Scholastic (SCHL) Q1 2027 Earnings
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
How Did SCHL Stock React to Q1 2027 Earnings?
Did SCHL Beat Earnings? Q1 2027 Results
No. Scholastic reported Q1 2027 earnings of $-3.63 a share on Sep 24, 2026, missing the $-3.42 consensus estimate by 6.1%. Revenue was $216.8M against a $224.7M estimate.
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.
- 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
What Is Scholastic's 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
| Metric | Q1 2027 | Q1 2026 | Year over year |
|---|---|---|---|
| Revenue | $216.8M | $225.6M | −3.9% |
| Gross Profit | $98.7M | $85.8M | +15.0% |
| Operating Income | −$92.2M | −$92.8M | −0.7% |
| Net Income | −$71.2M | −$71.3M | −0.1% |
SCHL Revenue by Segment
When Does Scholastic Report Next?
Figures from SEC filings and company reports. Not investment advice.