%	0.97%	-197.80%
DALN	50 Neutral	―	―	―	―	-8.00%	-46.22%
EDUC	46 Neutral	$11.67M	-2.55	-11.27%	―	-30.65%	-62.03%
LEE	45 Neutral	$25.37M	-0.59	―	―	-5.68%	-127.26%

Educational Development Corporate Events

Educational Development Repays Debt, Ends Credit Agreement

On October 27, 2025, Educational Development Corporation fully repaid its outstanding debt and terminated its Credit Agreement with BOKF, NA, using proceeds from the sale of its headquarters and distribution warehouse for $32.2 million. This strategic move eliminated the company’s bank borrowings, improved its cash flow by approximately $1 million annually, and strengthened its financial position, benefiting shareholders and enhancing its balance sheet.

The most recent analyst rating on (EDUC) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Educational Development stock, see the EDUC Stock Forecast page.

Educational Development Faces Challenges Amid Revenue Decline

The recent earnings call for Educational Development Corporation highlighted a challenging period for the company, marked by declining revenue and a significant drop in brand partner numbers. Despite these hurdles, there was a glimmer of optimism with improvements in cost management and reductions in losses. The company is hopeful about future growth, buoyed by positive feedback from recent initiatives and the planned sale of its headquarters. However, the overall sentiment was more negative, indicating a pressing need for strategic changes to steer the company back to growth.

Educational Development Corporation Reports Q2 Fiscal 2026 Results

Educational Development Corporation (EDC) is a publishing company that specializes in children’s books and educational products, operating primarily in the publishing industry with a focus on educational materials and multi-level marketing distribution.

Educational Development Reports Q2 2026 Financial Results

On October 9, 2025, Educational Development Corporation reported its fiscal 2026 second quarter financial results, showing a decline in net revenues to $4.6 million from $6.5 million in the previous year. Despite the decrease in revenues and a net loss of $1.3 million, the company is optimistic about its future, with plans to sell the Hilti Complex to pay off outstanding debt and improve cash flows. This move is part of a broader turnaround initiative aimed at reducing operating costs, increasing brand partner growth, and driving revenue growth. The company remains focused on returning to profitability by enhancing its operational efficiency and expanding its brand partner network.

The most recent analyst rating on (EDUC) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Educational Development stock, see the EDUC Stock Forecast page.

Educational Development Schedules Q2 2026 Earnings Call

On September 10, 2025, Educational Development Corporation announced that it will hold its fiscal year 2026 second quarter earnings call on October 9, 2025. The call will feature presentations from key executives, including CEO Craig White, and will include a live Q&A session. This announcement highlights EDC’s commitment to transparency and engagement with stakeholders, potentially impacting investor relations and market perception.

The most recent analyst rating on (EDUC) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Educational Development stock, see the EDUC Stock Forecast page.

Educational Development Extends Credit Agreement Maturity Date

On August 12, 2025, Educational Development Corporation announced the execution of the Ninth Amendment to its Existing Credit Agreement with BOKF, NA, extending the maturity date of the Revolving Loan to September 19, 2025. This extension aligns with the maturity dates of the company’s term loans related to its real estate, reflecting ongoing efforts to manage its credit agreements and explore financing solutions, including potential sales or refinancing of assets like the Hilti Complex.