Educational Development Corp. (EDUC)
NASDAQ:EDUC
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Educational Development
(NASDAQ:EDUC)
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Rating:47Neutral
Price Target:
$1.50
▲(4.17% Upside)
Action:ReiteratedDate:03/24/26
The score is held down primarily by severe multi-year revenue contraction, uneven profitability with negative operating income, and weak technical momentum. Offsetting factors include meaningful deleveraging and positive (but unstable) recent free cash flow, plus a very low P/E that may indicate undervaluation but also reflects elevated earnings-quality risk given one-time gains highlighted on the latest earnings call.
Positive Factors
Balance-sheet deleveraging
Company materially reduced debt to $6.9M TTM and lowered debt-to-equity to ~0.15, restoring capital cushion and creditor flexibility. This durable balance-sheet repair reduces interest burden and bankruptcy risk, giving management time to execute turnarounds and support working capital needs.
Negative Factors
Multi-year revenue collapse
Revenue has undergone a structural decline from $204.6M in 2021 to $34.2M in 2025, with TTM down 13.7%. Such persistent top-line erosion weakens operating leverage, limits fixed-cost absorption, and raises the bar for any recovery plan which must restore meaningful scale to improve margins and cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet deleveraging
Company materially reduced debt to $6.9M TTM and lowered debt-to-equity to ~0.15, restoring capital cushion and creditor flexibility. This durable balance-sheet repair reduces interest burden and bankruptcy risk, giving management time to execute turnarounds and support working capital needs.
Read all positive factors
Educational Development (EDUC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.41M
Dividend YieldN/A
Average Volume (3M)32.92K
Price to Earnings (P/E)0.4
Beta (1Y)0.48
Revenue Growth-30.65%
EPS Growth-62.03%
CountryUS
Employees101
SectorCommunication Services
Sector Strength97
IndustryPublishing
Share Statistics
EPS (TTM)0.91
Shares Outstanding8,511,364
10 Day Avg. Volume25,652
30 Day Avg. Volume32,925
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.30
Price to Sales (P/S)0.35
P/FCF Ratio4.33
Enterprise Value/Market Cap1.34
Enterprise Value/Revenue0.60
Enterprise Value/Gross Profit1.01
Enterprise Value/Ebitda1.64
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...
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 Earnings Call Summary
Earnings Call Date:Jan 08, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Negative
The call presented a mix of one-time financial positives and concerning underlying operating trends. A material one-time gain from the Hilti Complex sale materially improved reported earnings, eliminated bank debt, and provided annual cash-flow relief. Management launched strategic initiatives (Gathered Goods, restocks/new titles, AI task force) and highlighted improved productivity among remaining sellers and leader stability. However, core operating metrics are weak: revenue declined ~32-37% year-over-year, active brand partner counts fell over 50%, and excluding the one-time gain the company is operating at a loss. Cash on hand is modest and a new banking relationship is not yet finalized. Overall, while there are credible plans and catalysts for recovery, the severity of the top-line and partner-count declines and ongoing operational losses outweigh the positives.Positive Updates
Building Sale and One-Time Gain
Completed sale of Hilti Complex producing a $12.2M gain; allowed payoff of line of credit and term loans and resulted in $0 owed to bank at quarter-end.
Negative Updates
Significant Revenue Declines
Q3 net revenues fell to $7.0M from $11.1M year-over-year, a decline of approximately 37%. Year-to-date net revenues declined to $18.7M from $27.6M, a decline of approximately 32%.
Read all updates
Q3-2026 Updates
Positive
Negative
Building Sale and One-Time Gain
Completed sale of Hilti Complex producing a $12.2M gain; allowed payoff of line of credit and term loans and resulted in $0 owed to bank at quarter-end.
Read all positive updates
Company Guidance
Management's guidance focused on returning to growth in fiscal 2027 now that the Hilti Complex sale removed bank restrictions—management expects about $1.0M in annual cash-flow benefit from paying off bank debt, is pursuing a new banking relationship/credit line in the next few months, and has placed Phase 1 reorders/new-title purchases (arriving late spring/early summer) while launching Gathered Goods to improve margins and scale fundraising; an AI task force is also being used to automate rote tasks and reduce costs. For context and targets, Q3 net revenues were $7.0M (vs. $11.1M prior year) with average active brand partners of 5,100 (vs. 12,400), YTD net revenues $18.7M (vs. $27.6M) with average partners 6,200 (vs. 13,300); Q3 earnings before income taxes were $10.6M (including a $12.2M building gain; ex‑gain loss before taxes would be $1.6M) and YTD EBIT was $7.4M (ex‑gain loss before taxes loss $4.8M), Q3 net earnings $7.8M and EPS $0.91, YTD net earnings $5.4M and EPS $0.63. Liquidity/inventory actions include reducing inventory from $44.7M to $39.1M (generating $5.6M cash), ending the quarter with $3.4M cash, $0.8M receivables, $2.0M accounts payable, $0 owed to the bank, and roughly 50% of inventory tied to Usborne; management will prioritize increasing brand partner counts, Gen Z marketing tweaks, and will provide an update in May.Educational Development Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
66
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 | Feb 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.37M | 34.19M | 51.03M | 87.83M | 142.23M | 204.64M |
| Gross Profit | 15.15M | 21.03M | 32.98M | 56.07M | 97.93M | 144.60M |
| EBITDA | 9.34M | -2.94M | 5.98M | 1.22M | 14.28M | 19.43M |
| Net Income | 4.09M | -5.26M | 546.40K | -2.50M | 8.31M | 12.62M |
Balance Sheet | ||||||
| Total Assets | 59.46M | 78.31M | 90.11M | 99.94M | 109.93M | 88.85M |
| Cash, Cash Equivalents and Short-Term Investments | 3.11M | 428.40K | 844.50K | 689.10K | 361.20K | 1.81M |
| Total Debt | 6.95M | 32.40M | 35.55M | 46.35M | 43.17M | 16.23M |
| Total Liabilities | 13.56M | 37.75M | 44.65M | 54.70M | 63.17M | 48.59M |
| Stockholders Equity | 45.90M | 40.57M | 45.45M | 45.23M | 46.77M | 40.26M |
Cash Flow | ||||||
| Free Cash Flow | 1.86M | 2.77M | 7.93M | -1.52M | -24.86M | 3.67M |
| Operating Cash Flow | 2.44M | 3.21M | 8.75M | 58.50K | -21.14M | 7.82M |
| Investing Cash Flow | 29.35M | -429.60K | 4.04M | -1.76M | -3.94M | -4.15M |
| Financing Cash Flow | -31.58M | -3.08M | -12.20M | 2.03M | 23.63M | -4.86M |
Educational Development Technical Analysis
Positive
1.44
Price Trends
1.35
Negative
1.34
Negative
1.33
Negative
Market Momentum
-0.01
Negative
51.99
Neutral
55.70
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 above the 20-day moving average (MA) of 1.31, above the 50-day MA of 1.35, and above the 200-day MA of 1.33, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 51.99 is Neutral, neither overbought nor oversold. The STOCH value of 55.70 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)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $857.52M | 3.53 | 6.91% | 2.78% | 2.53% | -23.86% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | $187.73M | -1.01 | 61.72% | ― | -8.02% | -44.34% | |
47 Neutral | $11.41M | 0.35 | 9.96% | ― | -30.65% | -62.03% |
* Communication Services Sector Average
EDUC
Educational Development
1.34
0.16
13.56%
LEE
Lee Enterprises
8.45
-0.50
-5.64%
SCHL
Scholastic
39.57
23.69
149.10%
Educational Development Corporate Events
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...
Business Operations and StrategyFinancial Disclosures
Educational Development Posts Q3 Results Amid Strategic Asset Sale
Negative
Jan 8, 2026
On January 8, 2026, Educational Development Corporation reported fiscal 2026 third-quarter results for the period ended November 30, 2025, highlighting a sharp revenue decline alongside an accounting boost from asset sales. Net revenues fell to $7...
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.