Scholastic Corp
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −6.76%.
Did SCHL Beat Earnings? Q3 2025 Results
Scholastic Corporation delivered a sharply mixed fiscal third quarter, posting a loss far narrower than analysts had feared even as revenue fell short of expectations. The children's publishing giant reported a GAAP diluted loss of $0.13 per share for the quarter ended February 28, 2025, beating the consensus estimate of $0.78 by 83.33%, while revenue of $335.40 million trailed the $347.68 million consensus by 3.53%, though it still represented a 4% year-over-year gain. The profit outperformance was powered largely by meaningful cost discipline, with adjusted overhead falling $9.40 million on lower employee-related expenses, and by an 8% surge in Book Fairs revenue to $110.70 million driven by a higher concentration of fall-season fairs in December. Momentum from blockbuster titles, including the launch of "Sunrise on the Reaping" by Suzanne Collins, which sold over 1.5 million World English copies in its first week, underscores the strength of Scholastic's publishing franchise. Looking ahead, the company narrowed its full-year Adjusted EBITDA outlook to approximately $140.00 million, citing persistent pressure on family and school budgets.
- Strong performance by School Book Fairs and Clubs
- Successful new titles including Dog Man: Big Jim Begins
- Addition of 9 Story Media Group to Entertainment segment
- Reduction in discretionary overhead expenses
- Lower employee-related costs reducing overhead by $9.4 million adjusted
“Scholastic achieved modest revenue growth and improved operating results in the third quarter. Despite increasing pressure on family and school spending on books and educational materials, strong performance by School Book Fairs and Clubs, successful new titles and the addition of 9 Story Media Group contributed to positive results, underscoring Scholastic's unique strengths engaging kids with great books and quality children's media.”
Scholastic CEO, on the earnings call
Forward Guidance & Outlook
For fiscal year 2025, Scholastic narrowed its Adjusted EBITDA outlook to approximately $140 million, down from a prior range of $140 million to $150 million. The company now forecasts modest full-year revenue growth, compared to prior guidance of 4% to 6% growth. Management cited intensifying spending pressure on family and school budgets for books and educational materials expected to continue into the fourth quarter. Cost actions have been taken to mitigate headwinds, benefiting both the current and next fiscal years.
SCHL YoY Financials
SCHL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.