CEO Peter Warwick attributed the financial performance to a more focused operational strategy, emphasizing the company's core advantages in children's literacy and school-based distribution. While annual revenue dipped to $1.58 billion, adjusted EBITDA reached $151.5 million, a 4% increase that met internal guidance targets. The company’s financial position was significantly bolstered by sale-leaseback transactions, allowing it to transition from a net debt position of $136.6 million in 2025 to a net cash position of $48.9 million by the end of May 2026.

Looking toward fiscal 2027, management projects revenue growth between 2% and 4%, driven by anticipated improvements in the education segment and sustained momentum in children’s book publishing and entertainment. The outlook includes a target for adjusted EBITDA between $135 million and $145 million, reflecting a continued commitment to cost management and targeted investments in digital and physical distribution channels. Scholastic remains focused on leveraging its century-long relationships with educators and families to counter ongoing funding volatility in the school curriculum market.