Scholastic Corp reported a 32% increase in adjusted operating income for fiscal 2026, reaching $47.1 million, despite a 3% decline in full-year revenue to $1.6 billion. Fourth-quarter revenue fell 6% to $476.1 million, with adjusted operating income of $58.3 million compared to $63.4 million a year earlier. The Book Fairs segment grew 5% for both the quarter and full year, while the Education segment saw a 14% full-year decline amid funding volatility. The company completed sale-leaseback transactions unlocking over $400 million in net proceeds, returned over $285 million to shareholders including $268.6 million in share repurchases, and announced a 25% dividend increase to $0.25 per share. Free cash flow surged to $436 million from $29.2 million, and the company ended the year with a net cash position of $48.9 million versus a net debt position of $136.6 million a year earlier.
Scholastic CorporationAdjusted operating income up 32%, free cash flow surged to $436M, net cash position improved, and dividend increased 25%.