Scholastic missed Wall Street's revenue expectations in calendar Q3 2026, its fiscal Q1 2027, with sales falling 3.9% year on year to $216.8 million against analyst estimates of $224.7 million, a 3.5% miss. The educational publishing and media company posted a non-GAAP loss of $3.63 per share, 6.1% below the consensus estimate of a $3.42 loss, while adjusted EBITDA came in at negative $63.6 million, a negative 29.3% margin and a 14.2% year-on-year decline. CEO Peter Warwick attributed the shortfall to the seasonality of the business, with schools out of session and sales particularly light in the Children's Books and Education divisions, and noted the quarter reflected the full impact of sale-leaseback transactions completed last year. CFO Haji Glover reaffirmed full-year EBITDA guidance of $140 million at the midpoint, in line with analyst expectations, pointing to improved cost structures in Education and operational leverage in Book Fairs and Entertainment, though he cautioned that international profitability may be pressured by higher fuel and freight costs. Management said early Book Fairs bookings and fair count are ahead of last year, and highlighted a fall publishing slate tied to Harry Potter, Dog Man, and The Hunger Games as a driver for the coming quarters.
Scholastic CorporationScholastic missed revenue estimates with sales down 3.9% to $216.8M and posted a wider non-GAAP loss of $3.63/share.
