Scholastic stock plunges 12% on worse-than-expected Q1 results

Investing.com -- Scholastic Corporation (NASDAQ: SCHL) reported first quarter results that fell short of analyst expectations, sending shares 12.1% lower in after hours trading on Thursday following the announcement. The stock closed 1.41% lower in the regular session.

The children’s publishing and education company posted an adjusted loss of $3.63 per share for the quarter ended August 31, 2026, missing the analyst consensus of a $3.40 loss. Revenue declined 4% to $216.8 million, below the $230.61 million estimate and down from $225.6 million in the prior year period.

The revenue decrease primarily reflected lower sales in Education and Children’s Book Publishing and Distribution, along with the elimination of rental income following sale-leaseback transactions completed in December 2025.

Despite the miss, Scholastic affirmed its fiscal 2027 outlook for revenue growth of approximately 2% to 4% and Adjusted EBITDA of $135 million to $145 million. The company also maintained its Free Cash Flow guidance of $35 million to $40 million.

Education revenues fell 24% to $30.4 million, reflecting continued pressure on school and district budgets for supplemental curriculum materials. Children’s Book Publishing and Distribution revenues decreased $3.6 million to $105.8 million, while Entertainment revenues increased 48% to $20.1 million on higher production activity. International revenues rose 2% to $60.5 million.

"Scholastic continued to advance its fiscal 2027 priorities during the seasonally small first quarter, with strong early indicators across our businesses reinforcing our confidence entering the important back-to-school and fall season," said Peter Warwick, President and Chief Executive Officer.

Adjusted EBITDA was a loss of $63.6 million, compared to a loss of $55.7 million in the prior year period. On a comparable basis reflecting the full-period impact of sale-leaseback transactions, Adjusted EBITDA improved $0.6 million.

The company returned $29.6 million to shareholders during the quarter through share repurchases of $25.8 million and dividends of $3.8 million.

Original Article

You May Also Be Interested In

• Scholastic Corp (SCHL) Misses Q1 EPS by 23c
• Piper Sandler cuts Rollins to Neutral, citing AI search disruption
• Similarweb stock falls after naming new CEO