Scholastic Corporation is a long-established American publishing and education company whose mission and commercial focus center on improving children's access to reading, learning, and imaginative content. Founded in 1920 by Maurice R. Robinson near Pittsburgh, Pennsylvania, the company began as a publisher of youth magazines and subsequently expanded into children's ...Scholastic Corporation is a long-established American publishing and education company whose mission and commercial focus center on improving children's access to reading, learning, and imaginative content. Founded in 1920 by Maurice R. Robinson near Pittsburgh, Pennsylvania, the company began as a publisher of youth magazines and subsequently expanded into children's literature, educational publishing, school distribution, digital learning, and media-related products. Peter Warwick has served as President and Chief Executive Officer since August 2021 and is identified as only the third chief executive in the company's more than 100-year history.
Scholastic organizes its operations into three primary areas: Children's Book Publishing and Distribution, Education Solutions, and International. The Children's Book Publishing and Distribution business develops and supplies print books, e-books, digital media, interactive products, activity kits, and novelty merchandise. Its portfolio includes major proprietary and licensed properties such as Harry Potter, The Hunger Games, The Bad Guys, Baby-Sitters Club graphic novels, The Magic School Bus, Captain Underpants, Dog Man, Wings of Fire, Cat Kid Comic Club, Goosebumps, Clifford the Big Red Dog, Peppa Pig, and Pokémon. Imprints and product lines such as Klutz, Make Believe Ideas, Children's Press, and Franklin Watts broaden the company's fiction, nonfiction, activity, and reference offerings.
Education Solutions provides classroom magazines and supplemental learning resources, including Scholastic News, Scholastic Scope, Storyworks, Let's Find Out, and Junior Scholastic. The segment also offers curriculum programs, print and digital reference materials, classroom support, professional services, and consulting. International operations develop and distribute local trade and educational publishing programs, magazines, online subscriptions, digital learning tools, and children's books across markets outside the United States.
Scholastic's distribution model is a central competitive advantage. School-based book clubs and book fairs give the company direct access to students, educators, and families, while retail stores, libraries, e-commerce, and institutional channels provide additional reach. This model also creates recurring seasonal demand and strong brand recognition in schools. However, the business is exposed to book production and printing costs, paper and freight prices, inventory requirements, returns, foreign exchange movements, changing school budgets, and shifts from physical to digital media. As a content publisher, its major economic assets include intellectual property, recognizable franchises, editorial capabilities, author relationships, distribution infrastructure, and school-channel relationships rather than heavy manufacturing capacity.
The supplied trailing-twelve-month data indicates approximately $994.9 million in market capitalization, a 5.56% gross margin, an 8.5% EBIT margin, a 13.2% EBITDA margin, and a 3.6% net profit margin. Reported valuation measures include a price-to-earnings ratio of approximately 17.1 and an enterprise-value-to-EBITDA multiple of approximately 6.0. The company reported 6,905 full-time employees, working capital of about $135.8 million, and a current ratio of approximately 1.23. These metrics suggest a diversified, established publishing platform with moderate profitability and meaningful working-capital needs. Scholastic's long-term opportunities include expanding digital education, strengthening international distribution, developing new intellectual-property franchises, and maintaining the relevance of reading and classroom resources in changing educational environments.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$1.6B
-2.7%
+44.7%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$56.7M
+3084.2%
-85.0%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+52.7%
-5.6%
+5.4%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+1.6%
+43.4%
+235.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+3.6%
+3166.5%
-89.6%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$2.5M
-96.5%
+270.8%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+0.2%
-96.4%
+218.1%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
51.6%
+30.4%
+58.1%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.23x
+6.4%
+4.1%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator : Good day, and thank you for standing by. Welcome to the Scholastic Reports Fourth Quarter Fiscal Year 2026 Results. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jeffrey Mathews, Executive Vice President, Chief Growth Officer and President, Scholastic Education. Please go ahead, sir.
Jeffrey Mathews : Hello, and welcome, everyone, to Scholastic's Fiscal 2026 Fourth Quarter Earnings Call. Today on the call, I'm joined by Peter Warwick, our President and Chief Executive Officer; and Haji Glover, our Chief Financial Officer. As usual, we posted the companion investor presentation on our IR website at investor.scholastic.com, which you may download now if you've not already done so. We would like to point out that certain statements made today will be forward-looking. These forward-looking statements, by their nature, are subject to various risks and uncertainties and actual results may differ materially from those currently anticipated. In addition, we will be discussing some non-GAAP financial measures as defined in Regulation G. The reconciliation of those measures to the most directly comparable GAAP measures may be found in the company's earnings release and accompanying financial tables filed this afternoon on a Form 8-K. The earnings release has also been posted to our Investor Relations website. We encourage you to review the disclaimers in the release and investor presentation and to review the risk factors disclosed in the company's annual and quarterly reports filed with the SEC. Should you have any questions after today's call, please send them directly to our IR e-mail address, investor_relations@scholastic.com. Now I'd like to turn the call over to Peter Warwick to begin this afternoon's presentation.
Peter Warwick : Thank you, Jeff, and good afternoon, everyone. Thank you for joining us. Fiscal 2026 was an important year for Scholastic. It demonstrated the earnings power of the more focused company we've been building and the progress we've made evolving a trusted century-old company to scale its impact and create long-term value for our shareholders and all stakeholders. This progress reflects a multiyear transformation of Scholastic's governance, organization, strategy and balance sheet. Last year, we refreshed our Board, strengthened our management team, reorganized to unlock efficiencies and create more integrated growth platforms, sharpened accountability across the company and took major steps to make our balance sheet more efficient and enhance our shareholder returns. First, let me begin with a review of our key GAAP and non-GAAP financial metrics for the full year. Fiscal 2026 revenue decreased 3% and operating income was $15.2 million, approximately in line with the prior year period. Adjusted operating income was $47.1 million, up 32% from $35.8 million a year ago. Adjusted EBITDA was $151.5 million, up …