Slide 1: Third Quarter 2026 Earnings Call Presentation
Third Quarter 2026 Earnings Call Presentation Thursday, March 19, 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: Capital Allocation Actions
Capital Allocation Actions ● Completed sale-leaseback transactions, unlocking more than $400 million in net proceeds ● Repurchased more than 4.4 million shares for approximately $147 million in the open market since December ● Introduced long-term net leverage targets of 2.0 – 2.5x Adjusted EBITDA ●
Slide 5: Third Quarter 2026 Highlights
Third Quarter 2026 Highlights ● Continued execution on long-term growth and margin expansion initiatives, while advancing capital allocation actions ● Results in line with expectations in our seasonally small third quarter ● Reaffirmed fiscal 2026 adjusted EBITDA and free cash flow guidance ● Expect
Slide 6: Third Quarter 2026 Segment Highlights
Third Quarter 2026 Segment Highlights ● Children’s Book Publishing & Distribution combined powerful publishing with unique school-based channels ○ Continued strength in Book Fairs driven by higher revenue per fair ○ Launched Discovery Fairs, a new STEAM-focused fair format ○ Trade Publishing support
Slide 7: Haji Glover, Chief Financial Officer
Haji Glover Chief Financial Officer and Executive Vice President
Slide 8: Third Quarter Results
Third Quarter Results Third Quarter In $ Millions (except per share data) Fiscal 2026 Fiscal 2025 Change Revenues $ 329.1 $ 335.4 $ (6.3) (2)% Operating income (loss) (2) $ (26.9) $ (23.9) $ (3.0) (13) % Earnings (loss) before taxes $ 91.8 $ (28.4) $ 120.2 NM Diluted earnings (loss) per share $ 2.55
Slide 9: Third Quarter Segment Results (excluding one-time items)
Third Quarter Segment Results (excluding one-time items) Third Quarter In $ Millions Fiscal 2026 Fiscal 2025 Change Children’s Book Publishing and Distribution School Reading Events $ 127.9 $ 125.9 2 % Consolidated Trade 69.7 77.4 (10) % Total Revenues 197.6 203.3 (3) % Operating income (loss) 8.9 7
Slide 10: Third Quarter Balance Sheet and Cash Flow Results
Third Quarter Balance Sheet and Cash Flow Results In $ Millions February 28, 2026 February 28, 2025 Free cash flow (use) (3 month period ending) (1) $ 407.0 $ (30.7) Accounts receivable, net $ 248.3 $ 255.9 Inventories, net 282.5 270.8 Accounts payable 128.5 133.5 Deferred revenue 213.7 205.2 Accrue
Slide 11: Fiscal 2026 Outlook
Fiscal 2026 Outlook ● Reaffirmed adjusted EBITDA and free cash flow guidance ○ Adjusted EBITDA of $146 to $156 million, including the approximately $14 million partial-year impact from sale-leasebacks ○ Free Cash flow expected to exceed $430 million, reflecting sale-leaseback net proceeds ● Revenue
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: Third Quarter Adjusted EBITDA
Third Quarter Adjusted EBITDA Third Quarter In $ Millions Fiscal 2026 Fiscal 2025 Earnings (loss) before income taxes as reported $ 91.8 $ (28.4) One-time items before income taxes (117.2) 3.0 Earnings (loss) before income taxes excluding one-time items (25.4) (25.4) Interest (income) expense (1) 0.
Slide 16: Third Quarter Earnings (before and after one-time items)
Third Quarter Earnings (before and after one-time items) Third Quarter Fiscal 2026 Third 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) $ 2.55 $