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Feb 28

Scholastic Q3 2025 Earnings Report

Scholastic reported modest revenue growth and improved operating results for Q3 2025 despite ongoing challenges in the education market.

Key Takeaways

Scholastic achieved revenue of $335.4 million in Q3 2025, a 4% increase year-over-year. The company saw strong performance in Children's Book Publishing and Distribution, particularly through School Book Fairs and Clubs, as well as contributions from the 9 Story Media Group. Despite a net loss of $3.6 million, adjusted EBITDA turned positive at $6.0 million, reflecting improved operational efficiencies.

Q3 2025 revenue increased 4% year-over-year to $335.4 million.

Adjusted EBITDA improved to $6.0 million from a loss of $7.2 million last year.

Children's Book Publishing and Distribution revenue grew 5% to $203.3 million.

Net loss narrowed significantly to $3.6 million compared to $26.5 million in Q3 2024.

Total Revenue
$335M
Previous year: $324M
+3.6%
EPS
-$0.05
Previous year: -$0.8
-93.8%
Adjusted EBITDA
$6M
Previous year: -$7.2M
-183.3%
Cash and Equivalents
$94.7M
Previous year: $110M
-14.2%
Free Cash Flow
-$30.7M
Previous year: -$7.1M
+332.4%

Scholastic

Scholastic

Scholastic Revenue by Segment

Scholastic Revenue by Geographic Location

Forward Guidance

Scholastic expects full-year adjusted EBITDA at the low end of its previously stated guidance range, with continued modest revenue growth amid pressure on consumer and school spending.

Positive Outlook

  • Strong momentum from bestselling book releases like Dog Man and Hunger Games titles.
  • Expected fourth-quarter boost from new product launches.
  • Continued growth in School Book Fairs and Clubs segments.
  • Higher revenues from international operations driven by key markets.
  • Expanded share repurchase authorization to $100 million.

Challenges Ahead

  • Continued headwinds in the supplemental curriculum market.
  • Pressure on consumer spending impacting retail book sales.
  • Higher interest payments affecting cash flow.
  • Seasonal fluctuations contributing to quarterly losses.
  • Unfavorable foreign currency exchange impacting international revenue.