Key insights
- Scholastic Corporation (SCHL) reported a wider-than-expected adjusted loss per share and lower-than-expected revenue for its first quarter. The company cited decreased sales in its Education and Children's Book Publishing segments. Despite the miss, Scholastic reaffirmed its fiscal 2027 outlook for revenue growth and Adjusted EBITDA. The stock fell 12.1% in after-hours trading following the announcement.
Investing.com -- Scholastic Corporation (NASDAQ: SCHL) reported first quarter results that fell short of analyst expectations, sending shares 12.1% lower in after hours trading on Thursday following the announcement. The stock closed 1.41% lower in the regular session.
The children’s publishing and education company posted an adjusted loss of $3.63 per share for the quarter ended August 31, 2026, missing the analyst consensus of a $3.40 loss. Revenue declined 4% to $216.8 million, below the $230.61 million estimate and down from $225.6 million in the prior year period.
The revenue decrease primarily reflected lower sales in Education and Children’s Book Publishing and Distribution, along with the elimination of rental income following sale-leaseback transactions completed in December 2025.
Despite the miss, Scholastic affirmed its fiscal 2027 outlook for revenue growth of approximately 2% to 4% and Adjusted EBITDA of $135 million to $145 million. The company also maintained its Free Cash Flow guidance of $35 million to $40 million.
Education revenues fell 24% to $30.4 million, reflecting continued pressure on school and district budgets for supplemental curriculum materials. Children’s Book Publishing and Distribution revenues decreased $3.6 million to $105.8 million, while Entertainment revenues increased 48% to $20.1 million on higher production activity. International revenues rose 2% to $60.5 million.
"Scholastic continued to advance its fiscal 2027 priorities during the seasonally small first quarter, with strong early indicators across our businesses reinforcing our confidence entering the important back-to-school and fall season," said Peter Warwick, President and Chief Executive Officer.
Adjusted EBITDA was a loss of $63.6 million, compared to a loss of $55.7 million in the prior year period. On a comparable basis reflecting the full-period impact of sale-leaseback transactions, Adjusted EBITDA improved $0.6 million.
The company returned $29.6 million to shareholders during the quarter through share repurchases of $25.8 million and dividends of $3.8 million.
Original Article