Educational Development Reports 29% Q1 Revenue Decline, Advances Debt-Clearing Property Sale

Educational Development Corporation (EDC), a publisher specializing in children's books and educational products, reported a significant 29% decline in net revenues to $7.1 million for the fiscal first quarter of 2026, down from $10.0 million the previous year. The decrease was mainly due to a 42.5% drop in active PaperPie Brand Partners and economic challenges affecting customer spending, despite efforts such as product discount promotions to boost cash flow, which impacted gross margins. Despite lower sales, the company reduced its net loss to $1.1 million from $1.3 million, aided by cost reductions and efficiency improvements. EDC is actively working to convert excess inventory into cash to reduce debt and meet lender requirements, with a key focus on completing the sale of the Hilti Complex, anticipated to retire outstanding debt and provide financial flexibility. CEO Craig White highlighted the company's ongoing initiatives to streamline operations, implement cost savings, and support Brand Partners, aiming to normalize business post-transaction. However, the overall outlook remains challenging due to the persistent decline in revenues and profitability issues.