Scholastic Reports Q2 Earnings Decline

Scholastic Corporation reported its fiscal Q2 2025 earnings, revealing a significant decline in key financial metrics, including a 3% drop in revenue to $544.6 million and a 26% decrease in operating income. The company posted earnings of $1.82 per share, missing the Zacks Consensus Estimate of $2.30, and experienced a 30% drop in diluted earnings per share compared to the previous year. Despite these challenges, Scholastic remains optimistic about future performance, highlighting a successful expansion of its book fairs and clubs, and anticipating strong new releases bolstered by a $400 million credit facility. CEO Peter Warwick noted that the downturn was primarily due to the timing of publishing releases. The company also benefited from its acquisition of 9 Story Media Group, which contributed to its entertainment segment. However, Scholastic's shares have underperformed, losing about 34.6% year-to-date compared to the S&P 500’s gain of 23.1%.