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Scholastic

Scholastic (SCHL) Q3 2026 Earnings

Reported Mar 19, 2026 at 4:05 PM ET · SEC Source

Q3 26 EPS

$2.55

BEAT +798.63%

Est. $-0.37

Q3 26 Revenue

$329.1M

MISS 0.58%

Est. $331.0M

vs S&P Since Q3 26

+16.2%

BEATING MARKET

SCHL +32.1% vs S&P +15.9%

Market Reaction

Did SCHL Beat Earnings? Q3 2026 Results

Scholastic Corporation delivered a headline-grabbing fiscal Q3 2026, with reported diluted EPS of $2.55 clearing the consensus estimate of negative $0.37 by 798.63%, though the real story lies beneath that figure. The outsized earnings result was dri… Read more Scholastic Corporation delivered a headline-grabbing fiscal Q3 2026, with reported diluted EPS of $2.55 clearing the consensus estimate of negative $0.37 by 798.63%, though the real story lies beneath that figure. The outsized earnings result was driven almost entirely by a $119.80 million pretax gain on sale-leaseback transactions for the company's New York City and Missouri facilities, which generated over $400.00 million in net proceeds and transformed the balance sheet from net debt of $189.40 million a year ago to net cash of $90.60 million. Strip out the one-time items and the underlying picture was softer, with adjusted diluted EPS coming in at a loss of $0.15 and adjusted EBITDA falling to zero from $6.00 million. Revenue of $329.10 million fell 1.9% year-over-year and narrowly missed the $331.03 million consensus by 0.58%, reflecting weakness in Trade following tough comparisons against a major Dog Man release. Analyst scrutiny has grown around the core business trends, with multiple firms moving to hold-equivalent ratings. Management reaffirmed full-year adjusted EBITDA guidance of $146.00 million to $156.00 million and authorized a new $300.00 million share repurchase program, including a $200.00 million Dutch auction tender offer at $36.00 to $40.00 per share.

Key Takeaways

  • • Higher revenue per fair drove Book Fairs growth of 2%
  • • Consolidated Trade revenues down 10% due to tough comparison against prior-year Dog Man release
  • • Entertainment revenues up 25% on higher episodic deliveries and production services
  • • Education operating loss improved $1.7 million due to improved cost structure
  • • Sale-leaseback transactions generated over $400 million in net proceeds
  • • Gain on sale-leaseback transactions of $119.8 million boosted reported earnings

SCHL Forward Guidance & Outlook

The company reaffirmed its full-year fiscal 2026 Adjusted EBITDA outlook of $146 million to $156 million, including the $14 million partial-year impact from sale-leaseback transactions. Fiscal 2026 free cash flow is forecasted to exceed $430 million, reflecting proceeds from the sale of real estate assets. Full-year revenue is expected to be approximately flat with the prior year, reflecting year-to-date softness in Education and strong comps in Trade a year ago. The company has established a long-term net leverage target of 2.0 to 2.5 times Adjusted EBITDA.

24/7 Wall St

SCHL YoY Financials

Q3 2026 vs Q3 2025, source: SEC Filings

24/7 Wall St

SCHL Revenue by Segment

With YoY comparisons, source: SEC Filings

Q3 25 Q3 26

“Last quarter Scholastic made significant progress in its ongoing plan to enhance shareholder value, including optimizing our balance sheet with over $400 million in net proceeds from two sale-leaseback transactions and advancing our strategy to drive long-term growth and margin expansion. After returning over $147 million to shareholders through open-market share repurchases since December, our Board has additionally authorized a $200 million modified Dutch auction tender offer anticipated to be launched in the coming days.”

— Peter Warwick, Q3 2026 Earnings Press Release

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