Brendan Michael McCarthy

- SCHOLASTIC reported **Q1 2026 revenues of $225.6 million**, a **5% decrease** from Q1 2025, with an **operating loss of $(92.2) million** and **diluted earnings per share of $(2.83)**.  **[866729_2147519:2]** 
- The company's **Adjusted EBITDA improved to $(55.7) million** in Q1 2026, compared to $(60.5) million in Q1 2025.  **[866729_2147519:2]** 
- **Children's Book Publishing and Distribution** saw strong demand and encouraging Book Fair indicators, while **Education sales were pressured** by a volatile funding environment.  **[866729_2147519:1]** 
- **Free cash flow (use) was $(100.2) million** for the three months ending August 31, 2025, and **net debt increased to $(242.8) million** as of August 31, 2025.  **[866729_2147519:3]** 
- SCHOLASTIC **affirmed its fiscal year 2026 guidance**, projecting **revenue growth of 2% to 4%**, **Adjusted EBITDA of $160 million to $170 million**, and **free cash flow of $30 million to $40 million**.  **[866729_2147519:4]**

SCHOLASTIC Reports Q1 2026 Results and Affirms Full-Year Guidance

- Scholastic reported Q1 2026 revenues of **$225.6 million**, a **5% decrease** year-over-year, with an improved seasonally adjusted operating loss of **$81.9 million** and an adjusted EBITDA loss of **$55.7 million**.  **[866729_2147549_3]** 
- The company affirmed its fiscal year 2026 guidance, projecting revenue growth of **2% to 4%**, adjusted EBITDA between **$160 million and $170 million**, and full-year free cash flow between **$30 million and $40 million**.  **[866729_2147549_4]** 
- Progress is being made on real estate monetization for its SoHo headquarters and Jefferson City distribution center, with both processes expected to conclude this fall.  **[866729_2147549_1]** **[866729_2147549_4]** 
- Children's Book Publishing and Distribution revenues increased **4%** to **$109.4 million**, driven by an **18% increase** in Book Fair revenue to **$34.1 million**, while Scholastic Education revenues decreased to **$40.1 million** due to a volatile funding environment.  **[866729_2147549_2]** **[866729_2147549_3]** 
- Net cash used by operating activities was **$81.8 million** and free cash use was **$100.2 million** in Q1 2026, with net debt at **$242.8 million** and **$70 million** remaining on its share buyback authorization.  **[866729_2147549_4]**

Scholastic Reports Q1 2026 Results and Affirms Full-Year Guidance

- Scholastic Corporation reported **Q1 Fiscal 2026 revenues of $225.6 million**, a **5% decrease** from the prior year, primarily reflecting lower Education Solutions sales.  **[866729_0000866729-25-000028_fy26q1pressrelease.htm:1]**  The company recorded an **operating loss of $(92.2) million** and a **diluted loss per share of $(2.83)**, though **Adjusted EBITDA improved 8% to $(55.7) million**.  **[866729_0000866729-25-000028_fy26q1pressrelease.htm:1]** 
- The **Children's Book Publishing and Distribution segment revenues increased 4% to $109.4 million**, driven by an **18% rise in Book Fairs**, while the **Education Solutions segment revenues decreased 28% to $40.1 million** due to funding uncertainty.  **[866729_0000866729-25-000028_fy26q1pressrelease.htm:1]** 
- The company **affirmed its Fiscal 2026 guidance** for improved Adjusted EBITDA and is exploring potential sale-leasebacks of key real estate assets to enhance liquidity.  **[866729_0000866729-25-000028_fy26q1pressrelease.htm:0]** 
- **Net debt increased to $242.8 million** as of August 31, 2025, compared to $152.1 million in the prior year, with **$70.0 million remaining** for share repurchases under current authorization.  **[866729_0000866729-25-000028_fy26q1pressrelease.htm:2]**

Scholastic Reports Q1 Fiscal 2026 Financial Results and Affirms Guidance

- Scholastic Corporation reported a **5% decrease in revenues** to **$225.6 million** for the fiscal first quarter ended August 31, 2025, compared to **$237.2 million** in the prior year period. The company recorded an **operating loss of $92.2 million** and a **diluted loss per share of $2.83** for the quarter.  **[866729_20250918NY77088:0]** 
- The company affirmed its **fiscal 2026 guidance**, noting an **8% improvement** in Adjusted EBITDA to a loss of **$55.7 million** for the quarter.  **[866729_20250918NY77088:0]** **[866729_20250918NY77088:1]** 
- Segment performance was mixed, with **Children's Book Publishing and Distribution** revenues increasing **4%** to **$109.4 million**, driven by an **18% rise in Book Fairs** revenues. Conversely, **Education Solutions** revenues decreased **28%** to **$40.1 million** due to a volatile funding environment.  **[866729_20250918NY77088:2]** 
- Net cash used by operating activities increased to **$81.8 million**, and **net debt** grew to **$242.8 million** as of August 31, 2025, from **$152.1 million** in the prior year. The company continues to distribute dividends and has **$70.0 million** remaining for share repurchases under its current authorization.  **[866729_20250918NY77088:2]** **[866729_20250918NY77088:3]** 

| Metric | Q1 2025 | Q1 2026 |
|--------|---------|---------|
| Revenues ($ Millions) | $237.2  **[866729_20250918NY77088:0]**  | $225.6  **[866729_20250918NY77088:0]**  |
| Operating income (loss) ($ Millions) | $(88.5)  **[866729_20250918NY77088:0]**  | $(92.2)  **[866729_20250918NY77088:0]**  |
| Diluted earnings (loss) per share ($) | $(2.21)  **[866729_20250918NY77088:0]**  | $(2.83)  **[866729_20250918NY77088:0]**  |
| Adjusted EBITDA ($ Millions) | $(60.5)  **[866729_20250918NY77088:0]**  | $(55.7)  **[866729_20250918NY77088:0]**  |
| Net cash (used) provided by operating activities ($ Millions) | $(41.9)  **[866729_20250918NY77088:2]**  | $(81.8)  **[866729_20250918NY77088:2]**  |
| Free cash flow (use) ($ Millions) | $(68.7)  **[866729_20250918NY77088:2]**  | $(100.2)  **[866729_20250918NY77088:2]**  |
| Net cash (debt) ($ Millions) | $(152.1)  **[866729_20250918NY77088:2]**  | $(242.8)  **[866729_20250918NY77088:2]**  |

SCHOLASTIC (SCHL)