NASDAQ$SCHL

Scholastic Corporation · Q2 2025 earnings

Q2 2025 earnings · · Investor relations

Briefing

Scholastic's Q2 2025 earnings were lower than the previous year due to timing-related factors in publishing releases, but the company reaffirmed its fiscal 2025 guidance, driven by strong performance in school-based channels and new releases.

Scholastic reported a decrease in revenue and operating income for the second quarter of fiscal 2025, primarily due to the timing of publishing releases and lower sales in Education Solutions. However, the company reaffirmed its fiscal 2025 guidance, supported by growth in Book Fairs and Clubs, and the addition of 9 Story Media Group.

  • Revenues decreased by 3% to $544.6 million, impacted by timing-related factors in Children’s Book Publishing and Distribution and lower sales in Education Solutions.
  • Operating income decreased by 26% to $74.7 million, including $4.2 million in one-time charges.
  • Book Fairs revenues were $231.0 million, down 5% due to a shift in fair bookings to December and slightly lower average revenue per fair.
  • The company reaffirmed its fiscal 2025 guidance and upsized its revolving credit facility to $400 million.

Headline financials

Total Revenue

$545M

Previous: $563M-3.2%
EPS

$1.71

Previous: $2.45-30.2%
Adjusted EBITDA

$109M

Previous: $124M-12.3%
Op. Income excl. items

$78.9M

No prior period
Capital Expenditures

-$30.9M

Previous: -$29.1M-6.2%
Free Cash Flow

-$44.6M

Previous: $47.8M-193.3%
Net Income

-$13.7M

Previous: $76.9M-117.8%
Operating Income

$74.7M

Previous: $101M-26.3%
Gross Profit

$316M

Previous: $329M-3.8%
Cash & Equivalents

$140M

Previous: $150M-6.6%
Total Assets

$2.04B

Previous: $1.83B+11.1%
Stock-Based Comp

$2.1M

Previous: $4.1M-48.8%

Revenue & EPS history

Scholastic · Revenue · Quarterly

$545M

Q2 2025-3.2%vs Q2 2024
Beat estimate in 3 of 12 quarters(25%)
ActualEstimate

Revenue by segment

Scholastic · $328M total across 4 segments · Q3 2026

  • Children's Book Publishing and Distribution
    $198M
  • International
    $58.7M
  • Education Solutions
    $56.1M
  • Entertainment
    $16M

Forward guidance

Scholastic reaffirmed its fiscal 2025 guidance, expecting to benefit from new releases and strategic advantages as a global children’s book publisher.

Tailwinds

  • Expected strong participation at Book Fairs, on track to achieve 90,000 fairs in fiscal 2025.
  • Benefit from new releases, including Dog Man: Big Jim Begins and Sunrise on the Reaping.
  • Strategic advantages as a global children’s book publisher and seller.
  • Strong balance sheet with a recently upsized, $400 million revolving credit facility.
  • Commitment to investing in growth opportunities and returning excess cash to shareholders.

Headwinds

  • Second quarter results were lower than a year ago, primarily reflecting the timing of this year’s publishing releases.
  • Lower supplemental curriculum and collections product sales in Education Solutions.
  • Book Fairs revenues were down 5% due to a shift in fair bookings to December.
  • Consolidated Trade revenues were down 13% primarily reflecting lower frontlist sales.
  • Operating income decreased 26% to $74.7 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2025

Historical avgQ2 2025

-1.8%

Avg return

Earnings day

-2.4%

Avg return

5 days after

-0.3%

Avg return

30 days after

43%

29 / 68 earnings

Positive

+14.6%

Q4 2022

Best reaction

-24.1%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+8.7%+14.2%+16.2%
Q2 2026-6.5%+1.0%+19.6%
Q1 2026-12.2%-4.5%+3.2%
Q4 2025-0.7%+1.3%+22.6%
Q3 2025+12.9%+0.3%-13.3%
Q2 2025-19.6%-12.9%-18.9%
Q1 2025+8.0%+0.9%-17.2%
Q4 2024-22.8%-17.8%-18.6%
Q3 2024+2.7%+2.5%-4.9%
Q2 2024-8.4%-7.1%-5.7%
Q1 2024-14.2%-5.1%-5.8%
Q4 2023+9.6%+5.6%+7.3%
Q3 2023-24.1%-23.9%-14.1%
Q2 2023+1.5%+4.6%+17.4%
Q1 2023-20.0%-28.8%-19.5%
Q4 2022+14.6%+23.4%+25.4%
Q3 2022-11.6%-10.8%-6.9%
Q2 2022+2.4%+4.8%+15.7%
Q1 2022-1.3%+2.5%+4.9%
Q4 2021-4.4%-3.3%-2.7%
Q3 2021+3.0%-6.9%+5.2%
Q2 2021-8.5%-13.1%-1.7%
Q1 2021+2.4%+3.2%+9.7%
Q4 2020-10.3%-13.0%-20.7%
Q3 2020-1.8%+13.2%+29.3%
Q2 2020+6.1%-0.2%-6.6%
Q1 2020+2.4%-3.4%-2.7%
Q4 2019+0.5%+2.5%-0.9%
Q3 2019-4.2%-0.4%+0.8%
Q2 2019-11.2%-11.4%-1.5%
Q1 2019+8.9%+5.7%-4.0%
Q4 2018-7.9%-11.8%-12.0%
Q3 2018+3.1%+5.8%+13.9%
Q2 2018-4.5%-4.0%-7.4%
Q1 2018-5.9%-5.9%-2.9%
Q4 2017-5.3%-6.3%-13.2%
Q3 2017-4.9%-6.7%-2.5%
Q2 2017+5.9%+6.0%+0.5%
Q1 2017+0.2%-0.5%-0.3%
Q4 2016+2.5%+3.0%-0.4%
Q3 2016+4.1%
Q2 2016-8.4%
Q1 2016-3.3%
Q4 2015+1.2%
Q3 2015+6.0%
Q2 2015-1.5%
Q1 2015-6.3%
Q4 2014+6.8%
Q3 2014+1.7%
Q2 2014+9.8%
Q1 2014-3.3%
Q4 2013-8.0%
Q3 2013-15.4%
Q2 2013-2.2%
Q1 2013+1.9%
Q2 2012+6.4%
Q4 2012+6.4%
Q3 2012-0.9%
Q1 2012-2.7%
Q4 2011-2.6%
Q4 2009-2.6%
Q3 2011-0.1%
Q3 2010-0.1%
Q2 2010+4.1%
Q2 2011+4.1%
Q4 2010-0.1%
Q1 2010-0.1%
Q1 2011-0.1%

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