Educational Development (EDUC) AI Stock Analysis

• Market Cap: $11.42M
• Dividend Yield: N/A
• Average Volume (3M): 32.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• 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: 23,317
• 30 Day Avg. Volume: 32,921
• 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: 3.50
• Enterprise Value/Revenue: 1.37
• Enterprise Value/Gross Profit: 2.25
• Enterprise Value/Ebitda: -18.29
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $1.50 ▲(20.97% Upside)

Educational Development Corporation is currently facing significant financial challenges, with declining revenues and profitability being the most pressing issues. The technical analysis provides mixed signals, and the valuation is unattractive due to ongoing losses. The earnings call revealed some positive steps towards cost management and debt reduction, but the overall sentiment remains cautious. Strategic shifts are necessary to stabilize and grow the business.

Positive Factors

Debt Repayment

Repaying debt and ending the credit agreement strengthens the balance sheet, improves cash flow, and enhances financial stability.

Cost Reduction Initiatives

Effective cost management and inventory reduction improve cash flow and operational efficiency, supporting long-term financial health.

Real Estate Sale

Proceeds from the real estate sale will pay off bank loans, providing liquidity and financial flexibility for future strategic initiatives.

Negative Factors

Declining Revenue

A significant decline in revenue indicates challenges in market demand and sales effectiveness, impacting long-term growth prospects.

Decrease in Brand Partners

A reduction in brand partners can limit market reach and sales channels, posing risks to revenue generation and market presence.

Bank Loan Default

Defaulting on a bank loan highlights financial distress and can lead to increased borrowing costs and reduced access to capital.

Educational Development Business Overview & Revenue Model

Company Description

Educational Development (EDUC) is a leading provider of educational resources and solutions, primarily focused on early childhood education. The company specializes in developing and distributing high-quality educational materials, including books, digital content, and instructional tools for educators and parents. With a commitment to fostering a love of learning, EDUC serves schools, childcare centers, and families across various sectors, including public and private education.

How the Company Makes Money

EDUC generates revenue through multiple streams, primarily by selling educational products directly to schools, educators, and parents. The company offers a range of products, including printed books, digital learning platforms, and classroom supplies, which are sold through both online and physical retail channels. Additionally, EDUC monetizes its resources through subscription-based services that provide access to exclusive digital content and tools for educators. Partnerships with educational institutions and organizations help increase their market reach and drive sales, while promotional campaigns and seasonal discounts further boost revenue during peak buying periods. Overall, EDUC's diverse product offerings and strategic partnerships play a crucial role in its financial success.

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 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	29.19M	34.19M	51.03M	87.83M	142.23M	204.64M
Gross Profit	17.75M	21.03M	32.98M	56.07M	97.93M	144.60M
EBITDA	-2.19M	-2.94M	5.98M	1.22M	14.28M	19.43M
Net Income	-4.55M	-5.26M	546.40K	-2.50M	8.31M	12.62M
Balance Sheet
Total Assets	74.24M	78.31M	90.11M	99.94M	109.93M	88.85M
Cash, Cash Equivalents and Short-Term Investments	754.20K	428.40K	844.50K	689.10K	361.20K	1.81M
Total Debt	30.77M	32.40M	35.55M	45.53M	43.17M	16.23M
Total Liabilities	36.02M	37.75M	44.65M	54.70M	63.17M	48.59M
Stockholders Equity	38.21M	40.57M	45.45M	45.23M	46.77M	40.26M
Cash Flow
Free Cash Flow	3.79M	2.77M	7.93M	-1.52M	-24.86M	3.67M
Operating Cash Flow	4.34M	3.21M	8.75M	58.50K	-21.14M	7.82M
Investing Cash Flow	-497.50K	-429.60K	4.04M	-1.76M	-3.94M	-4.15M
Financing Cash Flow	-3.70M	-3.08M	-12.20M	2.03M	23.63M	-4.86M

Educational Development Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.24
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1.24 is below the 20-day moving average (MA) of 1.29, below the 50-day MA of 1.37, and below the 200-day MA of 1.31, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.48 is Neutral, neither overbought nor oversold. The STOCH value of 64.10 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

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%
SCHL	60 Neutral	$678.75M	-137.26	-0.35%	2.78%	2.53%	-23.86%
GCI	58 Neutral	―	―	44.25%	―	-8.56%	―
DALN	50 Neutral	―	―	―	―	-8.00%	-46.22%
EDUC	46 Neutral	$11.42M	-2.49	-11.27%	―	-30.65%	-62.03%
LEE	46 Neutral	$22.73M	-0.58	―	―	-8.02%	-44.34%

Educational Development Corporate Events

Educational Development Schedules Q3 Earnings Call

On December 11, 2025, Educational Development Corporation announced that its fiscal year 2026 third quarter earnings call will take place on January 8, 2026. The event will feature presentations by key executives and a live Q&A session, providing insights into the company’s quarterly performance and future outlook.

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.

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.