EDUC

This article first appeared on GuruFocus. Net Revenue: $4.8 million compared to $7.1 million in the previous year. Net Loss: $1.4 million compared to a net loss of $1.1 million last year. Loss Per Share: $0.16 compared to $0.13 on a fully diluted basis last year. Active Brand Partners: 5,300 compared to 7,700 last year. Inventory Levels: Decreased from $37.7 million to $36.2 million, generating $1.5 million of cash flow. Cash Balance: Increased from $1.3 million to $1.8 million. Expense Reductions: Expected to exceed $1.2 million in savings for the fiscal year. Warning! GuruFocus has detected 7 Warning Signs with EDUC. Is EDUC fairly valued? Test your thesis with our free DCF calculator. Release Date: July 09, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Educational Development Corp (NASDAQ:EDUC) successfully added over 1,300 new brand partners, marking a 20% growth in brand partner numbers since the end of last year. The company implemented expense reductions expected to save over $1.2 million for the fiscal year, improving cash flow. New titles introduced have shown early success, energizing brand partners and retail representatives. The company's PaperPie Day celebration in March generated strong recruiting activity and increased engagement. Educational Development Corp (NASDAQ:EDUC) is focusing on IT improvements, including AI-assisted tools, to enhance customer and brand partner experiences. Net revenues for the fiscal first quarter decreased to $4.8 million from $7.1 million in the previous year. The company reported a net loss of $1.4 million for the quarter, compared to a net loss of $1.1 million in the same quarter last year. Average Active Brand Partners decreased from 7,700 last year to 5,300 this quarter. Gross margins have not yet improved significantly due to ongoing promotional activities. The company continues to face challenges in balancing inventory reduction with maintaining gross margins. Q: Why is Randall White no longer listed as a 5% beneficial owner in the marketing circular? A: Dan O'Keefe, CFO, explained that they have no visibility into Randall White's ownership levels, so they could not confirm his share ownership for inclusion in the proxy. Q: Can you clarify the discrepancy in the Active Brand Partner numbers mentioned in the press release and during the call? A: Dan O'Keefe, CFO, clarified that the increase in Active Brand Partners was due to a successful recruiting promotion in March, which led to a net increase despite some partners falling off. Q: Do you have a pipeline of new recruiting initiatives to continue expanding the brand partner base? A: Heather Cobb, Chief Sales and Marketing Officer, stated that they consistently offer a variety of recruiting initiatives and promotions to attract different audiences and maintain growth in brand partner numbers. Q: Are you noticing that Brand Partners are sticking around longer now that you have new titles available? A: Heather Cobb mentioned that while they do track such data, it's too early to determine the impact of new titles on partner retention, as they were only recently released. Q: How are you balancing the need to reduce inventory levels with maintaining gross margins? A: Craig White, CEO, acknowledged the balancing act between generating cash and maintaining product value, emphasizing a strategic approach to discounting while focusing on new title acquisition. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Tulsa, Oklahoma--(Newsfile Corp. - July 9, 2026) - Educational Development Corporation (NASDAQ: EDUC) ("EDC", or the "Company"), a publishing company specializing in books and educational products for children, today reports financial results for the fiscal first quarter ended May 31, 2026. First Quarter Summary Compared to the Prior Year First Quarter Net revenues were $4.8 million compared to $7.1 million. Average active PaperPie Brand Partners totalled 5,300 compared to 7,700. Loss before income taxes were $(1.4) million for both periods. Net Loss totalled $(1.4) million, compared to $(1.1) million. Loss per share totalled $(0.16) compared to loss per share of $(0.13), on a fully diluted basis. Per Craig White, Chief Executive Officer, "During the quarter we ran several product and recruiting promotions to increase sales, turning excess inventory into cash, and increasing our brand partner levels. I am happy to say that we were successful in both areas. Our cash position increased from $1.3 million at the end of February to $1.8 million at the end of May and our Active Brand Partners increased by 20%, from 4,300 to 5,200 over this same period. Our primary focus remains on building our Brand Partners back to historical levels before and after the pandemic, which will have a direct impact in increased sales. We are glad to see our numbers climbing." "Our net loss before taxes remained consistent with last year on much reduced revenue levels. These results were possible only due to our continued focus on reducing our expenses. At the beginning of the year, we implemented a cost reduction plan which is expected to reduce our overall general and administrative expenses during fiscal 2027 by over $1.2 million. In addition, during the quarter, we made a $0.1 million one-time write-down on our "assets held for sale" which includes our legacy pick & pack distribution system that we are marketing for sale. Excluding this adjustment, our losses before taxes would have been less than the first quarter last year." "Earnings per share were lower this quarter as we are not able to realize the deferred tax asset associated with our continued losses. We are optimistic that as we grow our brand partner levels with sales and profitability returning that these deferred tax assets will be realizable in the future," concluded Mr. White. Fiscal 2027 First Quarter Earnings Call Date: Thursday, July 9, 2026Time: 3:30 PM CT (4:30 PM ET)Dial-in number: (800) 717-1738Conference ID: 35042 The conference call will be broadcast live and audio replays will be available following the event at  www.edcpub.com/investors. About Educational Development Corporation (EDC) EDC began as a publishing company specializing in books for children. EDC is the owner and exclusive publisher of Kane Miller Books ("Kane Miller"); Learning Wrap-Ups, maker of educational manipulatives; and SmartLab Toys, maker of STEAM-based toys and games. EDC is also the exclusive United States MLM distributor of Usborne Publishing Limited ("Usborne") children's books. EDC-owned products are sold via 4,000 retail outlets and EDC and Usborne products are offered by independent brand partners who hold book showings through social media, book fairs with schools and public libraries, in individual homes, as well as other in-person events and internet sales. Contact:Educational Development CorporationCraig White, (918) 622-4522 Cautionary Statement for the Purpose of the "Safe Harbor" Provision of the Private Securities Litigation Reform Act of 1995. The information discussed in this Press Release includes "forward-looking statements." These forward-looking statements are identified by their use of terms and phrases such as "may," "expect," "estimate," "project," "plan," "believe," "intend," "achievable," "anticipate," "continue," "potential," "should," "could," and similar terms and phrases. Although we believe that the expectations reflected in these forward-looking statements are reasonable, they do involve certain assumptions, risks and uncertainties and we can give no assurance that such expectations or assumptions will be achieved. Known and unknown risks, uncertainties and other factors may cause our actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, our success in recruiting and retaining new brand partners, our ability to locate and procure desired books, our ability to ship the volume of orders that are received without creating backlogs, our ability to obtain adequate financing for working capital and capital expenditures, economic and competitive conditions, regulatory changes and other uncertainties, cybersecurity threats and incidents, the COVID-19 pandemic, as well as those factors discussed in our Annual Report on Form 10-K for the year ended February 28, 2026, all of which are difficult to predict. In light of these risks, uncertainties and assumptions, the forward-looking events discussed may not occur. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements in this paragraph and elsewhere in our Annual Report on Form 10-K for the year ended February 28, 2026 and speak only as of the date of this Press Release. Other than as required under the securities laws, we do not assume a duty to update these forward-looking statements, whether as a result of new information, subsequent events or circumstances, changes in expectations or otherwise. To view the source version of this press release, please visit https://www.newsfilecorp.com/release/304633

This article first appeared on GuruFocus. Release Date: May 19, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Educational Development Corp (NASDAQ:EDUC) has initiated a conservative purchasing plan to replenish best-selling out-of-stock items and introduce new titles, generating excitement in sales divisions. The company has successfully reduced inventory levels, generating $7 million in cash flow from inventory reductions. EDUC is focusing on attracting, onboarding, and retaining new brand partners, with a successful March Join Special adding 1,400 new brand partners. The company is investing in technology and platform enhancements to improve product discovery and customer experience, supporting long-term engagement and retention. EDUC has executed a strategic restructuring, including executive pay reductions and a small reduction in force, to improve financial stability and support growth. Net revenues for the fourth quarter decreased significantly to $4.2 million from $6.6 million in the prior year. The company reported a net loss of $3.1 million for the quarter, a decline of $1.8 million compared to the previous year. Average active PaperPie brand partners decreased to 4,500 from 9,400, indicating a decline in sales force engagement. EDUC had to make a $3.6 million reclassification of inventory from current to long-term due to declining sales, indicating slower inventory turnover. The company is still under pressure from bank restrictions, impacting its operational flexibility and financial decisions. Warning! GuruFocus has detected 5 Warning Signs with EDUC. Is EDUC fairly valued? Test your thesis with our free DCF calculator. Q: Could you talk a little bit about how much inventory was reduced in this quarter and the cash flow from the inventory reduction or from operations? A: Hi, Igor, this is Dan O'Keefe, CFO. I don't have that information right now, but we will be filing the 10-K later today, where you can find that information. However, Q4 is typically our softest quarter, and cash flow from inventory reductions and our earnings before losses for the quarter would have been close to netting even. Q: Are there any covenants on your revolving loan that would prevent you from buying back stock or paying dividends if your business improves? A: There are no covenants with the new $2 million line of credit. Q: I noticed an increase in revenue per partner despite the decline in the number of partners. Is this due to operational changes or because the remaining partners are more active? A: That's a great question. One trend we're seeing is the growth in in-person events, such as book fairs and in-home parties, which have contributed to higher sales per brand partner. Q: Do you consider any of your inventory unsellable, or are you exploring liquidation channels? A: We consider all our inventory sellable. The move to long-term inventory is not about writing off anything; it's just going to take longer to sell. We are exploring creative marketing ways to move inventory rather than participating in the remainder market, which offers low returns. Q: What kind of gross margin are you expecting for new titles, and what was your traditional margin? A: We aim to return to business as usual with gross margins closer to normal, around 10-15% discounting. Traditionally, our model involves selling a $10 book with a landed cost of $2.50, resulting in a $5 margin after commissions and costs. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was constrained by a lack of new product excitement over the last two years due to bank-imposed operating restrictions. Management is executing a conservative purchasing plan to replenish best-selling out-of-stock items and introduce new titles to re-engage the sales force. The decline in active brand partners to 4,500 is being addressed through a strategic focus on attracting Gen Z, who require revised recruiting and engagement methods. Operational efficiency is being targeted through the adoption of AI in system development and support tickets to limit future headcount growth. A strategic restructuring of office and warehouse staff, including executive pay reductions and a small reduction in force, was implemented at fiscal year-end. Management attributes a recent increase in revenue per partner to a shift toward in-person events, such as book fairs and home parties, as consumers seek analog experiences. The turnaround plan focuses on a 4 to 6 month lead time from purchase order to product availability, with most new titles expected to arrive by June. Fiscal 2027 strategy centers on attracting and retaining brand partners through strategically timed initiatives and platform enhancements for product discovery. The company expects to generate cash flow from inventory reductions to fund operations, supported by a new $2 million line of credit for growth opportunities. Management intends to move away from excessive discounting, targeting a return to historical gross margins as bank pressure has subsided. Future IT initiatives will focus on simplifying the customer journey and making it easier for brand partners to share products digitally. A $3.6 million reclassification of inventory from current to long-term was made due to declining sales volumes, though management maintains all inventory remains sellable. A one-time $1.5 million valuation allowance was recognized against net deferred tax assets, which impacted net earnings but had no cash flow impact. The company successfully resolved all debt with its previous bank following a building sale, removing significant operational overhang. Management explored the remainder market for slow-moving inventory but determined the 2% retail price recovery was not worth the resource investment. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that only approximately $500,000 of the $37.7 million inventory is considered for creative marketing exits. The company decided against the remainder market because returns were only about 2% of retail price, which was deemed an inefficient use of resources. The increase in revenue per partner despite falling partner counts is driven by a growth in in-person events like school book fairs and home parties. This trend aligns with a broader cultural shift toward intentional, analog, and screen-free educational experiences for families. Management expects gross margins to return to 'business as usual' levels, avoiding the 40% to 60% discounts previously used to satisfy bank cash flow requirements. The core business model targets a $5.00 margin on a $10.00 retail book that costs $2.50 to land, regardless of the sales channel used.

Image source: The Motley Fool. Tuesday, May 19, 2026, at 4:30 p.m. ET President and Chief Executive Officer — Craig White Chief Financial Officer — Dan O’Keefe Chief Sales and Marketing Officer — Heather Cobb Need a quote from a Motley Fool analyst? Email [email protected] Craig White: Thank you, Alan, and welcome, everyone, to the call. We appreciate your continued interest. I will start today's call with some general comments regarding the quarter, then I will pass the call over to Dan to run through the financials. After which Heather will provide an update on sales and marketing and IT projects, and then I will provide an update on our plans for fiscal 2027. Much of our fourth quarter was focused on our turnaround plan of selecting and ordering critical inventory. During the quarter, we began a conservative purchasing plan to replenish some of our best-selling out-of-stock items as well as purchased new titles. To remind everyone, it takes anywhere from 4 to 6 months from the time we issue a purchase order until the product is received and available for sale. I am pleased to report that we have received some of these replenishment and new titles and I've seen the excitement this has created in both our sales divisions. We are still expecting most of these new titles over the next few weeks and plan to showcase them at our annual convention in June. Heather will talk more about this in her marketing update. As I've said before, our turnaround plan is not an overnight change, but a carefully developed plan for growth over the next few quarters and years. With that, I'll now turn the call over to Dan O’Keefe to provide a brief overview of the financials. Dan O'Keefe: Thank you, Craig. To start our fourth quarter summary compared to the prior year fourth quarter, net revenues for the quarter were $4.2 million compared to $6.6 million. Average active PaperPie brand partners totaled 4,500 compared to 9,400. Loss before income taxes were $2.1 million, a $600,000 decline over the prior fiscal fourth quarter. Income tax for the quarter -- income tax expense for the quarter was $1 million due to a onetime valuation allowance of $1.5 million. Net loss for the quarter totaled $3.1 million, a decline of $1.8 million over the prior year fiscal fourth quarter. Loss per share totaled $0.37 compared to a loss per share of $0.16 on a fully diluted basis. Next to the fiscal year summary compared to the prior year, net revenues of $22.9 million compared to $34.2 million. Average active PaperPie brand partners totaled 5,800 compared to 12,300. Earnings before income taxes totaled $5.3 million, excluding the gain on the building sale of $12.2 million, the loss before income taxes were $6.9 million. Income tax expense was $3 million with an effective tax rate of 56.5% due to a onetime valuation allowance of $1.5 million. Net earnings totaled $2.3 million. Earnings per share totaled $0.27 compared to a loss of $0.63 last year on a fully diluted basis. Now for an update on our working capital. Inventory levels decreased from $44.7 million at the beginning of the fiscal year to $37.7 million at the end of the fiscal year, generating $7 million of cash flow from inventory reductions. At the end of the fiscal year, the company had approximately $1.3 million of cash on our balance sheet. I would also like to mention some unusual accounting adjustments made during the fourth quarter. First, due to our accounting policy surrounding classification of long-term inventory, coupled with our decline in sales, we made a $3.6 million reclass of inventory during the fourth quarter from current inventory to long-term inventory. The reclass had no P&L impact as it only means that we have a longer-term supply of titles, we continue to sell each month based on current sales volumes. As sales increase, we expect more and more inventory to be reclassed from long-term inventory to current inventory. Secondly, due to our historical losses prior to the fiscal 2026, our operational and our operational expectations during our turnaround period, we evaluated the need for a valuation allowance offsetting our net deferred tax assets. Based on this evaluation, we recognized a onetime valuation adjustment of $1.5 million to offset our net deferred tax assets. This adjustment had no cash flow impact but had a direct impact on our fourth quarter tax expense, net earnings and earnings per share. When the company returns to profitability, this valuation adjustment will be reversed. The reversal will have no cash flow impact, but will have a direct impact to our tax expense, net earnings and earnings per share. This concludes the financial update. I'll now turn the call over to Heather Cobb for a sales, marketing and IT update. Heather? Heather Cobb: Thanks, Dan. While our current results reflect the challenges of the past 2 years, we remain confident in both the direction of our strategy and the opportunity ahead of us. One of the clearest drivers of future growth for our business is growth on our PaperPie side through the brand partner community. As our active brand partner count increases, we count on that momentum to positively impact sales, customer engagement and overall business performance. For that reason, much of our sales and marketing focus in fiscal 2027 is centered on attracting, onboarding and retaining new brand partners while also continuing to engage existing leaders and teams. We were encouraged by the response to our March joint special, which produced meaningful engagement, adding almost 1,400 new brand partners, showing that there is still strong interest in our opportunity when paired with the right timing, messaging and product excitement. We have additional strategically timed initiatives planned throughout the year that are designed to support both recruiting and sales activities. At the same time, we are being intentional about protecting the long-term value of our products and our brand. We believe there is an important balance between offering thoughtful promotions or sales that meet consumer expectations while avoiding excessive discounting that can weaken our overall brand perception over time. Our strategy moving forward is focused on creating excitement and urgency in purposeful ways while continuing to reinforce the quality, educational value and uniqueness of our product offering. We also believe we are well positioned within a growing cultural shift towards more intentional and analog experiences. Parents and families are increasingly looking for opportunities to disconnect from constant screen time and reconnect through hands-on learning, reading, creativity and meaningful interaction. That trend aligns directly with who we have always been as a company. Our mission is creating the story of tomorrow through people, purpose and products continues to resonate and we believe our educational books, games and learning resources meet an important need in today's marketplace. As Craig mentioned earlier, the arrival of new titles and replenishment inventory has already generated renewed excitement across both of our sales channels. Combined with our continued investment in technology and enterprise-level initiatives, we believe we are building a stronger foundation for long-term growth. Our IT and marketing teams are actively developing tools and platform enhancements designed to simplify how brand partners share our products while also creating a more seamless and enjoyable customer experience. Upcoming initiatives include a variety of platform enhancements, focused on improving product discovery, streamlining and personalizing the customer journey, expanding functionality for both brand partners and customers and supporting long-term engagement and retention. While we continue to adapt to changes in consumer behavior and the direct selling landscape as a whole, our overall strategy remains consistent, increase our retail presence, strengthen the brand partner experience, provide exceptional products that support literacy and learning and create sustainable growth through community connection and product sharing. And one of the best ways that we do that, and Craig referenced it earlier is through our National Convention that happens each year. Next month, we will have several hundred brand partners come into Tulsa to hear from speakers like Rory Vaden, 2 of our Kane Miller author and creators and we'll spend an entire weekend focusing on solving the problem of disconnection with a way to connect with both their customers, new hosts and next team member. We understand that turnarounds take time, and we are encouraged by the progress that we are making and confident in the path ahead. Our team remains deeply committed to the mission of this company, and we believe that, that commitment, combined with strategic execution and renewed sales force growth positions us to build momentum throughout fiscal 2027 and beyond. Now I will turn the call back over to Craig. Craig White: Thank you, Heather and Dan. As Dan mentioned, we had some unusual adjustments during the quarter but expect these to improve our results in the future with the execution of our turnaround plan. During the last couple of years, we have been challenged to operate our business under restrictions from our bank. I am excited about the position we are in today and the plan for growth in fiscal 2027. While we need to execute on our plan that increases sales and therefore, cash, we're putting the most focus on increasing our brand partner counts and retaining existing brand partners. Over the last 2 years, our sales force has been anxious and waiting to see what will happen. A major factor for the reduced activity has been the lack of new products for them to get excited about for the last 2 years. As I mentioned initially, we have already received a few of these new titles and are seeing the sales excitement from both of our sales channels. We have continued to work with our vendors and are very excited about what is recently been presented to us for release in the new year. As always, and as you heard extensively from Heather, increasing our brand partner count is a big part of our overall strategy, and that means putting consistent effort toward attracting Gen Z. This new generation is challenging, not just for our company, but all companies in the direct selling industry to revise the recruiting and engagement methods. Many of our recent IT initiatives are focused on getting Gen Z to join as new brand partners by making it easier to do business with us. They work and shop differently, and we are well positioned to meet them where they are. These are revisions to our existing model that's certainly not an overhaul. We are evaluating programs and systems that haven't brought enough of a return and trying new tactics in new markets. We are embracing AI not as a strategy to eliminate or replace employees but to become more effective so that as we grow, we do not have to hire as many new employees. We are already seeing returns in system development or coding and basic inquiries to support tickets. I also want to make sure everyone understands that we expect to generate cash flow from inventory reductions to fund operations. Having said this, we executed a new agreement for a $2 million line of credit with our new bank to ensure we have the cash needed for growth. And although we are currently not using line and have a higher cash balance than we had at year-end, this line ensures we can capitalize on new opportunities. Also, at the end of the fiscal year, as the next step in our turnaround plan, we executed a strategic restructuring of our office and warehouse staff, including executive pay reductions, a small reduction in force along with other expense reductions. Lastly, I want to thank all of our shareholders for their patience, our employees, customers and brand partners for their commitment to our mission and our vendors for their willingness to stick with us. I am confident in our collective ability to emerge stronger and more resilient than ever before because I really believe we are tackling our growth from a plan -- our growth plan from a position of strength. While we were doing what we had to do to satisfy the bank, we are also thinking and planning for when we are out from under their control and continue to build. Now that we have provided a summary of some recent activity, I will now turn the call back over to Alan for question and answer. Alan? Operator: [Operator Instructions]. Your first question comes from Igor Novgorodtsev of Lares Capital. Igor Novgorodtsev: Thank you for taking my question and pronouncing my last name correctly. I have 2 questions. Unfortunately, I cannot see for some reason, your balance sheet on your press release. Could you talk a little bit how much inventory was reduced in this quarter? And as related to this, how much was the cash flow from the inventory reduction from operations. Dan O'Keefe: This is Dan O’Keefe. I'm sorry, I don't have that information for you right now. We will be filing the 10-K later today. And you can obviously glean that from the 10-K coming out. Igor Novgorodtsev: Okay. Fair enough. But would it be fair to say that the cash flow still stayed positive in Q4? Dan O'Keefe: Well, Q4 is typically our softest quarter that in the summer months, which is Q2, our 2 softest quarters of the year. So I would say that cash flow, when you look at inventory reductions and our losses for the -- our earnings before losses for the quarter would have been close to netting even. Igor Novgorodtsev: Okay. Fair enough. I'll just wait for your 10-K. My next question is, I appreciate that you take a revolving loan just in case, and it's actually nice to know. So hopefully, that shows to -- points towards the improvement of your business. But are there any covenants on your revolving loan than if your business improves enough doesn't allow you to buy stock back or pay a dividend to the shareholders? Or there is no such covenants? Dan O'Keefe: There are no covenants with the new $2 million line of credit. Igor Novgorodtsev: Okay. Excellent. Again, it's a little bit too early. I understand you just removed your biggest problem is the overhang from the loan. But did you have already made any improvements to your inventory or your operations in this quarter or that you basically just didn't have a time or given that this is the weakest quarter traditionally, these will not see the results until the next quarter? Craig White: Okay. So we touched on it briefly. But once we sold the building and knew we were going to be able to resolve all of our debt with our previous bank, we executed a Phase 1 of our purchasing plan, which is a very conservative $0.5 million in purchases, which was executed in the fourth quarter. We are kind of just now seeing new titles come in. But as we see the results of selling new titles, we've already kind of started our Phase 2, which is another $0.5 million. Does that answer your question? Igor Novgorodtsev: Yes. Somewhat -- okay. Sorry, somebody was adding something, I believe? Can I just continue? Is it okay? Unknown Executive: Yes. Igor Novgorodtsev: I just run a quick numbers on your revenue per partner, and I know that's an interesting trend in the last 2 quarters, your revenue per partner actually increased, like if you do the comparable revenue per partner, it's actually increasing and despite the account of the partner is falling, the revenue is increasing. Is that because there is something operationally changed about the partners or simply the partners that remained as the most active ones? Heather Cobb: That's a great question. One of the trends that we're seeing that tends to mean slightly higher sales per brand partner is the growth in our in-person events that are happening whether that's book fairs, inside schools or in-person booths and things like that, which even goes back to what I mentioned in my report of moving from digital to analog. Some people are having even more in-person home parties, which we haven't done in several years. And so we believe that, that trend that you are referencing point back to the growth of these in-person events. Igor Novgorodtsev: Okay. That's great to know. And my last question, and hopefully, it's not a long question. Given that you have such a large inventory, do you consider any of your inventory unsellable or you try to basically go for some inventory put through liquidation channels? Or you think that it's just slow moving and it will just take time, but everything is potentially sellable still? Craig White: Yes. We consider everything salable still. And that's why I want to reiterate the move to long-term inventory. It's not that we're going to have to write off anything at all. It's still all good sellable inventory is just going to take a little longer. That being said, we make mistakes in purchasing every now and again. It happens very, very rarely. We're kind of exploring the remainder market, but the returns are just not worth it. So while we're looking into it, it's very unlikely that we'll participate in the remainder of market. Yes, we're looking at other creative marketing ways to move this inventory. And it's more of a kind of one-off here and there of the things that are more highly inventory. Operator: Your next question comes from Paul Carter of Capstone Asset Management. Paul Carter: Craig, your comments about exploring the remainder market [indiscernible] say that. Is there -- can you provide some numbers around that, like what percentage of your long-term inventory are you thinking about in ways such as that? Craig White: Well, yes, no, the creative marketing ways were as opposed to the remainder market. We looked into it, it's just not worth our time. We're just going to find other ways. As an example, just some quotes that we got back, we get like 2% of the retail price. It's just not even remotely worth it. So we're not going to participate in that. Heather Cobb: Paul, I'll jump into you and say that in our meetings, one of the points of conversation that was important to us that may be important to you is using our time and energy and resources on this as a potential short-term or one-off strategy didn't seem like our best use of resources. And so since this wasn't going to be an ongoing strategy for us, once we discovered that it wasn't going to be worth it, we just aren't really pursuing it. Paul Carter: Okay. Fair enough. And maybe more to that point, is -- of my question is sort of how much of your $37.7 million of inventory [indiscernible] characterize as inventory that you don't -- that you would want to maybe get rid [indiscernible] obviously not through the remainder of market. Obviously, you looked at the remainder market because you felt there was a sufficient amount of inventory that may be [indiscernible]. Can you just give us some numbers around what that is and what that is? Craig White: No. It's roughly in the neighborhood of $500,000. I mean, it's not even a big part of our inventory. Paul Carter: Okay. No, that's great. And then Craig, you mentioned in the press release throughout fiscal '26, you continue to run promotions with -- pricing, prioritizing cash flow, et cetera. And I know that was obviously driven [indiscernible] driven by the bank. Was that the case in Q4 or maybe -- I'm sorry, I missed a little bit of your earlier comments, maybe you already talked [indiscernible] what was your gross margin change year-over-year [indiscernible] the fourth quarter? Dan O'Keefe: Yes. We haven't disclosed gross margin yet, Paul. And I don't have that information right in front of me, but I'm thinking back to the fourth quarter, Heather, did we run some promotional sales in December, January and February. Heather Cobb: Yes. I mean there's always some sort of saving shelf-type promotions. It's not one of the quarters that we typically do large sales. I will say that oftentimes, our Black Friday sale trickles over into the fourth quarter just because of when the date falls on the calendar. So that can have them impact there. Paul Carter: But would you say that the whatever promotional activity you have been experiencing, obviously, as not -- you're not feeling the pressure of the bank anymore. So that [indiscernible] coming back -- kind of normal, would you say? Heather Cobb: Yes. That's kind of what I was alluding to when I talked about trying to meet consumer expectations, which even on the other side of it as a consumer, I like to shop a good sale. But putting out there the fact that our books are so reasonably priced with an average price point hovering right around, if not below $10, not discounting ourselves and the value that we can offer even at regular price. And so we're trying to temper that by not throwing as many large-scale promotional sales out at them, but more falling in line with the traditional timing of the Black Friday sale or a Summer Blowout or something like that. It's kind of expected, but not negatively impacting our business side of things. Paul Carter: Okay. And then just lastly, regarding [indiscernible] admittedly, 4,500 is lower than if [indiscernible] a couple of years ago, and that's obviously [indiscernible]. It sounds like the March joint special that you mentioned -- positively. Is it kind of [indiscernible] the current quarter average active brand partner count might be higher than 4,500? Heather Cobb: The fourth quarter that we just reported on or the current quarter that we're working on. Paul Carter: The quarter we're in right now, the March, April quarter. Heather Cobb: Yes. I mean as always, and you're familiar with how this works, we constantly have ins and outs of people coming. We have been energized and hopeful about what we saw with what happened in March and are focusing even more than normal on not only bringing those people in, but also retaining them. And so I do think that we will see more of a balance shift to more coming and staying than we have losing. Paul Carter: Okay. Great. Thanks very much, everybody. Craig White: Thanks, Paul. Operator: [Operator Instructions]. There are no further questions at this time. I would hand over the call to Craig White for closing comments. Please go ahead. Craig White: Yes. It looks like maybe Igor jumped in late. Do we want to -- I'm happy to take his question. Operator: Sure, no problem. Go ahead and Igor Novgorodtsev of Lares Capital for the next question. Your line is already open. Igor Novgorodtsev: Sorry, I jumped in a little bit late. Yes, I just have a couple of follow-up questions. So now that you're going to start getting finally new titles, what kind of gross margin you're thinking about if we just said the old titles also side, just purely for the new titles? What would you consider like for your new businesses, acceptable gross margin? Craig White: Well, hopefully getting back to more business as usual, if we're not discounting and when we've talked about discounting to satisfy the bank, we were talking about 40%, 50%, 60% discounting, and that's absolutely not normal. So if we do kind of some not normal discounting to meet customers' expectations, it's going to be in the 10% to 15% range. So our gross margins are going to be getting closer back to business as usual. Igor Novgorodtsev: What was your traditional margin like over the years? Dan O'Keefe: So Igor, we have kind of a pretty simple model. As Heather said, our average book is $10. The average cost -- landed cost of that book is $2.50. And when we sell it through the retail division like Barnes & Noble or Ingram's or one of our retail customers, we sell that $10 book to them for $5 and they sell it for $10 to their customers and they make $5 and we get $5 on that $2.50 book. When we sell it through PaperPie, we typically sell it for the retail price of $10. But we pay out commissions to the salespeople and overrides to the leadership team of about $5. So on both -- in both sales channels, we get $5 for a $10 book that cost $2.50 and then -- and we have $2.50 to run our business on. Igor Novgorodtsev: Right. This is very, very helpful. My other question is about... Craig White: Do we lose Igor? Heather Cobb: I think we lost him. Craig White: Well, all right. Somebody let Igor know he can e-mail me. Operator: Are there no further questions at this time, I would hand over the call to Craig White for closing remarks. Please go ahead. Craig White: Yes. I have nothing else to add. I appreciate everyone's questions and the interest in the call. So thank you for joining us, and have a good day. We'll talk to you in July. Thanks. Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation, and you may now disconnect. Before you buy stock in Educational Development, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Educational Development wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $481,750!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,352,457!* Now, it’s worth noting Stock Advisor’s total average return is 990% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 20, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Educational Development (EDUC) Q4 2026 Earnings Transcript was originally published by The Motley Fool

Tulsa, Oklahoma--(Newsfile Corp. - May 19, 2026) - Educational Development Corporation (NASDAQ: EDUC) ("EDC", or the "Company"), a publishing company specializing in books and educational products for children, today reports financial results for the fiscal fourth quarter and fiscal year ended February 28, 2026.Fiscal Year Summary Compared to the Prior Year Net revenues of $22.9 million compared to $34.2 million. Average active PaperPie Brand Partners totaled 5,800 compared to 12,300. Earnings before income taxes totaled $5.3 million. Excluding the gain on the building sale of $12.2 million, loss before income taxes were $(6.9) million. Income tax expense was $3.0 million, with an effective tax of 56.5%, due to a one-time valuation allowance of $1.5 million. Net earnings totaled $2.3 million. Earnings (loss) per share totaled $0.27, compared to a loss of $(0.63), on a fully diluted basis. Fourth Quarter Summary Compared to the Prior Year Fourth Quarter Net revenues for the quarter were $4.2 million compared to $6.6 million. Average active PaperPie Brand Partners totaled 4,500 compared to 9,400. Loss before income taxes were $(2.1) million, a $0.6 million decline over the prior fiscal fourth quarter. Income tax expense was $1.0 million due to a one-time valuation allowance of $1.5 million. Net Loss totaled $(3.1) million a decline of $1.8 million over the prior fiscal fourth quarter. Loss per share totaled $(0.37) compared to loss per share of $(0.16), on a fully diluted basis. Per Craig White, Chief Executive Officer, "Throughout fiscal 2026, we continued to run promotions with discounted pricing, strategically prioritizing cash flow over profitability to reduce debt and lower inventory as part of our plan with the bank. These tactical decisions helped us reduce our bank debts and past due invoices with our vendors. Remember, during the third quarter of fiscal 2026, we completed the sale of the Hilti Complex for $32.2 million. The cash flow we produced coupled with the proceeds from that transaction allowed us to completely pay off our bank borrowings totaling $30.9 million and we now remain debt free." "During fiscal 2026, we reduced our inventory levels from $44.7 million to $37.7 million, generating $7.0 million of cash flows. Although we are debt free, we remain focused on reducing our excess inventory and the cash flow generated from inventory reductions is expected to further bolster our financial position. Our company has always taken a conservative approach to operations, and we believe the cash flow gained from reducing surplus inventory and our cost cutting efforts position us well for future growth and performance." "While completing the sale of the Hilti Complex and eliminating our interest and bank debts were our first priority, we have also continued to focus on reducing our operating expenses. At the end of the fiscal year, as the next step in our turn-around plan, we executed a strategic restructuring of our office and warehouse staff, including executive pay reductions, a small reduction in force, along with other expense reductions. The total saving to our general and administrative expenses should exceed $1.2 million in fiscal 2027, giving us the flexibility to continue our conservative purchasing plan which is expected to energize both of our sales divisions. I am glad to say that we have begun releasing new titles in early fiscal 2027 and are looking to add additional new titles this summer and fall. In addition, we announced a new $2.0 million Line of Credit with Regent Bank. This line gives us additional working capital, should we need it, to assist with the pace of our planned growth." "I am proud of the efforts of our team to stay focused during this challenging period of high inflation and the resulting reduced disposable income of our customers." EDUCATIONAL DEVELOPMENT CORPORATIONCONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) Fiscal 2026 Earnings Call Date: Tuesday, May 19, 2026Time: 3:30 PM CT (4:30 PM ET)Dial-in number: (800) 717-1738Conference ID: 58335 The conference call will be broadcast live and audio replays will be available following the event at www.edcpub.com/investors.About Educational Development Corporation (EDC) EDC began as a publishing company specializing in books for children. EDC is the owner and exclusive publisher of Kane Miller Books ("Kane Miller"); Learning Wrap-Ups, maker of educational manipulatives; and SmartLab Toys, maker of STEAM-based toys and games. EDC is also the exclusive United States MLM distributor of Usborne Publishing Limited ("Usborne") children's books. EDC-owned products are sold via 4,000 retail outlets and EDC and Usborne products are offered by independent brand partners who hold book showings through social media, book fairs with schools and public libraries, in individual homes, as well as other in-person events and internet sales. Contact:Educational Development CorporationCraig White, (918) 622-4522 Cautionary Statement for the Purpose of the "Safe Harbor" Provision of the Private Securities Litigation Reform Act of 1995. The information discussed in this Press Release includes "forward-looking statements." These forward-looking statements are identified by their use of terms and phrases such as "may," "expect," "estimate," "project," "plan," "believe," "intend," "achievable," "anticipate," "continue," "potential," "should," "could," and similar terms and phrases. Although we believe that the expectations reflected in these forward-looking statements are reasonable, they do involve certain assumptions, risks and uncertainties and we can give no assurance that such expectations or assumptions will be achieved. Known and unknown risks, uncertainties and other factors may cause our actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, our success in recruiting and retaining new brand partners, our ability to locate and procure desired books, our ability to ship the volume of orders that are received without creating backlogs, our ability to obtain adequate financing for working capital and capital expenditures, economic and competitive conditions, regulatory changes and other uncertainties, the COVID-19 pandemic, as well as those factors discussed in our Annual Report on Form 10-K for the year ended February 28, 2026, all of which are difficult to predict. In light of these risks, uncertainties and assumptions, the forward-looking events discussed may not occur. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements in this paragraph and elsewhere in our Annual Report on Form 10-K for the year ended February 28, 2026 and speak only as of the date of this Press Release. Other than as required under the securities laws, we do not assume a duty to update these forward-looking statements, whether as a result of new information, subsequent events or circumstances, changes in expectations or otherwise. To view the source version of this press release, please visit https://www.newsfilecorp.com/release/298021

Tulsa, Oklahoma--(Newsfile Corp. - April 21, 2026) - Educational Development Corporation (NASDAQ: EDUC) ("EDC", or the "Company") (http://www.edcpub.com) today announces the time and date of their fiscal year 2026 earnings call, as well as the date of the Annual Shareholders Meeting and record date for Shareholder Proxy vote. EDC will host its Fiscal Year 2026 Earnings Call, including a live Q&A webcast, on Tuesday, May 19, 2026 at 3:30 PM CT (4:30 PM ET). Craig White, Chief Executive Officer and President, Heather Cobb, Chief Sales and Marketing Officer, Dan O'Keefe, Chief Financial Officer, and Secretary, will present the Company's year-end results and be available for questions following the presentation. Phone lines for participants will be available at (800) 717-1738. The Conference ID is 58335. Audio replays will be available following the event at www.edcpub.com/investors. The Annual Meeting of Shareholders of Educational Development Corporation will be held on July 8, 2026, at 10:00 AM CT (11:00 AM ET) at the Corporate Offices, 5402 S. 122nd E. Ave. in Tulsa, Oklahoma. Shareholders of record at the close of business on May 19, 2026 are entitled to vote on annual proxy matters and to participate in the Annual Meeting. On or around May 28, 2026, we will mail the Important Notice Regarding the Availability of Proxy Materials (the "Notice") to all shareholders of record at the close of business on May 19, 2026 and post our proxy materials on our website. As described in the Notice, you may request a printed set of proxy materials, including our Annual Report and Form 10-K for the fiscal year ended February 28, 2026, if you do not wish to access the materials on our website. In addition, the Notice will provide information regarding how you may request to receive proxy materials by mail or by email on an ongoing basis. About Educational Development Corporation (EDC) EDC began as a publishing company specializing in books for children. EDC is the owner and exclusive publisher of Kane Miller Books ("Kane Miller"); Learning Wrap-Ups, maker of educational manipulatives; and SmartLab Toys, maker of STEAM-based toys and games. EDC is also the exclusive United States MLM distributor of Usborne Publishing Limited ("Usborne") children's books. EDC-owned products are sold via 4,000 retail outlets and EDC and Usborne products are offered by independent brand partners who hold book showings through social media, book fairs with schools and public libraries, in individual homes, as well as other in-person events and internet sales. Contact: Educational Development Corporation Craig White, (918) 622-4522 To view the source version of this press release, please visit https://www.newsfilecorp.com/release/293684

Tulsa, Oklahoma--(Newsfile Corp. - January 8, 2026) - Educational Development Corporation (NASDAQ: EDUC) ("EDC", or the "Company"), a publishing company specializing in books and educational products for children, today reports financial results for the fiscal third quarter ended November 30, 2025. Third Quarter Summary Compared to the Prior Year Third Quarter Net revenues were $7.0 million compared to $11.1 million. Average active PaperPie Brand Partners totaled 5,100 compared to 12,400. Earnings (loss) before income taxes were $10.6 million, compared to $(1.1) million. Excluding the gain on the building sale of $12.2 million, loss before income taxes were $(1.6) million. Net earnings (loss) totaled $7.8 million, compared to $(0.8) million. Earnings (loss) per share totaled $0.91 compared to $(0.10) on a fully diluted basis. Year-to-Date Summary Compared to the Prior Year Net revenues of $18.7 million, compared to $27.6 million. Average active PaperPie Brand Partners totaled 6,200 compared to 13,300. Earnings (loss) before income taxes of $7.4 million, compared to $(5.3) million. Excluding the gain on the building sale of $12.2 million, loss before income taxes were $(4.8) million. Net earnings (loss) totaled $5.4 million, compared to $(3.9) million. Earnings (loss) per share totaled $0.63 compared to $(0.47) on a fully diluted basis. Per Craig White, Chief Executive Officer, "During the third quarter we completed the strategic sale and lease back of the Company's headquarters and distribution warehouse (the "Hilti Complex") to 10Mark 10K Industrial, LLC. The agreed upon sale price of the Hilti Complex per the executed Contract totaled $32,200,000. This was a major accomplishment for the Company as the proceeds from the sale were utilized to pay off the Term Loans and Revolving Loan outstanding in the Credit Agreement with the Company's Bank. At closing, EDC assigned the existing third-party tenant leases to the Buyer and executed separate Triple-Net Lease (the "Lease") for its occupied space in the Hilti Complex. With no remaining principal and interest payments, offset by our new lease and rental income from past tenants, our annual cash flow generation will immediately improve by approximately $1.0 million. In addition, the sale helps us realign with our core goals of returning to cash flow positive, get back to purchasing new titles and content for our consultants, and ultimately focus on the growth of our PaperPie division. Lasty, we retained the 17-acre tract of excess land adjacent to the complex, valued at $2.0 million, further enhancing our balance sheet." "Operationally, during the third quarter, we reduced our overall inventory levels by $1.5 million and increased our cash position. At the end of the quarter, we had $3.4 million of cash on our balance sheet, which provides the liquidity necessary to take us into fiscal 2027. Subsequent to quarter end, we began a strategic and conservative purchase plan to bring in new titles which we expect will energize our sales force and allow us to execute our strategic growth plan. We are excited about where we are today and are glad to put the past several years of operating under bank restrictions behind us. I would like to thank our stakeholders for your ongoing support including our Brand Partners, Customers, Employees vendors and shareholders." EDUCATIONAL DEVELOPMENT CORPORATION CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) Fiscal 2026 Third Quarter Earnings Call Date: Thursday, January 08, 2026 Time: 3:30 PM CT (4:30 PM ET) Dial-in number: (800) 717-1738 Conference ID: 60621 The conference call will be broadcast live and audio replays will be available following the event at www.edcpub.com/investors. About Educational Development Corporation (EDC) EDC began as a publishing company specializing in books for children. EDC is the owner and exclusive publisher of Kane Miller Books ("Kane Miller"); Learning Wrap-Ups, maker of educational manipulatives; and SmartLab Toys, maker of STEAM-based toys and games. EDC is also the exclusive United States MLM distributor of Usborne Publishing Limited ("Usborne") children's books. EDC-owned products are sold via 4,000 retail outlets and EDC and Usborne products are offered by independent brand partners who hold book showings through social media, book fairs with schools and public libraries, in individual homes, as well as other in-person events and internet sales. Contact: Educational Development Corporation Craig White, (918) 622-4522 Cautionary Statement for the Purpose of the "Safe Harbor" Provision of the Private Securities Litigation Reform Act of 1995. The information discussed in this Press Release includes "forward-looking statements." These forward-looking statements are identified by their use of terms and phrases such as "may," "expect," "estimate," "project," "plan," "believe," "intend," "achievable," "anticipate," "continue," "potential," "should," "could," and similar terms and phrases. Although we believe that the expectations reflected in these forward-looking statements are reasonable, they do involve certain assumptions, risks and uncertainties and we can give no assurance that such expectations or assumptions will be achieved. Known and unknown risks, uncertainties and other factors may cause our actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, our success in recruiting and retaining new brand partners, our ability to locate and procure desired books, our ability to ship the volume of orders that are received without creating backlogs, our ability to obtain adequate financing for working capital and capital expenditures, economic and competitive conditions, regulatory changes and other uncertainties, cybersecurity threats and incidents, the COVID-19 pandemic, as well as those factors discussed in our Annual Report on Form 10-K for the year ended February 28, 2025, all of which are difficult to predict. In light of these risks, uncertainties and assumptions, the forward-looking events discussed may not occur. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements in this paragraph and elsewhere in our Annual Report on Form 10-K for the year ended February 28, 2025 and speak only as of the date of this Press Release. Other than as required under the securities laws, we do not assume a duty to update these forward-looking statements, whether as a result of new information, subsequent events or circumstances, changes in expectations or otherwise. To view the source version of this press release, please visit https://www.newsfilecorp.com/release/279862