Scholastic reports fiscal first quarter operating loss

Scholastic Corporation reported a wider adjusted operating loss for its fiscal 2027 first quarter, which ended August 31, 2026. Revenue for the period declined 4% to $216.8 million, down from $225.6 million in the previous year. The company recorded an operating loss of $92.2 million, while the adjusted operating loss was $88.7 million.

Despite the decline, the company reaffirmed its full-year guidance. CEO Peter Warwick noted that the first quarter is typically the smallest revenue period due to schools being out of session. He highlighted positive momentum in Book Fair bookings and a strong publishing and franchise schedule heading into the back-to-school and holiday seasons.

Financial performance varied across segments. While the Entertainment division saw growth in production activity and pipeline expansion, the Education segment faced pressure from tightening school and district budgets. The company also noted that the operating loss included the full-period impact of sale-leaseback transactions.