Educational Development Corporation Announces Fiscal 2027 Second Quarter and Year to Date Results
Key Highlights
- ➤Q2 net revenue $4.1 million, down from $4.6 million year over year
- ➤Q2 net loss $1.6 million versus $1.3 million; loss per share $0.19
- ➤Six-month revenue $8.8 million, down from $11.7 million year over year
- ➤Active Brand Partners increased 19% to 5,100 from 4,300
- ➤Cost-reduction plan expected to lower fiscal-year G&A expenses by over $1.2 million
Expert Statements
Craig White, Chief Executive Officer of Educational Development Corporation
“During the first two quarters we ran several product and recruiting promotions to increase our Brand Partner headcount to increase sales. I am happy to say that we were successful in both areas, which helped turn excess inventory into cash. Although our cash position decreased slightly from $1.3 million at the end of February to $1.2 million at the end of August, I am proud that we were able to generate positive cash flow even during our slowest quarter of the year. I am also pleased to see our Brand Partner numbers starting to trend up. Through the first half of fiscal 2027 our Active Brand Partners increased by over 19%, from 4,300 to 5,100. This remains our primary focus as we work diligently to further strengthen and build our Brand Partner levels, which will have a direct impact on sales growth.”
Craig White, Chief Executive Officer of Educational Development Corporation
“Our loss before taxes this quarter and year to date, were better than last year on reduced revenue levels. These results were possible due to our continued focus on reducing expenses. At the beginning of the year, we implemented a cost reduction plan, which is expected to reduce our overall general and administrative expenses during the fiscal year by over $1.2 million. In addition, during the first quarter of this fiscal year, we made a $100,000 one-time write-down on our 'assets held for sale,' which includes our legacy pick & pack distribution system that we are marketing for sale. Even with this adjustment at the beginning of the year, our losses before taxes are less than the previous year.”
Craig White, Chief Executive Officer of Educational Development Corporation
“Just like the previous quarter, our earnings per share were lower this quarter as we were not able to realize the deferred tax asset associated with our pre-tax losses. We are optimistic that as our Brand Partner levels increase along with increasing sales, we will return to profitability. Once we have affirmation of this direction, these deferred tax assets will become realizable resulting in a tax gain of approximately $0.28 per share as of August 31, 2026.”
Tulsa, Oklahoma--(Newsfile Corp. - October 14, 2026) - Educational Development Corporation (NASDAQ: EDUC) ("EDC", or the "Company"), a publishing company specializing in books and educational products for children, today reports financial results for the fiscal second quarter ended August 31, 2026.
Second Quarter Summary Compared to the Prior Year Second Quarter * Net revenues were $4.1 million compared to $4.6 million. * Average active PaperPie Brand Partners totaled 5,100 compared to 5,800. * Loss before income taxes were $(1.6) million, compared to $(1.8) million. * Net loss totaled $(1.6) million, compared to $(1.3) million. * Loss per share totaled $(0.19) compared to $(0.15) on a fully diluted basis.
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