In the first quarter ended August 31, revenues fell 5%, to $225.6 million, and the operating loss grew 4%, to $92.2 million. Excluding one-time charges, the operating loss improved by 4%, to $81.9 million.
The company emphasized that it "typically generates an operating loss in the first quarter, when schools are not in session." Peter Warwick, president and CEO, said, "Scholastic made steady progress in the first quarter of fiscal 2026, advancing strategic initiatives across all segments. The seasonally quiet summer period resulted in an operating loss consistent with expectations."
In the quarter, the children's book publishing and distribution segment's revenues increased 4%, to $109.4 million. Warwick stated that "the newly integrated Children's Book Group strengthens our ability to connect publishing, marketing, merchandising and distribution. Fall book fair bookings are encouraging and exceed prior year bookings, with signs of strong engagement with our book fair hosts. In Trade, standout franchises such as Wings of Fire and Hunger Games continued to perform strongly, with November's Dog Man: Big Jim Believes poised to drive demand across channels and geographies."
Consolidated Trade revenues were $73.5 million, nearly flat to the prior year period, "with continued success in the Hunger Games and Harry Potter franchises."
Excluding favorable foreign currency exchange of $200,000, international revenues increased 4%, to $59.4 million, "primarily reflecting higher revenues in Australia, the U.K., and Asia."