Educational Development Corp. (EDUC)
NASDAQ:EDUC
Want to see EDUC full AI Analyst Report?
Top Page
Educational Development
(NASDAQ:EDUC)
Select Model
Select Model
Rating:50Neutral
Price Target:
$1.50
▲(4.17% Upside)
Action:Reiterated
Date:05/20/26
The score is held down primarily by weak financial performance—multi-year revenue collapse and reliance on non-operating items for profitability—despite recent improvements in cash flow and reported debt elimination. Technicals are constructive but appear overextended, and valuation is optically cheap (low P/E) but tied to uncertain earnings quality. Earnings call commentary reinforces a credible turnaround plan, yet execution risk remains high given declining partner counts, weak revenues, and low cash.
Positive Factors
High gross margins
Historical gross margins in the low-60s to low-70s percent provide a durable profitability cushion for a publisher: they support unit-level cash conversion and give pricing flexibility versus peers. This margin profile helps the company generate cash on incremental sales and can accelerate recovery when volume returns.
Negative Factors
Steep multi-year revenue decline
A more-than-90% reduction in top-line scale destroys economies of scale, reduces bargaining power with suppliers, and raises fixed-cost absorption risk. Rebuilding a shrunken revenue base will take sustained partner growth and inventory velocity; otherwise, operating leverage and long-term competitiveness remain impaired.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Historical gross margins in the low-60s to low-70s percent provide a durable profitability cushion for a publisher: they support unit-level cash conversion and give pricing flexibility versus peers. This margin profile helps the company generate cash on incremental sales and can accelerate recovery when volume returns.
Read all positive factors
Educational Development Key Performance Indicators (KPIs)
Any
Net Revenue By Segment
Breaks down total revenue by business segment, indicating which parts of the company are driving sales and where there might be potential for growth or need for strategic shifts.
Breaks down total revenue by business segment, indicating which parts of the company are driving sales and where there might be potential for growth or need for strategic shifts.
Data provided by:
The Fly
The FlyEducational Development (EDUC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.43M
Dividend YieldN/A
Average Volume (3M)32.92K
Price to Earnings (P/E)3.7
Beta (1Y)0.27
Revenue Growth-32.98%
EPS GrowthN/A
CountryUS
Employees101
SectorCommunication Services
Sector Strength97
IndustryPublishing
Share Statistics
EPS (TTM)0.38
Shares Outstanding8,511,364
10 Day Avg. Volume25,652
30 Day Avg. Volume32,925
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.27
Price to Sales (P/S)0.53
P/FCF Ratio7.91
Enterprise Value/Market Cap1.43
Enterprise Value/Revenue0.82
Enterprise Value/Gross Profit1.31
Enterprise Value/Ebitda1.26
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Educational Development Business Overview & Revenue Model
Company Description
Educational Development Corporation, a publishing company, operates as a trade co-publisher of educational children's books in the United States. It operates through two segments, Publishing and Usborne Books & More (UBAM). The company offers vari...
How the Company Makes Money
Educational Development Corporation generates revenue primarily through the sale of its children's books and educational products. Its Home Business Division operates a network of independent sales consultants who sell products directly to custome...
Educational Development Earnings Call Summary
Earnings Call Date:May 19, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jul 09, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: clear operational progress (inventory reduction cash flow, one-time building sale resulting in full-year net earnings, new product arrivals, recruitment momentum and a $2M undrawn credit line) but also significant ongoing challenges (sharp year-over-year revenue declines of ~33–36%, active brand partner counts down ~52%, low cash balance, and one-time accounting adjustments that masked underlying operating weakness). Management articulated a credible turnaround plan and early execution steps, but material execution risk remains before top-line recovery is sustained.Positive Updates
Inventory Reduction Generated Cash
Inventory decreased from $44.7M to $37.7M during fiscal 2026, a reduction of $7.0M (≈15.7%), which generated $7.0M of cash flow from inventory reductions.
Negative Updates
Sharp Revenue Declines
Q4 net revenues were $4.2M vs $6.6M a year ago (a decline of $2.4M, ≈36.4%). Full-year net revenues were $22.9M vs $34.2M prior year (a decline of $11.3M, ≈33.0%).
Read all updates
Q4-2026 Updates
Positive
Negative
Inventory Reduction Generated Cash
Inventory decreased from $44.7M to $37.7M during fiscal 2026, a reduction of $7.0M (≈15.7%), which generated $7.0M of cash flow from inventory reductions.
Read all positive updates
Company Guidance
The company’s guidance for fiscal 2027 centers on a measured turnaround to grow and retain PaperPie brand partners and sell new/replenishment inventory, with numerous metrics highlighted: Q4 net revenues were $4.2M (prior $6.6M) with average active partners 4,500 (prior 9,400), Q4 loss before taxes $2.1M and net loss $3.1M (loss/share $0.37); fiscal year revenues $22.9M (prior $34.2M) with avg. partners 5,800 (prior 12,300), FY loss before taxes $6.9M (or $5.3M earnings before taxes excluding a $12.2M building-sale gain), income tax $3.0M (56.5% effective rate) reflecting a $1.5M one‑time valuation allowance, and FY net earnings $2.3M (EPS $0.27 vs a prior-year loss/share $0.63). Inventory fell from $44.7M to $37.7M generating $7.0M of cash, with $3.6M reclassified to long‑term inventory and roughly $0.5M of slow items; cash on hand was ~$1.3M and the company has an unused $2.0M line of credit. Operational and go‑to‑market metrics include average book price ~$10 and landed cost $2.50 (company realizes about $5 per sale), replenishment lead times of 4–6 months, a conservative Phase 1/Phase 2 purchase plan of $0.5M each, the March joint special added ~1,400 new brand partners, expected targeted discounting in the 10–15% range (vs prior deep discounts), and ongoing IT/AI and platform investments to attract Gen Z and improve partner retention.Educational Development Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
44
Neutral
Cash Flow
52
Neutral
| Breakdown | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 21.81M | 34.19M | 51.03M | 87.83M | 142.23M |
| Gross Profit | 13.60M | 21.03M | 32.98M | 56.07M | 97.93M |
| EBITDA | 14.11M | -2.94M | 5.98M | 1.22M | 14.28M |
| Net Income | 3.34M | -5.26M | 546.40K | -2.50M | 8.31M |
Balance Sheet | |||||
| Total Assets | 56.99M | 78.31M | 90.11M | 99.94M | 109.93M |
| Cash, Cash Equivalents and Short-Term Investments | 1.34M | 428.40K | 844.50K | 689.10K | 361.20K |
| Total Debt | 6.72M | 32.40M | 35.55M | 46.35M | 43.17M |
| Total Liabilities | 14.20M | 37.75M | 44.65M | 54.70M | 63.17M |
| Stockholders Equity | 42.79M | 40.57M | 45.45M | 45.23M | 46.77M |
Cash Flow | |||||
| Free Cash Flow | 1.46M | 2.77M | 7.93M | -1.52M | -24.86M |
| Operating Cash Flow | 2.01M | 3.21M | 8.75M | 58.50K | -21.14M |
| Investing Cash Flow | 29.39M | -429.60K | 4.04M | -1.76M | -3.94M |
| Financing Cash Flow | -31.03M | -3.08M | -12.20M | 2.03M | 23.63M |
Educational Development Technical Analysis
Positive
1.44
Price Trends
1.39
Positive
1.39
Positive
1.35
Positive
Market Momentum
0.01
Positive
56.38
Neutral
63.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDUC, the sentiment is Positive. The current price of 1.44 is below the 20-day moving average (MA) of 1.46, above the 50-day MA of 1.39, and above the 200-day MA of 1.35, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 56.38 is Neutral, neither overbought nor oversold. The STOCH value of 63.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EDUC.
Educational Development Peers Comparison
UnderperformOutperform
Sector (60)
EDUC
Educational Development
1.46
0.05
3.55%
LEE
Lee Enterprises
10.71
4.11
62.27%
SCHL
Scholastic
42.77
26.18
157.73%
Educational Development Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Educational Development Eliminates Debt, Initiates Turnaround Strategy
Negative
May 19, 2026
Educational Development Corporation reported that for the fiscal year ended February 28, 2026, net revenues fell to $22.9 million from $34.2 million as average active PaperPie brand partners dropped to 5,800 from 12,300. Despite a net earnings fig...
Financial DisclosuresShareholder Meetings
Educational Development Schedules Fiscal 2026 Earnings Call
Neutral
Apr 21, 2026
Educational Development Corporation announced on April 21, 2026 that it will hold its fiscal year 2026 earnings call on May 19, 2026 at 3:30 p.m. CT, where senior executives including the CEO, Chief Sales and Marketing Officer, and CFO will presen...
Business Operations and StrategyPrivate Placements and Financing
Educational Development Secures New Revolving Credit Facility
Positive
Mar 12, 2026
On March 6, 2026, Educational Development Corporation entered into a new $2 million revolving credit agreement with Regent Bank, maturing March 6, 2027, secured by the company’s accounts receivable, inventory, equipment, fixed assets, and ex...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.