Q2 2026 Scholastic Corp Earnings Call Transcript
Key Points
- Scholastic Corp (SCHL) reported a 13% growth in adjusted EBITDA for the second quarter, affirming its FY26 earnings guidance.
- The company successfully executed sale-leaseback transactions, unlocking over $400 million in net proceeds, which will be used to enhance shareholder value.
- Strong performance in the Children's Book Publishing and Distribution segment, with a 4% revenue increase driven by successful school book fairs and major global franchises.
- Scholastic Corp (SCHL) has returned nearly $500 million to shareholders through share repurchases and dividends since fiscal 2022.
- The company is expanding its digital footprint with the launch of Scholastic TV, achieving over 350,000 downloads and 64 million minutes watched to date.
- The Education Solutions segment faced challenges due to a tough funding environment, resulting in a revenue decline.
- Book Clubs experienced softer results, reflecting changes in classroom and teacher engagement patterns.
- The Entertainment segment saw a decrease in revenues due to fewer episode deliveries, although future growth is anticipated.
- International segment revenues are expected to face modest declines following strong performance in fiscal 2025.
- The company anticipates approximately $10 million in incremental tariff expenses impacting the cost of products this fiscal year.
Good day and thank you for standing by. Welcome everyone to Scholastic reports second quarter fiscal year 2026 results. (Operator Instructions) Please be advised that today's conference is being recorded. (Operator Instructions)
I would now like to hand the conference over to your speaker today, Jeffrey Matthews, Executive Vice President and Chief Growth Officer.
Hello, and welcome, everyone, to Scholastic's fiscal 2026 second 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 and Executive Vice President.
As usual, we posted this call's 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,
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