Recent News
On September 17, 2025 Scholastic and 9 Story Media Group launched the first Scholastic-branded AVOD streaming app on Roku and Amazon Fire TV, offering over 400 hours of children’s programming from the Scholastic library.
Also on September 17, 2025 the Board declared a quarterly cash dividend of $0.20 per share payable December 15, 2025, to shareholders of record on October 31, 2025.
On September 3, 2025 B. Riley Securities initiated coverage of Scholastic with a Buy rating and published an average one‑year target in the mid‑$30s.
Technical Analysis
ADX at 12.78 indicates no established trend; the lack of trend reduces the conviction behind short‑term directional bets while valuation pressure persists.
Directional movement lines show DI+ at 19.18 declining, which signals waning bullish pressure; DI- at 20.10 also declining suggests falling downside pressure, together implying consolidative action rather than a clear breakout.
MACD reads 0.16 below the signal line at 0.32 and trends downward, indicating bearish momentum and no recent bullish MACD cross to offset valuation concerns.
MRO stands at 20.74 and trends lower; the positive MRO signals the current price sits above the regression target, implying increased potential for downward reversion toward fair value.
RSI at 54.77 and moving lower indicates neutral‑to‑moderate momentum that has cooled from short‑term strength; the 12‑day EMA and 20‑day average both trend down or sit slightly above price (12‑day EMA 28.17 decreasing; 20‑day avg 28.37; price close $28.02), which supports a cautious near‑term bias.
Price structure shows longer‑term support: 50‑day average $27.53 and 200‑day average $21.89 provide levels where buyers historically appear; the supertrend lower at $26.93 offers a nearer support reference while the 52‑week high $29.38 frames upside scope versus the $15.37 low.
Fundamental Analysis
Revenue totaled $225,600,000 with revenue growth reported at -55.62% alongside a year‑over‑year revenue increase of 11.12%; the divergent growth figures point to sharp period‑over‑period swings in sales. QoQ revenue change measured -207.89% per the supplied QoQ figure.
Operating results show an operating (EBIT) loss of $91,400,000 and an EBIT margin of -40.51%, versus an industry peer mean EBIT margin of 18.76% and industry peer range low of -13.73% to high of 44.29%; the company’s margin sits well below the industry peer mean and median. EBIT margin moved QoQ by -479.95% and improved YoY by 8.59%.
Net income registered -$71,100,000 while EPS came in at -$2.52 versus an estimate of -$2.41, producing an EPS surprise of -4.56% (EPS difference -$0.11). Forward EPS stands at $0.6525 with a forward PE near 35.13, which contrasts with the trailing negative PE of -9.54 and underscores near‑term earnings uncertainty embedded in current valuation.
Cash flow and liquidity metrics reinforce operating strain: free cash flow totaled -$91,800,000 with a free cash flow yield of -15.19%; operating cash flow ran -$81,800,000 while cash and short‑term investments equal $94,300,000. The cash conversion cycle measures 145.78 days, substantially above the industry peer mean of -65.31 days, reflecting slower working capital turnover driven by long inventory and receivable days (inventory days ~126, receivables days ~93).
Balance sheet and coverage: total debt $443,200,000, debt‑to‑equity 50.48%, and interest coverage negative at -20.77x, which limits flexibility for incremental borrowing. Current ratio reads 1.16 and quick ratio 0.65, showing modest headroom against short‑term liabilities but weaker than the industry peer mean current ratio of 2.05.
Market multiples show mixed signals: price‑to‑book about 0.69 and price‑to‑sales 2.68, while enterprise value sits at $953,236,496 and EV/Revenue at 4.23. WMDST classifies the current valuation as over‑valued given the combination of negative operating margins, persistent free cash deficits, and stretched working capital.
Notable fundamental catalysts reported in recent coverage include the company’s AVOD streaming rollout and the declared $0.20 quarterly dividend; external commentary highlighted government school funding uncertainty as a driver of weakness within the Education Solutions channel.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-08-31 |
| REPORT DATE: | 2025-09-18 |
| NEXT REPORT DATE: | 2025-12-18 |
| CASH FLOW | Begin Period Cash Flow | $ 124.0 M |
| Operating Cash Flow | $ -81.80 M | |
| Capital Expenditures | $ -10.00 M | |
| Change In Working Capital | $ -45.90 M | |
| Dividends Paid | $ -5.20 M | |
| Cash Flow Delta | $ -29.70 M | |
| End Period Cash Flow | $ 94.3 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 225.6 M | |
| Forward Revenue | $ -13.01 M | |
| COSTS | ||
| Cost Of Revenue | $ 123.5 M | |
| Depreciation | $ 19.4 M | |
| Depreciation and Amortization | $ 19.4 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 317.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 102.1 M | |
| EBITDA | $ -72.00 M | |
| EBIT | $ -91.40 M | |
| Operating Income | $ -91.40 M | |
| Interest Income | $ -4.50 M | |
| Interest Expense | — | |
| Net Interest Income | $ -4.50 M | |
| Income Before Tax | $ -97.00 M | |
| Tax Provision | $ -25.90 M | |
| Tax Rate | 26.7 % | |
| Net Income | $ -71.10 M | |
| Net Income From Continuing Operations | $ -71.10 M | |
| EARNINGS | ||
| EPS Estimate | $ -2.41 | |
| EPS Actual | $ -2.52 | |
| EPS Difference | $ -0.11 | |
| EPS Surprise | -4.564 % | |
| Forward EPS | $ 0.65 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.0 B | |
| Intangible Assets | $ 286.3 M | |
| Net Tangible Assets | $ 591.7 M | |
| Total Current Assets | $ 730.2 M | |
| Cash and Short-Term Investments | $ 94.3 M | |
| Cash | $ 94.3 M | |
| Net Receivables | $ 187.0 M | |
| Inventory | $ 322.2 M | |
| Long-Term Investments | $ 118.1 M | |
| LIABILITIES | ||
| Accounts Payable | $ 175.8 M | |
| Short-Term Debt | $ 6.2 M | |
| Total Current Liabilities | $ 631.4 M | |
| Net Debt | $ 236.9 M | |
| Total Debt | $ 443.2 M | |
| Total Liabilities | $ 1.1 B | |
| EQUITY | ||
| Total Equity | $ 878.0 M | |
| Retained Earnings | $ 923.5 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 34.93 | |
| Shares Outstanding | 25.139 M | |
| Revenue Per-Share | $ 8.97 | |
| VALUATION | Market Capitalization | $ 604.3 M |
| Enterprise Value | $ 953.2 M | |
| Enterprise Multiple | -13.239 | |
| Enterprise Multiple QoQ | -217.354 % | |
| Enterprise Multiple YoY | 15.548 % | |
| Enterprise Multiple IPRWA | high: 112.271 median: 112.271 mean: 89.453 SCHL: -13.239 low: -40.383 |
|
| EV/R | 4.225 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.226 | |
| Asset To Liability | 1.816 | |
| Debt To Capital | 0.335 | |
| Debt To Assets | 0.227 | |
| Debt To Assets QoQ | 18.074 % | |
| Debt To Assets YoY | 7190.997 % | |
| Debt To Assets IPRWA | high: 0.862 median: 0.389 mean: 0.384 SCHL: 0.227 low: 0.024 |
|
| Debt To Equity | 0.505 | |
| Debt To Equity QoQ | 27.576 % | |
| Debt To Equity YoY | 7824.333 % | |
| Debt To Equity IPRWA | high: 6.623 mean: 1.069 median: 0.902 SCHL: 0.505 low: -1.865 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.688 | |
| Price To Book QoQ | 6.162 % | |
| Price To Book YoY | -25.322 % | |
| Price To Book IPRWA | high: 4.646 mean: 1.662 median: 1.21 SCHL: 0.688 low: -0.495 |
|
| Price To Earnings (P/E) | -9.54 | |
| Price To Earnings QoQ | -141.448 % | |
| Price To Earnings YoY | -35.203 % | |
| Price To Earnings IPRWA | high: 126.522 mean: 8.45 median: -0.697 SCHL: -9.54 low: -14.527 |
|
| PE/G Ratio | 0.024 | |
| Price To Sales (P/S) | 2.679 | |
| Price To Sales QoQ | 121.884 % | |
| Price To Sales YoY | -27.986 % | |
| Price To Sales IPRWA | high: 13.128 mean: 5.004 median: 3.671 SCHL: 2.679 low: 0.014 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 35.13 | |
| Forward PE/G | -0.09 | |
| Forward P/S | -46.446 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 4.83 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.116 | |
| Asset Turnover Ratio QoQ | -55.542 % | |
| Asset Turnover Ratio YoY | -11.558 % | |
| Asset Turnover Ratio IPRWA | high: 0.285 SCHL: 0.116 mean: 0.078 low: 0.062 median: 0.062 |
|
| Receivables Turnover | 0.98 | |
| Receivables Turnover Ratio QoQ | -48.975 % | |
| Receivables Turnover Ratio YoY | -9.91 % | |
| Receivables Turnover Ratio IPRWA | high: 3.826 median: 2.5 mean: 2.416 SCHL: 0.98 low: 0.786 |
|
| Inventory Turnover | 0.432 | |
| Inventory Turnover Ratio QoQ | -45.774 % | |
| Inventory Turnover Ratio YoY | -3.387 % | |
| Inventory Turnover Ratio IPRWA | high: 24.341 median: 19.165 mean: 18.637 low: 1.208 SCHL: 0.432 |
|
| Days Sales Outstanding (DSO) | 93.111 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 145.779 | |
| Cash Conversion Cycle Days QoQ | 26.274 % | |
| Cash Conversion Cycle Days YoY | 1.466 % | |
| Cash Conversion Cycle Days IPRWA | SCHL: 145.779 high: 77.372 mean: -65.305 median: -84.026 low: -103.513 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 2.283 | |
| CapEx To Revenue | -0.044 | |
| CapEx To Depreciation | -0.515 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.2 B | |
| Net Invested Capital | $ 1.2 B | |
| Invested Capital | $ 1.2 B | |
| Net Tangible Assets | $ 591.7 M | |
| Net Working Capital | $ 98.8 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.149 | |
| Current Ratio | 1.156 | |
| Current Ratio QoQ | -0.122 % | |
| Current Ratio YoY | 1.627 % | |
| Current Ratio IPRWA | high: 3.238 median: 2.306 mean: 2.053 SCHL: 1.156 low: 0.375 |
|
| Quick Ratio | 0.646 | |
| Quick Ratio QoQ | -14.804 % | |
| Quick Ratio YoY | 0.31 % | |
| Quick Ratio IPRWA | high: 3.031 mean: 2.306 median: 2.29 low: 0.668 SCHL: 0.646 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | -6.156 | |
| Cost Of Debt | 0.909 % | |
| Interest Coverage Ratio | -20.773 | |
| Interest Coverage Ratio QoQ | -268.635 % | |
| Interest Coverage Ratio YoY | -29.584 % | |
| Interest Coverage Ratio IPRWA | high: 17.0 mean: 2.352 median: 1.624 low: -4.504 SCHL: -20.773 |
|
| Operating Cash Flow Ratio | -0.03 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 73.313 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | -13.673 | |
| Dividend Payout Ratio | -0.073 | |
| Dividend Rate | $ 0.21 | |
| Dividend Yield | 0.009 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.231 % | |
| Revenue Growth | -55.617 % | |
| Revenue Growth QoQ | -207.889 % | |
| Revenue Growth YoY | 11.116 % | |
| Revenue Growth IPRWA | high: 2.92 % mean: -0.494 % median: -0.694 % low: -7.817 % SCHL: -55.617 % |
|
| Earnings Growth | -389.655 % | |
| Earnings Growth QoQ | -78.823 % | |
| Earnings Growth YoY | 64.733 % | |
| Earnings Growth IPRWA | high: 144.373 % median: -10.4 % mean: -17.744 % low: -250.0 % SCHL: -389.655 % |
|
| MARGINS | ||
| Gross Margin | 45.257 % | |
| Gross Margin QoQ | -23.574 % | |
| Gross Margin YoY | -1.424 % | |
| Gross Margin IPRWA | high: 74.459 % SCHL: 45.257 % mean: 41.765 % median: 36.701 % low: 36.131 % |
|
| EBIT Margin | -40.514 % | |
| EBIT Margin QoQ | -479.949 % | |
| EBIT Margin YoY | 8.588 % | |
| EBIT Margin IPRWA | high: 44.29 % median: 19.506 % mean: 18.755 % low: -13.731 % SCHL: -40.514 % |
|
| Return On Sales (ROS) | -40.514 % | |
| Return On Sales QoQ | -467.741 % | |
| Return On Sales YoY | 8.588 % | |
| Return On Sales IPRWA | high: 25.869 % mean: 9.559 % median: 6.649 % low: -12.924 % SCHL: -40.514 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -91.80 M | |
| Free Cash Flow Yield | -15.19 % | |
| Free Cash Flow Yield QoQ | -198.54 % | |
| Free Cash Flow Yield YoY | 116.536 % | |
| Free Cash Flow Yield IPRWA | high: 12.971 % mean: 0.762 % median: 0.145 % SCHL: -15.19 % low: -16.117 % |
|
| Free Cash Growth | -197.04 % | |
| Free Cash Growth QoQ | -64.206 % | |
| Free Cash Growth YoY | -7.028 % | |
| Free Cash Growth IPRWA | high: 93.346 % median: 9.84 % mean: -20.741 % SCHL: -197.04 % low: -242.03 % |
|
| Free Cash To Net Income | 1.291 | |
| Cash Flow Margin | -8.333 % | |
| Cash Flow To Earnings | 0.264 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | -3.642 % | |
| Return On Assets QoQ | -562.77 % | |
| Return On Assets YoY | 5.811 % | |
| Return On Assets IPRWA | high: 2.869 % mean: -0.286 % median: -0.817 % SCHL: -3.642 % low: -5.215 % |
|
| Return On Capital Employed (ROCE) | -6.907 % | |
| Return On Equity (ROE) | -0.081 | |
| Return On Equity QoQ | -597.726 % | |
| Return On Equity YoY | 24.031 % | |
| Return On Equity IPRWA | high: 0.074 mean: -0.005 median: -0.019 SCHL: -0.081 low: -0.202 |
|
| DuPont ROE | -7.794 % | |
| Return On Invested Capital (ROIC) | -5.54 % | |
| Return On Invested Capital QoQ | -255.618 % | |
| Return On Invested Capital YoY | -107.17 % | |
| Return On Invested Capital IPRWA | high: 4.134 % mean: 1.336 % median: 1.058 % low: -4.866 % SCHL: -5.54 % |
|