Scholastic Corporation – Company Overview

Business Focus

Scholastic Corporation is the world’s largest publisher and distributor of children’s books. It also provides print and digital instructional materials for grades pre-kindergarten through 12, and produces children’s media content.

Core Operations

• Publishing & Distribution of Children’s Books

  • Publishes a broad range of children’s print books, eBooks, and audiobooks.
  • Distributes through school-based channels, trade channels, retailers, online platforms, and international markets.
  • Creates award-winning titles (e.g., Caldecott and Newbery Medal winners) and licensed properties (e.g., Peppa Pig, Pokémon).
  • Operates in approximately 130 international locations and has subsidiaries in key markets like Canada, UK, Australia, New Zealand, and Asia.

• School Reading Events

  • Major operator of proprietary school-based book clubs and book fairs in the U.S.
  • Book fairs:
    • Began in 1981, serving all 50 states.
    • Provides students access to a wide selection of books and educational materials.
    • Supports fundraising for schools.
  • Book clubs:
    • Established in 1948, serving grades pre-K through 8.
    • Offers curated books, seasonal, and theme-based offers.
    • 98% of FY2025 revenue from online orders, with approximately 68% placed by parents.

• Trade Publishing & Media

  • Publishes bestsellers like "Harry Potter," "The Hunger Games," "The Baby-Sitters Club," "Captain Underpants," "Dog Man," "Wings of Fire," and licensed properties such as Peppa Pig.
  • Maintains a creative team dedicated to attracting top children’s authors and illustrators.
  • Creates audiovisual content via Weston Woods Studios and audiobooks through Scholastic Audio.
  • Notable titles released in FY2025 include "Sunrise on the Reaping," "Christmas at Hogwarts," "Dog Man #13," and others.

• Educational Solutions

  • Provides print and digital resources for literacy instruction for grades pre-K to 12.
  • Offers classroom libraries, collections, professional development, and literacy initiatives.
  • Sells core and supplemental literacy programs, assessment tools, and summer reading packs.
  • Operates magazines such as "Scholastic News," "Scope," "Storyworks," and "Junior Scholastic," with a circulation of approximately 11.3 million in FY2025.
  • Focuses on culturally responsive content (Rising Voices Library).

• Entertainment & Media Content

  • Includes operations of 9 Story Media Group (acquired June 2024), producing kids and family film & TV content.
  • Develops, produces, distributes, and licenses entertainment properties.
  • Owns animation studio Brown Bag Films.
  • Distributes content through SVOD, linear TV, YouTube, and licensing.

• International Operations

  • Operations in Canada, UK, Ireland, Australia, New Zealand, India, Singapore, and broader Asia.
  • Sells in approximately 130 international markets.
  • Publishes local titles, licenses content in numerous languages (65+), and runs school-based channels.
  • Subsidiaries include Scholastic Canada, Scholastic UK, Scholastic Australia, and Scholastic New Zealand.
  • Revenue in FY2025: approximately $279.6 million (17.2% of total).

Financial Highlights (FY2025)

• Total Revenue: $1,625.5 million
  • Down from $1,589.7 million in FY2024, but with reported growth driven by acquisitions and new titles.
• Segment Revenue Breakdown:
  • Children’s Book Publishing & Distribution: $963.9 million (59.3%)
  • Education Solutions: $309.8 million (19.1%)
  • Entertainment: $61.0 million (3.8%)
  • International: $279.6 million (17.2%)
  • Overhead includes corporate costs and rental income.
• Employees: Approx. 7,090 (as of May 31, 2025)
  • US: 4,690; International: 2,400
  • About 75% full-time, 14% part-time, 11% seasonal
• Financial Performance:
  • Operating income: $15.8 million (vs. $14.5 million in FY2024)
  • Net loss: $1.9 million (vs. net income of $12.1 million in FY2024)
  • Diluted EPS: -$0.07
  • Market value (as of Nov 2024): approx. $636.7 million
  • Stock buybacks: repurchased 3,482,280 shares at an average of $20.10 per share, totaling $70.9 million during FY2025.

Additional Details

• The Company emphasizes quality, literacy, and engaging children through multiple channels.
• It operates through four main segments, organized mainly around books, educational content, and media.
• Holds trademarks, copyrights, and licenses for a broad portfolio of children’s titles and properties.
• Recognized for strong relationships with authors, illustrators, and content creators.
• Highly dependent on school and trade channels, with business seasonality aligned with school calendars.
• Actively manages risks related to supply chain, intellectual property, competition, and foreign exchange.

Summary:
Scholastic is a leading global publisher and distributor of children’s books and educational materials, with extensive operations in school channels, trade markets, and internationally. It creates and distributes a vast array of products including print books, digital resources, classroom magazines, and media content, employing around 7,090 employees, with FY2025 revenues of approximately $1.63 billion and a net loss of $1.9 million. Its business model relies heavily on school-based channels (book fairs and clubs), along with a strong trade publishing arm and expanding media and entertainment content.