Scholastic Q1 revenue misses estimates on education pressure, book publishing decline
SCHL•Scholastic’s fiscal first-quarter revenue fell 4% year over year to $216.8 million, below the $224.69 million estimate, while its adjusted loss per share widened to $3.63. The company affirmed its fiscal 2027 outlook, including revenue growth of about 2% to 4%.
1. Quarterly results
Scholastic reported fiscal first-quarter revenue of $216.8 million, down 4% year over year and below the $224.69 million estimate. Its adjusted loss was $3.63 per share, compared with an estimated loss of $3.40. Adjusted EBITDA was a loss of $63.6 million.
2. Business drivers and outlook
The company said Education revenue was affected by continued pressure on school and district funding and spending on supplemental curriculum materials. Children’s Book Publishing and Distribution revenue fell on lower Book Fairs and Trade sales, as well as international co-edition sales that did not recur from the prior year; Entertainment revenue rose on higher production revenue. Scholastic affirmed fiscal 2027 revenue growth guidance of about 2% to 4%, adjusted EBITDA of about $135 million to $145 million, and free cash flow of about $35 million to $40 million.
