SCHOLASTIC CORP — Form 8-K
Filed September 24, 2026 · analyzed by the 8-K Agent
8-K
— Neutral
significance 28/100
What the filing says
Scholastic reported Q1 FY27 (ended 8/31/26) revenue of $216.8M, down 4% YoY from $225.6M, with operating loss of $92.2M (flat YoY). Adjusted EBITDA was negative $63.6M vs. negative $55.7M prior year. On a pro forma comparable basis reflecting December 2025 sale-leaseback transactions, adjusted EBITDA improved $0.6M. The company affirmed FY27 guidance: 2-4% revenue growth and $135-145M adjusted EBITDA. Education segment revenue fell 24% to $30.4M; Children's Books revenue down 3% to $105.8M; Entertainment revenue up 48% to $20.1M; International up 2% to $60.5M. Free cash use was $110.8M; net debt improved to $86.8M from $242.8M prior year, reflecting sale-leaseback proceeds. Company returned $29.6M to shareholders via $25.8M share repurchases (630,850 shares) and $3.8M dividends.
Why this rating
Q1 is seasonally weak; affirmed guidance suggests management confidence. Revenue decline and worsening adjusted operating loss are concerning, but offset by improved net debt position and positive Entertainment momentum. Results on comparable basis roughly flat. Event is routine quarterly disclosure with modest business headwinds.
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