Slide 1: Fourth Quarter 2026 Earnings Call Presentation
Fourth Quarter 2026 Earnings Call Presentation Thursday, July 23, 2026
Slide 2: Forward-Looking Statements / Regulation G
Forward-Looking Statements / Regulation G This presentation contains certain statements made today which will be forward-looking. These forward-looking statements, by their nature, are subject to various risks and uncertainties, and actual results may differ materially from those currently anticipat
Slide 3: Peter Warwick, President and Chief Executive Officer
Peter Warwick President and Chief Executive Officer
Slide 4: Fiscal 2026 Operating Results
Fiscal 2026 Operating Results ● Fiscal 2026 demonstrated earnings power of a more focused Scholastic ● Substantial progress in multi-year transformation improving Scholastic’s governance, organization, strategy and balance sheet ● Modestly lower revenues, reflecting strong prior-year Q4 comparisons
Slide 5: Fiscal 2026 Capital Deployment & Balance Sheet Actions
Fiscal 2026 Capital Deployment & Balance Sheet Actions ● Unlocked over $400 million in net proceeds through significant sale-leaseback transactions ● Returned over $285 million to shareholders during year through open-market repurchases, a modified Dutch auction tender offer and dividends ● Establis
Slide 6: Key Market Trends Aligning With Scholastic's Strengths
Key Market Trends Aligning With Scholastic’s Strengths Families, educators and policy-makers increasing focus on: Scholastic competitive advantages: ● Trusted content and tools, as AI increases access to and volume of low quality, unvetted children’s ● Trusted, 100+ year legacy and brand content ● A
Slide 7: Fiscal 2026 Segment Highlights & Fiscal 2027 Focus Areas
Fiscal 2026 Segment Highlights & Fiscal 2027 Focus Areas ● Children’s Book Group continued as central pillar of Scholastic’s growth, operating leverage and impact ○ Book Fairs remained strong earnings engine, supported by higher fair count, revenue per fair and strong execution, with opportunities t
Slide 8: Haji Glover, Chief Financial Officer and Executive Vice President
Haji Glover Chief Financial Officer and Executive Vice President
Slide 9: Fourth Quarter Results
Fourth Quarter Results Fourth Quarter In $ Millions (except per share data) Fiscal 2026 Fiscal 2025 Change Revenues $ 476.1 $ 508.3 $ (32.2) (6)% Operating income (loss) $ 51.4 $ 53.5 $ (2.1) (4)% Earnings (loss) before taxes $ 14.5 $ 48.9 $ (34.4) (70) % Diluted earnings (loss) per share $ 0.45 $ 0
Slide 10: Fourth Quarter Segment Results (excluding one-time items)
Fourth Quarter Segment Results (excluding one-time items) Fourth Quarter In $ Millions Fiscal 2026 Fiscal 2025 Change Children’s Book Publishing and Distribution Revenues School Reading Events $ 198.8 $ 190.9 4 % Consolidated Trade 77.5 97.3 (20) % Total Revenues 276.3 288.2 (4) % Operating income (
Slide 11: Fourth Quarter and Full Year Balance Sheet Items and Cash Flow
Fourth Quarter and Full Year Balance Sheet Items and Cash Flow In $ Millions May 31, 2026 May 31, 2025 Free cash flow (use) (3 month period ending) (1) $ 70.0 $ 86.2 Free cash flow (use) (12 month period ending) (1) $ 436.0 $ 29.2 Accounts receivable, net $ 236.4 $ 273.4 Inventories, net $ 265.0 $ 2
Slide 12: Fiscal 2027 Outlook
Fiscal 2027 Outlook ● Revenue growth of 2% to 4% ● Adjusted EBITDA of $135 million to $145 million, representing year-over-year growth on a comparable basis1 ● Free cash flow of $35 million to $40 million, representing modest growth on normalized basis2 ● Seasonally-small Q1 revenues expected to be
Slide 13: Fiscal 2027 Segment Outlook
Fiscal 2027 Segment Outlook ● Children’s Books Publishing & Distribution expected to deliver revenue growth and improved profitability o Book Fairs growth from higher fair count and modest revenue-per-fair growth; operating leverage supporting margin expansion o Trade Publishing growth supported by
Slide 14: Peter Warwick, President and Chief Executive Officer
Peter Warwick President and Chief Executive Officer
Slide 15: Q&A
Q&A
Slide 16: Appendix
Appendix
Slide 17: Fourth Quarter and Full Year Adjusted EBITDA
Fourth Quarter and Full Year Adjusted EBITDA Fourth Quarter Full Year In $ Millions Fiscal 2026 Fiscal 2025 Fiscal 2026 Fiscal 2025 Earnings (loss) before income taxes as reported $ 14.5 $ 48.9 $ 85.2 $ (1.3) One-time items before income taxes 42.6 9.9 (50.6) 20.0 Earnings (loss) before income taxes
Slide 18: Fourth Quarter Earnings (before and after one-time items)
Fourth Quarter Earnings (before and after one-time items) Fourth Quarter Fiscal 2026 Fourth Quarter Fiscal 2025 Excluding One- Excluding One- In $ Millions (except per share data) As Reported One-Time Items Time Items As Reported One-Time Items Time Items Diluted earnings (loss) per share (1) $ 0.45
Slide 19: FY26 YTD Earnings (before and after one-time items)
FY26 YTD Earnings (before and after one-time items) Fiscal 2026 Fiscal 2025 Excluding One- Excluding One- In $ Millions (except per share data) As Reported One-Time Items Time Items As Reported One-Time Items Time Items Diluted earnings (loss) per share (1) $ 2.34 $ (0.47) $ 1.87 $ (0.07) $ 0.55 $ 0
Slide 20: Pro Forma Supplemental Information
Pro Forma Supplemental Information Fourth Quarter Change Full Year Change In $ Millions Fiscal 2026 Fiscal 2025 $ % Fiscal 2026 Fiscal 2025 $ % Adjusted unallocated overhead $ (33.8) $ (30.1) $ (3.7) (12) % $ (94.6) $ (98.1) $ 3.5 4 % Incremental full-year impact of sale-leaseback transactions — (3.