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ANNUAL REPO RT 2025 2026
We ended scal 2026 a more focused company, with stronger alignment across our businesses, a more efficient balance sheet and a clearer operating foundation. Building on our multiyear transformation, scal 2027 is an execution year, and we are optimistic about the opportunity to translate this progress into renewed, pro table growth. Scholastic is well positioned to deepen its impact and create sustained value for shareholders. - Peter Warwick President & CEO 557 Broadway, New York, NY 10012 212 343 6100 scholastic.com
August 7, 2026 Fellow Shareholders, Fiscal 2026 was an important year for Scholastic. It demonstrated the earnings power of the more focused company we have been building, and the progress we have made evolving a trusted, century-old company to scale its impact and create long-term value for our shareholders and all stakeholders. This progress re ects a multi-year transformation of Scholastic s governance, organization, strategy and balance sheet. During the scal year, we refreshed our Board, strengthened our management team, reorganized to unlock efficiencies and create more integrated growth platforms, sharpened accountability across the Company, and took major steps to make our balance sheet more efficient and enhance our shareholder returns. In scal 2026 pro tability improved despite lower revenues, which re ected challenging prioryear Trade comparisons and continued funding volatility impacting Education. This achievement demonstrated disciplined cost management across the Company and the operating leverage in Scholastic s model. Book Fairs continued to perform well, Entertainment returned to growth, and Education showed improving trends in the second half, reinforcing our con dence in Scholastic s long-term strategy. Fiscal 2026 was also a major year for capital deployment and balance-sheet optimization. The sale-leaseback transactions unlocked over $400 million in net proceeds from our real estate assets, enabling us to accelerate shareholder returns through open-market repurchases, a modi ed Dutch auction tender offer and dividends. During the year, we returned over $285 million to shareholders, established a long-term leverage framework that supports disciplined investment and continued capital returns, and recently announced a 25% increase in our regular dividend. The strategy through this transformation is simple, grounded in Scholastic s mission and trusted brand: Scholastic brings children to reading. We do that through the books and stories we publish; the school channels that give millions of kids access to books, creating moments of discovery and engagement; the media and digital platforms that extend engagement with our IP; and the sciencebased literacy solutions that support reading achievement in classrooms, homes and communities. The market is aligning with this direction. Families, educators and policymakers are increasingly focused on children s reading achievement, trusted content, sustained attention, print-rich experiences and healthier screen balance. Schools are looking for coherent literacy solutions that are practical to implement and grounded in evidence. Parents are looking for content and tools they can trust. In this moment, Scholastic s distinctive strengths our authentic stories, human creativity, editorial and curatorial expertise, respect for children, trusted brand, and direct reach to families and schools become more valuable. What further differentiates Scholastic is our ability to connect these capabilities across the Company.
Fiscal 2026 showed our progress in bringing these capabilities together more effectively. Fiscal 2027 is about translating that progress into stronger performance. The Children s Book Group, which brings together our leading children s publishing business and proprietary school-based channels, is a central pillar of Scholastic s growth, operating leverage and impact. In scal 2026, Book Fairs remained a core earnings engine, while the continued strength of our publishing program and major franchises reinforced the durability and long-term value of the portfolio. In scal 2027, our focus is on translating these combined strengths into more consistent growth, pro tability and impact. Following the successful integration of 9 Story Media Group, Entertainment returned to growth in scal 2026 and strengthened Scholastic s ability to extend its IP across formats and markets. With a growing slate of contracted and development projects, we enter scal 2027 with greater visibility and expanded capabilities to reach new audiences and continue to build long-term franchise value. In Education, continued funding volatility pressured revenue and pro tability in scal 2026. We repositioned the business under new leadership, with a more focused strategy and better-aligned cost structure. In scal 2027, our priority is to improve performance and position Education for renewed growth around Scholastic s core literacy strengths. International delivered improved pro tability in scal 2026 and continues to extend the reach of Scholastic s publishing and franchises across key global markets. By combining strong local publishing with the global appeal of our leading authors, stories and brands, the business is positioned to bene t from major publishing and franchise activity in scal 2027. In conclusion, we ended scal 2026 a more focused company, with stronger alignment across our businesses, a more efficient balance sheet and a clearer operating foundation. Building on our multi-year transformation, scal 2027 is an execution year, and we are optimistic about the opportunity to translate this progress into renewed, pro table growth. With a strong publishing pipeline, continued momentum in Book Fairs, expanded media capabilities and a repositioned Education business, Scholastic is well positioned to deepen its impact and create sustained value for shareholders. I want to thank our employees for their commitment and creativity; our authors and illustrators for the stories they bring to children; our educators, families, customers and partners for their trust; and our shareholders for their continued support. Sincerely, Peter Warwick President and Chief Executive Officer Forward-Looking Statements: This Letter contains certain forward-looking statements relating to future periods. Such forward-looking statements are subject to various risks and uncertainties, including the conditions of the children s book and educational materials markets and acceptance of the Company s products within those markets, and other risk and factors identi ed from time to time in the Company s lings with the Securities and Exchange Commission. Actual results could differ materially from those currently anticipated.
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 • stockholder letter icon 8/7/2025 SCHL Stockholder Letter
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 • Benford's Law Stocks icon SCHL Benford's Law Stock Score = 98


SCHL Shareholder/Stockholder Letter Transcript:

ANNUAL REPO RT
2025 2026

We ended    scal 2026 a more focused
company, with stronger alignment
across our businesses, a more efficient
balance sheet and a clearer operating
foundation. Building on our multiyear transformation,    scal 2027 is an
execution year, and we are optimistic
about the opportunity to translate
this progress into renewed, pro   table
growth. Scholastic is well positioned
to deepen its impact and create
sustained value for shareholders.
- Peter Warwick
President & CEO
557 Broadway, New York, NY 10012

212 343 6100

scholastic.com

August 7, 2026
Fellow Shareholders,
Fiscal 2026 was an important year for Scholastic. It demonstrated the earnings power of the more
focused company we have been building, and the progress we have made evolving a trusted,
century-old company to scale its impact and create long-term value for our shareholders and
all stakeholders.
This progress re   ects a multi-year transformation of Scholastic   s governance, organization, strategy
and balance sheet. During the    scal year, we refreshed our Board, strengthened our management
team, reorganized to unlock efficiencies and create more integrated growth platforms, sharpened
accountability across the Company, and took major steps to make our balance sheet more efficient
and enhance our shareholder returns.
In    scal 2026 pro   tability improved despite lower revenues, which re   ected challenging prioryear Trade comparisons and continued funding volatility impacting Education. This achievement
demonstrated disciplined cost management across the Company and the operating leverage in
Scholastic   s model. Book Fairs continued to perform well, Entertainment returned to growth, and
Education showed improving trends in the second half, reinforcing our con   dence in Scholastic   s
long-term strategy.
Fiscal 2026 was also a major year for capital deployment and balance-sheet optimization. The
sale-leaseback transactions unlocked over $400 million in net proceeds from our real estate assets,
enabling us to accelerate shareholder returns through open-market repurchases, a modi   ed Dutch
auction tender offer and dividends. During the year, we returned over $285 million to shareholders,
established a long-term leverage framework that supports disciplined investment and continued
capital returns, and recently announced a 25% increase in our regular dividend.
The strategy through this transformation is simple, grounded in Scholastic   s mission and trusted
brand: Scholastic brings children to reading. We do that through the books and stories we publish;
the school channels that give millions of kids access to books, creating moments of discovery and
engagement; the media and digital platforms that extend engagement with our IP; and the sciencebased literacy solutions that support reading achievement in classrooms, homes and communities.
The market is aligning with this direction. Families, educators and policymakers are increasingly
focused on children   s reading achievement, trusted content, sustained attention, print-rich
experiences and healthier screen balance. Schools are looking for coherent literacy solutions that
are practical to implement and grounded in evidence. Parents are looking for content and tools
they can trust.
In this moment, Scholastic   s distinctive strengths     our authentic stories, human creativity, editorial
and curatorial expertise, respect for children, trusted brand, and direct reach to families and schools
    become more valuable. What further differentiates Scholastic is our ability to connect these
capabilities across the Company.

Fiscal 2026 showed our progress in bringing these capabilities together more effectively. Fiscal 2027
is about translating that progress into stronger performance.
The Children   s Book Group, which brings together our leading children   s publishing business and
proprietary school-based channels, is a central pillar of Scholastic   s growth, operating leverage and
impact. In    scal 2026, Book Fairs remained a core earnings engine, while the continued strength of
our publishing program and major franchises reinforced the durability and long-term value of the
portfolio. In    scal 2027, our focus is on translating these combined strengths into more consistent
growth, pro   tability and impact.
Following the successful integration of 9 Story Media Group, Entertainment returned to growth in
   scal 2026 and strengthened Scholastic   s ability to extend its IP across formats and markets. With
a growing slate of contracted and development projects, we enter    scal 2027 with greater visibility
and expanded capabilities to reach new audiences and continue to build long-term franchise value.
In Education, continued funding volatility pressured revenue and pro   tability in    scal 2026. We
repositioned the business under new leadership, with a more focused strategy and better-aligned
cost structure. In    scal 2027, our priority is to improve performance and position Education for
renewed growth around Scholastic   s core literacy strengths.
International delivered improved pro   tability in    scal 2026 and continues to extend the reach
of Scholastic   s publishing and franchises across key global markets. By combining strong local
publishing with the global appeal of our leading authors, stories and brands, the business is
positioned to bene   t from major publishing and franchise activity in    scal 2027.
In conclusion, we ended    scal 2026 a more focused company, with stronger alignment across
our businesses, a more efficient balance sheet and a clearer operating foundation. Building on
our multi-year transformation,    scal 2027 is an execution year, and we are optimistic about the
opportunity to translate this progress into renewed, pro   table growth. With a strong publishing
pipeline, continued momentum in Book Fairs, expanded media capabilities and a repositioned
Education business, Scholastic is well positioned to deepen its impact and create sustained value
for shareholders.
I want to thank our employees for their commitment and creativity; our authors and illustrators for
the stories they bring to children; our educators, families, customers and partners for their trust;
and our shareholders for their continued support.
Sincerely,
Peter Warwick
President and Chief Executive Officer
Forward-Looking Statements: This Letter contains certain forward-looking statements relating to future periods. Such forward-looking statements are subject to various risks and uncertainties, including the conditions of
the children   s book and educational materials markets and acceptance of the Company   s products within those markets, and other risk and factors identi   ed from time to time in the Company   s    lings with the Securities
and Exchange Commission. Actual results could differ materially from those currently anticipated.


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