Companies /Communication Services

Scholastic Corp

NASDAQ: SCHL Publishing
$39.09
▼ $0.02 (−0.05%) today
Markets open · 2:09pm ET

Q3 2026 Earnings

Reported Mar 19, 2026, 4:05pm ET · SEC source
$2.55
Beat +798.63%
EPS · est. $-0.37
$329.1M
Miss −0.58%
Revenue · est. $331.0M
−4.5%
Trailing market
SCHL vs S&P since report
3 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%−4%0+4%Mar 19Mar 20report 4:05pm ETearnings−1.8%+2.4%
−8%−4%0+4%Mar 19Mar 20earnings−1.8%+2.4%
SCHL +2.4%S&P 500 −1.8%
−8%−4%0+4%Mar 19Mar 20report 4:05pm ETearnings−1.9%+2.4%
−8%−4%0+4%Mar 19Mar 20earnings−1.9%+2.4%
SCHL +2.4%NASDAQ −1.9%
−10%−5%0+5%Mar 18Mar 27report 4:05pm ETearnings−4.0%+3.9%
−10%−5%0+5%Mar 18Mar 27earnings−4.0%+3.9%
SCHL +3.9%S&P 500 −4.0%
−10%−5%0+5%Mar 18Mar 27report 4:05pm ETearnings−5.3%+3.9%
−10%−5%0+5%Mar 18Mar 27earnings−5.3%+3.9%
SCHL +3.9%NASDAQ −5.3%
+8.79%
Day of report
+3.17%
Next session
+4.00%
One week
+5.21%
30 days

S&P 500 over the same 30 days: +9.66%.

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 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. <a href="https://247wallst.com/investing/2026/03/09/grocery-outlet-and-scholastic-face-new-analyst-scrutiny-on-consumer-trends/">Analyst scrutiny has grown</a> 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

“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.”

Scholastic CEO, on the earnings call

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.

SCHL YoY Financials

Q3 2026 vs Q3 2025 · SEC filings Q3 2025 Q3 2026
$0$200.0M$335.4M$329.1MRevenue$163.9M$178.8MGross Profit$-31,815,494$-26,900,000Operating Income$3.2M$62.5MNet Income
$0$200.0MRevenueGross ProfitOperating IncomeNet Income

SCHL Revenue by Segment

Children's Book Publishing and Distribution$197.6M−3.0%
School Reading Events$127.9M+2.0%
Book Fairs$113.3M+2.0%
Education Solutions$56.1M−2.0%
Consolidated Trade$69.7M−10.0%
International$58.7M−1.0%
Book Clubs$14.6M−4.0%
Entertainment$16.0M+25.0%

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