• The **Barnes & Noble** for kids, famous for its school book fairs.
• The **Disney** for children's literature and educational materials.

• Children's Books Publishing & Distribution: Publishes and distributes a wide range of books for children and young adults through retail and various school-based channels.
• Educational Publishing & Technology: Develops and provides curriculum programs, classroom magazines, and digital learning platforms for schools and educators.
• School Book Fairs (Distribution Service): Organizes and facilitates on-site book sales events within schools, offering children and families direct access to a curated selection of books.
• School Book Clubs (Distribution Service): Operates programs enabling students to order books through their schools, often with exclusive titles and special offers.
• Media & Entertainment: Produces and licenses educational and entertainment content, including TV shows and movies based on its popular book series.

Scholastic (symbol: SCHL) primarily sells to individuals, largely through its unique school-based distribution channels (Scholastic Book Clubs and Scholastic Book Fairs).

Based on their significant revenue contributions, the up to three categories of individual customers it serves are:

1. Parents/Guardians: These are the primary purchasers of books and educational materials through Scholastic Book Clubs and Book Fairs, buying for their children. Their purchasing decisions are influenced by their children's interests, educational needs, and the convenience and value offered through the school channel.
2. Teachers/Educators: While often acting as facilitators for Book Clubs and Fairs, teachers and other educators also purchase books, classroom magazines, supplemental materials, and other educational resources directly from Scholastic for use in their classrooms. They often utilize personal funds, school allowances, or grants for these purchases and are key influencers regarding educational content.
3. Children/Young Adults: As the ultimate consumers of Scholastic's books, magazines, and digital content, children and young adults directly drive demand for specific titles and genres. They are also direct purchasers, particularly at Book Fairs with their own money, or through personal subscriptions to Scholastic's various periodicals.

Note: While a significant portion of Scholastic's business also involves selling to companies (such as retailers for trade books like Amazon and Barnes & Noble) and institutions (schools and school districts for educational solutions), based on recent revenue contributions from its Book Clubs and Book Fairs segments, sales to individuals represent the primary customer base.

Peter Warwick, President and Chief Executive Officer

Peter Warwick became President and CEO of Scholastic in August 2021, making him only the third CEO in Scholastic's more than 100-year history. Prior to his appointment as CEO, he served as an independent director on Scholastic's Board from 2014–2021. Warwick has extensive management and operational expertise in education publishing and in the information and media industries. He held several senior leadership positions at Thomson Reuters, including CEO of significant business units such as the Legal and Regulatory businesses in the APAC region, Thomson Tax & Accounting, and Thomson Legal. He retired from Thomson Reuters in 2018 from his role as Chief People Officer. Earlier in his career, Peter spent 20 years at Pearson, where he began in an editorial capacity and eventually became CEO of the company's professional education and information business unit.

Haji Glover, Executive Vice President & Chief Financial Officer

Haji Glover was named Scholastic's Executive Vice President & Chief Financial Officer, effective January 22, 2024. He brings over 27 years of financial planning, analysis, and corporate finance experience to Scholastic. Most recently, Glover served as the Director of Finance at Amazon, leading the finance organization supporting the People Experience and Technology division since September 2022. Before joining Amazon, he was Senior Vice President of Corporate Finance at Scholastic from 2020 to 2022. His career also includes various finance leadership roles at Lockheed Martin, Ford Motor Company, Honeywell International, and Alvogen Group from 2000 to 2020.

Ken Cleary, President, International

Ken Cleary transitioned to the role of President of International for Scholastic, effective January 22, 2024. Prior to this, he served as Chief Financial Officer of Scholastic Corporation, a position he held since October 2017. Cleary joined Scholastic in 2008. His background includes experience as director of accounting with US Shipping Corporation and as an assistant controller with both Hertz and BASF.

Beth Polcari, President, Education Solutions

Beth Polcari was named President of Education Solutions, effective August 16, 2023. She previously served as President of International, a role she assumed on January 1, 2021. Ms. Polcari began her career at Scholastic in 1984. She has held numerous leadership roles across key U.S. education business areas, gaining significant insights into serving schools. Her accomplishments include building the Early Childhood Division, managing the development of the supplementary publishing business, and serving as Chief Operating Officer of the division during the expansion of the company's Education Technology business. She also oversaw Scholastic's Classroom Magazines, Digital Subscriptions, and Teaching Resources businesses, and led digital growth initiatives such as Scholastic Literacy Pro™.

Iole Lucchese, Executive Vice President, Chief Strategy Officer and Chair of the Board of Directors

Iole Lucchese was appointed Executive Vice President of Scholastic Corporation in 2016 and assumed the role of Chair of the Board of Directors in 2021. She has served as Chief Strategy Officer since 2014. A 30-year veteran of the company, Ms. Lucchese has consistently led innovative efforts to strengthen connections with and provide better support for teachers, families, and young readers, while expanding access to Scholastic content globally.

The key risks to Scholastic's business include:

1. Uncertainty in Educational Funding and School Spending: Scholastic has experienced significant declines in its Education Solutions segment due to increased funding uncertainty for schools and school districts, which has impacted spending on supplemental curriculum materials. This has directly led to plunges in revenue and quarterly losses for the company.
2. Long-Term Revenue Growth Stagnation: The company has struggled with consistent long-term revenue growth, with sales remaining relatively flat or experiencing declines over several years, indicating a challenge in expanding its market or increasing demand for its core products.
3. Weak Operating Margins: Scholastic's operating margin has shrunk and is considered mediocre for a consumer discretionary business, suggesting difficulties in efficiently managing core expenses and passing on higher costs to customers, which impacts overall profitability.

Generative Artificial Intelligence (AI) poses a clear emerging threat to Scholastic's core businesses in publishing and educational technology. AI-powered tools are rapidly advancing in their ability to create high-quality, engaging children's books, educational materials, and accompanying illustrations with significantly reduced costs and time compared to traditional publishing models. This could democratize content creation, enabling independent creators or smaller educational entities to produce and distribute content that competes with Scholastic's published works.

Furthermore, Generative AI is transforming educational technology by enabling highly personalized learning experiences, adaptive curricula, and intelligent tutoring systems. New entrants or agile existing technology companies leveraging these advanced AI capabilities could offer superior, more engaging, and potentially lower-cost digital learning solutions. This directly threatens Scholastic's educational technology offerings and curriculum sales by providing fundamentally different and potentially more effective ways for students to learn and for educators to access resources, akin to how Netflix's streaming model disrupted traditional video rental businesses like Blockbuster.

Scholastic (SCHL) Addressable Market Sizes

Children's Book Publishing and Distribution

• Global Children's Books Market: The global children's books market was valued at approximately USD 15.9 billion in 2023 and is projected to reach USD 24.5 billion by 2031.
• U.S. Children's Book Market: The children's book market in the U.S. is projected to reach $2.62 billion in 2023.

Education Solutions (Pre-K to Grade 12 Instructional Materials and Technology)

• U.S. PreK-12 Instructional Materials Market: Total sales for instructional materials in the PreK-12 market in the U.S. reached $10.6 billion in calendar year 2023.
• U.S. K-12 Education Technology (EdTech) Market: The K-12 education sector accounted for approximately 46.4% of the United States EdTech market in 2024. The overall U.S. EdTech market was valued at USD 74.34 billion in 2024. This implies an addressable market for K-12 EdTech in the U.S. of roughly $34.5 billion in 2024.
• Global K-12 Education Technology (EdTech) Market: The global K-12 Education Technology (EdTech) market was valued at USD 78.2 billion in 2023 and is projected to reach approximately USD 253.9 billion by 2033.
• Global K-12 Textbook Market: The global K-12 textbook market size was $161.88 billion in 2024 and is expected to grow to $200 billion in 2025.

International

Scholastic's international segment distributes children's books and educational materials worldwide. The addressable markets for these products are covered by the global market sizes for children's books and K-12 education technology mentioned above.

Here are 3-5 expected drivers of future revenue growth for Scholastic (SCHL) over the next 2-3 years:

1. Growth in the Entertainment Segment: The acquisition and integration of 9 Story Media Group are expected to significantly contribute to revenue in the newly formed Entertainment segment. This strategic move aims to accelerate Scholastic's 360-degree intellectual property (IP) strategy, with 9 Story anticipated to contribute over $80 million in revenue in fiscal 2025, and further growth projected for fiscal 2026 and beyond. The company is also focusing on digital distribution platforms like YouTube to expand its reach and monetize its IP.
2. New Releases in Global Best-Selling Children's Book Franchises: Scholastic anticipates revenue growth from new titles in its established and popular franchises. Upcoming releases in series such as "The Hunger Games" (e.g., "Sunrise on the Reaping") and Dav Pilkey's "Dog Man" series are expected to drive strong trade publishing sales.
3. Expansion and Performance of School Book Fairs: Scholastic expects continued strong participation in its Book Fairs, with a target of approximately 90,000 fairs in fiscal 2025, contributing to modest growth in this segment.
4. Repositioning and New Product Development in Education Solutions: Despite recent headwinds in supplemental curriculum spending, Scholastic is actively repositioning its Education Solutions business for profitable growth. This includes refocusing product development and go-to-market strategies, with new product launches slated for the 2025-2026 school year. The company also aims to expand its state and community literacy partnerships.
5. International Market Growth and Operational Improvements: Scholastic projects modest revenue growth in its major international markets. Operational improvements in regions such as Canada are also expected to drive enhanced operating margins and overall contribution.

[1] Share Repurchases

• In October 2022, Scholastic's Board of Directors authorized the repurchase of up to $75 million of its common stock through a modified "Dutch Auction" tender offer.
• The Board authorized an additional $53.4 million for repurchases in March 2025, increasing the total authorization to $100 million.
• In fiscal year 2025, the company repurchased 3,482,280 shares of common stock for $70.0 million. There is currently $70.0 million authorized for repurchases under its stock repurchase program.

[2] Share Issuance

• During fiscal year 2020, 43,248 shares of Common Stock were issued upon the vesting of restricted stock units.
• The number of shares outstanding has decreased by 9.30% in one year (as of November 2025), reflecting net repurchases exceeding issuances from stock compensation.

[4] Outbound Investments

• In September 2022, Scholastic acquired Learning Ovations, a provider of literacy assessment and instructional systems, to enhance its literacy platform.
• Scholastic signed an agreement in March 2024 to invest in 9 Story Media Group, acquiring 100% of the economic interest and a minority of voting rights for approximately USD $186 million, with the deal finalizing in June 2024 for roughly US$182 million.
• The acquisition of 9 Story Media Group was funded partly by borrowings, leading to a net debt of $136.6 million in fiscal year 2025, compared to a net cash position of $107.7 million in the prior year.

[5] Capital Expenditures

• Annual capital expenditures were $59.2 million in 2022, $88.9 million in 2023, and $81.2 million in 2024.
• The trailing twelve months' (TTM) annual capital expenditures were $67.2 million as of September 30, 2025.
• Capital expenditures are considered necessary to maintain and expand the company's asset base and are expected to generate future cash flows from operations.