The company's inability to scale SG&A expenses has resulted in persistent operating losses, with revenue contracting by 53.6% in 2026Q4 alone.
| Metric | Feb'26 | Feb'25 | Feb'24 | Feb'23 | Feb'22 | Feb'21 | Feb'20 | Feb'19 | Feb'18 | Feb'17 | Feb'16 | Feb'15 | Feb'14 | Feb'13 | Feb'12 | Feb'11 | Feb'10 | Feb'09 | Feb'08 | Feb'07 | Feb'06 | Feb'05 | Feb'04 | Feb'03 | Feb'02 | Feb'01 | Feb'00 | Feb'99 | Feb'98 | Feb'97 |
|---|
| Sales/Revenue | 21.81M | 34.19M | 51.03M | 87.83M | 142.23M | 204.64M | 113.01M | 118.81M | 111.97M | 106.63M | 63.62M | 32.55M | 26.1M | 25.49M | 26.27M | 27.24M | 28.67M | 29.4M | 30.52M | 31.4M | 31.79M | 31.65M | 30.36M | 24.88M | 20.55M | 17.6M | 16.85M | 16.7M | 19.3M | 21.2M |
| Revenue Growth % | -36.2% | -33% | -41.9% | -38.25% | -30.5% | 81.07% | -4.88% | 6.11% | 5.01% | 67.61% | 95.46% | 24.72% | 2.39% | -2.99% | -3.56% | -4.98% | -2.48% | -3.68% | -2.81% | -1.21% | 0.44% | 4.24% | 22.03% | 21.04% | 16.81% | 4.42% | 0.91% | -13.47% | -8.96% | 9.84% |
| Cost of Goods Sold | 8.21M | 13.16M | 18.05M | 31.76M | 44.3M | 60.04M | 36.86M | 39.06M | 30.93M | 28.61M | 20.49M | 12.76M | 10.52M | 10.49M | 10.55M | 10.28M | 10.54M | 10.58M | 10.75M | 11.27M | 11.65M | 11.34M | 10.57M | 9.59M | 8.12M | 7.23M | 6.69M | 6.4M | 7.5M | 8.1M |
| COGS % of Revenue | 37.64% | 38.5% | 35.36% | 36.16% | 31.15% | 29.34% | 32.62% | 32.88% | 27.63% | 26.83% | 32.21% | 39.22% | 40.32% | 41.17% | 40.15% | 37.75% | 36.76% | 35.99% | 35.22% | 35.9% | 36.65% | 35.82% | 34.83% | 38.55% | 39.51% | 41.08% | 39.67% | 38.32% | 38.86% | 38.21% |
| Gross Profit | 13.6M | 21.03M | 32.98M | 56.07M | 97.93M | 144.6M | 76.15M | 79.75M | 81.03M | 78.01M | 43.12M | 19.78M | 15.57M | 14.99M | 15.72M | 16.96M | 18.13M | 18.82M | 19.77M | 20.13M | 20.14M | 20.31M | 19.79M | 15.29M | 12.43M | 10.37M | 10.17M | 10.3M | 11.8M | 13.1M |
| Gross Margin % | 62.36% | 61.5% | 64.64% | 63.84% | 68.85% | 70.66% | 67.38% | 67.12% | 72.37% | 73.17% | 67.79% | 60.78% | 59.68% | 58.83% | 59.85% | 62.25% | 63.24% | 64.01% | 64.78% | 64.1% | 63.35% | 64.18% | 65.17% | 61.45% | 60.49% | 58.92% | 60.33% | 61.68% | 61.14% | 61.79% |
| Gross Profit Growth % | -35.3% | -36.25% | -41.17% | -42.75% | -32.27% | 89.89% | -4.51% | -1.59% | 3.87% | 80.91% | 117.97% | 27.04% | 3.87% | -4.65% | -7.28% | -6.47% | -3.64% | -4.82% | -1.78% | -0.04% | -0.86% | 2.65% | 29.43% | 22.97% | 19.91% | 1.99% | -1.3% | -12.71% | -9.92% | 15.93% |
| Operating Expenses | 14.39M | 27.8M | 35.08M | 58.65M | 87.69M | 128.64M | 69.11M | 71.2M | 73.67M | 72.99M | 39.81M | 18.4M | 14.32M | 13.77M | 13.54M | 15.03M | 15.21M | 15.85M | 16.22M | 16.63M | 16.33M | 16.46M | 16.04M | 12.1M | 10.05M | 8.54M | 8.42M | 8.3M | 9M | 10.2M |
| OpEx % of Revenue | 65.97% | 81.32% | 68.74% | 66.78% | 61.65% | 62.86% | 61.15% | 59.92% | 65.79% | 68.45% | 62.58% | 56.53% | 54.88% | 54.01% | 51.53% | 55.16% | 53.03% | 53.92% | 53.13% | 52.96% | 51.38% | 51.99% | 52.82% | 48.63% | 48.89% | 48.52% | 49.99% | 49.7% | 46.63% | 48.11% |
| Selling, General & Admin | 14.39M | 22.05M | 30.1M | 32.98M | 64.68M | 92.52M | 50.5M | 52.64M | 51.1M | 49.92M | 20.39M | 8.88M | 7.06M | 7.05M | 13.54M | 15.03M | 15.21M | 15.85M | 16.22M | 16.63M | 16.33M | 16.46M | 16.04M | 12.1M | 10.05M | 8.47M | 8.13M | 8M | 8.7M | 9.9M |
| SG&A % of Revenue | 65.97% | 64.5% | 58.98% | 37.55% | 45.48% | 45.21% | 44.69% | 44.31% | 45.63% | 46.81% | 32.05% | 27.29% | 27.07% | 27.66% | 51.53% | 55.16% | 53.03% | 53.92% | 53.13% | 52.96% | 51.38% | 51.99% | 52.82% | 48.63% | 48.89% | 48.14% | 48.22% | 47.9% | 45.08% | 46.7% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 5.75M | 4.98M | 25.68M | 23.01M | 36.12M | 18.61M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 67.42K | 299.18K | 300K | 300K | 300K |
| Operating Income | -786.2K | -6.78M | -2.09M | -2.58M | 10.24M | 15.96M | 7.04M | 8.55M | 7.37M | 5.03M | 3.31M | 1.39M | 1.25M | 1.23M | 2.19M | 1.74M | 2.93M | 2.96M | 3.56M | 3.5M | 3.8M | 3.86M | 3.75M | 3.19M | 2.38M | 1.77M | 1.74M | 2M | 2.8M | 2.9M |
| Operating Margin % | -3.6% | -19.82% | -4.1% | -2.94% | 7.2% | 7.8% | 6.23% | 7.2% | 6.58% | 4.72% | 5.21% | 4.26% | 4.8% | 4.82% | 8.32% | 6.4% | 10.21% | 10.08% | 11.65% | 11.14% | 11.97% | 12.19% | 12.35% | 12.82% | 11.6% | 10.06% | 10.34% | 11.98% | 14.51% | 13.68% |
| Operating Income Growth % | 88.4% | -223.85% | 18.97% | -125.21% | -35.81% | 126.56% | -17.65% | 16.07% | 46.53% | 51.76% | 138.99% | 10.76% | 1.92% | -43.82% | 25.38% | -40.43% | -1.24% | -16.63% | 1.62% | -8.03% | -1.37% | 2.87% | 17.59% | 33.75% | 34.65% | 1.65% | -12.92% | -28.57% | -3.45% | -12.12% |
| EBITDA | 299.5K | -5.05M | 395K | -103.3K | 12.37M | 17.59M | 8.47M | 10.01M | 8.62M | 6.11M | 3.59M | 1.52M | 1.37M | 1.34M | 2.3M | 1.87M | 3.06M | 3.1M | 3.69M | 3.64M | 3.94M | 3.98M | 3.92M | 3.35M | 2.5M | 1.83M | 2.04M | 2.3M | 3.1M | 3.2M |
| EBITDA Margin % | 1.37% | -14.77% | 0.77% | -0.12% | 8.7% | 8.6% | 7.49% | 8.42% | 7.7% | 5.73% | 5.64% | 4.66% | 5.24% | 5.27% | 8.77% | 6.86% | 10.69% | 10.56% | 12.11% | 11.6% | 12.4% | 12.58% | 12.9% | 13.48% | 12.19% | 10.4% | 12.11% | 13.77% | 16.06% | 15.09% |
| EBITDA Growth % | 105.93% | -1378.63% | 482.38% | -100.84% | -29.68% | 107.7% | -15.39% | 16.11% | 41.13% | 70.22% | 136.7% | 10.88% | 1.85% | -41.75% | 23.34% | -39.02% | -1.3% | -15.99% | 1.44% | -7.61% | -1.02% | 1.68% | 16.77% | 33.93% | 36.86% | -10.33% | -11.27% | -25.81% | -3.13% | -5.88% |
| D&A (Non-Cash Add-back) | 1.09M | 1.73M | 2.49M | 2.48M | 2.13M | 1.63M | 1.43M | 1.46M | 1.25M | 1.08M | 274.5K | 129.4K | 115.4K | 114.2K | 118.1K | 124.7K | 136.5K | 139.8K | 139.4K | 143.55K | 138.02K | 125.57K | 167.5K | 165.91K | 120.74K | 59.66K | 299.18K | 300K | 300K | 300K |
| EBIT | 13.03M | -4.67M | 3.49M | -1.25M | 12.15M | 17.79M | 8.64M | 8.55M | 8.95M | 5.03M | 3.79M | 1.46M | 1.25M | 1.23M | 2.19M | 1.87M | 3.05M | 2.96M | 3.56M | 3.5M | 3.8M | 3.86M | 3.75M | 3.19M | 2.38M | 1.84M | 1.74M | 2M | 2.8M | 2.9M |
| Net Interest Income | -1.48M | -2.19M | -2.76M | -2.17M | -916.4K | -561K | -888.1K | -931.3K | -1.12M | -1.03M | -244.9K | -54K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -9.76K | -884 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.48M | 2.19M | 2.76M | 2.17M | 916.4K | 561K | 888.1K | 931.3K | 1.12M | 1.03M | 244.9K | 54K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 9.76K | 884 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 6.13M | -79.4K | 2.83M | -844.9K | 994.7K | 1.28M | 709.2K | 628.4K | 462.4K | -416.4K | 232.5K | 16.1K | -378.2K | 53.9K | 91.5K | 126.6K | 125.2K | 174.8K | 176.8K | 379.35K | 10.32K | 28K | 83.02K | 76.32K | 56.21K | -7.76K | 6.36K | -100K | 0 | -300K |
| Pretax Income | 5.35M | -6.86M | 734.5K | -3.43M | 11.24M | 17.23M | 7.75M | 9.18M | 7.83M | 4.61M | 3.55M | 1.4M | 873.5K | 1.28M | 2.28M | 1.87M | 3.05M | 3.14M | 3.73M | 3.88M | 3.81M | 3.89M | 3.83M | 3.26M | 2.44M | 1.77M | 1.75M | 1.9M | 2.8M | 2.6M |
| Pretax Margin % | 24.51% | -20.05% | 1.44% | -3.9% | 7.9% | 8.42% | 6.86% | 7.73% | 7% | 4.33% | 5.57% | 4.31% | 3.35% | 5.03% | 8.67% | 6.86% | 10.65% | 10.68% | 12.23% | 12.35% | 12% | 12.27% | 12.62% | 13.12% | 11.87% | 10.06% | 10.37% | 11.38% | 14.51% | 12.26% |
| Income Tax | 2.01M | -1.59M | 188.1K | -922K | 2.93M | 4.61M | 2.11M | 2.5M | 2.62M | 1.75M | 1.43M | 543.3K | 515.9K | 479.1K | 856.8K | 702K | 1.14M | 1.23M | 1.41M | 1.47M | 1.42M | 1.48M | 1.46M | 1.23M | 908.8K | 680.1K | 669K | 600K | 1.1M | 1M |
| Effective Tax Rate % | 37.61% | 23.21% | 25.61% | 26.9% | 26.07% | 26.74% | 27.18% | 27.26% | 33.42% | 37.97% | 40.23% | 38.74% | 59.06% | 37.37% | 37.62% | 37.54% | 37.31% | 39.07% | 37.72% | 37.93% | 37.12% | 38.07% | 38.07% | 37.57% | 37.24% | 38.42% | 38.27% | 31.58% | 39.29% | 38.46% |
| Net Income | 3.34M | -5.26M | 546.4K | -2.5M | 8.31M | 12.62M | 5.65M | 6.68M | 5.21M | 2.86M | 2.12M | 859.2K | 357.6K | 802.9K | 1.42M | 1.17M | 1.91M | 1.91M | 2.32M | 2.41M | 2.4M | 2.41M | 2.37M | 2.04M | 1.53M | 1.09M | 1.08M | 1.3M | 1.7M | 1.6M |
| Net Margin % | 15.29% | -15.4% | 1.07% | -2.85% | 5.84% | 6.17% | 5% | 5.62% | 4.66% | 2.68% | 3.33% | 2.64% | 1.37% | 3.15% | 5.41% | 4.29% | 6.67% | 6.51% | 7.62% | 7.67% | 7.54% | 7.6% | 7.82% | 8.19% | 7.45% | 6.2% | 6.4% | 7.78% | 8.81% | 7.55% |
| Net Income Growth % | 163.37% | -1063.4% | 121.81% | -130.15% | -34.2% | 123.63% | -15.47% | 28.07% | 82.27% | 34.99% | 146.66% | 140.27% | -55.46% | -43.49% | 21.63% | -38.95% | 0.05% | -17.72% | -3.44% | 0.36% | -0.32% | 1.37% | 16.45% | 33.1% | 40.45% | 1.04% | -17% | -23.53% | 6.25% | 6.67% |
| Net Income (Continuing) | 3.34M | -5.26M | 546.4K | -2.5M | 8.31M | 12.62M | 5.65M | 6.68M | 5.21M | 2.86M | 2.12M | 859.2K | 357.6K | 802.9K | 1.42M | 1.17M | 1.91M | 1.91M | 2.32M | 2.41M | 2.4M | 2.41M | 2.37M | 2.04M | 1.53M | 1.09M | 1.08M | 1.3M | 1.7M | 1.6M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.38 | -0.64 | 0.07 | -0.31 | 0.98 | 1.50 | 0.68 | 0.81 | 0.64 | 0.35 | 0.26 | 0.11 | 0.05 | 0.10 | 0.18 | 0.15 | 0.25 | 0.25 | 0.30 | 0.31 | 0.31 | 0.30 | 0.28 | 0.25 | 0.19 | 0.14 | 0.12 | 0.13 | 0.16 | 0.16 |
| EPS Growth % | 159.38% | -1071.17% | 121.26% | -131.63% | -34.67% | 120.59% | -16.05% | 26.56% | 82.86% | 34.62% | 136.36% | 144.44% | -55% | -44.44% | 20% | -40% | 0% | -16.67% | -3.23% | 0% | 3.33% | 7.14% | 12% | 31.58% | 35.71% | 16.67% | -7.69% | -18.75% | 0% | 14.29% |
| EPS (Basic) | 0.38 | -0.64 | 0.07 | -0.31 | 1.03 | 1.51 | 0.68 | 0.82 | 0.64 | 0.35 | 0.26 | 0.11 | 0.05 | 0.10 | 0.18 | 0.15 | 0.25 | 0.25 | 0.31 | 0.32 | 0.32 | 0.31 | 0.30 | 0.27 | 0.20 | 0.14 | 0.13 | 0.13 | 0.17 | 0.16 |
| Diluted Shares Outstanding | 8.51M | 8.27M | 8.29M | 8.16M | 8.45M | 8.43M | 8.32M | 8.24M | 8.18M | 8.17M | 8.1M | 8.01M | 7.94M | 7.87M | 7.8M | 7.78M | 7.74M | 7.6M | 7.72M | 7.75M | 7.8M | 8.18M | 8.59M | 8.32M | 8.12M | 8.09M | 8.85M | 10.2M | 10.68M | 10.71M |
| Basic Shares Outstanding | 8.51M | 8.27M | 8.27M | 8.16M | 8.04M | 8.35M | 8.32M | 8.14M | 8.18M | 8.16M | 8.1M | 8.01M | 7.94M | 7.87M | 7.8M | 7.78M | 7.73M | 7.59M | 7.5M | 7.51M | 7.5M | 7.8M | 7.9M | 7.67M | 7.73M | 7.91M | 8.73M | 10.07M | 10.43M | 10.71M |
| Dividend Payout Ratio | - | - | - | - | 41.28% | 17.87% | 29.41% | 18.39% | - | 51.27% | 64.87% | 148.82% | 355.56% | 234.75% | 131.62% | 169.71% | 110.7% | 159.78% | 35.54% | 31.21% | 23.38% | 20.12% | 16.6% | 11.29% | 10.07% | 7.23% | 8% | 7.69% | 5.88% | - |
Consultant base attrition risk
According to the provided quarterly financial data, EDUC has experienced a sustained revenue decline, culminating in a 53.6% year-over-year contraction in 2026Q4, which highlights the significant challenges the company faces in maintaining its direct-sales model amidst shifting consumer engagement and potential consultant attrition.
The consistent double-digit revenue declines across the last ten quarters suggest that the PaperPie rebranding may have failed to stabilize the sales funnel. This trend indicates that the company is struggling to maintain its market position, likely due to a shrinking network of independent consultants rather than purely cyclical demand factors.
As reported in financial statements, EDUC's inability to scale SG&A expenses in proportion to falling revenue has resulted in persistent operating losses, with the company failing to achieve positive operating margins in nine of the last ten reported quarters despite maintaining high gross margins.
The company's fixed-cost structure, anchored by its Tulsa distribution facility, appears to be a significant drag on profitability as sales volumes collapse. Investors should monitor whether management can successfully right-size these overhead costs, as the current operating leverage profile suggests a business model that is increasingly inefficient at lower revenue scales.
Based on the reported figures, there is a notable divergence between operating losses and net income, exemplified by the 2026Q3 period where a $1.5M operating loss was offset by a $7.8M net income, suggesting that non-recurring items are masking the underlying operational performance.
The reliance on non-operating gains to bolster the bottom line warrants further investigation, as these items do not reflect the core publishing business's health. Analysts should focus on operating income to gauge the true run-rate of the company, as the current net income figures appear to be heavily influenced by one-time events.
Data from recent filings indicates that the company's reliance on a direct-sales model, combined with a 36% revenue decline, suggests a potential 'death spiral' where the consultant base may fall below the critical mass required to support the company's fixed distribution infrastructure and overhead costs.
Short-sellers would likely focus on the disconnect between the company's premium gross margins and its inability to generate positive operating cash flow. The risk remains that the exclusive Usborne rights may not be sufficient to offset the structural decline in the PaperPie segment, potentially leading to further liquidity pressure.
Quick answers to the most common questions about buying EDUC stock.
For fiscal year 2026, Educational Development Corporation (EDUC) reported total revenue of $21.8M. This represents a 2.9% increase compared to $21.2M in 1997.
Educational Development Corporation (EDUC) is profitable, generating $3.3M in net income for the fiscal year ending 2026 with a net profit margin of 15.3%.
Educational Development Corporation (EDUC) reported an operating income of $-0.8M, resulting in an operating profit margin of -3.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Educational Development Corporation (EDUC) generated $13.6M in gross profit for the year, representing a gross profit margin of 62.4%. This demonstrates the company's core pricing power and production efficiency.