Scholastic's Q3 2025: Contradictions in Funding, Strategy, and Backlist Sales Uncovered

These are the key contradictions discussed in Scholastic Corporation's latest 2025 Q3 earnings call, specifically including: Funding Changes Under New Administrations, Strategic Review of Education Solutions, and Backlist Sales:



Revenue and Earnings Growth:
- Scholastic reported revenues of $335.4 million for Q3 2025, up 4% from last year.
- The growth was driven by increased performance in the Children's Books segment, particularly from Book Fairs and Book Clubs, and the contribution of 9 Story Media Group.

Children's Books Segment Performance:
- Revenues in the Children's Book Publishing and Distribution segment grew by 5%, reaching $203.3 million.
- This was supported by higher Book Fair counts, new merchandising initiatives, and the global success of new best-selling titles like Dog Man and Hunger Games.

Education Solutions Challenges:
- Sales in the Education Solutions segment fell by 16%, with revenues totalling $57.2 million.
- The decline was due to lower spending on supplemental curriculum, exacerbated by uncertainty in federal education policy and a focus on core curriculum needs.

International Segment Growth:
- The International segment saw revenues rise to $59.3 million, representing an increase of $2.9 million when excluding foreign currency impacts.
- Growth was driven by strong sales of Dog Man: Big Jim Begins and new education product contracts in major markets like Canada and the U.K.

Capital Allocation and Shareholder Returns:
- Scholastic returned over $35 million to shareholders through share repurchases and dividends in Q3.
- The company maintained a strong balance sheet with modest debt, positioning itself to unlock additional liquidity for debt reduction and enhancing shareholder returns.