Educational Development Corporation Announces Fiscal 2027 First Quarter Results
Rhea-AI Summary
Educational Development Corporation (NASDAQ: EDUC) reported fiscal 2027 Q1 results for the quarter ended May 31, 2026.
- Net revenues were $4.8 million vs. $7.1 million a year earlier.
- Net loss was $1.4 million vs. $1.1 million; loss per share was $(0.16) vs. $(0.13).
- Loss before income taxes was $1.38 million vs. $1.45 million.
- Average active PaperPie Brand Partners were 5,300 vs. 7,700 year over year.
- Cash increased from $1.3 million at February-end to $1.8 million at May-end.
- A cost reduction plan is expected to lower fiscal 2027 G&A expenses by over $1.2 million.
- Q1 included a $0.1 million write-down of assets held for sale.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Positive
- Loss before income taxes slightly lower at $1,379,100 vs. $1,449,300
- Cash balance increased to $1.8 million from $1.3 million during the quarter
- Active Brand Partners rose 20% from 4,300 to 5,200 between February and May 2026
- Cost reduction plan targeting over $1.2 million G&A savings in fiscal 2027
Negative
- Net revenues declined to $4,755,800 from $7,106,400 year over year
- Average active PaperPie Brand Partners fell to 5,300 from 7,700 year over year
- Net loss increased to $1,395,600 from $1,075,200 year over year
- Loss per share widened to $(0.16) from $(0.13)
- Deferred tax assets not currently realizable due to continued losses
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 16 | Earnings call notice | Neutral | +0.0% | Announcement of timing and access details for Q1 FY27 earnings call. |
| May 19 | FY26 results | Positive | -2.7% | Reported FY26 profitability aided by Hilti sale and full bank debt repayment. |
| Apr 21 | Earnings call, AGM | Neutral | -0.4% | Scheduled FY26 earnings call and 2026 annual meeting with key dates set. |
| Mar 11 | New credit facility | Positive | +1.5% | Secured new $2M revolving credit line with Regent Bank for liquidity. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent substantive fundamental updates have sometimes seen share-price moves that diverged from the generally positive operational messages.
Regulatory & Risk Context
Short interest appears relatively low, indicating limited short-squeeze leverage but also suggesting that pronounced volatility is less likely to be driven by short covering alone.
Key Terms
deferred tax asset financial
assets held for sale financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Tulsa, Oklahoma--(Newsfile Corp. - July 9, 2026) - 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, 2026.
First Quarter Summary Compared to the Prior Year First Quarter
- Net revenues were
$4.8 million compared to$7.1 million . - Average active PaperPie Brand Partners totalled 5,300 compared to 7,700.
- Loss before income taxes were
$(1.4) million for both periods. - Net Loss totalled
$(1.4) million , compared to$(1.1) million . - Loss per share totalled
$(0.16) compared to loss per share of$(0.13) , on a fully diluted basis.
Per Craig White, Chief Executive Officer, "During the quarter we ran several product and recruiting promotions to increase sales, turning excess inventory into cash, and increasing our brand partner levels. I am happy to say that we were successful in both areas. Our cash position increased from
"Our net loss before taxes remained consistent with last year on much reduced revenue levels. These results were possible only due to our continued focus on reducing our expenses. At the beginning of the year, we implemented a cost reduction plan which is expected to reduce our overall general and administrative expenses during fiscal 2027 by over
"Earnings per share were lower this quarter as we are not able to realize the deferred tax asset associated with our continued losses. We are optimistic that as we grow our brand partner levels with sales and profitability returning that these deferred tax assets will be realizable in the future," concluded Mr. White.
| Three Months Ended May 31, | ||||||||||
| 2026 | 2025 | |||||||||
| NET REVENUES | $ | 4,755,800 | $ | 7,106,400 | ||||||
| LOSS BEFORE INCOME TAXES | (1,379,100) | (1,449,300) | ||||||||
| INCOME TAX EXPENSE (BENEFIT) | 16,500 | (374,100) | ||||||||
| NET LOSS | $ | (1,395,600) | $ | (1,075,200) | ||||||
| LOSS PER SHARE | $ | (0.16) | $ | (0.13) | ||||||
| DIVIDENDS PER SHARE | $ | - | $ | - | ||||||
| WEIGHTED AVERAGE NUMBER OF COMMON AND EQUIVALENT SHARES OUTSTANDING | ||||||||||
| Basic | 8,511,364 | 8,583,201 | ||||||||
| Diluted | 8,511,364 | 8,583,201 | ||||||||
Fiscal 2027 First Quarter Earnings Call
Date: Thursday, July 9, 2026
Time: 3:30 PM CT (4:30 PM ET)
Dial-in number: (800) 717-1738
Conference ID: 35042
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, 2026, 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, 2026 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/304633