Overview

• Revenue came in at $225.6 million, down 5%, with an adjusted loss per share of $2.52, both missing expectations.
• Education Solutions revenue fell 28% to $40.1 million, which the company tied to uncertainty in school and district funding.
• Entertainment revenue declined 18% to $13.6 million, reflecting anticipated delays in production greenlights following the 9 Story acquisition.
• Cash consumption worsened, with $81.8 million used in operating activities, free cash outflow of $100.2 million, and net debt rising to $242.8 million.
• Scholastic reaffirmed its fiscal 2026 outlook, noted encouraging fall book fair bookings, and said sale-leaseback processes for key properties are expected to conclude this fall as shares fell about 10%–12%.