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Scholastic Posts Higher Q2 Profit, Closes Sale-Leasebacks and Expands Buyback

Management maintains its full-year profit and cash forecasts after accounting for new lease costs from the real estate transactions.

Overview

  • Fiscal Q2 revenue rose 1% to $551.1 million as operating income increased 11% to $82.9 million, with diluted EPS of $2.17.
  • Children’s publishing led results: Book Fairs revenue climbed 5% to $242.0 million and Trade rose 7% to $110.4 million, aided by a new Dog Man title.
  • Scholastic completed sale-leasebacks generating $481 million in gross proceeds and about $401 million in estimated net cash.
  • The Board authorized a $150 million open-market share repurchase to begin deploying the new liquidity.
  • The company affirmed fiscal 2026 outlook for adjusted EBITDA of $146–$156 million, reflecting a $14 million partial-year lease impact, and expects free cash flow to exceed $430 million while Education and Entertainment remain pressured.