Technology
Cryoport Reports Third Quarter 2024 Financial Results
Published
2 years agoon
By
Q3 2024 Life Sciences Services revenue up 9% year-over-year, including BioStorage/BioServices revenue up 12% year-over-year Supported a record total of 691 global clinical trials as of September 30, 2024Company reaffirmed full year 2024 revenue guidance of $225 to $235 million
NASHVILLE, Tenn., Nov. 7, 2024 /PRNewswire/ — Cryoport, Inc. (NASDAQ: CYRX) (Cryoport), a global leader in supply chain solutions for the life sciences industry, today announced financial results for its third quarter (Q3) and first nine months (9M) of 2024.
Jerrell Shelton, CEO of Cryoport, remarked, “Our Life Sciences Services business showed 9% growth during the third quarter, with BioStorage/BioServices revenue increasing by 12% compared to the third quarter of last year. The increase in our services revenue was coupled with a substantial improvement in gross margin to 46% for our services business.
“Reflecting on our performance through the third quarter, we are maintaining our full-year revenue forecast of $225 million to $235 million, anticipating continued growth in our services business while acknowledging the ongoing softness in product sales.
“We have been actively executing on our cost reduction and capital realignment strategies and we are currently on course to complete these adjustments by the year’s end. These actions are already showing positive results, as evidenced by the improvement in our gross margin, adjusted EBITDA and positive cash flow this quarter, moving us closer towards our objective of sustainable profitability. We believe that these measures will lead us to a return to positive adjusted EBITDA during 2025.
“We expect the macroeconomic and sector-specific challenges that have impacted many companies serving the life sciences industry to continue for the near future, so we plan to further sharpen our focus on profitable growth and maintaining a strong balance sheet. We continue to be optimistic about our long-term business growth trajectory. We believe that we are strategically positioned to leverage the anticipated long-term growth in the Life Sciences and the Cell & Gene Therapy market through our comprehensive and integrated supply chain solutions.
“In October, we launched our IntegriCell™ Cryopreservation Solution with a new state-of-the-art facility on our Houston campus. This offering addresses yet another critical aspect in optimizing the supply chain for the development and commercialization of cell-based therapies through high quality, standardized, cryopreserved starting material,” Mr. Shelton concluded.
In tabular form, Q3 2024 and 9M 2024 revenue compared to Q3 2023 and 9M 2023, respectively, was as follows:
Cryoport, Inc. and Subsidiaries
Revenue
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in thousands)
2024
2023
% Change
2024
2023
% Change
Life Sciences Services
$ 39,278
$ 36,022
9 %
$ 114,104
$ 107,062
7 %
BioLogistics Solutions
35,302
32,486
9 %
103,076
97,093
6 %
BioStorage/BioServices
3,976
3,536
12 %
11,028
9,969
11 %
Life Sciences Products
$ 17,386
$ 20,135
-14 %
$ 54,749
$ 68,933
-21 %
Total Revenue
$ 56,664
$ 56,157
1 %
$ 168,853
$ 175,995
-4 %
BioStorage/BioServices revenue continues to grow double digits year-over-year, increasing 12%, as we continue to introduce our expanded capabilities to existing customers as well as add new customers into our global network, and as more allogeneic clinical and commercial therapies progress in the number of patients treated.
Revenue from commercially approved Cell & Gene therapies represented $6.1 million, or 11%, of total revenue for Q3 2024. During Q3 2024, one new therapy was approved by the Pharmaceuticals and Medical Devices Agency (PMDA) of Japan, which was SanBio’s AKUUGO, an allogeneic treatment for the indication of improving chronic motor paralysis resulting from traumatic brain injury. In addition, the FDA approved Adaptimmune’s Tecelra for the treatment of adults with unresectable or metastatic synovial sarcoma, the first cell therapy targeting a solid tumor. Our total commercial therapy count was seventeen (17) as of September 30, 2024.
As of September 30, 2024, Cryoport supported a total of 691 global clinical trials, a net increase of 21 clinical trials over September 30, 2023, with 79 trials in Phase 3. The number of trials by phase and region are as follows:
Cryoport Supported Clinical Trials by Phase
Clinical Trials
September 30,
2022
2023
2024
Phase 1
268
275
295
Phase 2
295
314
317
Phase 3
80
81
79
Total
643
670
691
Cryoport Supported Clinical Trials by Region
Clinical Trials
September 30,
2022
2023
2024
Americas
496
516
531
EMEA
105
112
112
APAC
42
42
48
Total
643
670
691
During the third quarter, three (3) Biologics License Application (BLA)/Marketing Authorization Application (MAA) filings occurred, and one (1) BLA filing occurred in October. For the remainder of 2024, we anticipate up to an additional four (4) application filings and two (2) new therapy approvals, with another two (2) possible approvals of new therapies in January of 2025.
BioLogistics Solutions revenue rose 9% year over year during the third quarter as it continued to benefit from the ramp in temperature-controlled logistics revenue outside of the Cell & Gene therapy market, including biosimilars, antibodies, APIs and a growing number of Direct-to-Patient shipments.
Financial Highlights
Revenue
Total revenue for Q3 2024 was $56.7 million compared to $56.2 million for Q3 2023, a year-over-year increase of 1% or $0.5 million. Life Sciences Services revenue for Q3 2024 was $39.3 million compared to $36.0 million for Q3 2023, up 9.0% year-over-year and 3.3% sequentially, including BioStorage/BioServices revenue of $4.0 million, up 12.4% year-over-year and 12.9% sequentially. Life Sciences Products revenue for Q3 2024 was $17.4 million compared to $20.1 million for Q3 2023, down 13.7% year-over-year and 11.1% sequentially.Total revenue for 9M 2024 was $168.9 million compared to $176.0 million for 9M 2023. Life Sciences Services revenue for 9M 2024 was $114.1 million compared to $107.1 million for 9M 2023, including BioStorage/BioServices revenue of $11.0 million for 9M 2024 compared to $10.0 million for 9M 2023.Life Sciences Products revenue for 9M 2024 was $54.7 million compared to $68.9 million for 9M 2023.
Gross Margin
Total gross margin was 44.8% for Q3 2024 compared to 43.2% for Q3 2023. Gross margin for Life Sciences Services was 46.0% for Q3 2024 compared to 42.2% for Q3 2023. Gross margin for Life Sciences Products was 42.1% for Q3 2024 compared to 44.9% for Q3 2023.Total gross margin was 42.8% for 9M 2024 compared to 43.2% for 9M 2023. Gross margin for Life Sciences Services was 44.0% for 9M 2024 compared to 44.1% for 9M 2023. Gross margin for Life Sciences Products was 40.5% for 9M 2024 compared to 41.9% for 9M 2023.
Operating Costs and Expenses
Operating costs and expenses were $41.8 million for Q3 2024 compared to operating costs and expenses of $41.2 million for Q3 2023. Operating costs and expenses for 9M 2024 were $189.3 million compared to $121.4 million for 9M 2023. The operating costs and expenses for 9M 2024 include an impairment loss of $63.8 million recorded in Q2 2024, which is primarily related to the write off of remaining goodwill for MVE Biological Solutions.
Net Income (Loss)
Net income was $0.8 million for Q3 2024 compared to a net loss of $13.3 million for Q3 2023, which was primarily a result of increased gains on the extinguishment of debt. Net loss was $96.1 million for 9M 2024 compared to a net loss of $37.2 million for the same period in 2023, which was primarily a result of the impairment loss of $63.8 million recorded in Q2 2024.Net loss attributable to common stockholders was $1.2 million, or $0.02 per share, and $102.1 million, or $2.07 per share, for Q3 2024 and 9M 2024, respectively. This compares to a net loss attributable to common stockholders of $15.3 million, or $0.31 per share, and $43.2 million, or $0.89 per share, for Q3 2023 and 9M 2023, respectively.
Adjusted EBITDA
Adjusted EBITDA was a negative $2.4 million for Q3 2024, compared to a negative $3.1 million for Q3 2023. Adjusted EBITDA for 9M 2024 was a negative $13.9 million, compared to a negative $1.7 million for 9M 2023.
Cash, Cash equivalents, and Short-Term Investments
Cryoport held $272.7 million in cash, cash equivalents, and short-term investments as of September 30, 2024.
Convertible Debt repurchases
In Q3 2024, the Company announced that its Board of Directors had authorized a repurchase program to purchase up to $200.0 million of the Company’s common stock and/or convertible senior notes (the “2024 Repurchase Program”), which was in addition to the remaining amount under its 2022 repurchase program. The 2024 Repurchase Program became effective on August 1, 2024, and remains in effect through December 31, 2027. The Company has approximately $73.9 million in total of repurchase authorization available under its two Repurchase Programs as of September 30, 2024.During Q3 2024, the Company repurchased $175.0 million in aggregate principal amount of its Convertible Senior Notes due in 2026 for an aggregate repurchase price of $154.5 million.
Note: All reconciliations of GAAP to adjusted (non-GAAP) figures above are detailed in the reconciliation tables included later in the press release.
Outlook
The Company reaffirms full year 2024 revenue guidance in the range of $225 million – $235 million. The Company’s 2024 guidance is dependent on its current business and expectations, which may be further impacted by, among other things, factors that are outside of our control, such as the global macroeconomic and geopolitical environment, supply chain constraints, inflationary pressures, and the effects of foreign currency fluctuations, as well as the other factors described in the Company’s filings with the Securities and Exchange Commission (“SEC”), including in the “Risk Factors” section of its most recently filed periodic reports on Form 10-K and Form 10-Q, as well as in its subsequent filings with the SEC.
Additional Information
Further information on Cryoport’s financial results is included in the attached condensed consolidated balance sheets and statements of operations, and additional explanations of Cryoport’s financial performance are provided in the Company’s Quarterly Report on Form 10-Q for the three months ended September 30, 2024, which is expected to be filed with the SEC on November 7, 2024. Additionally, the full report will be available in the SEC Filings section of the Investor Relations section of Cryoport’s website at www.cryoportinc.com.
Earnings Conference Call Information
IMPORTANT INFORMATION: In addition to the earnings release, a document titled “Cryoport Third Quarter 2024 in Review”, providing a review of Cryoport’s financial and operational performance and a general business update, will be issued at 4:05 p.m. ET on Thursday, November 7, 2024. The document is designed to be read in advance of the questions and answers conference call and will be accessible at https://ir.cryoportinc.com/news-events/ir-calendar.
Cryoport management will host a conference call at 5:00 p.m. ET on November 7, 2024. The conference call will be in the format of a questions and answers session and will address any queries investors have regarding the Company’s reported results. A slide deck will accompany the call.
Conference Call Information
Date:
Thursday, November 7, 2024
Time:
5:00 p.m. ET
Dial-in numbers:
1-800-717-1738 (U.S.), 1-646-307-1865 (International)
Confirmation code:
Request the “Cryoport Call” or Conference ID: 1171580
Live webcast:
‘Investor Relations’ section at www.cryoportinc.com or click here.
Please allow 10 minutes prior to the call to visit this site to download and install any necessary audio software.
The questions and answers call will be recorded and available approximately three hours after completion of the live event in the Investor Relations section of the Company’s website at www.cryoportinc.com for a limited time. To access the replay of the questions and answers click here. A dial-in replay of the call will also be available to those interested, until November 14, 2024. To access the replay, dial 1-844-512-2921 (United States) or 1-412-317-6671 (International) and enter replay entry code: 1171580#.
About Cryoport, Inc.
Cryoport, Inc. (Nasdaq: CYRX), is a global leader in supply chain solutions for the Life Sciences with an emphasis on cell & gene therapies. Cryoport enables manufacturers, contract manufacturers (CDMOs), contract research organizations (CROs), developers, and researchers to conduct their respective business with products and services that are designed to derisk services and provide certainty. We provide a broad array of supply chain solutions for the life sciences industry. Through our platform of critical products and solutions including advanced temperature-controlled packaging, informatics, specialized bio-logistics services, bio-storage, bio-services, and cryogenic systems, we are “Enabling the Future of Medicine™” worldwide, through our innovative systems, compliant procedures, and agile approach to superior supply chain management.
Our corporate headquarters, located in Nashville, Tennessee, is complemented by over 50 global locations in 17 countries, with key sites in the United States, United Kingdom, France, the Netherlands, Belgium, Portugal, Germany, Japan, Australia, India, and China.
For more information, visit www.cryoportinc.com or follow via LinkedIn at https://www.linkedin.com/company/cryoportinc or @cryoport on X, formerly known as Twitter at www.x.com/cryoport for live updates.
Forward-Looking Statements
Statements in this press release which are not purely historical, including statements regarding Cryoport’s intentions, hopes, beliefs, expectations, representations, projections, plans, or predictions of the future, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, those related to Cryoport’s industry, business, long-term growth prospects, plans, strategies, acquisitions, future financial results and financial condition, such as Cryoport’s outlook and guidance for full year 2024 revenue and the related assumptions and factors expected to drive revenue, projected growth trends in the markets in which the Cryoport operates, Cryoport’s plans and expectations regarding the launch of new products and services, such as the expected timing and benefits of such products and services launches, Cryoport’s expectations about future benefits of its acquisitions, and anticipated regulatory filings, approvals, label/geographic expansions or moves to earlier lines of treatment approved with respect to the products of Cryoport’s clients. Forward-looking statements also include those related to Cryoport’s anticipation of continued growth in its services business and ongoing softness in product sales; Cryoport’s plans and expectations relating to its previously announced cost reduction and capital realignment strategies, including Cryoport’s plans to complete these adjustments by the year’s end and Cryoport’s belief that these measures will lead to a return to positive adjusted EBITDA during 2025; Cryoport’s expectations that the macroeconomic and sector-specific challenges that have impacted many companies serving the life sciences industry to continue into the near future; and Cryoport’s belief that it is strategically positioned to leverage the anticipated long-term growth in the Cell & Gene therapy market through Cryoport’s comprehensive and integrated supply chain solutions. It is important to note that Cryoport’s actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks and uncertainties associated with the effect of changing economic and geopolitical conditions, supply chain constraints, inflationary pressures, the effects of foreign currency fluctuations, trends in the products markets, variations in Cryoport’s cash flow, market acceptance risks, and technical development risks. Additional risks and uncertainties include difficulties, delays or Cryoport’s inability to successfully complete its planned cost reduction and capital realignment measures, which could reduce the benefits realized from such activities within the time periods currently anticipated. Cryoport’s business could be affected by other factors discussed in Cryoport’s SEC reports, including in the “Risk Factors” section of its most recently filed periodic reports on Form 10-K and Form 10-Q, as well as in its subsequent filings with the SEC. The forward-looking statements contained in this press release speak only as of the date hereof and Cryoport cautions investors not to place undue reliance on these forward-looking statements. Except as required by law, Cryoport disclaims any obligation, and does not undertake to update or revise any forward-looking statements in this press release.
Cryoport, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
Three Months Ended
September 30,
(unaudited)
Nine Months Ended
September 30,
(unaudited)
(in thousands, except share and per share data)
2024
2023
2024
2023
Revenue
Life Sciences Services revenue
$ 39,278
$ 36,022
$ 114,104
$ 107,062
Life Sciences Products revenue
17,386
20,135
54,749
68,933
Total revenue
56,664
56,157
168,853
175,995
Cost of revenue:
Cost of services revenue
21,220
20,803
63,927
59,887
Cost of products revenue
10,059
11,088
32,576
40,037
Total cost of revenue
31,279
31,891
96,503
99,924
Gross margin
25,385
24,266
72,350
76,071
Operating costs and expenses:
Selling, general and administrative
37,654
36,023
111,921
108,066
Engineering and development
4,157
5,152
13,555
13,291
Impairment loss
–
–
63,809
–
Total operating costs and expenses:
41,811
41,175
189,285
121,357
Loss from operations
(16,426)
(16,909)
(116,935)
(45,286)
Other income (expense):
Investment income
3,059
2,848
8,468
7,962
Interest expense
(889)
(1,357)
(3,472)
(4,197)
Gain on extinguishment of debt, net
17,326
5,679
18,505
5,679
Other income (expense), net
(1,616)
(3,059)
(1,398)
242
Income (loss) before provision for income taxes
1,454
(12,798)
(94,832)
(35,600)
Provision for income taxes
(649)
(471)
(1,247)
(1,598)
Net income (loss)
$ 805
$ (13,269)
$ (96,079)
$ (37,198)
Paid-in-kind dividend on Series C convertible preferred stock
(2,000)
(2,000)
(6,000)
(6,000)
Net loss attributable to common stockholders
$ (1,195)
$ (15,269)
$ (102,079)
$ (43,198)
Net loss per share attributable to common stockholders – basic and diluted
$ (0.02)
$ (0.31)
$ (2.07)
$ (0.89)
Weighted average common shares outstanding – basic and diluted
49,417,757
48,904,102
49,261,717
48,660,646
Cryoport, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
September 30,
December 31,
2024
2023
(in thousands)
(unaudited)
Current assets
Cash and cash equivalents
$ 44,665
$ 46,346
Short-term investments
228,001
410,409
Accounts receivable, net
43,461
42,074
Inventories
23,552
26,206
Prepaid expenses and other current assets
10,658
10,077
Total current assets
350,337
535,112
Property and equipment, net
88,281
84,858
Operating lease right-of-use assets
30,113
32,653
Intangible assets, net
175,815
194,382
Goodwill
54,057
108,403
Deposits
1,493
1,680
Deferred tax assets
1,669
656
Total assets
$ 701,765
$ 957,744
Current liabilities
Accounts payable and other accrued expenses
$ 25,194
$ 26,995
Accrued compensation and related expenses
11,275
11,409
Deferred revenue
1,091
1,308
Current portion of operating lease liabilities
5,834
5,371
Current portion of finance lease liabilities
470
286
Current portion of convertible senior notes, net
14,271
–
Current portion of notes payable
153
149
Current portion of contingent consideration
3,151
92
Total current liabilities
61,439
45,610
Convertible senior notes, net
183,628
378,553
Notes payable, net
1,238
1,335
Operating lease liabilities, net
26,466
29,355
Finance lease liabilities, net
1,306
954
Deferred tax liabilities
3,526
2,816
Other long-term liabilities
569
601
Contingent consideration, net
5,021
9,497
Total liabilities
283,193
468,721
Total stockholders’ equity
418,572
489,023
Total liabilities and stockholders’ equity
$ 701,765
$ 957,744
Note Regarding Use of Non-GAAP Financial Measures
To supplement our financial statements, which are presented on the basis of U.S. generally accepted accounting principles (GAAP), the following non-GAAP measures of financial performance as defined in Regulation G of the Securities Exchange Act of 1934 are included in this release: revenue at constant currency, revenue growth rate at constant currency, operating costs and expenses, excluding impairment loss, net income, excluding impairment loss, and adjusted EBITDA. Non-GAAP financial measures are not calculated in accordance with GAAP, are not based on any comprehensive set of accounting rules or principles and may be different from non-GAAP financial measures presented by other companies. Non-GAAP financial measures, including revenue at constant currency, revenue growth rate at constant currency and adjusted EBITDA, should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
We believe that revenue growth is a key indicator of how Cryoport is progressing from period to period, and we believe that the non-GAAP financial measures, revenue at constant currency and revenue growth rate at constant currency, are useful to investors in analyzing the underlying trends in revenue. Under GAAP, revenue received in local (non-U.S. dollar) currency is translated into U.S. dollars at the average exchange rate for the period presented. As a result, fluctuations in foreign currency exchange rates affect the results of our operations and the value of our foreign assets and liabilities, which in turn may adversely affect results of operations and cash flows and the comparability of period-to-period results of operations. When we use the term “constant currency,” it means that we have translated local currency revenue for the current reporting period into U.S. dollars using the same average foreign currency exchange rates for the conversion of revenue into U.S. dollars that we used to translate local currency revenue for the comparable reporting period of the prior year. Revenue growth rate at constant currency refers to the measure of comparing the current reporting period revenue at constant currency with the reported GAAP revenue for the comparable reporting period of the prior year.
However, we also believe that data on constant currency period-over-period changes have limitations, particularly as the currency effects that are eliminated could constitute a significant element of our revenue and could significantly impact our performance. We therefore limit our use of constant currency period-over-period changes to a measure for the impact of currency fluctuations on the translation of local currency revenue into U.S. dollars. We do not evaluate our results and performance without considering both period-over-period changes in non-GAAP constant currency revenue on the one hand and changes in revenue prepared in accordance with GAAP on the other. We caution the readers of this press release to follow a similar approach by considering revenue on constant currency period-over-period changes only in addition to, and not as a substitute for, or superior to, changes in revenue prepared in accordance with GAAP.
Operating costs and expenses, excluding impairment loss, is defined as operating costs and expenses, excluding impairment losses, if any. Net loss, excluding impairment loss, is defined as net loss, excluding impairment losses, if any. Management believes these measures, when read in conjunction with, and as supplemental to, the corresponding GAAP financial measures, provide a useful measure of Cryoport’s expenses and operating results, a meaningful comparison with historical results, and insight into Cryoport’s operating performance.
Adjusted EBITDA is defined as net loss adjusted for interest expense, income taxes, depreciation and amortization expense, stock-based compensation expense, acquisition and integration costs, cost reduction initiatives, investment income, unrealized (gain)/loss on investments, foreign currency (gain)/loss, gain on insurance claim, net gain on extinguishment of debt, impairment loss, changes in fair value of contingent consideration and charges or gains resulting from non-recurring events, as applicable.
Management believes that adjusted EBITDA provides a useful measure of Cryoport’s operating results, a meaningful comparison with historical results and with the results of other companies, and insight into Cryoport’s ongoing operating performance. Further, management and the Company’s board of directors utilize adjusted EBITDA to gain a better understanding of Cryoport’s comparative operating performance from period to period and as a basis for planning and forecasting future periods. Adjusted EBITDA is also a significant performance measure used by Cryoport in connection with its incentive compensation programs. Management believes adjusted EBITDA, when read in conjunction with Cryoport’s GAAP financials, is useful to investors because it provides a basis for meaningful period-to-period comparisons of Cryoport’s ongoing operating results, including results of operations, against investor and analyst financial models, helps identify trends in Cryoport’s underlying business and in performing related trend analyses, and it provides a better understanding of how management plans and measures Cryoport’s underlying business.
Cryoport, Inc. and Subsidiaries
Reconciliation of GAAP operating cost and expenses to Non-GAAP adjusted operating cost and expenses
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
(in thousands)
GAAP operating costs and expenses
$ 41,811
$ 41,175
$ 189,285
$ 121,357
Non-GAAP adjustments to operating costs and expenses
Impairment loss
—
—
63,809
—
Non-GAAP adjusted operating costs and expenses
$ 41,811
$ 41,175
$ 125,476
$ 121,357
Cryoport, Inc. and Subsidiaries
Reconciliation of GAAP net income (loss) to Non-GAAP adjusted net income (loss)
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
(in thousands)
GAAP net income (loss)
$ 805
$ (13,269)
$ (96,079)
$ (37,198)
Non-GAAP adjustments to net income (loss)
Impairment loss
—
—
63,809
—
Non-GAAP adjusted net income (loss)
$ 805
$ (13,269)
$ (32,270)
$ (37,198)
Cryoport, Inc. and Subsidiaries
Reconciliation of GAAP net income (loss) to adjusted EBITDA
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
(in thousands)
GAAP net income (loss)
$ 805
$ (13,269)
$ (96,079)
$ (37,198)
Non-GAAP adjustments to net income (loss):
Depreciation and amortization expense
7,836
6,911
22,863
20,038
Acquisition and integration costs
308
675
896
6,304
Cost reduction initiatives
568
—
1,116
—
Investment income
(3,059)
(2,848)
(8,468)
(7,962)
Unrealized loss on investments
3,535
2,336
2,593
2,300
Gain on insurance claim
—
—
—
(2,642)
Foreign currency (gain)/loss
(1,724)
710
(762)
114
Interest expense, net
889
1,357
3,472
4,197
Stock-based compensation expense
4,838
5,976
15,291
16,960
Gain on extinguishment of debt, net
(17,326)
(5,679)
(18,505)
(5,679)
Impairment loss
—
—
63,809
—
Change in fair value of contingent consideration
316
250
(1,329)
250
Other non-recurring costs
—
—
—
—
Income taxes
649
471
1,247
1,598
Adjusted EBITDA
$ (2,365)
$ (3,110)
$ (13,856)
$ (1,720)
Cryoport, Inc. and Subsidiaries
Total revenue by type for the three months ended September 30, 2024
(unaudited)
Life Sciences
Services
Life Sciences
Products
Total
(in thousands)
As Reported
$ 39,278
$ 17,386
$ 56,664
Non US-GAAP Constant Currency
39,193
17,340
56,532
FX Impact [$]
85
46
132
FX Impact [%]
0.2 %
0.3 %
0.2 %
Cryoport, Inc. and Subsidiaries
Total revenue by type for the nine months ended September 30, 2024
(unaudited)
Life Sciences
Services
Life Sciences
Products
Total
(in thousands)
As Reported
$ 114,104
$ 54,749
$ 168,853
Non US-GAAP Constant Currency
114,220
54,774
168,994
FX Impact [$]
(116)
(25)
(141)
FX Impact [%]
(0.1 %)
(0.0 %)
(0.1 %)
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SOURCE Cryoport, Inc.
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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
View original content to download multimedia:https://www.prnewswire.com/news-releases/escalade-announces-second-quarter-2026-results-conference-call-date-302833660.html
SOURCE Escalade, Incorporated
Technology
Analog Devices to Report Third Quarter Fiscal Year 2026 Financial Results on Wednesday, August 19, 2026
Published
32 minutes agoon
July 23, 2026By
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
View original content to download multimedia:https://www.prnewswire.com/news-releases/analog-devices-to-report-third-quarter-fiscal-year-2026-financial-results-on-wednesday-august-19-2026-302832572.html
SOURCE Analog Devices, Inc.
Technology
Scholastic Reports Fourth Quarter and Fiscal 2026 Results
Published
32 minutes agoon
July 23, 2026By
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
NM
Diluted earnings (loss) per share
$
2.34
$
(0.07)
$
2.41
NM
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
NM
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)
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 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
NM
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
NM
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)
(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 %
NM
NM
NM
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
0.4
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
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
0.6
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
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.
View original content to download multimedia:https://www.prnewswire.com/news-releases/scholastic-reports-fourth-quarter-and-fiscal-2026-results-302833617.html
SOURCE Scholastic Corporation
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