Scholastic Corporation reported a modest increase in revenue for the fiscal year ending May 31, 2025, with total revenues rising by $35.8 million, or 2.3%, to $1,625.5 million compared to $1,589.7 million in the previous fiscal year. However, the company experienced a net loss of $1.9 million, translating to a loss per share of $0.07, a significant decline from the net income of $12.1 million, or $0.41 per share, reported in fiscal 2024. The increase in revenue was primarily driven by the Children's Book Publishing and Distribution segment, which saw a revenue increase of $10.6 million, largely due to higher sales from school reading events and new releases in popular book series.
The fiscal year also marked the integration of 9 Story Media Group, acquired on June 20, 2024, into Scholastic's Entertainment segment, contributing $59.1 million to revenues. Despite this, the Education Solutions segment faced challenges, with revenues decreasing by $41.4 million due to reduced spending on supplemental materials by school districts. The International segment reported a revenue increase of $6.0 million, benefiting from strong sales in major markets, although it was impacted by unfavorable foreign currency exchange rates.
Operationally, Scholastic's employee headcount stood at approximately 7,090 as of May 31, 2025, with 4,690 employees in the U.S. and 2,400 internationally. The company has been focusing on streamlining its organizational structure and reducing costs, which contributed to an increase in operating income to $15.8 million from $14.5 million in the prior year. The company also reported a significant increase in selling, general, and administrative expenses, which rose to $822.3 million, primarily due to the addition of 9 Story and inflationary pressures.
Looking ahead, Scholastic anticipates continued growth in fiscal 2026, driven by the release of new titles in its popular series and a focus on aligning its Education Solutions products with the evolving needs of educators and families. The company is also working on strategic initiatives to enhance operational efficiency and reduce costs, which are expected to support long-term growth and shareholder value. However, uncertainties regarding school funding and market conditions remain a concern for the upcoming fiscal year.
About SCHOLASTIC CORP
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