Scholastic typically has a quiet first quarter, during which most schools are not in session—and that was again the case for the period ended Aug. 31, 2025. Sales in the quarter fell 5%, to $225.6 million, and operating losses rose to $92.2 million from $88.5 million a year ago.
The publisher’s newest and oldest businesses took the biggest hits. The entertainment group, built around its 9 Story Media Group acquisition in 2024, saw revenues fall 18% in the quarter, to $13.6 million, which the company said was primarily due to “anticipated delays in production greenlights.”
The education group, which includes Scholastic’s oldest operations, supplementary publishing, had a particularly bad quarter as the publisher works to turn around the business. Sales decreased 28% to $40.1 million, reflecting, Scholastic said in its announcement, “increased funding uncertainty for schools and school districts, which has impacted spending on supplemental curriculum materials.”
Scholastic largest unit, children’s publishing and distribution, posted a 4% sales increase in the quarter, to $109.4 million. Trade revenues were $73.5 million, about flat compared to the prior year period, due to ongoing contributions from the Hunger Games and Harry Potter franchises. Book fairs got off to a good start in what is generally a slow quarter, with sales up 18%, to $34.1 million. Book club sales, however, dwindled to $1.8 million, down 33%.
In late May, Scholastic integrated its trade publishing, book fairs, and book clubs businesses into the Scholastic Children’s Book Group under the direction of Sasha Quinton, with Jackie De Leo named publisher and chief merchant for the newly christened group. Ahead of the restructuring, Ellie Berger stepped down as president of Scholastic Trade Publishing. The objective of the restructuring, Scholastic said, is to have its publishing and entertainment businesses to work closer together to deliver its content in as many formats and platforms as possible.
