Scholastic Stock Plunges as Uncertainty Over Government School Funding Hurts Results
The significant loss and reduced sales indicate financial instability, similar to past downturns in educational publishing.
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The significant loss and reduced sales indicate financial instability, similar to past downturns in educational publishing.
What happened, with direct paths to the underlying reporting
Scholastic reported a $97 million quarterly loss, worsening from last year's $92 million. Revenue dropped 5% to $225.6 million, missing analysts' expectations. Education Solutions revenue plummeted 28% due to school funding uncertainties. The company seeks sale-leaseback investors for real estate to enhance liquidity. Shares fell 12%, despite a 30% increase earlier in 2025.
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