Scholastic Corp
XMUN:SL1
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Scholastic Corp
XMUN:SL1
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Scholastic Corp
Scholastic Corp is a children’s publishing and education company best known for making books and classroom reading materials for schools and families. It publishes children’s fiction and nonfiction, school magazines, and teaching materials, and it also sells books through school book fairs, book clubs, bookstores, and direct school channels. Its main customers are teachers, schools, parents, libraries, and young readers. The company makes money when schools and families buy its books and educational products, and when schools run Scholastic book fairs and book clubs. It also earns from classroom programs, instructional resources, and digital learning tools tied to reading and literacy. In practice, Scholastic sits between publishers, schools, and home readers, helping content reach children through channels that many other publishers do not have. What makes Scholastic different is its deep focus on children and its long-standing presence inside schools. Instead of relying mainly on adult bookstores or general retail, it has built a direct relationship with teachers and parents through school-based programs. That gives it a distinctive role in the education and children’s book market.
Scholastic Corp is a children’s publishing and education company best known for making books and classroom reading materials for schools and families. It publishes children’s fiction and nonfiction, school magazines, and teaching materials, and it also sells books through school book fairs, book clubs, bookstores, and direct school channels. Its main customers are teachers, schools, parents, libraries, and young readers.
The company makes money when schools and families buy its books and educational products, and when schools run Scholastic book fairs and book clubs. It also earns from classroom programs, instructional resources, and digital learning tools tied to reading and literacy. In practice, Scholastic sits between publishers, schools, and home readers, helping content reach children through channels that many other publishers do not have.
What makes Scholastic different is its deep focus on children and its long-standing presence inside schools. Instead of relying mainly on adult bookstores or general retail, it has built a direct relationship with teachers and parents through school-based programs. That gives it a distinctive role in the education and children’s book market.
Capital Return: Board authorized a $300 million buyback (a $200 million modified Dutch Auction at $36–$40 and $100 million open-market), after repurchasing ~$147 million (4.4M shares) at an average $33.30 per share; tender expected Mar 23–Apr 20.
Proceeds & Balance Sheet: Completed sale-leaseback of NYC HQ and Jefferson City facility, generating over $400 million of net proceeds; company ended the quarter with net cash of $90.6 million (vs. net debt $136.6M a year ago).
Quarterly Results: Q3 revenue $329.1 million (down vs $335.4M prior year); adjusted operating loss $24.3 million; adjusted EBITDA roughly breakeven (prior $6M); net loss $3.5 million (prior $1.3M).
Guidance Reaffirmed: Fiscal 2026 adjusted EBITDA reaffirmed at $146M–$156M (includes ~ $14M partial-year hit from sale-leaseback); free cash flow reaffirmed to exceed $430M.
Book Fairs Strength: Book Fairs showed growth (revenue $113.3M, +2%); management expects Book Fairs to drive Q4 revenue growth and views fairs as a meaningful long-term opportunity.
Education Stabilizing: Education revenue decline moderated to 2% in Q3 ($56.1M) and segment loss improved to $5.2M; management expects stabilization in FY26 and targets growth in FY27.
Trade & Timing Headwinds: Trade revenue down 10% in Q3 ($69.7M) versus prior year largely due to publishing timing and tough comps (Hunger Games releases); management expects trade to be slightly below prior year for the full year.
Entertainment Momentum: Entertainment revenue grew to $16.0M (from $12.8M); management reports improving greenlight activity and expects some EBITDA profitability in Q4.
