Slide 1: Fourth Quarter 2025 Earnings Call Presentation
Fourth Quarter 2025 Earnings Call Presentation Thursday, July 24, 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: Fourth Quarter & Fiscal 2025 Results
Fourth Quarter & Fiscal 2025 Results ● Delivered strong financial and strategic results in the fourth quarter of fiscal 2025 ○ Adjusted EBITDA grew robustly in line with our original guidance range ○ Revenue growth in line with expectations, driven by strong performance in Children’s Book Publishing
Slide 5: Fourth Quarter 2025 Segment Highlights
Fourth Quarter 2025 Segment Highlights ● Children’s Books revenue and profit increased last quarter, driven by Trade Publishing and Book Fairs: ○ Launched Sunrise on the Reaping, the newest installment in the Hunger Games® series, which topped bestseller lists globally across print, eBook and audio
Slide 6: Fiscal 2026 and Long-Term Growth Outlook
Fiscal 2026 and Long-Term Growth Outlook ● Targeting strong Adjusted EBITDA growth of 20% at the midpoint of guidance, excluding $10M of anticipated tariff expense ● Expecting modest revenue growth, despite continued pressure on consumer and school spending ○ Exciting Trade Publishing schedule inclu
Slide 7: Haji Glover, Chief Financial Officer and Executive Vice President
Haji Glover Chief Financial Officer and Executive Vice President
Slide 8: Fourth Quarter Results
Fourth Quarter Results Fourth Quarter In $ Millions (except per share data) Fiscal 2025 Fiscal 2024 Change Revenues $ 508.3 $ 474.9 $ 33.4 7 % Operating income (loss) $ 53.5 $ 47.2 $ 6.3 13 % Earnings (loss) before taxes $ 48.9 $ 47.3 $ 1.6 3 % Diluted earnings (loss) per share $ 0.59 $ 1.23 $ (0.64
Slide 9: Fourth Quarter Segment Results (excluding one-time items)
Fourth Quarter Segment Results (excluding one-time items) Fourth Quarter In $ Millions Fiscal 2025 Fiscal 2024 Change Children’s Book Publishing and Distribution (1) Revenues School Reading Events $ 190.9 $ 183.9 4 % Consolidated Trade 97.3 81.5 19 % Total Revenues 288.2 265.4 9 % Operating income (
Slide 10: Fourth Quarter & Full Year Balance Sheet Items and Cash Flow
Fourth Quarter & Full Year Balance Sheet Items and Cash Flow In $ Millions May 31, 2025 May 31, 2024 Free cash flow (use) (3 month period ending) (1) $ 86.2 $ 49.7 Free cash flow (use) (12 month period ending) (1) $ 29.2 $ 73.4 Accounts receivable, net $ 273.4 $ 235.0 Inventories, net $ 250.2 $ 264.
Slide 11: Fiscal 2026 Outlook
Fiscal 2026 Outlook ● Adjusted EBITDA of $160 million to $170 million, an increase of approximately $20 million over fiscal 2025 at the midpoint o Includes approximately $10 million of expected incremental tariff expense in our cost of product ● Revenue growth of 2% to 4%, reflecting strength in our
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: Fourth Quarter and Full Year Adjusted EBITDA
Fourth Quarter and Full Year Adjusted EBITDA Fourth Quarter Full Year In $ Millions Fiscal 2025 Fiscal 2024 Fiscal 2025 Fiscal 2024 Earnings (loss) before income taxes as reported $ 48.9 $ 47.3 $ (1.3) $ 16.2 One-time items before income taxes 9.9 19.6 20.0 30.2 Earnings (loss) before income taxes e
Slide 16: Fourth Quarter Earnings (before and after one-time items)
Fourth Quarter Earnings (before and after one-time items) Fourth Quarter Fiscal 2025 Fourth Quarter Fiscal 2024 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) $ 0.59
Slide 17: FY25 YTD Earnings (before and after one-time items)
FY25 YTD Earnings (before and after one-time items) Fiscal 2025 Fiscal 2024 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) $ (0.07) $ 0.55 $ 0.48 $ 0.40 $ 0.76 $ 1.1