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EDUC

Educational Development Corporation

EDUC

Educational Development Corporation • NASDAQ
$1.23 ▼ -1.60% (-0.02)
Market Cap $10.56 M
52w High $1.97
52w Low $0.92
Dividend Yield 0%
P/E -2.28
Volume 9.20K
Outstanding Shares 8.58M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2026 $4.396M ▼ $3.243M ▼ $-1.295M ▼ -29.45% ▼ $-0.15 ▼ $-783.4K ▼
Q1-2026 $7.106M ▲ $5.702M ▲ $-1.075M ▲ -15.13% ▲ $-0.13 ▲ $-578.9K ▲
Q4-2025 $6.636M ▼ $5.42M ▼ $-1.345M ▼ -20.275% ▼ $-0.16 ▼ $-669.8K ▼
Q3-2025 $11.052M ▲ $8.102M ▲ $-835.7K ▲ -7.561% ▲ $-0.1 ▲ $-153.4K ▲
Q2-2025 $6.509M $6.142M $-1.803M -27.705% $-0.22 $-1.435M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2026 $754.2K ▼ $74.236M ▼ $36.023M ▼ $38.213M ▼
Q1-2026 $1.04M ▲ $76.332M ▼ $36.824M ▼ $39.508M ▼
Q4-2025 $428.4K ▼ $78.314M ▼ $37.747M ▼ $40.568M ▼
Q3-2025 $2.289M ▲ $83.602M ▼ $41.795M ▼ $41.807M ▼
Q2-2025 $753.8K $85.195M $42.656M $42.539M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2026 $-1.295M ▼ $63.2K ▼ $-101.5K ▲ $-450K $-488.3K ▼ $-38.3K ▼
Q1-2026 $-1.075M ▲ $1.397M ▲ $-162.4K ▼ $-450K ▲ $784.1K ▲ $1.189M ▲
Q4-2025 $-1.345M ▼ $-1.567M ▼ $-131.1K ▼ $-550.7K ▲ $-2.248M ▼ $-1.698M ▼
Q3-2025 $-835.7K ▲ $4.443M ▲ $-102.5K ▼ $-2.246M ▼ $2.095M ▲ $4.335M ▲
Q2-2025 $-1.803M $-866.1K $-87.8K $54.9K $-899K $-953.9K

Revenue by Products

Product Q3-2025Q4-2025Q1-2026Q2-2026
Product
Product
 $10.00M ▲$20.00M ▲$10.00M ▼$0 ▼

Five-Year Company Overview

Income Statement

Income Statement Revenue has trended down meaningfully over the past few years, and the business has shifted from modest profitability to small losses. Gross profit has shrunk along with sales, so even though the company still earns a reasonable margin on each book, there is not enough volume to comfortably cover overhead. Operating income has slipped into the red, and earnings per share have been quite volatile, swinging between profit and loss. Overall, the income statement tells a story of a company that once benefited from strong demand but is now operating at a smaller scale and struggling to regain steady, reliable profitability.

Balance Sheet

Balance Sheet The balance sheet is relatively small and fairly simple. Assets have stayed in a narrow range, suggesting a stable but limited asset base. Debt is present and has grown compared with earlier years, which increases financial pressure given the weaker earnings. Equity is still positive, so there is a cushion, but it is not large, leaving less room for prolonged missteps. The absence of meaningful cash on hand reduces flexibility and makes continued debt reduction and working-capital discipline especially important.

Cash Flow

Cash Flow Cash generation has been inconsistent and modest. Operating cash flow has hovered around break-even, with some years slightly positive and one notable negative year when the business likely had to fund inventory or weaker sales. Because investment spending has been minimal, free cash flow has roughly matched operating cash flow, which helps short-term liquidity but may also reflect underinvestment in future growth. This pattern suggests the core business is not yet producing the strong, stable cash flows that would easily finance a major strategic pivot without outside help or further balance sheet strain.

Competitive Edge

Competitive Edge Educational Development competes in a crowded children’s content and education market but has some clear differentiators. Its long-standing exclusive rights to distribute Usborne titles via its direct-selling channel, combined with Kane Miller, SmartLab Toys, and Learning Wrap-Ups, gives it a distinctive and well-regarded product mix. Historically, a passionate network of independent sellers was its key strength, creating community-based sales and word-of-mouth awareness. However, that sales force has been shrinking, and direct-selling faces stiff competition from large online retailers, subscription boxes, and digital content platforms. Dependence on both a single key publishing partner and a declining consultant base leaves the competitive position more fragile than it once was.

Innovation and R&D

Innovation and R&D Historically, the company’s “innovation” has centered more on its sales model than on technology, with e-commerce tools and back-office systems that are useful but not unique. The new talk of moving into educational technology—AI-based learning tools, AR/VR content, and microlearning platforms—signals an ambition to evolve beyond print and physical products. At this stage, though, plans appear high level and light on concrete product launches, budgets, or timelines. That creates both opportunity and risk: if executed well, combining strong content with engaging digital experiences could refresh the brand; if underfunded or poorly focused, it could distract from stabilizing the core business without yielding meaningful returns.

Summary

Educational Development Corporation looks like a legacy direct-selling publisher in the middle of a difficult transition. The financials show shrinking revenue, thin and uneven profitability, and only modest, inconsistent cash generation, all supported by a balance sheet with limited slack. On the positive side, the company still controls distinctive children’s content and brands, along with an established—though smaller—network of direct sellers. The proposed pivot toward edtech could offer a new growth path, but it is still largely conceptual in public disclosures. The key uncertainties are whether the company can stabilize its sales base, reinvigorate its consultant network, and define a focused, well-funded digital strategy while managing debt and preserving liquidity. The next few years will likely hinge on execution rather than ideas alone.

NEWS

October 28, 2025 · 4:00 PM UTC

Educational Development Corporation Announces Completion of Corporate Headquarters Sale for 32.2 Million

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October 9, 2025 · 4:00 PM UTC

Educational Development Corporation Announces Fiscal 2026 Second Quarter and Year to Date Results

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October 6, 2025 · 5:47 PM UTC

Educational Development Corporation Announces 1st Amendment to Real Estate Contract and Receipt of Buyers Intent to Proceed with Purchase of Real Estate

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September 10, 2025 · 4:00 PM UTC

Educational Development Corporation Announces Fiscal Year 2026 Second Quarter Earnings Call

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