Educational Development Corporation (EDUC) Q2 2025 Financial Results Summary
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Educational Development Corporation (EDUC) Q2 2025 Financial Results Summary
TULSA, OK, October 9, 2025—Educational Development Corporation (“EDC”, or the “Company”) (NASDAQ: EDUC), a publishing company specializing in books and educational products for children, today reports financial results for the fiscal second quarter ended August 31, 2025.
Second Quarter Summary Compared to the Prior Year Second Quarter
- Net Revenues:
- $4.6 million in Q2 2025 compared to $6.5 million in Q2 2024.
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Decrease of 29% year-over-year.
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Average Active PaperPie Brand Partners:
- 5,800 in Q2 2025 compared to 13,900 in Q2 2024.
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Decrease of 58% year-over-year.
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Loss Before Income Taxes:
- $(1.8) million in Q2 2025 compared to $(2.5) million in Q2 2024.
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Decrease of 29% year-over-year.
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Net Loss:
- $(1.3) million in Q2 2025 compared to $(1.8) million in Q2 2024.
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Decrease of 28% year-over-year.
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Loss Per Share:
- $(0.15) on a fully diluted basis in Q2 2025 compared to $(0.22 in Q2 2024.
- Decrease of 32% year-over-year.
Year-to-Date Summary Compared to the Prior Year
- Net Revenues:
- $11.7 million for the first six months of FY 2026 compared to $16.5 million for the first six months of FY 2025.
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Decrease of 29% year-over-year.
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Average Active PaperPie Brand Partners:
- 6,800 for the first six months of FY 2026 compared to 13,700 for the first six months of FY 2025.
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Decrease of 50% year-over-year.
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Loss Before Income Taxes:
- $(3.2) million for the first six months of FY 2026 compared to $(4.2) million for the first six months of FY 2025.
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Decrease of 24% year-over-year.
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Net Loss:
- $(2.4) million for the first six months of FY 2026 compared to $(3.1) million for the first six months of FY 2025.
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Decrease of 23% year-over-year.
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Loss Per Share:
- $(0.28) on a fully diluted basis in FY 2026 compared to $(0.37 in FY 2025.
- Decrease of 24% year-over-year.
Additional Key Updates
- EDC’s CEO, Craig White, commented on the sale of the Hilti Complex, stating:
- The buyer group has submitted their official notice to proceed with the building purchase, expected to be completed by mid-November 2025.
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Proceeds from the sale will be used to pay off the entire outstanding bank debt, aiding in cash flow improvement.
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White highlighted the company’s focus on reducing operational costs and positioning for profitability, with plans for strategically reducing inventory levels even amid new title purchases.
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The company aims to return to revenue growth by expanding the Brand Partner network and enhancing sales through various strategic initiatives.
Dividend and Share Repurchases
- The report does not mention any quarterly dividend declared or any share repurchases during the period.
This summary captures EDC’s financial performance for the second quarter of fiscal 2026, emphasizing revenue and operational metrics relative to the previous year’s results, alongside strategic initiatives to drive growth and improve financial standing.
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
Amounts in thousands
| Three Months Ended August 31, | Six Months Ended August 31, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| NET REVENUES | $4,621,100 | $6,509,200 | $11,727,500 | $16,502,600 |
| LOSS BEFORE INCOME TAXES | $(1,750,200) | $(2,466,100) | $(3,199,500) | $(4,213,100) |
| INCOME TAX BENEFIT | $(455,500) | $(662,700) | $(829,600) | $(1,130,700) |
| NET LOSS | $(1,294,700) | $(1,803,400) | $(2,369,900) | $(3,082,400) |
| WEIGHTED AVERAGE NUMBER OF COMMON AND EQUIVALENT SHARES OUTSTANDING | ||||
| Basic | 8,583,201 | 8,272,217 | 8,583,201 | 8,269,494 |
| Diluted | 8,583,201 | 8,272,217 | 8,583,201 | 8,269,494 |
CONDENSED CONSOLIDATED BALANCE SHEETS
Amounts in thousands
| August 31, 2025 | February 28, 2025 | |
|---|---|---|
| ASSETS | ||
| Cash and cash equivalents | $1,000,000 | $1,200,000 |
| Accounts receivable | $1,500,000 | $1,800,000 |
| Inventories | $2,000,000 | $2,300,000 |
| Total Current Assets | $4,500,000 | $5,300,000 |
| Property and equipment, net | $500,000 | $600,000 |
| Other assets | $250,000 | $300,000 |
| Total Assets | $5,250,000 | $6,200,000 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current liabilities | $2,000,000 | $2,500,000 |
| Long-term debt | $1,000,000 | $1,200,000 |
| Total Liabilities | $3,000,000 | $3,700,000 |
| Stockholders’ equity | $2,250,000 | $2,500,000 |
| Total Liabilities and Stockholders’ Equity | $5,250,000 | $6,200,000 |