Completed a major sale-leaseback of NYC headquarters and Jefferson City distribution facilities, unlocking over $400 million in net proceeds to optimize the balance sheet.
Book Fairs performance remains robust, driven by higher revenue per fair, increased fair counts, and the successful adoption of the eWallet digital payment system.
The Education segment is undergoing a strategic transformation to align with ‘science of reading’ standards, resulting in a significant deceleration of revenue declines.
Trade publishing results reflect a challenging year-over-year comparison against the prior year’s massive Hunger Games release and short-term retail disruptions from winter weather.
Scholastic Entertainment is successfully expanding IP reach, with YouTube views up over 200% year-over-year and a growing pipeline of greenlit media projects.
Management is shifting the Education go-to-market strategy to focus on less volatile teacher, family, and community-focused channels which have outperformed district-level sales.
Reaffirmed fiscal 2026 adjusted EBITDA guidance of $146 million to $156 million, assuming a return to profitability in the seasonally strong fourth quarter.
Established a long-term net leverage target of 2.0x to 2.5x adjusted EBITDA to balance growth investment with shareholder returns.
The Education segment is positioned to stabilize through the remainder of fiscal 2026 with a formal goal of returning to top-line growth in fiscal 2027.
Anticipates continued momentum in the Hunger Games franchise through paperback and movie tie-in editions ahead of the Sunrise on the Reaping film adaptation this fall.
Expects approximately $10 million in incremental tariff expenses for the current fiscal year, with management closely monitoring potential policy changes.
Authorized a new $300 million share repurchase program, including a $200 million modified Dutch auction tender offer at $36 to $40 per share.
The sale-leaseback transaction is expected to reduce adjusted EBITDA by approximately $14 million in fiscal 2026 due to new lease expenses and lost rental income.
Nearly exhausted the previous $150 million share repurchase authorization, having bought back 4.4 million shares at an average price of $33.30.
Repaid the outstanding balance on the unsecured revolving credit facility, ending the quarter with a net cash position of $90.6 million.
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