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Educational Development (EDUC) AI Stock Analysis
Educational Development
(NASDAQ:EDUC)
EDUC scores in the mid-range primarily due to improved financial resilience (materially reduced leverage) and a low P/E that provides valuation support, partially offset by weak/volatile cash generation and ongoing multi-year revenue pressure. Technical indicators remain soft (below key moving averages and negative MACD), while the latest earnings call adds cautious optimism via expense reductions and early turnaround traction but confirms the business is still loss-making.
Educational Development Key Performance Indicators (KPIs)
Net Revenue By SegmentBreaks down total revenue by business segment, indicating which parts of the company are driving sales and where there might be potential for growth or need for strategic shifts.
PaperPie — the company’s revenue engine — has seen a multi-year collapse, driving nearly all the top-line deterioration while Publishing remains small and also declining; recent tiny upticks reflect limited replenishment, not a durable recovery. Management’s inventory reduction generated cash and a targeted, conservative replenishment plan plus a March partner spike could restart sales, but active partners are ~50% below prior levels, lead times are 4–6 months, and cash is tight—so recovery is possible but hinges on flawless execution and improved partner retention/discounting.
The FlyEducational Development (EDUC) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $8.87M
- Dividend Yield
- ―
- Average Volume (3M)
- 58.38K
- Price to Earnings (P/E)
- 3.4
- Beta (1Y)
- 0.36
- Revenue Growth
- -31.97%
- EPS Growth
- ―
- Country
- US
- Employees
- 64
- Sector
- Communication Services
- Sector Strength
- 60
- Industry
- Publishing
Educational Development Business Overview & Revenue Model
Company Description
Educational Development Corporation distributes children's books, educational toys and games, and related products in the United States. It operates through two segments, PaperPie and Publishing. The company owns and publishes Kane Miller books, Lear...
Educational Development Earnings Call Summary
The call conveyed improving momentum in the turnaround, supported by the sharper-than-expected reduction in the sales decline, 19% growth in Active Brand Partners since the fiscal-year start, inventory-driven cash generation, new product activity, expense reductions and technology investments. However, the company remained loss-making, revenue and brand partners were still below the prior year, cash declined during the first half, and management acknowledged that substantial work remains. The positive operational progress and number of initiatives outweighed the financial challenges.
Q2-2027 Updates
Positive Updates
Negative Updates
Company Guidance
Management said its turnaround plan is “a carefully developed plan for growth over the next few quarters and years,” with “2 main season and 2 mid-season product intros planned each year”; operating expenses are expected to be “about $1.2 million below where they were last year,” including $15,000 a month in rent savings starting in November, while fall is “typically” the period when brand partner numbers increase and “typically, at the end of Q3,” the company has “our biggest cash position of the year.” Management said it is confident the steps taken will result in sales growth and a return to profitability, plans to use promotions “fewer and farther between,” and needs to get back to full retail.
Educational Development Financial Statement Overview
Summary
Balance sheet strength (low leverage with debt-to-equity ~0.16 and improved resilience) is a clear positive, but operating fundamentals remain mixed. Income statement profitability has improved versus prior loss-making periods, yet revenue is still contracting across periods and segment KPIs indicate PaperPie remains structurally pressured. Cash flow is the weakest area, with TTM free cash flow down sharply and weak cash conversion versus earnings, keeping the overall financial profile only modest.
Income Statement
46NeutralBalance Sheet
74PositiveCash Flow
38Negative| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.69M | 21.81M | 34.19M | 51.03M | 87.83M | 142.23M |
| Gross Profit | 12.03M | 13.60M | 21.03M | 32.98M | 56.07M | 97.93M |
| EBITDA | 8.63M | 14.42M | -2.94M | 5.98M | 1.22M | 14.28M |
| Net Income | 2.73M | 3.34M | -5.26M | 546.40K | -2.50M | 8.31M |
Balance Sheet | ||||||
| Total Assets | 50.66M | 56.99M | 78.31M | 90.11M | 99.94M | 109.93M |
| Cash, Cash Equivalents and Short-Term Investments | 1.06M | 1.34M | 428.40K | 844.50K | 689.10K | 361.20K |
| Total Debt | 6.50M | 6.72M | 32.40M | 35.55M | 46.35M | 43.17M |
| Total Liabilities | 10.82M | 14.20M | 37.75M | 44.65M | 54.70M | 63.17M |
| Stockholders Equity | 39.84M | 42.79M | 40.57M | 45.45M | 45.23M | 46.77M |
Cash Flow | ||||||
| Free Cash Flow | 176.80K | 1.46M | 2.77M | 7.93M | -1.52M | -24.86M |
| Operating Cash Flow | 599.50K | 2.01M | 3.21M | 8.75M | 58.50K | -21.14M |
| Investing Cash Flow | 29.47M | 29.39M | -429.60K | 4.04M | -1.76M | -3.94M |
| Financing Cash Flow | -30.13M | -31.03M | -3.08M | -12.20M | 2.03M | 23.63M |
Educational Development Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDUC, the sentiment is Negative. The current price of 1.04 is below the 20-day moving average (MA) of 1.14, below the 50-day MA of 1.25, and below the 200-day MA of 1.37, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 13.43 is Positive, neither overbought nor oversold. The STOCH value of 28.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EDUC.
Educational Development Peers Comparison
Overall Rating
NWSA69Neutral
NYT68Neutral
WLY67Neutral
PSO61Neutral- EDUC56Neutral
SCHL49Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| NWSA | 69Neutral | $16.21B | 30.82 | 6.62% | 0.69% | 1.06% | 26.22% |
| NYT | 68Neutral | $11.32B | 29.00 | 19.47% | 1.24% | 10.76% | 23.78% |
| WLY | 67Neutral | $2.60B | 13.57 | 25.28% | 2.78% | -0.27% | 111.79% |
| PSO | 61Neutral | $10.43B | 25.49 | 9.13% | 2.00% | 7.10% | -22.39% |
| Sector * | 60Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
| EDUC | 56Neutral | $8.87M | 3.35 | 6.43% | ― | -31.97% | ― |
| SCHL | 49Neutral | $723.49M | 26.03 | 7.05% | 2.29% | -2.53% | ― |
* Communication Services Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| EDUC | Educational Development | 1.04 | -0.46 | -30.67% | |
| WLY | John Wiley Sons Cl | 51.17 | 14.99 | 41.43% | |
| NYT | The New York Times Company | 70.17 | 13.79 | 24.47% | |
| NWSA | News Corporation Class A | 29.12 | 3.32 | 12.89% | |
| PSO | Pearson PLC | 17.37 | 3.98 | 29.70% | |
| SCHL | Scholastic | 39.30 | 11.46 | 41.17% |
Educational Development Corporate Events
Educational Development Posts Wider Fiscal Q2 2027 Loss
NegativeOn October 14, 2026, Educational Development Corporation reported fiscal 2027 second quarter results for the period ended August 31, 2026, showing continued revenue pressure and losses. Net revenues fell to $4.1 million from $4.6 million year on year...
Educational Development schedules Q2 2027 earnings webcast
NeutralOn September 9, 2026, Educational Development Corporation announced it will hold its fiscal 2027 second-quarter earnings call on Wednesday, October 14, 2026, at 3:30 PM CT (4:30 PM ET), accompanied by a live Q&A webcast. Chief Executive Officer C...
Educational Development Shareholders Back Board, Auditors, Compensation
PositiveAt Educational Development Corporation’s annual meeting of stockholders held on July 8, 2026, shareholders elected Bradley V. Stoots and Steven G. Hooser as Class I directors to serve three-year terms, reinforcing continuity in the company̵...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 15, 2026