Scholastic Corporation stock reports a USD 71.2 million loss

Published on 10/01/2026 at 02:31 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

First-quarter revenue fell 4.00 percent to USD 216.8 million on August 31, 2026. Management kept adjusted EBITDA guidance at USD 135.0 million to USD 145.0 million.

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Scholastic Corporation stock reported a USD 71.2 million GAAP net loss for the fiscal first quarter ended August 31, 2026, while revenue fell 4.00 percent year over year to USD 216.8 million. According to Scholastic Corporation on September 24, 2026, the company affirmed its full-year outlook even as school budget pressure weighed on Education revenue.

Revenue falls as education weakens

The USD 216.8 million quarterly revenue total compared with USD 225.6 million in the prior-year period. GAAP diluted loss reached USD 3.77 per share, versus a USD 2.83 loss in fiscal 2026, while adjusted diluted loss was USD 3.63 per share compared with USD 2.52.

Education revenue dropped 24.19 percent to USD 30.4 million from USD 40.1 million. Scholastic attributed the decline to pressure on school and district funding and lower spending on supplemental curriculum materials.

Entertainment provides a counterweight

Entertainment revenue increased 47.79 percent to USD 20.1 million from USD 13.6 million, and its adjusted operating loss narrowed to USD 1.6 million from USD 4.0 million. International revenue also rose 1.85 percent to USD 60.5 million, offering a partial offset to weaker Education and children's book performance.

The cash picture remains important. Scholastic reported USD 94.6 million of operating cash use and USD 110.8 million of free cash flow use for the quarter, compared with USD 81.8 million and USD 100.2 million, respectively, in the prior-year period, according to Scholastic Corporation.

Guidance holds while target falls

Management kept fiscal 2027 revenue-growth guidance at 2.00 percent to 4.00 percent and adjusted EBITDA guidance at USD 135.0 million to USD 145.0 million. The company also maintained free cash flow guidance at USD 35.0 million to USD 40.0 million, putting execution in the back-to-school and fall selling seasons at the center of the outlook.

Analyst sentiment became more cautious after the results. MarketBeat reported on September 28, 2026, that B. Riley Financial lowered its Scholastic price target from USD 42.00 to USD 35.00 while retaining a neutral rating. The new target is close to the USD 35.16 primary-market quote last reported for September 30, 2026.

Market value and operating range

Scholastic had a market capitalization of USD 663.2 million as of September 30, 2026. Its 52-week range was USD 26.38 to USD 48.07, leaving the company valued below the upper end of its annual trading band while investors assess whether the forecast recovery can offset the first-quarter revenue decline.