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Nov 30, 2024
Scholastic Q2 2025 Earnings Report
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.
Key Takeaways
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.
Scholastic
Scholastic
Scholastic Revenue by Segment
Scholastic Revenue by Geographic Location
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Entertainment Revenue
CapyFin.comOverhead Revenue
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CapyFin.com Forward Guidance
Scholastic reaffirmed its fiscal 2025 guidance, expecting to benefit from new releases and strategic advantages as a global children’s book publisher.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income