Here are the 10-Q quarterly reports from Educational Development Corp (EDUC) in our archive since June 2025, newest first, and each one links through to the document itself with the summary and the scores our analysis gives it.
A 10-Q covers the quarterly report filed between annual reports, so if you follow EDUC and want that one kind of document rather than the whole filing history, this is the page to keep. The company's other filings, of every form, are on the full EDUC filings page.
Educational Development Corporation (EDUC) reported second-quarter net revenue of $4.07 million, versus $4.62 million a year earlier, and a net loss of $1.58 million, versus $1.29 million. For the six months ended August 31, 2026, net revenue was $8.83 million versus $11.73 million, and net loss was $2.97 million versus $2.37 million. PaperPie revenue fell to $3.17 million from $3.73 million; average active Brand Partners were 5,100 versus 5,800, while the segment recorded $112,800 operating income versus a $14,700 loss. PaperPie gross margin as a percentage of revenue was 61.4%, versus 57.9%.
Usborne inventory was $18.98 million as of August 31, 2026. As of that date, EDUC had not met minimum purchase requirements or provided a required letter of credit under its distribution agreement, giving Usborne a termination right; Usborne had not notified the company of termination. A $2 million revolving credit line was available at a variable annual rate of 8.75% as of August 31, 2026. On September 1, 2026, EDUC entered a two-year Tulsa commercial lease covering 50,000 square feet in year one and 25,000 in year two.
Educational Development Corporation reported a weaker quarter with lower sales but positive operating cash flow. For the three months ended May 31, 2026, net revenues were $4.76 million, down from $7.11 million a year earlier, and the company recorded a net loss of $1.40 million versus a $1.08 million loss.
The PaperPie division generated $4.17 million of net revenues and $0.38 million of operating income, while Publishing delivered $0.58 million of net revenues and $0.09 million of operating income. Both segments saw meaningful revenue declines, driven by fewer active Brand Partners and fewer new titles.
Despite the loss, operating activities provided $0.56 million of cash, helped by a $1.42 million reduction in inventories. Total cash, cash equivalents and restricted cash were $1.81 million. The company entered a new $2.0 million secured revolving credit facility in March 2026.
A key risk is concentration with Usborne Publishing. The company did not meet minimum purchase and letter-of-credit requirements, giving Usborne the right to terminate the distribution agreement, and it holds $19.57 million of Usborne inventory. Management also maintains a full valuation allowance against deferred tax assets due to recent cumulative losses.
Educational Development Corporation reported net earnings of $7.8 million for the quarter ended November 30, 2025, reversing a prior-year net loss of $0.8 million. The swing was driven largely by a $12.2 million gain on the sale and leaseback of its Hilti Complex, which generated about $29.9 million of cash and was used to repay roughly $30.0 million of term debt and revolving credit.
Net revenues fell to $7.0 million from $11.1 million as both the PaperPie and Publishing segments saw sales decline, reflecting fewer active Brand Partners, higher discounts, and tariff-driven cost pressures. Operating results excluding the asset sale remained weak, and management discloses that recurring operating losses and dependence on rebuilding PaperPie and reducing inventory raise substantial doubt about the company’s ability to continue as a going concern, despite improved liquidity and the elimination of bank debt.
Educational Development Corporation reported a continued operating loss with a net loss of approximately $2,369,900 for the period shown while working to sell a major real estate asset. Management executed a Purchase and Sale Agreement for the 402,000 sq ft Hilti Complex for $32,500,000, later amended to a $32,200,000 purchase price, with closing expected on or before November 25, 2025. Proceeds are expected to pay off the Term Loans and Revolving Loan.
The company recorded assets held for sale (estimated fair value $35,550,000 as of August 31, 2025), ceased depreciation on those assets, and classified removed production equipment as held for sale. Term debt remains material at about $25,900,900, and recent amendments add 2% to existing credit interest rates under certain conditions.