Scholastic Corporation reported a revenue increase of 4% for the third quarter of fiscal 2025, totaling $335.4 million, compared to $323.7 million in the same period last year. The company experienced a net loss of $3.6 million, or $0.13 per diluted share, an improvement from a net loss of $26.5 million, or $0.91 per diluted share, in the prior year quarter. The revenue growth was primarily driven by the addition of 9 Story Media Group, which contributed significantly to the Entertainment segment's performance.
In terms of segment performance, the Children's Book Publishing and Distribution segment saw revenues rise by $10.2 million to $203.3 million, largely due to increased sales from School Reading Events and the successful release of new titles in the popular Dog Man series. However, the Education Solutions segment faced challenges, with revenues declining by $11.3 million to $57.2 million, attributed to reduced spending on supplemental materials by school districts. The Entertainment segment's revenues surged to $12.8 million, up from $0.5 million, reflecting the impact of the 9 Story acquisition.
Operationally, Scholastic's total operating costs for the quarter were $359.3 million, slightly higher than $358.6 million in the previous year. The company reported an operating loss of $23.9 million, an improvement from a loss of $34.9 million in the prior year, due to reduced discretionary overhead expenses and higher revenues in the Children's Book Publishing and Distribution segment. The company’s cash and cash equivalents stood at $94.7 million as of February 28, 2025, down from $113.7 million at the end of the previous fiscal year.
Strategically, Scholastic completed the acquisition of 9 Story Media Group in June 2024, enhancing its content production capabilities and expanding its portfolio in the entertainment sector. The acquisition is expected to yield synergies and new programming opportunities, although the company anticipates some near-term production delays due to market conditions. Looking ahead, Scholastic expects continued challenges in the retail book market and education spending, but remains optimistic about new product launches and the potential for improved performance in the Entertainment segment in fiscal 2026 and beyond.
About SCHOLASTIC CORP
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