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• Avon for children's books
• Pampered Chef for kids' educational materials
• Scholastic for direct sellers

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• Children's Books: Publishes and distributes a wide range of educational and entertaining books for children, primarily under the Usborne Books and Kane Miller imprints.
• Direct Sales Program: Facilitates a multi-level marketing program enabling independent consultants to sell their books directly to consumers.
• Wholesale and Institutional Sales: Provides books to schools, libraries, and retail outlets through traditional wholesale channels.

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Educational Development (symbol: EDUC) sells primarily to **individuals**.

The company serves the following categories of customers:

• Parents, Guardians, and Families: This category encompasses individuals who purchase books for the educational and recreational enrichment of children within their own households. They are typically seeking high-quality, engaging, and age-appropriate materials to support their children's learning and development.
• Educators and Institutions: This group includes teachers, librarians, homeschool parents, and other educational professionals who acquire books for use in classrooms, school libraries, literacy programs, or other structured learning environments. They often value the educational content, curriculum alignment, and durability of the books.
• Gift-givers: These are individuals who purchase books as presents for children of friends, family members, or acquaintances for various occasions such as birthdays, holidays, or baby showers. Their motivation is to provide meaningful, enriching, and lasting gifts.

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• Usborne Publishing Ltd.

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Craig White

Chief Executive Officer, President, and Chairman of the Board

Craig White was promoted to Chief Executive Officer and President of Educational Development Corporation in July 2021. He also became the Chairman of the Board in January 2025. Mr. White joined the company in 1983 and has held various roles, including Chief Operating Officer since August 2018 and previously Vice President of Information Technology. He is an alumnus of Oklahoma State University, holding a bachelor's degree in Electrical and Computer Engineering. His career at EDC has spanned over 30 years.

Dan O'Keefe

Chief Financial Officer and Corporate Secretary

Dan O'Keefe has served as the Chief Financial Officer and Corporate Secretary of Educational Development Corporation since at least 2017. Before joining EDC, Mr. O'Keefe held significant financial positions at Tulsa Inspection Resources, LLC, an oilfield services company, where he was the Vice President-Finance from August 2015 to September 2016 and Chief Financial Officer and Corporate Secretary from September 2010 to August 2015. He has recently increased his investment in the company by acquiring additional shares through an employee 401(k) plan.

Randall White

Executive Chairman

Randall White served as the President and CEO of Educational Development Corporation for 35 years before transitioning to the role of Executive Chairman in July 2021. He took over as President and CEO in 1986 when the company was facing bankruptcy and is credited with transforming it into a nationally recognized and thriving enterprise. Prior to his CEO role, Mr. White joined EDC in 1983 as controller, following his tenure as Chief Financial Officer of Nicor Drilling in Tulsa during the 1980s oil boom. He graduated from Oklahoma State University in 1963 with a bachelor's degree in accounting.

Heather Cobb

Chief Sales and Marketing Officer

Heather Cobb is the Chief Sales and Marketing Officer at Educational Development Corporation. She was promoted to this role in August 2018. Ms. Cobb began her career at EDC as a sales manager for the Usborne Books & More Division and later advanced to Vice President of that division. She holds a degree from Northeastern State University and has over seven years of management experience with EDC prior to her promotion to CSO. Ms. Cobb has also recently acquired shares in the company through an employee 401(k) plan.

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The key risks to Educational Development (EDUC) are:

1. Declining Direct Sales Network and Revenue: Educational Development Corporation heavily relies on its PaperPie direct sales channel, which has experienced a significant and consistent decline in the number of active Brand Partners. For example, the average active Brand Partners dropped to 12,300 in fiscal 2025 from 18,300 in the prior year, a major headwind for the company's core economic engine. This has directly led to substantial decreases in net revenues, with a 33% year-over-year drop to $34.2 million in FY2025. Net revenues for the fiscal third quarter of 2025 also plummeted by 34.5% to $11.1 million, compared to $16.9 million in the same quarter last year, and average active PaperPie Brand Partners decreased to 12,400 from 16,400. The decline in brand partners is attributed to broader economic headwinds affecting the multi-level marketing (MLM) industry, potential reputational challenges, and a "wait-and-see" attitude from some partners due to the company's financial situation.
2. Financial Instability and Debt Management: EDUC has been facing significant financial challenges, including short-term borrowings and a shift from profitability to net losses. The company reported a net loss of $(5.3) million for fiscal year 2025 and a net loss of $(0.8) million in Q3 FY2025, compared to a profit of $2.0 million in the prior year's quarter. To improve its financial health and address debt, the company has undertaken strategic decisions such as the sale of its headquarters, which is expected to eliminate all bank debt and provide time for an EdTech pivot. However, the successful completion of such transactions and securing adequate financing for working capital and capital expenditures remain crucial for the company's financial stability.
3. Adverse Economic and Competitive Conditions: The company operates within a challenging macroeconomic environment characterized by high inflation and reduced consumer discretionary spending, which negatively impacts sales. Educational Development Corporation is also a small-cap niche player in the broader children's publishing and educational products market, facing competition from larger players. The education sector is also subject to rapid changes in pedagogical trends, the increasing adoption of educational technology (EdTech), and regulatory changes, which can impact demand and require continuous adaptation and investment.

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The clear emerging threats for Educational Development (EDUC) are:

• Erosion of the Direct Selling/Multi-Level Marketing (MLM) Business Model: EDUC's entire business relies on an independent sales force operating under a direct selling model. There is an emerging trend of increased consumer skepticism and regulatory scrutiny towards MLM structures, coupled with growing challenges in recruiting and retaining consultants, particularly among younger demographics. This shift in public perception and participant viability directly threatens the fundamental distribution strategy and growth engine of EDUC.

• Proliferation of Direct-to-Consumer (D2C) Subscription Box Services and Online Curated Marketplaces for Children's Books: A growing number of companies are offering curated selections of children's books directly to consumers through subscription boxes or specialized online platforms. These services provide convenience, discovery, and direct delivery without the need for personal sales consultants, offering a compelling and often more streamlined alternative to EDUC's sales model. This parallels the disruption seen in other industries where convenient, direct-to-consumer models have displaced traditional, intermediary-reliant distribution.

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Educational Development Corporation (EDUC) operates primarily in the children's publishing and educational products market, utilizing both traditional retail and direct selling channels. The company's main products and services include children's books (from Usborne Publishing Limited and Kane Miller Books), educational manipulatives (Learning Wrap-Ups), and STEAM-based toys and games (SmartLab Toys).

Addressable Markets:

• Children's Books: The global children's books market was valued at USD 15.9 billion in 2023 and is projected to reach USD 24.5 billion by 2031, growing at a Compound Annual Growth Rate (CAGR) of 6.3% during the forecast period of 2024-2031. Another estimate places the global children and young adult books market size at USD 11.9 billion in 2024, expected to grow to USD 13.45 billion in 2029 at a CAGR of 2.6%. For the U.S. specifically, the personalized children's books market was valued at USD 661.49 million in 2024 and is projected to reach USD 1,128.52 million by 2032, with a CAGR of 7.10%.
• Educational Publishing: The global educational publishing market size was valued at USD 17.20 billion in 2023 and is projected to expand at a CAGR of 17.2% during the forecast period, reaching a value of USD 54.19 billion by 2030. North America is expected to dominate this market. The North American education publishing market (PreK-12 instructional materials) reached $9.9 billion in 2022. The digital educational publishing market, a significant component, was valued globally at USD 8.81 billion in 2024 and is expected to reach USD 17.9 billion by 2033, with North America holding the largest market share. Another report states the global digital educational publishing market size was USD 20.47 billion in 2025 and is forecast to hit USD 47.15 billion by 2030.
• Direct Selling (including educational products): The U.S. direct selling market size is expected to be worth around USD 70.5 billion by 2034, from USD 40.9 billion in 2024, growing at a CAGR of 5.6% from 2025 to 2034. In 2023, the U.S. direct selling market generated $36.7 billion in retail sales. Products in the U.S. direct selling industry include leisure and educational products. Globally, the direct selling market size was valued at USD 223.82 billion in 2024 and is projected to reach USD 328.26 billion by 2030, growing at a CAGR of 6.7%.

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Expected Drivers of Future Revenue Growth for Educational Development Corporation (EDUC)

1. Elimination of Debt and Improved Financial Flexibility: A significant driver of future growth is the planned sale of the Hilti Complex, the company's headquarters. The proceeds from this sale are expected to fully repay existing bank debt, leading to a debt-free balance sheet. This improved financial position will eliminate substantial interest expenses and provide EDUC with greater flexibility to invest in growth initiatives and potentially return to normal pricing strategies, moving away from the temporary discounting used to manage inventory.
2. Growth in PaperPie Brand Partners through New Initiatives and Technology: EDUC is focusing on recovering and increasing its brand partner count, particularly by targeting young millennials and older Gen Z demographics. This includes strategic changes, new initiatives, and the launch of a new e-commerce system in January 2024, designed to enhance the experience for its direct sales force. Efforts to recruit and retain brand partners are crucial as a decline in their numbers has negatively impacted recent revenues.
3. Expansion and Focus on SmartLab Toys and New Product Development: The company has highlighted a continued focus on its retail SmartLab Toys segment and has an exciting release plan for new products over the next 18 months. This expansion into the retail channel and the introduction of new products are expected to diversify revenue streams beyond direct sales and attract a broader customer base.
4. Strategic Pricing Adjustments Post-Inventory Reduction: While EDUC has been implementing a temporary strategy of increased discounting to reduce excess inventory and generate cash flow, this is viewed as a short-term tactic. Once bank debt is repaid and inventory levels are optimized, the company expects to resume normal pricing and promotional strategies, which should improve gross margins and contribute positively to revenue growth.

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Share Issuance

• On October 15, 2025, a director acquired 4,000 shares of common stock at $1.26 per share, issued as part of Board compensation.

Capital Expenditures

• Educational Development Corporation completed the sale of its corporate headquarters and distribution warehouse (the "Hilti Complex") on October 27, 2025, for $32.2 million.
• The proceeds from the headquarters sale were primarily used to pay off the Company's term loans and revolving loan under its bank Credit Agreement, eliminating outstanding bank borrowings.
• The company reduced inventory levels from $55.6 million to $44.7 million in fiscal year 2025, generating $10.9 million in cash flow, which was used to reduce bank debts and vendor payables.