Educational Development Corporation Announces Fiscal 2026 First Quarter Results
Educational Development Corporation (NASDAQ: EDUC) reported its fiscal 2026 first quarter results, showing continued financial challenges. Net revenues declined to $7.1 million from $10.0 million year-over-year, while net loss improved slightly to $(1.1) million from $(1.3) million. The company's loss per share was $(0.13) compared to $(0.15) in the previous year.
EDUC implemented product discount promotions to increase cash flow, though this affected gross margins. The company is focusing on reducing excess inventory to pay down debt and meet lender requirements. Additionally, EDUC executed an amendment to the Hilti Complex Purchase Sale Agreement, extending the buyer's due diligence period. The completion of this sale is expected to fully retire outstanding debt balances.
Educational Development Corporation (NASDAQ: EDUC) ha comunicato i risultati del primo trimestre fiscale 2026, evidenziando persistenti difficoltà finanziarie. I ricavi netti sono diminuiti a 7,1 milioni di dollari rispetto ai 10,0 milioni dell'anno precedente, mentre la perdita netta è leggermente migliorata a (1,1) milioni di dollari da (1,3) milioni. La perdita per azione è stata di (0,13) dollari rispetto a (0,15) dell'anno precedente.
EDUC ha attuato promozioni con sconti sui prodotti per aumentare il flusso di cassa, anche se ciò ha inciso sui margini lordi. L'azienda si sta concentrando sulla riduzione dell'inventario in eccesso per ridurre il debito e rispettare i requisiti dei finanziatori. Inoltre, EDUC ha firmato una modifica all'accordo di compravendita del complesso Hilti, estendendo il periodo di due diligence per l'acquirente. Il completamento di questa vendita dovrebbe consentire l'estinzione totale dei debiti in essere.
Educational Development Corporation (NASDAQ: EDUC) informó sus resultados del primer trimestre fiscal 2026, mostrando desafíos financieros continuos. Los ingresos netos disminuyeron a 7,1 millones de dólares desde 10,0 millones año tras año, mientras que la pérdida neta mejoró ligeramente a (1,1) millones de dólares desde (1,3) millones. La pérdida por acción fue de (0,13) dólares en comparación con (0,15) del año anterior.
EDUC implementó promociones con descuentos en productos para aumentar el flujo de caja, aunque esto afectó los márgenes brutos. La compañía se está enfocando en reducir el exceso de inventario para pagar deudas y cumplir con los requisitos de los acreedores. Además, EDUC ejecutó una enmienda al Acuerdo de Compra Venta del Complejo Hilti, extendiendo el período de diligencia debida del comprador. Se espera que la finalización de esta venta retire completamente los saldos de deuda pendientes.
Educational Development Corporation (NASDAQ: EDUC)는 2026 회계연도 1분기 실적을 발표하며 지속적인 재정적 어려움을 보였습니다. 순수익은 전년 동기 대비 710만 달러로 감소했으며, 순손실은 (110만 달러)로 약간 개선되어 전년의 (130만 달러)에서 나아졌습니다. 주당 손실은 전년의 (0.15달러)에서 (0.13달러)로 나타났습니다.
EDUC는 현금 흐름을 늘리기 위해 제품 할인 프로모션을 시행했으나, 이로 인해 총이익률에 영향을 미쳤습니다. 회사는 과잉 재고를 줄여 부채를 상환하고 대출자 요구 조건을 충족하는 데 주력하고 있습니다. 또한, EDUC는 Hilti 단지 매매 계약에 대한 수정안을 실행하여 구매자의 실사 기간을 연장했습니다. 이 매매가 완료되면 미지급 부채가 전액 상환될 것으로 예상됩니다.
Educational Development Corporation (NASDAQ : EDUC) a publié ses résultats du premier trimestre de l'exercice 2026, révélant des difficultés financières persistantes. Le chiffre d'affaires net a diminué à 7,1 millions de dollars contre 10,0 millions d'une année sur l'autre, tandis que la perte nette s'est légèrement améliorée à (1,1) million de dollars contre (1,3) million. La perte par action s'est établie à (0,13) dollar contre (0,15) l'année précédente.
EDUC a mis en place des promotions de réduction sur les produits pour augmenter la trésorerie, ce qui a impacté les marges brutes. L'entreprise se concentre sur la réduction des stocks excédentaires afin de rembourser sa dette et de satisfaire aux exigences des prêteurs. De plus, EDUC a signé un amendement à l'accord de vente du complexe Hilti, prolongeant la période de diligence raisonnable de l'acheteur. La finalisation de cette vente devrait permettre de solder intégralement les dettes en cours.
Educational Development Corporation (NASDAQ: EDUC) meldete die Ergebnisse des ersten Quartals des Geschäftsjahres 2026 und zeigte weiterhin finanzielle Herausforderungen. Die Nettoumsätze sanken im Jahresvergleich auf 7,1 Millionen US-Dollar von 10,0 Millionen US-Dollar, während der Nettoverlust sich leicht auf (1,1) Millionen US-Dollar von (1,3) Millionen verbesserte. Der Verlust je Aktie betrug (0,13) US-Dollar im Vergleich zu (0,15) im Vorjahr.
EDUC führte Produkt-Rabattaktionen ein, um den Cashflow zu steigern, was jedoch die Bruttomargen beeinträchtigte. Das Unternehmen konzentriert sich darauf, überschüssige Lagerbestände abzubauen, um Schulden zu reduzieren und Kreditgeberanforderungen zu erfüllen. Zudem wurde eine Änderung des Kaufvertrags für das Hilti-Komplex abgeschlossen, die die Due-Diligence-Frist des Käufers verlängert. Der Abschluss dieses Verkaufs wird voraussichtlich die ausstehenden Schulden vollständig tilgen.
- None.
- Net revenues declined 29% to $7.1 million from $10.0 million
- Average active PaperPie Brand Partners decreased 43% to 7,700 from 13,400
- Product discount promotions reduced gross margins
- Significant excess inventory continues to impact operations
- Continued dependence on debt and lender requirements
Insights
EDUC continues to struggle with declining revenue and active partners, though narrowed losses amid a strategic facility sale to address debt issues.
Educational Development Corporation's Q1 results reveal significant operational challenges with
While quarterly losses narrowed to
The pending Hilti Complex sale represents a critical transaction for EDUC's financial stability. The recently executed amendment extending the due diligence period suggests complexity in finalizing this deal, though management indicates the sale completion would fully eliminate outstanding debt balances with their lender. This debt reduction appears essential for operational flexibility, as management notes it would enable them to purchase new titles and reinvigorate their Brand Partner network.
The results highlight a company in defensive financial positioning – prioritizing debt reduction and inventory liquidation over growth. Management's commentary suggests optimism about eventual business normalization, but current metrics indicate significant operational contraction that will require substantial improvement to reverse negative performance trends.
Tulsa, Oklahoma--(Newsfile Corp. - July 7, 2025) - Educational Development Corporation (NASDAQ: EDUC) ("EDC", or the "Company"), a publishing company specializing in books and educational products for children, today reports financial results for the fiscal first quarter ended May 31, 2025.
First Quarter Summary Compared to the Prior Year First Quarter
- Net revenues were
$7.1 million compared to$10.0 million . - Average active PaperPie Brand Partners totaled 7,700 compared to 13,400.
- Loss before income taxes were
$(1.4) million , compared to$(1.7) million . - Net Loss totaled
$(1.1) million , compared to$(1.3) million . - Loss per share totaled
$(0.13) compared to loss per share of$(0.15) , on a fully diluted basis.
Per Craig White, Chief Executive Officer, "During the quarter we ran several product discount promotions to increase cash which reduced our gross margins. Our strategy to increase cash remains short term and focused on turning excess inventory faster to pay down our debts and meet the requirements of our lender. In the meantime, I am encouraged in our ability to continue to find and implement additional cost reductions which reduced losses in comparison to the same quarter last year, even on lower sales. The Company continues to maintain a significant amount of excess inventory and as that inventory turns into cash, it continues to further strengthen our financial position."
"On June 26, 2025, we executed an amendment to the Hilti Complex Purchase Sale Agreement to allow the purchaser additional time for the due diligence period. The due diligence process for a complex of this size is lengthy and we are working closely with our brokers and the buyers to support requests and provide necessary information to complete the transaction as quickly as possible."
"I look forward to getting past this facility transaction so that we can get back to normalizing the business. We have implemented various cost savings, updated technologies and processes, and provided additional opportunities for our Brand Partners to have success. We have positioned ourselves for success and made it easier for our Brand Partners and end customers to conduct business with us. The conclusion of the Hilti Complex sale will fully retire our outstanding debt balances with our lender, providing us the flexibility to conservatively start to purchase new titles and reenergize our Brand Partners. Additionally, we expect to have limited borrowing needs on a go forward basis."
| Three Months Ended May 31, | ||||||||||||
| 2025 | 2024 | |||||||||||
| NET REVENUES | $ | 7,106,400 | $ | 9,993,400 | ||||||||
| LOSS BEFORE INCOME TAXES | (1,449,300) | (1,747,000) | ||||||||||
| INCOME TAX BENEFIT | (374,100) | (468,000) | ||||||||||
| NET LOSS | $ | (1,075,200) | $ | (1,279,000) | ||||||||
| LOSS PER SHARE | $ | (0.13) | $ | (0.15) | ||||||||
| DIVIDENDS PER SHARE | $ | - | $ | - | ||||||||
| WEIGHTED AVERAGE NUMBER OF COMMON AND EQUIVALENT SHARES OUTSTANDING | ||||||||||||
| Basic | 8,583,201 | 8,266,771 | ||||||||||
| Diluted | 8,583,201 | 8,266,771 | ||||||||||
Fiscal 2026 First Quarter Earnings Call
Date: Monday, July 7, 2025
Time: 3:30 PM CT (4:30 PM ET)
Dial-in number: (800) 717-1738
Conference ID: 80047
The conference call will be broadcast live and audio replays will be available following the event at www.edcpub.com/investors.
About Educational Development Corporation (EDC)
EDC began as a publishing company specializing in books for children. EDC is the owner and exclusive publisher of Kane Miller Books ("Kane Miller"); Learning Wrap-Ups, maker of educational manipulatives; and SmartLab Toys, maker of STEAM-based toys and games. EDC is also the exclusive United States MLM distributor of Usborne Publishing Limited ("Usborne") children's books. EDC-owned products are sold via 4,000 retail outlets and EDC and Usborne products are offered by independent brand partners who hold book showings through social media, book fairs with schools and public libraries, in individual homes, as well as other in-person events and internet sales.
Contact:
Educational Development Corporation
Craig White, (918) 622-4522
Cautionary Statement for the Purpose of the "Safe Harbor" Provision of the Private Securities Litigation Reform Act of 1995.
The information discussed in this Press Release includes "forward-looking statements." These forward-looking statements are identified by their use of terms and phrases such as "may," "expect," "estimate," "project," "plan," "believe," "intend," "achievable," "anticipate," "continue," "potential," "should," "could," and similar terms and phrases. Although we believe that the expectations reflected in these forward-looking statements are reasonable, they do involve certain assumptions, risks and uncertainties and we can give no assurance that such expectations or assumptions will be achieved. Known and unknown risks, uncertainties and other factors may cause our actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, our success in recruiting and retaining new brand partners, our ability to locate and procure desired books, our ability to ship the volume of orders that are received without creating backlogs, our ability to obtain adequate financing for working capital and capital expenditures, economic and competitive conditions, regulatory changes and other uncertainties, cybersecurity threats and incidents, the COVID-19 pandemic, as well as those factors discussed in our Annual Report on Form 10-K for the year ended February 28, 2025, all of which are difficult to predict. In light of these risks, uncertainties and assumptions, the forward-looking events discussed may not occur. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements in this paragraph and elsewhere in our Annual Report on Form 10-K for the year ended February 28, 2025 and speak only as of the date of this Press Release. Other than as required under the securities laws, we do not assume a duty to update these forward-looking statements, whether as a result of new information, subsequent events or circumstances, changes in expectations or otherwise.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/257997
FAQ
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