Scholastic Q1 revenue misses estimates on education pressure, book publishing decline

Scholastic

24/09/2026 21:11

Overview
Children's publishing and education firm's fiscal Q1 revenue fell 4% yr/yr
Adjusted loss per share widened yr/yr in fiscal Q1
Company repurchased $25.8 mln in shares during the quarter

Outlook
Scholastic affirms fiscal 2027 revenue growth guidance of approximately 2% to 4%
Company expects fiscal 2027 Adjusted EBITDA of about $135 mln to $145 mln
Scholastic continues to expect fiscal 2027 free cash flow of about $35 mln to $40 mln

Result Drivers
EDUCATION PRESSURE - Co said lower Education revenues reflected continued pressure on school and district funding and spending on supplemental curriculum materials
BOOK PUBLISHING DECLINE - Co said Children's Book Publishing and Distribution revenues fell due to lower Book Fairs and Trade sales, with prior-year international co-edition sales not recurring
ENTERTAINMENT GROWTH - Co said Entertainment revenues rose due to higher production revenues

Company press release: ID:nPn3x46C3a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$216.80 mln
$224.69 mln (2 Analysts)
Q1 Adjusted Loss Per Share
Miss
$3.63
$3.40 (2 Analysts)
Q1 Loss Per Share
 
$3.77
 
Q1 Adjusted EBITDA
Beat
-$63.60 mln
-$68.58 mln (2 Analysts)
Q1 Adjusted Operating Income
Beat
-$88.70 mln
-$95.20 mln (1 Analyst)
Q1 Operating Income
 
-$92.20 mln
 

Analyst Coverage
The one available analyst rating on the shares is "hold"
The average consensus recommendation for the consumer publishing peer group is "buy."
Wall Street's median 12-month price target for Scholastic Corporation is $42.00, about 18.8% above its September 23 closing price of $35.36
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 17 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)