Educational Development Corporation (EDC) reported financial results for the fiscal second quarter ended August 31, 2026. The company, which operates as a publisher and distributor of children's books and educational products, reported net revenues of $4.07 million for the quarter. This figure represents a decrease from the $4.62 million reported in the prior year's second quarter.
During the period, the company recorded a net loss of $1.58 million, or $(0.19) per share on a fully diluted basis. This compares to a net loss of $1.29 million, or $(0.15) per share, in the prior year. The company attributed the lower earnings per share this quarter to the inability to realize a deferred tax asset associated with pre-tax losses.
For the year-to-date period, net revenues totaled $8.83 million, down from $11.73 million in the prior year. The net loss for the six months was $2.97 million, or $(0.35) per share, compared to a loss of $2.37 million, or $(0.28) per share, in the prior year.
EDC noted that it has implemented a cost reduction plan aimed at lowering general and administrative expenses by over $1.2 million for the fiscal year. The company also sold a legacy distribution system for $100,000 in the first quarter. Despite a decrease in cash from $1.3 million at the end of February to $1.2 million at the end of August, the company stated it generated positive cash flow during the slowest quarter of the year.
The company’s average active PaperPie Brand Partners totaled 5,100 for the quarter and 5,200 for the year-to-date period. CEO Craig White noted that the number of active Brand Partners increased by over 19% from the start of the fiscal year to 5,100. EDC will hold an earnings call on Wednesday, October 14, 2026, at 3:30 PM CT to discuss these results.
