Slide 1: Second Quarter 2026 Earnings Call Presentation
Second Quarter 2026 Earnings Call Presentation Thursday, December 18, 2025
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: Second Quarter 2026 Highlights
Second Quarter 2026 Highlights ● Delivered strong results in the important back-to-school season, with 13% adjusted EBITDA growth ● Progressed on key strategic and financial initiatives as transformation to a more growth-focused, shareholder-oriented company continues ● Closed accretive sale-leaseba
Slide 5: Scholastic's Journey: Fiscal 2022 to Fiscal 2026 Q2
Scholastic’s Journey: Fiscal 2022 to Fiscal 2026 Q2 Realizing the power of our brand, IP, channels, and balance sheet for long-term growth and value creation 1 Board and • Added seven new independent directors with deep expertise Leadership • Appointed new leaders across all business segments and ke
Slide 6: Second Quarter 2026 Segment Highlights
Second Quarter 2026 Segment Highlights ● Children’s Book Publishing & Distribution demonstrated the strength of Scholastic’s proprietary channels and franchises o Book Fairs grew across key metrics, including fair count and revenue per fair o Trade benefited from global releases in Dog Man®, The Hun
Slide 7: Haji Glover, Chief Financial Officer and Executive Vice President
Haji Glover Chief Financial Officer and Executive Vice President
Slide 8: Second Quarter Results
Second Quarter Results Second Quarter In $ Millions (except per share data) Fiscal 2026 Fiscal 2025 Change Revenues $ 551.1 $ 544.6 $ 6.5 1 % Operating income (loss) $ 82.9 $ 74.7 $ 8.2 11 % Earnings (loss) before taxes $ 75.9 $ 70.0 $ 5.9 8 % Diluted earnings (loss) per share $ 2.17 $ 1.71 $ 0.46 2
Slide 9: Second Quarter Segment Results (excluding one-time items)
Second Quarter Segment Results (excluding one-time items) Second Quarter In $ Millions Fiscal 2026 Fiscal 2025 Change Children’s Book Publishing and Distribution School Reading Events $ 270.5 $ 264.2 2 % Consolidated Trade 110.4 102.8 7 % Total Revenues 380.9 367.0 4 % Operating income (loss) 108.8
Slide 10: Second Quarter Balance Sheet and Cash Flow Results
Second Quarter Balance Sheet and Cash Flow Results In $ Millions November 30, 2025 November 30, 2024 Free cash flow (use) (3 month period ending) (1) $ 59.2 $ 42.4 Accounts receivable, net $ 296.5 $ 293.0 Inventories, net 290.7 282.0 Accounts payable 153.6 157.2 Deferred revenue 227.2 225.0 Accrued
Slide 11: Fiscal 2026 Outlook
Fiscal 2026 Outlook ● Affirmed adjusted EBTIDA and free cash flow guidance, after adjustments for the sale-leaseback transactions o Adjusted EBITDA of $146 to $156 million, including the $14 million partial-year impact from sale-leasebacks o Free cash flow expected to exceed $430 million, reflecting
Slide 12: Peter Warwick, President and Chief Executive Officer
Peter Warwick President and Chief Executive Officer
Slide 13: Q&A
Q&A
Slide 14: Appendix
Appendix
Slide 15: Earnings Impact of Sale-Leaseback Transactions
Earnings Impact of Sale-Leaseback Transactions Estimated fiscal Pro forma fiscal 2026 partial- 2026 full-year In $ Millions year impact (1) impact (2) Net increase in rental expense, partially offset by lower building operating expenses $ (8) $ (19) Reduction in rental income (6) (13) Impact on Adju
Slide 16: Second Quarter Adjusted EBITDA
Second Quarter Adjusted EBITDA Second Quarter In $ Millions Fiscal 2026 Fiscal 2025 Earnings (loss) before income taxes as reported $ 75.9 $ 70.0 One-time items before income taxes 13.7 4.2 Earnings (loss) before income taxes excluding one-time items 89.6 74.2 Interest (income) expense (1) 5.3 4.2 D
Slide 17: Second Quarter Earnings (before and after one-time items)
Second Quarter Earnings (before and after one-time items) Second Quarter Fiscal 2026 Second Quarter Fiscal 2025 One-Time Excluding One- One-Time Excluding One- In $ Millions (except per share data) As Reported Items Time Items As Reported Items Time Items Diluted earnings (loss) per share (1) $ 2.17