Companies /Communication Services

Scholastic Corp

NASDAQ: SCHL Publishing
$32.35
▼ $2.48 (−7.12%) today
Markets closed · 4:29pm ET

Q1 2027 Earnings

Reported Sep 24, 2026, 4:01pm ET · SEC source
$-3.63
Miss −6.14%
EPS · est. $-3.42 Adjusted

Reported GAAP diluted EPS of $(3.77) includes $3.5 million in pretax one-time charges ($0.4M in Children's Books, $0.2M in Entertainment, $0.2M in International, $2.3M severance and $0.4M other in Overhead); adjusted diluted EPS excludes $0.14 per share impact of these items

$216.8M
Miss −3.51%
Revenue · est. $224.7M
1 quarter
Consecutive EPS misses

Market Reaction

% change · around the report
0+5%+10%+15%Sep 24Sep 25report 4:01pm ETearnings+0.6%+6.1%
0+5%+10%+15%Sep 24Sep 25earnings+0.6%+6.1%
SCHL +6.1%S&P 500 +0.6%
0+5%+10%+15%Sep 24Sep 25report 4:01pm ETearnings+0.5%+6.1%
0+5%+10%+15%Sep 24Sep 25earnings+0.5%+6.1%
SCHL +6.1%NASDAQ +0.5%
0+5%+10%+15%Sep 23Sep 25report 4:01pm ETearnings+0.6%+5.8%
0+5%+10%+15%Sep 23Sep 25earnings+0.6%+5.8%
SCHL +5.8%S&P 500 +0.6%
0+5%+10%+15%Sep 23Sep 25report 4:01pm ETearnings+0.5%+5.8%
0+5%+10%+15%Sep 23Sep 25earnings+0.5%+5.8%
SCHL +5.8%NASDAQ +0.5%
−7.69%
Day of report

Did SCHL Beat Earnings? Q1 2027 Results

Scholastic Corporation delivered a disappointing fiscal first quarter, missing on both the top and bottom lines as budget pressures across schools and a seasonally light period weighed on results. The children's publishing giant posted an adjusted loss of $3.63 per share for Q1 fiscal 2027, falling short of the consensus estimate of $3.42 by 6.14%, while revenue slid 3.9% year-over-year to $216.80 million against analyst expectations of $224.69 million, a 3.51% miss. The steepest drag came from the Education segment, where revenues tumbled 24% to $30.40 million as school and district budget constraints curtailed supplemental curriculum spending, compounding softer results in Children's Book Publishing and Distribution, which fell 3% to $105.80 million. Adjusted EBITDA widened to a loss of $63.60 million from $55.70 million a year earlier, though management noted the comparable sale-leaseback-adjusted figure improved modestly. Despite the quarterly shortfall, Scholastic reaffirmed its full-year fiscal 2027 guidance for revenue growth of 2% to 4% and adjusted EBITDA of $135 million to $145 million, pointing to Book Fair bookings running ahead of prior year and momentum from the Dog Man franchise as reasons for confidence heading into the back-to-school season.

Key Takeaways
  • Entertainment segment revenue surged 48% driven by higher production revenues
  • International segment improved adjusted operating loss by $1.4 million through cost management and operational efficiencies
  • Education revenues declined 24% due to continued pressure on school and district funding for supplemental curriculum materials
  • Consolidated Trade revenues declined due to non-recurring international co-edition sales from prior year
  • Elimination of rental income following December 2025 sale-leaseback transactions reduced Overhead revenues by $3.1 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. As we indicated in July, our operating loss for the quarter included the full-period impact of the sale-leaseback transactions. During the quarter, we also sustained investments to support our growth priorities in the quarters ahead.”

Scholastic CEO, on the earnings call

Forward Guidance & Outlook

Scholastic affirmed its fiscal 2027 outlook for revenue growth of approximately 2% to 4% and Adjusted EBITDA of approximately $135 million to $145 million. The Adjusted EBITDA range represents growth compared with fiscal 2026 on a comparable basis reflecting the full-year impact of the sale-leaseback transactions in both periods. The company also continues to expect Free Cash Flow of approximately $35 million to $40 million.

SCHL YoY Financials

Q1 2027 vs Q1 2026 · SEC filings Q1 2026 Q1 2027
$-90,000,000$0$90.0M$180.0M$225.6M$216.8MRevenue$85.8M$98.7MGross Profit$-92,812,563$-92,200,000Operating Income$-71,299,820$-71,200,000Net Income
$-90,000,000$0$90.0M$180.0MRevenueGross ProfitOperating IncomeNet Income

SCHL Revenue by Segment

Children's Book Publishing and Distribution$105.8M−3.0%
School Reading Events$35.3M−2.0%
Book Fairs$33.2M−3.0%
Education Solutions$30.4M−24.0%
Consolidated Trade$70.5M−4.0%
International$60.5M+2.0%
Book Clubs$2.1M+17.0%
Entertainment$20.1M+48.0%

Figures from SEC filings and company reports. Not investment advice.