Educational Development Reports Fiscal 2025 Revenue Decline, Debt Reduction Progress

Educational Development Corporation (EDC), a publisher of children's educational books and products, reported a significant decline in net revenues to $34.2 million for fiscal 2025, down from $51.0 million the previous year, resulting in a net loss of $5.3 million and a loss per share of $0.63. The company attributed the revenue drop to reduced sales and economic factors impacting disposable income, and it responded by implementing discounted pricing strategies to prioritize cash flow and reduce debt and inventory levels. EDC successfully reduced vendor payables by $2.0 million, bank debts by $3.1 million, and inventory from $55.6 million to $44.7 million, generating $10.9 million in cash flow. The company also executed a Purchase Sale Agreement for its headquarters, expected to eliminate remaining bank debts and improve operational liquidity. Despite these efforts, EDC faces ongoing financial challenges, with weak momentum and unattractive valuation metrics; however, management remains focused on strategic asset management and cost reductions to strengthen the company's financial position. EDC operates through two main divisions, PaperPie and Publishing, marketing products via retail accounts and independent brand partners, and continues to distribute well-known brands such as Kane Miller Books and SmartLab Toys.