Scholastic Corp
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.27%.
Did SCHL Beat Earnings? Q4 2025 Results
Scholastic delivered a mixed fiscal Q4 2025, beating revenue expectations while falling well short on the bottom line. The children's publishing giant posted revenue of $508.30 million, up 7.0% year over year and ahead of the $494.59 million consensus, but GAAP diluted EPS of $0.59 missed the $0.85 analyst estimate by 30.59%, weighed down by the ongoing drag in its Education Solutions segment, where revenues fell 7% to $125.70 million amid constrained school budgets. The clearest bright spot was the Children's Book Publishing and Distribution segment, where Suzanne Collins' "Sunrise on the Reaping" drove Consolidated Trade revenues up 19% to $97.30 million and helped lift the broader segment 9% to $288.20 million. As Scholastic pivots its strategy, the company is actively repositioning itself around IP creation, combining its publishing and book fairs businesses into a single Children's Book Group. Management set fiscal 2026 adjusted EBITDA guidance of $160 million to $170 million on revenue growth of 2% to 4%, though that outlook absorbs roughly $10 million in incremental tariff-related costs.
- Strong performance of Suzanne Collins' Sunrise on the Reaping (Hunger Games series) boosted Consolidated Trade revenues 19%
- Higher Book Fairs count drove 5% revenue growth in fairs
- 9 Story Media Group acquisition contributed to Entertainment segment revenues
- Disciplined cost management helped offset macroeconomic pressures
- One-time charges of $9.9 million in Q4 FY2025 vs $19.6 million in Q4 FY2024
“Scholastic delivered solid financial results in fiscal 2025, with strong Adjusted EBITDA in line with our original guidance. In the fourth quarter, continued strength in Children's Book Publishing and Distribution, combined with successful execution and disciplined cost management, helped offset macroeconomic pressures on school spending, which continued to impact the Education division.”
Scholastic CEO, on the earnings call
Forward Guidance & Outlook
Scholastic is targeting significant growth in fiscal 2026 Adjusted EBITDA of $160 million to $170 million, reflecting strength in core businesses and cost savings, partially offset by continued headwinds on school spending. This guidance includes approximately $10 million of expected incremental expense related to currently higher tariff rates compared to fiscal 2025. Revenue is expected to grow 2% to 4% in fiscal 2026. In the fiscal first quarter, the Company expects a seasonal loss approximately in line with the prior year.
SCHL YoY Financials
SCHL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.