Educational Development Corporation Announces Fiscal 2026 Second Quarter and Year to Date Results

Rhea-AI Summary

Educational Development Corporation (NASDAQ: EDUC) reported fiscal Q2 results for the period ended August 31, 2025. Net revenues fell to $4.62M from $6.51M in prior-year Q2 and YTD revenues were $11.73M versus $16.50M a year earlier. The company reported a Q2 net loss of $1.29M (loss per share $(0.15)) versus a prior-year Q2 net loss of $1.80M (loss per share $(0.22)).

Management said a buyer group gave notice to proceed on the Hilti Complex sale, expected to close mid-November, with proceeds to pay off all outstanding bank debt and improve cash flow. An earnings call was scheduled for Oct 9, 2025 at 3:30 PM CT.

Positive

• Q2 net loss improved to $1.29M from $1.80M
• Q2 loss per share improved to $0.15 from $0.22
• YTD loss before taxes improved to $3.20M from $4.21M
• Buyer provided notice to proceed on Hilti Complex sale with expected close mid-November

Negative

• Q2 net revenues declined ~29% to $4.62M from $6.51M
• YTD net revenues declined ~29% to $11.73M from $16.50M
• Average active PaperPie Brand Partners dropped ~58% to 5,800 from 13,900 in prior-year Q2

Insights

Corporate Finance Analyst

Mixed quarter: revenues fell materially while losses narrowed and a property sale aims to eliminate bank debt and improve cash flow.

The company reported net revenues of $4.6 million in the quarter versus $6.5 million a year earlier, and a net loss of $(1.3) million versus $(1.8) million prior. Management plans to complete the Hilti Complex sale in mid-November and use proceeds to pay off all outstanding bank debt, which would materially change the balance sheet and interest burden if completed as stated.

Key dependencies and risks include the timely closing of the property sale, successful execution of the turn‑around plan to grow Brand Partners from the reported averages of 5,800 (quarter) and 6,800 (year‑to‑date), and management’s ability to reduce inventory while still restocking to drive revenue. Watch the mid-November closing, subsequent debt payoff disclosure, quarterly Brand Partner counts, and revenue trend over the next two quarters to assess whether improving cash flow converts into revenue growth.

Tulsa, Oklahoma--(Newsfile Corp. - October 9, 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 second quarter ended August 31, 2025.

Second Quarter Summary Compared to the Prior Year Second Quarter

• Net revenues were $4.6 million compared to $6.5 million.

• Average active PaperPie Brand Partners totaled 5,800 compared to 13,900.

• Loss before income taxes were $(1.8) million, compared to $(2.5) million.

• Net loss totaled $(1.3) million, compared to $(1.8) million.

• Loss per share totaled $(0.15) compared to $(0.22) on a fully diluted basis.

Year-to-Date Summary Compared to the Prior Year

• Net revenues of $11.7 million, compared to $16.5 million.

• Average active PaperPie Brand Partners totaled 6,800, compared to 13,700.

• Loss before income taxes of $(3.2) million, compared to $(4.2) million.

• Net loss totaled $(2.4) million, compared to $(3.1) million.

• Loss per share totaled $(0.28), compared to $(0.37) on a fully diluted basis.

Per Craig White, Chief Executive Officer, "Earlier this week we announced that the buyer group for the Hilti Complex has provided their official notice to proceed with the building purchase. We expect the sale to be completed in mid-November. As previously announced, once completed, we will use the proceeds from the sale to pay off our entire outstanding bank debt. Selling this complex improves our cashflows and allows us to execute our turn-around initiative which includes a conservative plan for purchasing out of stock items as well as new titles that will drive revenues, brand partner growth, and energize our salesforce. We continue to expect to reduce our overall inventory levels, even with the planned purchases, and the cash flows from reducing our excess inventory will fund our operations."

"Throughout this year we have continued to focus on positioning the Company for a return to profitability with even lower historical operating costs. I am encouraged with our continued focus on reducing our costs and improving our results. The next big step toward profitability will be returning to revenue growth which will be driven by adding Brand Partners and increasing sales. We are working on several strategic initiatives with our IT department to improve our Brand Partner success and make it easier for interested parties to join PaperPie."

"I would like to again thank our stakeholders for your ongoing support, including our Brand Partners, Customers, Employees, Vendors and Shareholders. Through your support, we remain steadfast in our mission to improve children's literacy," concluded Mr. White.

EDUCATIONAL DEVELOPMENT CORPORATION
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)

		Three Months Ended August 31,												Six Months Ended August 31,
		2025						2024						2025						2024
NET REVENUES		$	4,621,100					$	6,509,200					$	11,727,500					$	16,502,600
LOSS BEFORE INCOME TAXES			(1,750,200)						(2,466,100)						(3,199,500)						(4,213,100)
INCOME TAX BENEFIT			(455,500)						(662,700)						(829,600)						(1,130,700)
NET LOSS		$	(1,294,700)					$	(1,803,400)					$	(2,369,900)					$	(3,082,400)
WEIGHTED AVERAGE NUMBER OF COMMON AND EQUIVALENT SHARES OUTSTANDING
Basic			8,583,201						8,272,217						8,583,201						8,269,494
Diluted			8,583,201						8,272,217						8,583,201						8,269,494

 

Fiscal 2026 Second Quarter Earnings Call

Date: Thursday, October 9, 2025
Time: 3:30 PM CT (4:30 PM ET)
Dial-in number: (800) 717-1738
Conference ID: 43999

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 29, 2024, 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 29, 2024 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/269893

FAQ

What were EDUC's fiscal Q2 2026 revenues and net loss for the quarter ended August 31, 2025?

EDUC reported Q2 net revenues of $4.62M and a net loss of $1.29M (loss per share $(0.15)).

How did EDUC's year-to-date revenue through August 31, 2025 compare to prior year?

YTD revenues were $11.73M versus $16.50M in the prior year, a decline of about 29%.

What is the expected impact of the Hilti Complex sale on EDUC's balance sheet and debt?

Management expects sale proceeds to pay off all outstanding bank debt, improving cash flow when the sale closes mid-November.

When is EDUC's fiscal 2026 Q2 earnings call and how can investors listen?

The earnings call was scheduled for Oct 9, 2025 at 3:30 PM CT; the dial-in and webcast are available via the company's investor relations site.

How did EDUC's PaperPie Brand Partner counts change in Q2 2026?

Average active PaperPie Brand Partners fell to 5,800 in Q2 2026 from 13,900 in prior-year Q2.