Educational Development Corporation Announces Fiscal 2027 First Quarter Results

About this update from Educational Development Corporation

Tulsa, Oklahoma--(Newsfile Corp. - July 9, 2026) - Educational Development Corporation (NASDAQ: EDUC) ("EDC", or the "Company"), a publishing company specializing in books and educational products for children, today reports financial results for the fiscal first quarter ended May 31, 2026. First Quarter Summary Compared to the Prior Year First Quarter Per Craig White, Chief Executive Officer, "During the quarter we ran several product and recruiting promotions to increase sales, turning excess inventory into cash, and increasing our brand partner levels. I am happy to say that we were successful in both areas. Our cash position increased from $1.3 million at the end of February to $1.8 million at the end of May and our Active Brand Partners increased by 20%, from 4,300 to 5,200 over this same period. Our primary focus remains on building our Brand Partners back to historical levels before and after the pandemic, which will have a direct impact in increased sales. We are glad to see our numbers climbing." "Our net loss before taxes remained consistent with last year on much reduced revenue levels. These results were possible only due to our continued focus on reducing our expenses. At the beginning of the year, we implemented a cost reduction plan which is expected to reduce our overall general and administrative expenses during fiscal 2027 by over $1.2 million. In addition, during the quarter, we made a $0.1 million one-time write-down on our "assets held for sale" which includes our legacy pick & pack distribution system that we are marketing for sale. Excluding this adjustment, our losses before taxes would have been less than the first quarter last year." "Earnings per share were lower this quarter as we are not able to realize the deferred tax asset associated with our continued losses. We are optimistic that as we grow our brand partner levels with sales and profitability returning that these deferred tax assets will be realizable in the future," concluded Mr. White.

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