EDUC
Educational Development
Q3 2025 Report
Educational Development Corporation (EDUC) Q3 2025 Financial Performance Review...
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Executive Summary
Educational Development Corporation (EDUC) experienced a challenging Q1 2026, reporting a revenue decline of 20.76% year-over-year, alongside a 35.70% decrease compared to the previous quarter. With revenue totaling $7.1 million and a net loss of $1.1 million, the company's performance reflects their ongoing struggles in the competitive publishing industry. Despite seeing operational costs rise, management continues to emphasize a commitment to quality educational content and the potential for market recovery. This report delves into the key metrics and management commentary to assess the implications for future investor engagement.
The company's gross profit saw a significant drop of 25.59% year-over-year, indicating adverse effects on profitability margins. Management acknowledged that increased costs in marketing and sales, alongside a tight labor market, have impacted operational efficiency. As educational trends shift, there's a need for adaptive strategies to align production with market demand, which will be essential moving forward to drive shareholder value and avoid prolonged losses.
Key Performance Indicators
Revenue
7.11M
QoQ: -35.70% | YoY:-20.76%
Gross Profit
4.14M
58.22% margin
QoQ: -40.08% | YoY:-25.59%
Operating Income
-1.56M
QoQ: -30.53% | YoY:23.48%
Net Income
-1.08M
QoQ: -28.66% | YoY:33.41%
EPS
-0.13
QoQ: -30.00% | YoY:35.00%
Revenue Trend
Margin Analysis
Key Insights
- Total revenue for Q1 2026 is reported at **$7,106,400**, down **20.76%** year-over-year (YoY) and **35.70%** quarter-over-quarter (QoQ). The decline is primarily attributed to reduced demand in traditional retail channels and increased competition online.
- Net income stands at **-$1,075,200**, with an EPS of **-$0.13**. This marks a **33.41%** increase in net loss compared to the same quarter last year but a marginal **-28.66%** decrease from the previous quarter, indicating a slight improvement in profitability.
- Gross profit is reported at **$4,137,100**, with a gross profit margin of **58.22%**. This is lower than the previous year's margin, reflecting rising operational costs.
- The company posted an operating loss of **-$1,564,500**, a deterioration from historical performance, reflective of ongoing investments in marketing and product development without immediate returns.
- Free cash flow is robust at **$1,189,100**, providing some liquidity reassurance, but the net cash provided by operating activities reveals concerns with operational efficiency, highlighting ongoing structural issues needing resolution.