Scholastic Q1: Education Sales Fall on School Budget Pressure as Book Fair Bookings Run Ahead

How did Scholastic's first quarter go? Revenue fell 4% to $216.8 million for the quarter ended August 31, 2026, down from $225.6 million a year earlier, according to the company's September 24 earnings release (also distributed on PR Newswire). The operating loss was $92.2 million, the same as a year earlier. Scholastic calls the first quarter "seasonally small," and it affirmed its full-year guidance.

The segments

• Children's Book Publishing and Distribution: revenue fell $3.6 million to $105.8 million. Book Fairs brought in $33.2 million, down from $34.1 million. Book Clubs rose to $2.1 million from $1.8 million. Consolidated Trade fell $3.0 million to $70.5 million, mainly because the prior-year quarter included international co-edition sales that did not recur.
• Education: revenue fell $9.7 million to $30.4 million, "reflecting continued pressure on school and district funding and spending on supplemental curriculum materials." The segment's operating loss widened to $23.3 million from $21.2 million.
• Entertainment: revenue rose $6.5 million to $20.1 million on higher production revenue.
• International: revenue rose $1.1 million to $60.5 million. Excluding a $1.2 million currency benefit, it was about flat.

Adjusted EBITDA was a loss of $63.6 million, compared with a loss of $55.7 million a year earlier. The company says the prior-year figures do not include the full effect of its December 2025 sale-leaseback deals, which ended rental income and added rent expense. Adjusted for that effect, it says Adjusted EBITDA improved by $0.6 million.

What the CEO said

President and CEO Peter Warwick said Scholastic begins its second quarter with "Book Fair bookings ahead of prior year." In Education, he said, "increased pressure on school and district budgets impacted sales," while the company continued aligning its cost structure and transforming the business.

Outlook and cash

Scholastic affirmed its fiscal 2027 outlook:

• Revenue growth of about 2% to 4%
• Adjusted EBITDA of about $135 million to $145 million
• Free cash flow of about $35 million to $40 million

In the quarter, it returned about $29.6 million to shareholders: $25.8 million in buybacks (630,850 shares) and $3.8 million in dividends. Net debt was $86.8 million at quarter-end, down from $242.8 million a year earlier.

Why it matters to authors

Scholastic sells to children through school book fairs, book clubs and classroom materials, so its Education numbers are an early sign of how much schools are spending. Authors who sell to classrooms and school libraries should note that Scholastic ties the Education decline to school and district spending on supplemental curriculum materials. Book Fair bookings running ahead of last year are the stronger signal for trade children's books this fall.

Sources

• Scholastic Investor Relations: Scholastic Reports Fiscal 2027 First Quarter Results (September 24, 2026)
• PR Newswire: Scholastic Reports Fiscal 2027 First Quarter Results (September 24, 2026)