Q4 2025 Scholastic Corp Earnings Call Transcript
Key Points
- Scholastic Corp (SCHL) delivered strong financial and strategic results in the fourth quarter of fiscal 2025, with adjusted EBITDA growing robustly in line with original guidance.
- Revenue growth was driven by a strong performance in the Children's Book Publishing and Distribution segment and the strategic acquisition of 9 Story Media Group.
- The launch of 'Sunrise on the Reaping' in the Hunger Games series and 'Dog Man: Big Jim Begins' significantly boosted revenue, with the former selling over two million copies in its first month in the US alone.
- Scholastic Corp (SCHL) returned over $92 million to shareholders in fiscal 2025 through dividends and share repurchases, demonstrating a commitment to shareholder value.
- The integration of 9 Story Media Group has enhanced the reach and monetization of Scholastic's content, particularly on streaming platforms, contributing to increased digital revenue growth.
- Revenue per book fair declined slightly, and book clubs saw a revenue decline in the fourth quarter due to fewer participating teachers.
- The Education segment experienced a decline in revenue and profit due to continued headwinds in the supplemental curriculum market.
- Adjusted operating income decreased in both the fourth quarter and full fiscal year, primarily due to incremental amortization expenses related to the acquisition of 9 Story Media Group.
- Free cash flow decreased significantly from the prior year, primarily due to lower cash earnings and increased inventory purchases.
- The International segment is expected to see a modest decline in revenue and profits in fiscal 2026 following strong performance in fiscal 2025.
Good day, and thank you for standing by. Welcome to the Scholastic reports fourth-quarter and fiscal-year 2025 results. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Jeffrey Mathews. Executive Vice President and Chief Growth Officer. Please go ahead.
Hello, and welcome, everyone, to Scholastic's fiscal 2025 fourth-quarter earnings call. Today on the call, I'm joined by Peter Warwick, our President and Chief Executive Officer; and Haji Glover, our Chief Financial Officer.
As usual, we have posted the accompanying investor presentation on our IR website at investor.scholastic.com, which you may download now if you've not already done so.
We would like to point out that certain statements made today will be forward-looking. These forward-looking statements, by their nature, are subject to various risks and uncertainties and actual results may differ
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