Paul Carter

- Educational Development Corporation (EDUC) reported a **net loss of $1.3 million** ($0.15 loss per share) on **net revenues of $4.6 million** for Q2 2026, compared to a net loss of $1.8 million ($0.22 loss per share) on $6.5 million in net revenues in the prior year's second quarter.  **[0000031667_2174420_1]** 
- The company experienced decreased sales primarily due to a decline in average active PaperPie brand partners, which totaled **5,800** in Q2 2026 compared to 13,900 in the prior year, and a lack of new title introductions for approximately 18 months.  **[0000031667_2174420_0]** **[0000031667_2174420_1]** 
- EDUC's bank loan agreements expired on September 19, 2025, resulting in a **notice of default** from the bank, though the bank has not yet exercised its rights and supports the planned sale of the Hilty Complex.  **[0000031667_2174420_1]** **[0000031667_2174420_2]** 
- The company expects to complete the sale of its headquarters, the Hilty Complex, for **$32.2 million** prior to **November 25, 2025**, to pay off bank loans, and is developing options for new, conservative financing of **$3 million to $5 million** post-sale.  **[0000031667_2174420_2]** **[0000031667_2174420_3]** 
- Management is focusing on increasing brand partner counts by improving technology for a mobile-first impact and targeting young Millennials and older Gen Z, alongside continued cost reduction efforts that have led to lower losses despite reduced sales.  **[0000031667_2174420_0]**

EDUCATIONAL DEVELOPMENT (EDUC)