Educational Development Corporation Announces Fiscal Fourth Quarter and Fiscal 2026 Results
Educational Development Corporation (NASDAQ: EDUC) reported fiscal 2026 net revenues of $22.9 million versus $34.2 million and net earnings of $2.3 million, or $0.27 per diluted share.
Rhea-AI Summary
Educational Development Corporation (NASDAQ: EDUC) reported fiscal 2026 net revenues of $22.9 million versus $34.2 million and net earnings of $2.3 million, or $0.27 per diluted share. Results include a $12.2 million gain from the Hilti Complex sale; excluding this, loss before taxes was $(6.9) million.
The $32.2 million Hilti Complex sale and operating cash flow allowed full repayment of $30.9 million in bank borrowings, leaving the company debt free. Inventory was reduced from $44.7 million to $37.7 million, and a restructuring is expected to cut annual G&A expenses by over $1.2 million in fiscal 2027.
Positive
- Fiscal 2026 net earnings of $2.3 million versus prior-year loss of $5.3 million
- Sale of Hilti Complex for $32.2 million
- Bank borrowings of $30.9 million fully repaid; company now debt free
- Inventory reduced from $44.7 million to $37.7 million, generating $7.0 million cash
- Restructuring expected to reduce G&A expenses by over $1.2 million in fiscal 2027
- New $2.0 million line of credit with Regent Bank for additional liquidity
Negative
- Fiscal 2026 net revenues declined to $22.9 million from $34.2 million
- Average active PaperPie Brand Partners fell to 5,800 from 12,300
- Fourth-quarter 2026 net revenues fell to $4.2 million from $6.6 million
- Fourth-quarter 2026 net loss widened to $3.1 million from $1.3 million
- Loss before income taxes excluding building gain was $(6.9) million in fiscal 2026
- Effective tax rate reached 56.5% due to $1.5 million valuation allowance
Details
News Market Reaction – EDUC
In the May 20 session, EDUC declined 3.36%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
- FY26 Net revenues
- $22.9M
- Fiscal year 2026 vs $34.2M prior year
- FY26 EPS (diluted)
- $0.27
- Versus prior-year loss per share of $(0.63)
- Avg active Brand Partners
- 5,800
- Fiscal 2026 average vs 12,300 prior year
- Hilti Complex sale
- $32.2M
- Sale price in Q3 FY26; proceeds used to repay bank borrowings
- Bank borrowings repaid
- $30.9M
- Total bank debt fully paid off using sale proceeds and cash flow
- Inventory reduction
- $7.0M
- Inventory reduced from $44.7M to $37.7M in fiscal 2026
- G&A savings target
- $1.2M+
- Expected annual reduction in general and administrative expenses in fiscal 2027
- Regent Bank line
- $2.0M
- New line of credit announced to provide additional working capital
Historical Context
-
Set dates for FY26 earnings call and 2026 annual shareholder meeting.
-
Announced new $2.0M revolving loan with Regent Bank to enhance liquidity.
-
Reported Q3 results including $12.2M Hilti sale gain and debt repayment.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
valuation allowance financial
line of credit financial
fully diluted basis financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Tulsa, Oklahoma--(Newsfile Corp. - May 19, 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 fourth quarter and fiscal year ended February 28, 2026.
Fiscal Year Summary Compared to the Prior Year
Net revenues of
$22.9 million compared to$34.2 million .Average active PaperPie Brand Partners totaled 5,800 compared to 12,300.
Earnings before income taxes totaled
$5.3 million . Excluding the gain on the building sale of$12.2 million , loss before income taxes were$(6.9) million .Income tax expense was
$3.0 million , with an effective tax of56.5% , due to a one-time valuation allowance of$1.5 million .Net earnings totaled
$2.3 million .Earnings (loss) per share totaled
$0.27 , compared to a loss of$(0.63) , on a fully diluted basis.
Fourth Quarter Summary Compared to the Prior Year Fourth Quarter
Net revenues for the quarter were
$4.2 million compared to$6.6 million .Average active PaperPie Brand Partners totaled 4,500 compared to 9,400.
Loss before income taxes were
$(2.1) million , a$0.6 million decline over the prior fiscal fourth quarter.Income tax expense was
$1.0 million due to a one-time valuation allowance of$1.5 million .Net Loss totaled
$(3.1) million a decline of$1.8 million over the prior fiscal fourth quarter.Loss per share totaled
$(0.37) compared to loss per share of$(0.16) , on a fully diluted basis.
Per Craig White, Chief Executive Officer, "Throughout fiscal 2026, we continued to run promotions with discounted pricing, strategically prioritizing cash flow over profitability to reduce debt and lower inventory as part of our plan with the bank. These tactical decisions helped us reduce our bank debts and past due invoices with our vendors. Remember, during the third quarter of fiscal 2026, we completed the sale of the Hilti Complex for
"During fiscal 2026, we reduced our inventory levels from
"While completing the sale of the Hilti Complex and eliminating our interest and bank debts were our first priority, we have also continued to focus on reducing our operating expenses. At the end of the fiscal year, as the next step in our turn-around plan, we executed a strategic restructuring of our office and warehouse staff, including executive pay reductions, a small reduction in force, along with other expense reductions. The total saving to our general and administrative expenses should exceed
"I am proud of the efforts of our team to stay focused during this challenging period of high inflation and the resulting reduced disposable income of our customers."
EDUCATIONAL DEVELOPMENT CORPORATION
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
| Three Months Ended February 28, | Twelve Months Ended February 28, | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| NET REVENUES | $ | 4,178,300 | $ | 6,636,300 | $ | 22,913,600 | $ | 34,191,000 | ||||
| EARNINGS (LOSS) BEFORE INCOME TAXES | (2,096,400) | (1,530,000) | 5,346,800 | (6,855,000) | ||||||||
| INCOME TAXES | 1,010,600 | (184,500) | 3,021,600 | (1,591,400) | ||||||||
| NET EARNINGS (LOSS) | $ | (3,107,000) | $ | (1,345,500) | $ | 2,325,200 | $ | (5,263,600) | ||||
| EARNINGS (LOSS) PER SHARE | $ | (0.37) | $ | (0.16) | $ | 0.27 | $ | (0.63) | ||||
| DIVIDENDS PER SHARE | $ | - | $ | - | $ | - | $ | - | ||||
| WEIGHTED AVERAGE NUMBER OF COMMON AND EQUIVALENT SHARES OUTSTANDING | ||||||||||||
| Basic | 8,511,364 | 8,583,494 | 8,563,491 | 8,348,971 | ||||||||
| Diluted | 8,511,364 | 8,583,494 | 8,563,491 | 8,348,971 | ||||||||
Fiscal 2026 Earnings Call
Date: Tuesday, May 19, 2026
Time: 3:30 PM CT (4:30 PM ET)
Dial-in number: (800) 717-1738
Conference ID: 58335
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, 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/298021
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