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May 31
Scholastic Q4 2025 Earnings Report
Scholastic reported its financial results for the fourth quarter and full fiscal year ended May 31, 2025, with strong execution and cost management leading to Adjusted EBITDA in line with original guidance.
Key Takeaways
Scholastic delivered solid financial results in fiscal 2025, with strong Adjusted EBITDA in line with original guidance. The fourth quarter saw continued strength in Children's Book Publishing and Distribution, which, combined with successful execution and disciplined cost management, helped offset macroeconomic pressures on school spending impacting the Education division. The company is entering fiscal 2026 with strong momentum, driven by its 360-degree IP strategy and strategic reorganizations.
Fourth-quarter revenues increased by 7% to $508.3 million, driven by Children's Book Publishing and Distribution and the Entertainment segment.
Adjusted EBITDA for Q4 increased by 1% to $91.2 million, aligning with original guidance and reflecting effective cost management.
The Children's Book Publishing and Distribution segment saw a 9% revenue increase to $288.2 million, boosted by strong performance in Consolidated Trade and School Reading Events.
The Education Solutions segment experienced a 7% revenue decrease to $125.7 million due to headwinds in the supplemental curriculum market, prompting a repositioning of the business.
Scholastic
Scholastic
Scholastic Revenue by Segment
Scholastic Revenue by Geographic Location
Revenue by Segment
Children's Book Publishing & Dist. Revenue
CapyFin.comEducation Solutions Revenue
CapyFin.comEntertainment Revenue
CapyFin.comOverhead Revenue
CapyFin.comRevenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
Scholastic is targeting significant growth in fiscal 2026 Adjusted EBITDA to $160 million to $170 million, with revenue expected to grow 2% to 4%. This outlook reflects strength in core businesses and cost-savings, partly offset by continued headwinds on school spending.
Positive Outlook
- Targeting significant growth in fiscal 2026 Adjusted EBITDA to $160 million to $170 million.
- Revenue is expected to grow 2% to 4% in fiscal 2026.
- Strong momentum entering fiscal 2026, including the November release of the next Dog Man® title.
- Strategic combination of Trade Publishing and School Reading Events into a unified Children's Book Group is expected to unlock more opportunities.
- Successful integration of 9 Story Media Group continues to expand the reach and monetization of Scholastic's IP.
Challenges Ahead
- Guidance is inclusive of approximately $10 million of expected incremental expense related to currently higher tariff rates.
- Continued headwinds on school spending are partly offsetting profit growth.
- Near-term uncertainty about school funding persists.
- The Education segment is being repositioned due to a challenging supplemental curriculum market.
- The Company expects a seasonal loss approximately in line with the prior year in the fiscal first quarter.