Technology

Silicon Labs Reports Second Quarter 2024 Results

Published

2 years ago

July 24, 2024

Wireless IoT leader delivers strong second-quarter growth

AUSTIN, Texas, July 24, 2024 /PRNewswire/ — Silicon Labs (NASDAQ: SLAB), a leader in secure, intelligent wireless technology for a more connected world, reported financial results for the second quarter, which ended June 29, 2024.

“Silicon Labs delivered another quarter of strong sequential growth, driven by a combination of design wins ramping to production in several key growth areas, and end customers working down their excess inventory,” said Matt Johnson, President and Chief Executive Officer at Silicon Labs. “Looking forward, we expect revenue growth to continue in the third quarter as excess inventory is further reduced, design wins continue ramping, and bookings improve.”

Second Quarter Financial Highlights

Revenue was $145 millionIndustrial & Commercial revenue for the quarter was $88 millionHome & Life revenue for the quarter was $57 million

Results on a GAAP basis:

GAAP gross margin was 53%GAAP operating expenses were $125 millionGAAP operating loss was $48 millionGAAP diluted loss per share was $(2.56)

Results on a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, and certain other items as set forth in the below GAAP to Non-GAAP reconciliation tables were as follows:

Non-GAAP gross margin was 53%Non-GAAP operating expenses were $102 millionNon-GAAP operating loss was $25 millionNon-GAAP diluted loss per share was $(0.56)

Business Highlights

Due to popular demand, Silicon Labs is expanding its fifth annual Works With Developers Conference this fall with live events in San Jose, Hyderabad, and Shanghai. Each event’s agenda is tailored to regional market needs and covers key IoT topics like Matter, Smart Cities, AI and Machine Learning, and Security.Announced Silicon Labs’ new xG22E family of wireless SoCs, its first-ever family designed to operate within the ultra-low power envelope required for battery-free, energy harvesting applications. The new family consists of the BG22E, MG22E, and FG22E. As Silicon Labs’ most energy-efficient SoCs to date, all three SoCs will enable IoT device makers to build high-performance, Bluetooth Low Energy (LE), 802.15.4-based, or proprietary 2.4GHz. wireless devices for battery-optimized and battery-free devices that can harvest energy from external sources in their environments like indoor or outdoor ambient light, ambient radio waves, and kinetic motion.

Business Outlook

The company expects third-quarter revenue to be between $160 to $170 million. The company also estimates the following results:

On a GAAP basis:

GAAP gross margin to be between 54% to 56%GAAP operating expenses of approximately $123 million to $125 millionGAAP diluted loss per share per share between $(0.95) to $(1.25)

On a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, and certain other items as set forth in the reconciliation tables:

Non-GAAP gross margin to be between 54% to 56%Non-GAAP operating expenses of approximately $101 million to $103 millionNon-GAAP diluted loss per share between $(0.10) to $(0.30)

Earnings Webcast and Conference Call

Silicon Labs will host an earnings conference call to discuss the quarterly results and answer questions at 7:30 am CDT today. An audio webcast will be available on Silicon Labs’ website (www.silabs.com) under Investor Relations. In addition, the company will post an audio recording of the event at investor.silabs.com and make a replay available through August 24, 2024.

About Silicon Labs

Silicon Labs (NASDAQ: SLAB) is a leader in secure, intelligent wireless technology for a more connected world. Our integrated hardware and software platform, intuitive development tools, thriving ecosystem, and robust support make us an ideal long-term partner in building advanced industrial, commercial, home and life applications. We make it easy for developers to solve complex wireless challenges throughout the product lifecycle and get to market quickly with innovative solutions that transform industries, grow economies, and improve lives. silabs.com

Forward-Looking Statements

This press release contains forward-looking statements based on Silicon Labs’ current expectations. The words “believe”, “estimate”, “expect”, “intend”, “anticipate”, “plan”, “project”, “will”, and similar phrases as they relate to Silicon Labs are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silicon Labs and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are the following: the competitive and cyclical nature of the semiconductor industry; the challenging macroeconomic environment, including disruptions in the financial services industry; geographic concentration of manufacturers, assemblers, test service providers and customers in Asia that subjects Silicon Labs’ business and results of operations to risks of natural disasters, epidemics or pandemics, war and political unrest; risks that demand and the supply chain may be adversely affected by military conflict (including in the Middle East, and between Russia and Ukraine), terrorism, sanctions or other geopolitical events globally (including in the Middle East, and conflict between Taiwan and China); risks that Silicon Labs may not be able to maintain its historical growth; quarterly fluctuations in revenues and operating results; difficulties developing new products that achieve market acceptance; risks associated with international activities (including trade barriers, particularly with respect to China); intellectual property litigation risks; risks associated with acquisitions and divestitures; product liability risks; difficulties managing and/or obtaining sufficient supply from Silicon Labs’ distributors, manufacturers and subcontractors; dependence on a limited number of products; absence of long-term commitments from customers; inventory-related risks; difficulties managing international activities; risks that Silicon Labs may not be able to manage strains associated with its growth; credit risks associated with its accounts receivable; dependence on key personnel; stock price volatility; the impact of COVID-19 on the U.S. and global economy; debt-related risks; capital-raising risks; the timing and scope of share repurchases and/or dividends; average selling prices of products may decrease significantly and rapidly; information technology risks; cyber-attacks against Silicon Labs’ products and its networks; risks associated with any material weakness in our internal controls over financial reporting; and other factors that are detailed in the SEC filings of Silicon Laboratories Inc. Silicon Labs disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. References in this press release to Silicon Labs shall mean Silicon Laboratories Inc.

Note to editors: Silicon Laboratories, Silicon Labs, the “S” symbol, and the Silicon Labs logo are trademarks of Silicon Laboratories Inc. All other product names noted herein may be trademarks of their respective holders.

Silicon Laboratories Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

Three Months Ended

Six Months Ended

June 29,
2024

July 1,
2023

June 29,
2024

July 1,
2023

Revenues

$ 145,367

$ 244,866

$ 251,742

$ 491,653

Cost of revenues

68,784

101,091

120,090

194,018

Gross profit

76,583

143,775

131,652

297,635

Operating expenses:

Research and development

85,909

85,902

166,559

175,298

Selling, general and administrative

38,695

40,706

72,248

85,597

Operating expenses

124,604

126,608

238,807

260,895

Operating income (loss)

(48,021)

17,167

(107,155)

36,740

Other income (expense):

Interest income and other, net

2,790

7,780

5,522

12,616

Interest expense

(263)

(1,596)

(772)

(3,252)

Income (loss) before income taxes

(45,494)

23,351

(102,405)

46,104

Provision for income taxes

36,663

12,338

36,278

20,091

Equity-method loss

—

(57)

—

(1,090)

Net income (loss)

$ (82,157)

$ 10,956

$ (138,683)

$ 24,923

Earnings (loss) per share:

Basic

$ (2.56)

$ 0.35

$ (4.33)

$ 0.78

Diluted

$ (2.56)

$ 0.33

$ (4.33)

$ 0.75

Weighted-average common shares outstanding:

Basic

32,124

31,614

32,018

31,786

Diluted

32,124

32,926

32,018

33,339

Non-GAAP Financial Measurements

In addition to the GAAP results provided throughout this document, Silicon Labs has provided non-GAAP financial measurements on a basis excluding non-cash and other charges and benefits. Details of these excluded items are presented in the tables below, which reconcile the GAAP results to non-GAAP financial measurements.

The non-GAAP financial measurements do not replace the presentation of Silicon Labs’ GAAP financial results. These measurements provide supplemental information to assist management and investors in analyzing Silicon Labs’ financial position and results of operations. Silicon Labs has chosen to provide this information to investors to enable them to perform meaningful comparisons of past, present and future operating results and as a means to emphasize the results of core on-going operations.

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share data)

Three Months Ended

June 29, 2024

Non-GAAP Income Statement Items

GAAP

Measure

GAAP

Percent of

Revenue

Stock

Compensation

Expense

Intangible
Asset

Amortization

Termination
Costs

Non-GAAP

Measure

Non-GAAP

Percent of

Revenue

Revenues

$ 145,367

Gross profit

76,583

52.7 %

$ 412

$ —

$ 76,995

53.0 %

Research and development

85,909

59.1 %

10,217

6,061

902

68,729

47.3 %

Selling, general and administrative

38,695

26.6 %

5,215

106

33,355

22.9 %

Operating expenses

124,604

85.7 %

15,432

6,080

1,008

102,084

70.2 %

Operating income (loss)

(48,021)

(33.0 %)

15,844

6,080

1,008

(25,089)

(17.3 %)

Three Months Ended

June 29, 2024

Non-GAAP Loss Per Share

GAAP

Measure

Stock

Compensation

Expense*

Intangible

Asset

Amortization*

Termination

Costs*

Income

Tax

Adjustments

Non-

GAAP

Measure

Net income (loss)

$ (82,157)

$ 15,844

$ 6,080

$ 1,008

$ 41,176

$ (18,049)

Diluted shares outstanding

32,124

Diluted loss per share

$ (2.56)

$ (0.56)

* Represents pre-tax amounts

Unaudited Forward-Looking Statements Regarding Business Outlook

(In millions, except per share data)

Three Months Ended
September 28, 2024

Business Outlook

GAAP

Measure

Non-GAAP

Adjustments**

Non-GAAP

Measure

Gross margin

54% to 56%

— %

54% to 56%

Operating expenses

$123 to $125

$(22)

$101 to $103

Diluted loss per share

$(0.95) to $(1.25)

$0.85 to $0.95

$(0.10) to $(0.30)

Non-GAAP adjustments include the following estimates: stock compensation expense of $16.8 million, intangible asset amortization of $5.4 million, and the application of a long-term non-GAAP tax rate of 20%.

Silicon Laboratories Inc.

Condensed Consolidated Balance Sheets

(In thousands, except per share data)

(Unaudited)

June 29,
2024

December 30,
2023

Assets

Current assets:

Cash and cash equivalents

$ 240,834

$ 227,504

Short-term investments

98,336

211,720

Accounts receivable, net

41,212

29,295

Inventories

166,079

194,295

Prepaid expenses and other current assets

53,585

75,117

Total current assets

600,046

737,931

Property and equipment, net

139,397

145,890

Goodwill

376,389

Other intangible assets, net

47,374

59,533

Other assets, net

86,781

123,313

Total assets

$ 1,249,987

$ 1,443,056

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$ 39,295

$ 57,498

Revolving line of credit

—

45,000

Deferred revenue and returns liability

3,323

2,117

Other current liabilities

57,495

58,955

Total current liabilities

100,113

163,570

Other non-current liabilities

56,845

70,804

Total liabilities

156,958

234,374

Commitments and contingencies

Stockholders’ equity:

Preferred stock – $0.0001 par value; 10,000 shares authorized; no shares issued

—

Common stock – $0.0001 par value; 250,000 shares authorized; 32,289 and 31,897 shares issued and outstanding at June 29, 2024 and December 30, 2023, respectively

Additional paid-in capital

39,232

16,973

Retained earnings

1,054,048

1,192,731

Accumulated other comprehensive loss

(254)

(1,025)

Total stockholders’ equity

1,093,029

1,208,682

Total liabilities and stockholders’ equity

$ 1,249,987

$ 1,443,056

Silicon Laboratories Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Six Months Ended

June 29,
2024

July 1,
2023

Operating Activities

Net income (loss)

$ (138,683)

$ 24,923

Adjustments to reconcile net income to net cash used in operating activities:

Depreciation of property and equipment

13,152

12,441

Amortization of other intangible assets

12,160

12,904

Amortization of debt issuance costs

—

960

Stock-based compensation expense

29,455

31,377

Equity-method loss

—

1,090

Deferred income taxes

29,784

(6,403)

Changes in operating assets and liabilities:

Accounts receivable

(11,918)

(26,819)

Inventories

28,123

(45,064)

Prepaid expenses and other assets

20,723

32,963

Accounts payable

(19,341)

(30,003)

Other current liabilities and income taxes

(13,624)

(26,220)

Deferred revenue and returns liability

1,206

4,326

Other non-current liabilities

(6,703)

(1,975)

Net cash used in operating activities

(55,666)

(15,500)

Investing Activities

Purchases of marketable securities

(17,700)

(81,427)

Sales of marketable securities

34,538

339,555

Maturities of marketable securities

97,458

171,691

Purchases of property and equipment

(5,577)

(13,462)

Proceeds from sale of equity investment

12,382

—

Purchases of other assets

—

(215)

Net cash provided by investing activities

121,101

416,142

Financing Activities

Proceeds from revolving line of credit

—

80,000

Payments on debt

(45,000)

(536,124)

Repurchases of common stock

—

(201,095)

Payment of taxes withheld for vested stock awards

(15,213)

(16,310)

Proceeds from the issuance of common stock

8,108

7,785

Net cash used in financing activities

(52,105)

(665,744)

Increase (decrease) in cash and cash equivalents

13,330

(265,102)

Cash and cash equivalents at beginning of period

227,504

499,915

Cash and cash equivalents at end of period

$ 240,834

$ 234,813

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SOURCE Silicon Labs

Technology

Escalade Announces Second Quarter 2026 Results Conference Call Date

Published

10 minutes ago

July 23, 2026

EVANSVILLE, Ind., July 23, 2026 /PRNewswire/ — Escalade, Inc. (NASDAQ: ESCA, or the “Company”), a leading manufacturer and distributor of sporting goods and indoor/outdoor recreational equipment, today announced that it will issue its second quarter 2026 results before the market opens on Thursday, July 30, 2026. A conference call will be held that day at 11:00 a.m. ET to review the Company’s financial results and conduct a question-and-answer session.

A webcast of the conference call will be available in the Investor Relations section of Escalade’s website at www.escaladeinc.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download, and install any necessary audio software.

To participate in the live teleconference:

Domestic Live:

833-890-3250

International Live:

412-206-6441

To listen to a replay of the teleconference, which subsequently will be available through August 13, 2026:

Domestic Replay:

844-512-2921

International Replay:

412-317-6671

Conference ID:

10209663

ABOUT ESCALADE

Founded in 1922, and headquartered in Evansville, Indiana, Escalade designs, manufactures, and sells sporting goods, safety, fitness, and indoor/outdoor recreation equipment. Our mission is to connect family and friends, create lasting memories, and play life to the fullest. Leaders in our respective categories, Escalade’s distinct and acclaimed brands include Goalrilla™ in-ground basketball hoops; STIGA® tennis tables and accessories; Bear® Archery and archery equipment; Brunswick Billiards® tables and accessories; Accudart® darting; ONIX® pickleball; Lifeline® fitness products; and RAVE Sports® water recreation products. Escalade’s products are available online and through leading retailers nationwide. For more information about Escalade’s diverse and prominent brand portfolio, history, financials, and governance, please visit www.escaladeinc.com.

INVESTOR RELATIONS CONTACT

Wesley Smith
Vice President, Financial Reporting & Investor Relations
812-467-1334

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SOURCE Escalade, Incorporated

Technology

Analog Devices to Report Third Quarter Fiscal Year 2026 Financial Results on Wednesday, August 19, 2026

Published

10 minutes ago

July 23, 2026

WILMINGTON, Mass., July 23, 2026 /PRNewswire/ — Analog Devices, Inc. (Nasdaq: ADI) today announced it will release financial results for the third quarter fiscal year 2026 at 7:00 a.m. Eastern time on Wednesday, August 19, 2026. Following the press release, the Company will host a conference call at 10:00 a.m. Eastern time, the same day. Vincent Roche, Chief Executive Officer and Chair, Richard Puccio, Executive Vice President and Chief Financial Officer, and Jeff Ambrosi, Head of Investor Relations, Senior Director, will discuss ADI’s results and business outlook.

The press release, live conference call and subsequent archived copies can be accessed on Analog Devices’ Investor Relations website at investor.analog.com. To participate in the live conference call, please pre-register at: register-conf.media.server.com. Upon registering, you will be emailed a dial-in number and unique PIN.

About Analog Devices, Inc.
Analog Devices, Inc. (NASDAQ: ADI) is a global semiconductor leader that bridges the physical and digital worlds to enable breakthroughs at the Intelligent Edge. ADI combines analog, digital, AI, and software technologies into solutions that combat climate change, reliably connect humans and the world, and help drive advancements in automation and robotics, mobility, healthcare, energy and data centers. With revenue of more than $11 billion in FY25, ADI ensures today’s innovators stay Ahead of What’s Possible. Learn more at www.analog.com and on LinkedIn and X.

Jeff Ambrosi
Head of Investor Relations, Senior Director
Analog Devices, Inc.
781-461-3282
invesor.relations@analog.com

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SOURCE Analog Devices, Inc.

Technology

Scholastic Reports Fourth Quarter and Fiscal 2026 Results

Published

10 minutes ago

July 23, 2026

Fiscal 2026 Operating Income of $15.2 Million; Adjusted EBITDA of $151.5 Million, Up 4%, in Line With Guidance

Returned Over $285 Million to Shareholders During Fiscal Year

Fiscal 2027 Outlook Targets Return to Revenue Growth and Higher Adjusted EBITDA on Comparable Basis

NEW YORK, July 23, 2026 /PRNewswire/ — Scholastic Corporation (NASDAQ: SCHL), the global children’s publishing, education and media company, today reported financial results for the Company’s fiscal fourth quarter and full year ended May 31, 2026.

Peter Warwick, President and Chief Executive Officer, said, “Fiscal 2026 demonstrated the earnings power of a more focused Scholastic, as the Company made substantial progress in a multi-year transformation of its governance, organization, strategy and balance sheet. Adjusted EBITDA rose, in line with guidance, positioning the Company for growth in fiscal 2027.”

Fiscal 2026 revenue decreased 3%, and operating income was $15.2 million, compared with $15.8 million in fiscal 2025. Adjusted operating income, excluding one-time items, increased to $47.1 million from $35.8 million in the prior year period. Adjusted EBITDA was $151.5 million, up 4%, and increased 15% on a comparable basis, reflecting the full-year impact of additional lease expense and the loss of rental income from the sale-leaseback transactions in both periods. In the fourth quarter, Adjusted EBITDA increased $1.0 million on that same comparable basis, driven by continued strong execution in Book Fairs, Entertainment’s return to growth and disciplined cost management across the Company, even as revenue was affected by expected comparisons against an exceptional prior-year quarter in Trade and continued funding volatility in Education.

Mr. Warwick continued, “Today, our company is more clearly organized around the advantages that make Scholastic distinctive: a trusted brand, beloved IP, proprietary school-based channels and deep relationships with educators and families built over more than a century. Scholastic remains uniquely positioned to connect books, schools, homes and screens in ways that deepen kids’ engagement with stories and bring more children back to reading at a scale and depth that others cannot easily replicate.

“During the fourth quarter, we continued to see the impact of this strategy across the business. Book Fairs deepened our reach with schools and families, Trade Publishing remained anchored by enduring children’s franchises, and Entertainment expanded discovery and engagement with Scholastic IP across platforms. In Education, while funding volatility and a challenging supplemental curriculum market continued to pressure results, we made progress repositioning the business around a more focused strategy, improved execution and lower cost structure, with trends improving throughout the year.

“Fiscal 2026 was also an important year of capital deployment and shareholder value creation. Following the sale-leaseback transactions, we returned significant capital to shareholders through share repurchases, a modified Dutch auction tender offer and dividends, and established a long-term leverage framework that supports both disciplined investment and continued capital returns. Together, these actions completed major elements of our financial transformation and provide Scholastic with greater financial flexibility to enhance shareholder returns.

“As we enter fiscal 2027, Scholastic is strongly positioned to translate its durable advantages into profitable, sustained growth. Our outlook reflects expected revenue growth and higher Adjusted EBITDA on a comparable basis, reflecting the full-year impact of the sale-leaseback transactions in both periods. We remain focused on continued execution of our plan, disciplined cost management and targeted investment in the areas where Scholastic has the greatest opportunity to drive long-term growth, deepen our impact with children, families and educators, and create sustained value for shareholders.”

Outlook

In fiscal 2027, the Company expects revenue growth of approximately 2% to 4% and Adjusted EBITDA of approximately $135 million to $145 million. The Adjusted EBITDA range represents growth compared with fiscal 2026 Adjusted EBITDA on a comparable basis, reflecting the full-year impact of the sale-leaseback transactions in both periods.

This outlook reflects expected growth in Children’s Books, Entertainment and International, improved performance in Education, disciplined cost management and targeted investment in long-term growth opportunities.

The Company also expects Free Cash Flow (a non-GAAP financial measure, explained in the accompanying tables) of approximately $35 million to $40 million.

Fiscal 2026 Q4 Review

In $ millions (except per share data)

Fourth Quarter

Change

Fiscal 2026

Fiscal 2025

Revenues

476.1

508.3

(32.2)

(6) %

Operating income (loss)

51.4

53.5

(2.1)

(4) %

Earnings (loss) before taxes

14.5

48.9

(34.4)

(70) %

Diluted earnings (loss) per share

0.45

0.59

(0.14)

(24) %

Operating income (loss), ex. one-time items* (1)

58.3

63.4

(5.1)

(8) %

Diluted earnings (loss) per share, ex. one-time items*

2.19

0.87

1.32

152 %

Adjusted EBITDA* (1)

84.7

91.2

(6.5)

(7) %

Pro forma Adjusted operating income* (2)

58.3

59.5

(1.2)

(2) %

Pro forma Adjusted EBITDA* (2)

84.7

83.7

1.0

1 %

* Please refer to the non-GAAP financial tables attached

(1)

Fiscal 2026 fourth-quarter Operating income excluding one-time items and Adjusted EBITDA include
net costs of $4.2 and $7.8, respectively, related to the sale-leaseback transactions completed in
December 2025.

(2)

Pro forma Adjusted operating income and Pro forma Adjusted EBITDA reflect the full-period impact of
the sale-leaseback transactions in each period presented. The Company refers to these measures in
this release as results “on a comparable basis.” See Table 7 for the reconciliation to Adjusted operating
income and Adjusted EBITDA.

Revenues decreased 6% to $476.1 million, as continued growth in Book Fairs and higher Entertainment revenues were more than offset by lower Trade and International revenues due to more challenging comparisons with the prior-year publishing schedule and lower revenues in Education.

Operating Income decreased 4% to $51.4 million in the quarter compared to $53.5 million a year ago, including $6.9 million and $9.9 million in one-time charges in each period, respectively. Excluding one-time charges in both periods, adjusted operating income decreased $5.1 million to $58.3 million. On a comparable basis, reflecting the full-period impact of the sale-leaseback in both periods, adjusted operating income decreased $1.2 million from $59.5 million. Adjusted EBITDA (a non-GAAP measure of operations explained in the accompanying tables) was $84.7 million, compared to $91.2 million in the prior-year period. On the same comparable basis, Adjusted EBITDA increased $1.0 million from $83.7 million in the prior year period, primarily reflecting improved profitability in Children’s Book Publishing and Distribution and Entertainment, partly offset by lower results in Education and International.

Quarterly Results

Children’s Book Publishing and Distribution

In the fiscal fourth quarter, the Children’s Book Publishing and Distribution segment’s revenues decreased 4% to $276.3 million.

In School Reading Events, Book Fairs revenues were $186.6 million, up 5% from the prior year period, reflecting higher fair count. Book Clubs revenues were $12.2 million, a decline of 7% from the prior year period, primarily reflecting lower participation throughout the year.

Consolidated Trade revenues decreased 20% from the prior year period to $77.5 million, reflecting a challenging comparison with the prior-year publishing schedule, which included the release of Sunrise on the Reaping, the fifth book in Suzanne Collins’ global bestselling The Hunger Games® series.

Segment operating income was $60.3 million, compared to $57.6 million a year ago, which included one-time charges of $0.6 million. Excluding one-time charges, adjusted operating income increased $2.1 million, primarily driven by higher revenues and improved profitability in Book Fairs, partly offset by lower Trade results.

Education

Education revenues decreased 13% to $109.2 million, primarily reflecting continued pressure on school and district spending for supplemental curriculum materials. Segment operating income was $27.0 million, which included one-time charges of $0.9 million, compared to $30.7 million in the prior year period, which included one-time charges of $0.6 million. Excluding one-time charges, adjusted operating income decreased by $3.4 million, as a result of lower revenues, partly offset by benefits from the segment’s improved cost structure. While fourth-quarter revenues remained below the prior year, the rate of decline improved in the second half of fiscal 2026 compared to the first half of the year, as the segment advanced its product, marketing and sales strategies following its repositioning.

Entertainment

Segment revenues increased 42% to $21.0 million, reflecting higher production services revenues. Segment operating income was $0.4 million, which included one-time charges of $0.4 million, compared to an operating loss of $3.0 million in the prior year period, which included one-time charges of $0.9 million. Excluding one-time charges, adjusted segment operating income improved $2.9 million to $0.8 million, primarily reflecting higher revenues.

International

International revenues decreased 13% to $69.6 million, excluding favorable foreign currency exchange of $3.1 million, primarily reflecting lower Trade revenues against a more challenging comparison with the prior-year publishing schedule. Segment operating income was $2.9 million, which included one-time charges of $0.2 million, compared to $3.7 million in the prior year period, which included one-time charges of $2.4 million. Excluding one-time charges, adjusted operating income decreased by $3.0 million to $3.1 million primarily reflecting lower revenues, partly offset by cost management.

Overhead

Overhead costs were $39.2 million, which included one-time charges of $5.4 million, compared to $35.5 million in the prior year period, which included one-time charges of $5.4 million. Excluding one-time charges, adjusted overhead costs increased $3.7 million to $33.8 million. On a comparable basis, reflecting the pro forma impact of the sale-leaseback transactions in both periods, adjusted overhead costs were approximately in line with the prior-year period.

Fiscal 2026 Full Year Review

In $ millions (except per share data)

Full Year

Change

Fiscal 2026

Fiscal 2025

Revenues

1,581.9

1,625.5

(43.6)

(3) %

Operating income (loss)

15.2

15.8

(0.6)

(4) %

Earnings (loss) before taxes

85.2

(1.3)

86.5

Diluted earnings (loss) per share

2.34

(0.07)

2.41

Operating income (loss), ex. one-time items* (1)

47.1

35.8

11.3

32 %

Diluted earnings (loss) per share, ex. one-time items*

1.87

0.48

1.39

Adjusted EBITDA* (1)

151.5

145.4

6.1

4 %

Pro forma Adjusted operating income* (2)

35.3

19.9

15.4

77 %

Pro forma Adjusted EBITDA* (2)

132.4

115.3

17.1

15 %

* Please refer to the non-GAAP financial tables attached

(1)

Fiscal 2026 full-year Operating income excluding one-time items and Adjusted EBITDA include net costs
of $7.2 and $14.5, respectively, related to the sale-leaseback transactions completed in December 2025.

(2)

Revenues decreased 3% to $1,581.9 million, primarily reflecting lower revenues in Education and lower Consolidated Trade revenues against a more challenging comparison with the prior-year publishing schedule, partly offset by strong performance in Book Fairs and higher Entertainment revenues.

Operating Income decreased 4% to $15.2 million, compared to $15.8 million a year ago, including $31.9 million and $20.0 million in one-time charges in each period, respectively. Excluding one-time charges in both periods, adjusted operating income increased $11.3 million to $47.1 million. On a comparable basis, reflecting the full-year impact of the sale-leaseback transactions in both periods, adjusted operating income increased $15.4 million to $35.3 million, compared to $19.9 million in the prior year. Adjusted EBITDA increased $6.1 million, or 4%, to $151.5 million, in-line with the Company’s guidance. On the same comparable basis, Adjusted EBITDA increased 15%, or $17.1 million, to $132.4 million from $115.3 million. The improvement on a comparable basis primarily reflected strong performance in Children’s Book Publishing and Distribution and International, as well as lower adjusted overhead costs, which more than offset the impact of lower sales in Education.

Capital Position and Liquidity

In $ millions

Full Year

Change

Fiscal 2026

Fiscal 2025

Net cash provided by operating activities

50.9

124.2

(73.3)

(59) %

Net proceeds from sale and lease transactions (1)

452.4

—

452.4

Additions to property, plant and equipment and
prepublication expenditures

(66.3)

(76.7)

10.4

14 %

Net borrowings (repayments) of film related obligations

(1.0)

(18.3)

17.3

95 %

Free cash flow (use)*

436.0

29.2

406.8

Net cash (debt)*

48.9

(136.6)

185.5

136 %

NM – Not Meaningful

* Please refer to the non-GAAP financial tables attached

(1) Excludes tax impact from sale-leaseback transactions.

Net cash provided by operating activities was $50.9 million, compared to $124.2 million in the prior year period, primarily reflecting higher tax payments associated with the sale-leaseback transactions, as well as higher severance-related payments as part of cost savings initiatives. Free cash flow was $436.0 million in fiscal 2026, compared to $29.2 million in the prior year period, primarily reflecting over $400 million in net proceeds from the Company’s sale-leaseback transactions.

The Company ended fiscal 2026 with net cash of $48.9 million compared to a net debt position of $136.6 million at the end of fiscal 2025, primarily reflecting the net proceeds from the sale-leaseback transactions, partly offset by significant capital returns to shareholders.

In fiscal 2026, the Company returned approximately $288.6 million to shareholders through share repurchases and dividends. This included the repurchase of 7,336,966 shares of common stock for $268.6 million, including shares purchased through the Company’s modified Dutch auction tender offer and open-market repurchases, and $20.0 million of dividends, including $4.6 million in the fourth quarter.

At May 31, 2026, $183.0 million remained authorized for future repurchases under the Company’s stock repurchase program. The Company expects to continue purchasing shares, from time to time as conditions allow, on the open market or in negotiated private transactions.

Additional Information

To supplement our financial statements presented in accordance with GAAP, we include certain non-GAAP calculations and presentations including, as noted above, “Adjusted EBITDA, “Adjusted Operating Income”, and “Free Cash Flow”. Please refer to the non-GAAP financial tables attached to this press release for supporting details on the impact of one-time items on operating income, net income and diluted EPS, and the use of non-GAAP financial measures included in this release. This information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with GAAP.

Conference Call

The Company will hold a conference call to discuss its results at 4:30 p.m. ET today, July 23, 2026. Peter Warwick, Scholastic President and Chief Executive Officer, and Haji Glover, the Company’s Chief Financial Officer, Executive Vice President, will moderate the call.

A live webcast of the call can be accessed at https://edge.media-server.com/mmc/p/n2mcunuo. To access the conference call by phone, please go to https://register-conf.media-server.com/register/BIe4453c04814b4def819b83eaf92a8731, which will provide dial-in details. To avoid delays, participants are encouraged to dial into the conference call five minutes ahead of the scheduled start time. Shortly following the call, an archived webcast and accompanying slides from the conference call will be posted at investor.scholastic.com.

About Scholastic

For more than 100 years, Scholastic Corporation (NASDAQ: SCHL) has been meeting children where they are – at school, at home and in their communities – by creating quality content and experiences, all beginning with literacy. Scholastic delivers stories, characters, and learning moments that empower all kids to become lifelong readers and learners through bestselling children’s books, literacy- and knowledge-building resources for schools including classroom magazines, and award-winning, entertaining children’s media. As the world’s largest publisher and distributor of children’s books through school-based book clubs and book fairs, classroom libraries, school and public libraries, retail, and online, and with a global reach into more than 135 countries, Scholastic encourages the personal and intellectual growth of all children, while nurturing a lifelong relationship with reading, themselves, and the world around them. Learn more at www.scholastic.com.

Forward-Looking Statements

This news release contains certain forward-looking statements relating to future periods. Such forward-looking statements are subject to various risks and uncertainties, including the conditions of the children’s book and educational materials markets generally and acceptance of the Company’s products within those markets, and other risks and factors identified from time to time in the Company’s filings with the Securities and Exchange Commission. Actual results could differ materially from those currently anticipated.

SCHL: Financial

Table 1

Scholastic Corporation

Consolidated Statements of Operations

(Unaudited)

(In $ Millions, except shares and per share data)

Three months ended

Twelve months ended

05/31/26

05/31/25

05/31/26

05/31/25

Revenues

476.1

508.3

1,581.9

1,625.5

Operating costs and expenses:

Cost of goods sold

190.4

207.3

689.8

718.8

Selling, general and administrative expenses

219.7

227.8

807.2

822.3

Depreciation and amortization

13.1

17.2

58.8

65.7

Asset impairments and write downs

1.5

2.5

10.9

2.9

Total operating costs and expenses

424.7

454.8

1,566.7

1,609.7

Operating income (loss)

51.4

53.5

15.2

15.8

Interest income (expense), net

(0.9)

(4.3)

(11.2)

(16.0)

Other components of net periodic benefit (cost)

(0.3)

(1.3)

(1.1)

Loss on sale of investments

(17.2)

—

(17.2)

—

Gain (loss) on sale and leaseback transactions

(18.5)

—

99.7

—

Earnings (loss) before income taxes

14.5

48.9

85.2

(1.3)

Provision (benefit) for income taxes

5.1

33.5

28.5

0.6

Net income (loss)

9.4

15.4

56.7

(1.9)

Basic and diluted earnings (loss) per share of Class A and
Common Stock (1)

Basic

0.46

0.59

2.39

(0.07)

Diluted

0.45

0.59

2.34

(0.07)

Basic weighted average shares outstanding

20,343

26,113

23,698

27,631

Diluted weighted average shares outstanding

20,992

26,209

24,222

27,907

(1)

Earnings (loss) per share are calculated on non-rounded net income (loss) and shares outstanding.
Recalculating earnings per share based on numbers rounded to millions may not yield the results as
presented.

Table 2

Scholastic Corporation

Segment Results, Excluding One-Time Items

(Unaudited)

(In $ Millions)

Three months ended

Change

Twelve months ended

Change

05/31/26

05/31/25

05/31/26

05/31/25

Children’s Book Publishing
and Distribution

Revenues

Book Clubs

12.2

13.1

(0.9)

(7) %

57.1

64.2

(7.1)

(11) %

Book Fairs

186.6

177.8

8.8

5 %

576.0

548.3

27.7

5 %

School Reading Events

198.8

190.9

7.9

4 %

633.1

612.5

20.6

3 %

Consolidated Trade

77.5

97.3

(19.8)

(20) %

331.1

351.4

(20.3)

(6) %

Total Revenues

276.3

288.2

(11.9)

(4) %

964.2

963.9

0.3

0 %

Operating income (loss) ex.
one-time items *

60.3

58.2

2.1

4 %

143.7

131.3

12.4

9 %

Adjusted operating margin *

21.8 %

20.2 %

14.9 %

13.6 %

Education

Revenues

109.2

125.7

(16.5)

(13) %

267.6

309.8

(42.2)

(14) %

Operating income (loss) ex.
one-time items *

27.9

31.3

(3.4)

(11) %

0.2

6.9

(6.7)

(97) %

Adjusted operating margin *

25.5 %

24.9 %

0.1 %

2.2 %

Entertainment

Revenues

21.0

14.8

6.2

42 %

65.7

61.0

4.7

8 %

Operating income (loss) ex.
one-time items *

0.8

(2.1)

2.9

138 %

(9.3)

(7.2)

(2.1)

(29) %

Adjusted operating margin *

3.8 %

International

Revenues

69.6

76.8

(7.2)

(9) %

277.2

279.6

(2.4)

(1) %

Operating income (loss) ex.
one-time items *

3.1

6.1

(3.0)

(49) %

7.1

2.9

4.2

145 %

Adjusted operating margin *

4.5 %

7.9 %

2.6 %

1.0 %

Overhead

Revenues

—

2.8

(2.8)

(100) %

7.2

11.2

(4.0)

(36) %

Operating income (loss) ex.
one-time items *

(33.8)

(30.1)

(3.7)

(12) %

(94.6)

(98.1)

3.5

4 %

Operating income (loss) ex.
one-time items *

58.3

63.4

(5.1)

(8) %

47.1

35.8

11.3

32 %

Adjusted operating margin *

12.2 %

12.5 %

3.0 %

2.2 %

NM – Not meaningful

* Please refer to Table 4 for one-time items and a reconciliation of the non-GAAP financials.

Table 3

Scholastic Corporation

Supplemental Information

(Unaudited)

(In $ Millions)

Selected Balance Sheet Items

05/31/26

05/31/25

Cash and cash equivalents

134.9

124.0

Accounts receivable, net

236.4

273.4

Inventories, net

265.0

250.2

Accounts payable

144.2

157.3

Deferred revenue

179.2

178.8

Accrued royalties

50.3

69.1

Film related obligations

17.1

18.3

Lines of credit and long-term debt

80.5

256.2

Net cash (debt) (1)

48.9

(136.6)

Total stockholders’ equity

750.8

946.5

Selected Cash Flow Items

Three months ended

Twelve months ended

05/31/26

05/31/25

05/31/26

05/31/25

Net cash provided by (used in) operating activities

90.0

106.9

50.9

124.2

Net proceeds from sale and lease transactions (3)

—

452.4

—

Property, plant and equipment additions

(15.0)

(12.3)

(48.4)

(52.2)

Prepublication expenditures

(4.9)

(8.7)

(17.9)

(24.5)

Net borrowings (repayments) of film related obligations

(0.1)

0.3

(1.0)

(18.3)

Free cash flow (use) (2)

70.0

86.2

436.0

29.2

(1)

Net cash (debt) is defined by the Company as cash and cash equivalents less production cash of $5.5
and $4.4 as of May 31, 2026 and May 31, 2025, respectively, net of lines of credit and short-term and
long-term-debt. Film related obligations are not included. The Company utilizes this non-GAAP financial
measure, and believes it is useful to investors, as an indicator of the Company’s effective leverage and
financing needs.

(2)

Free cash flow (use) is defined by the Company as net cash provided by or used in operating activities
(which includes royalty advances) and cash acquired through acquisitions and from the sale of assets,
reduced by spending on property, plant and equipment and prepublication costs and adjusted for net
cash flows from film related obligations. The Company believes that this non-GAAP financial measure
is useful to investors as an indicator of cash flow available for debt repayment and other investing
activities, such as acquisitions. The Company utilizes free cash flow as a further indicator of operating
performance and for planning investing activities.

(3)

Excludes tax impact from sale-leaseback transactions.

Table 4

Scholastic Corporation

Supplemental Results – Excluding One-Time Items

(Unaudited)

(In $ Millions, except per share data)

Three months ended

05/31/2026

05/31/2025

Reported

One-time
items

Excluding
One-time
items

Reported

One-time
items

Excluding
One-time
items

Diluted earnings (loss) per share (1)

0.45

1.79

2.19

0.59

0.29

0.87

Net income (loss) (2)

9.4

36.5

45.9

15.4

7.5

22.9

Earnings (loss) before income taxes (3)

14.5

42.6

57.1

48.9

9.9

58.8

Children’s Book Publishing and
Distribution (4)

60.3

—

60.3

57.6

0.6

58.2

Education (5)

27.0

0.9

27.9

30.7

0.6

31.3

Entertainment(6)

0.4

0.8

(3.0)

0.9

(2.1)

International (7)

2.9

0.2

3.1

3.7

2.4

6.1

Overhead (8)

(39.2)

5.4

(33.8)

(35.5)

5.4

(30.1)

Operating income (loss)

51.4

6.9

58.3

53.5

9.9

63.4

Twelve months ended

05/31/2026

05/31/2025

Reported

One-time
items

Excluding
One-time
items

Reported

One-time
items

Excluding
One-time
items

Diluted earnings (loss) per share (1)

2.34

(0.47)

1.87

(0.07)

0.55

0.48

Net income (loss) (2)

56.7

(11.3)

45.4

(1.9)

15.2

13.3

Earnings (loss) before income taxes (3)

85.2

(50.6)

34.6

(1.3)

20.0

18.7

Children’s Book Publishing and
Distribution (4)

142.9

0.8

143.7

130.7

0.6

131.3

Education (5)

(4.1)

4.3

0.2

6.3

0.6

6.9

Entertainment(6)

(16.1)

6.8

(9.3)

(12.1)

4.9

(7.2)

International (7)

6.4

0.7

7.1

(1.0)

3.9

2.9

Overhead (8)

(113.9)

19.3

(94.6)

(108.1)

10.0

(98.1)

Operating income (loss)

15.2

31.9

47.1

15.8

20.0

35.8

(1)

Earnings (loss) per share are calculated on non-rounded net income (loss) and shares outstanding. Recalculating
earnings per share based on rounded numbers may not yield the results as presented.

(2)

In the three and twelve months ended May 31, 2026, the Company recognized a benefit of $6.1 and a provision of
$39.3, respectively, for income taxes in respect to one-time pretax items. In the three and twelve months ended May
31, 2025, the Company recognized a benefit of $2.4 and $4.8, respectively, for income taxes in respect to one-time
pretax items.

(3)

In the three and twelve months ended May 31, 2026, the Company recognized a pretax loss of $17.2 related to the
sale of its 26.2% equity interest in a U.K.-based children’s book publishing business. In the three months ended May
31, 2026, the Company recognized an adjustment of $18.5 million to the pretax gain related to the sale-leaseback
transactions. In the twelve months ended May 31, 2026, the Company recognized a pretax gain of $99.7 related to
sale-leaseback transactions involving its facilities in New York City and Jefferson City, Missouri.

(4)

In the twelve months ended May 31, 2026, the Company recognized a pretax asset impairment charge of $0.8 related
to a certain product. In the three and twelve months ended May 31, 2025, the Company recognized a pretax asset
impairment charge of $0.6 related to a digital product.

(5)

In the three and twelve months ended May 31, 2026, the Company recognized pretax asset impairment charges of
$0.9 and $4.3, respectively, related to certain education and digital products. In the three and twelve months ended May
31, 2025, the Company recognized a pretax asset impairment charge of $0.6 related to certain digital products.

(6)

In the three and twelve months ended May 31, 2026, the Company recognized other pretax expenses of $0.4 and $1.4,
respectively. In the twelve months ended May 31, 2026, the Company recognized pretax severance of $0.2 and a pretax
asset impairment charge of $5.2 primarily related to certain film and television programs in development. In the three
and twelve months ended May 31, 2025, the Company recognized pretax severance of $0.3 and $1.4, respectively,
related to cost-savings initiatives, pretax costs of $0.4 and $3.0, respectively, related to the acquisition of 9 Story Media
Group and pretax asset impairment charges of $0.2 and $0.5, respectively, related to the early exit of certain leased
office space in Canada and Ireland.

(7)

In the three and twelve months ended May 31, 2026, the Company recognized pretax severance of $0.2 and $0.7,
respectively, related to cost-savings initiatives. In the three and twelve months ended May 31, 2025, the Company
recognized pretax severance of $1.3 and $2.8, respectively, related to cost-savings initiatives and a pretax asset
impairment charge of $1.1 related to the reorganization in China.

(8)

In the three and twelve months ended May 31, 2026, the Company recognized pretax severance of $3.7 and $15.5,
respectively, related to cost-savings initiatives, and other pretax expenses of $1.7 and $3.8, respectively. In the three
and twelve months ended May 31, 2025, the Company recognized pretax severance of $3.4 and $7.6, respectively,
related to cost-savings initiatives, other pretax expenses of $1.9 and $2.3, respectively, and an asset impairment
charge of $0.1 related to the early exit of an office lease.

Table 5

Scholastic Corporation

Consolidated Statements of Operations – Supplemental

Adjusted EBITDA

(Unaudited)

(In $ Millions)

Three months ended

05/31/26

05/31/25

Earnings (loss) before income taxes as reported

14.5

48.9

One-time items before income taxes

42.6

9.9

Earnings (loss) before income taxes excluding one-time items

57.1

58.8

Interest (income) expense (1)

0.9

4.5

Depreciation and amortization

26.7

27.9

Adjusted EBITDA (2)

84.7

91.2

Twelve months ended

05/31/26

05/31/25

Earnings (loss) before income taxes as reported

85.2

(1.3)

One-time items before income taxes

(50.6)

20.0

Earnings (loss) before income taxes excluding one-time items

34.6

18.7

Interest (income) expense (1)

11.6

16.4

Depreciation and amortization

105.3

110.3

Adjusted EBITDA (2)

151.5

145.4

(1)

Amounts include production loan interest amortized into cost of goods sold.

(2)

Adjusted EBITDA is defined by the Company as earnings (loss), excluding one-time items,
before interest, taxes, depreciation and amortization. The Company believes that Adjusted
EBITDA is a meaningful measure of operating profitability and useful for measuring returns
on capital investments over time as it is not distorted by unusual gains, losses, or other
items.

Table 6

Scholastic Corporation

Consolidated Statements of Operations – Supplemental

Adjusted EBITDA by Segment

(Unaudited)

(In $ Millions)

Three months ended

05/31/26

CBPD (1)

EDUC (1)

ENT (1)

INTL (1)

OVH (1)(4)

Total

Earnings (loss) before income taxes as reported

60.1

27.0

(0.0)

(14.8)

(57.8)

14.5

One-time items before income taxes

—

0.9

0.4

17.4

23.9

42.6

Earnings (loss) before income taxes excluding
one-time items

60.1

27.9

0.4

2.6

(33.9)

57.1

Interest (income) expense (2)

0.2

0.0

0.5

0.0

0.2

0.9

Depreciation and amortization (3)

8.3

6.0

8.0

2.2

26.7

Adjusted EBITDA (4)

68.6

33.9

8.9

4.8

(31.5)

84.7

Three months ended

05/31/25

CBPD (1)

EDUC (1)

ENT (1)

INTL (1)

OVH (1)

Total

Earnings (loss) before income taxes as reported

57.5

30.7

(2.9)

2.9

(39.3)

48.9

One-time items before income taxes

0.6

0.9

2.4

5.4

9.9

Earnings (loss) before income taxes excluding
one-time items

58.1

31.3

(2.0)

5.3

(33.9)

58.8

Interest (income) expense (2)

0.1

0.0

0.7

0.1

3.6

4.5

Depreciation and amortization (3)

8.0

6.2

5.0

2.0

6.7

27.9

Adjusted EBITDA

66.2

37.5

3.7

7.4

(23.6)

91.2

Twelve months ended

05/31/26

CBPD (1)

EDUC (1)

ENT (1)

INTL (1)

OVH (1)(4)

Total

Earnings (loss) before income taxes as reported

142.5

(4.1)

(17.9)

(12.9)

(22.4)

85.2

One-time items before income taxes

0.8

4.3

6.8

17.9

(80.4)

(50.6)

Earnings (loss) before income taxes excluding
one-time items

143.3

0.2

(11.1)

5.0

(102.8)

34.6

Interest (income) expense (2)

0.4

0.0

2.2

0.1

8.9

11.6

Depreciation and amortization (3)

31.2

24.9

24.4

8.1

16.7

105.3

Adjusted EBITDA (4)

174.9

25.1

15.5

13.2

(77.2)

151.5

Twelve months ended

05/31/25

CBPD (1)

EDUC (1)

ENT (1)

INTL (1)

OVH (1)

Total

Earnings (loss) before income taxes as reported

130.5

6.3

(14.3)

(3.1)

(120.7)

(1.3)

One-time items before income taxes

0.6

4.9

3.9

10.0

20.0

Earnings (loss) before income taxes excluding
one-time items

131.1

6.9

(9.4)

0.8

(110.7)

18.7

Interest (income) expense (2)

0.2

0.0

3.2

0.1

12.9

16.4

Depreciation and amortization (3)

31.1

24.8

21.5

7.9

25.0

110.3

Adjusted EBITDA

162.4

31.7

15.3

8.8

(72.8)

145.4

(1)

The Company’s segments are defined as the following: CBPD – Children’s Book Publishing and Distribution
segment; EDUC – Education segment; ENT – Entertainment segment; INTL – International segment; OVH –
unallocated overhead.

(2)

Amounts include production loan interest amortized into cost of goods sold.

(3)

Depreciation and amortization in the Children’s Book Publishing and Distribution, Education and International
segments includes amounts allocated from overhead.

(4)

Adjusted EBITDA for unallocated overhead and total includes the net cost impact of the sale-leaseback
transactions of $7.8 and $14.5 for the three and twelve months ended May 31, 2026, respectively.

Table 7

Scholastic Corporation

Pro Forma Supplemental Information

(Unaudited)

(In $ Millions)

Three months ended

Change

05/31/26

05/31/25

Adjusted unallocated overhead

(33.8)

(30.1)

(3.7)

(12) %

Incremental full-year impact of sale-leaseback transactions

—

(3.9)

3.9

Pro forma Adjusted unallocated overhead (1)

(33.8)

(34.0)

0.2

1 %

Adjusted operating income

58.3

63.4

(5.1)

(8) %

Incremental full-year impact of sale-leaseback transactions

—

(3.9)

3.9

Pro forma Adjusted operating income (1) (2)

58.3

59.5

(1.2)

(2) %

Adjusted EBITDA

84.7

91.2

(6.5)

(7) %

Incremental full-year impact of sale-leaseback transactions

—

(7.5)

7.5

Pro forma Adjusted EBITDA (1) (2)

84.7

83.7

1.0

1 %

Twelve months ended

Change

05/31/26

05/31/25

Adjusted unallocated overhead

(94.6)

(98.1)

3.5

4 %

Incremental full-year impact of sale-leaseback transactions

(11.8)

(15.9)

4.1

Pro forma Adjusted unallocated overhead (1)

(106.4)

(114.0)

7.6

7 %

Adjusted operating income

47.1

35.8

11.3

32 %

Incremental full-year impact of sale-leaseback transactions

(11.8)

(15.9)

4.1

Pro forma Adjusted operating income (1) (2)

35.3

19.9

15.4

77 %

Adjusted EBITDA

151.5

145.4

6.1

4 %

Incremental full-year impact of sale-leaseback transactions

(19.1)

(30.1)

11.0

Pro forma Adjusted EBITDA (1) (2)

132.4

115.3

17.1

15 %

(1)

Pro forma Adjusted unallocated overhead, Pro forma Adjusted operating income and Pro forma Adjusted
EBITDA reflect the net impacts of the sale-leaseback transactions as if the transactions had occurred on
June 1, 2024, the beginning of fiscal 2025. Fiscal 2026 reported results include the actual impact beginning
upon completion of the transactions in December 2025. The incremental adjustments shown above reflect
the additional impact for the portion of fiscal 2026 prior to completion of the transactions. Fiscal 2025
reported results include no impact from the transactions.

(2)

For fiscal 2026, the full-year pro forma cost impact was $19.0 on Adjusted operating income, consisting of
$7.2 recognized in reported fiscal 2026 results and $11.8 of incremental adjustments. For fiscal 2026, the
full-year pro forma cost impact on Adjusted EBITDA was $33.6, consisting of $14.5 recognized in reported
fiscal 2026 results and $19.1 of incremental adjustments. For fiscal 2025, the full-year pro forma cost
impacts were $15.9 on Adjusted operating income and $30.1 on Adjusted EBITDA.

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SOURCE Scholastic Corporation