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ANNUAL REPORT 2024 / 2025
Scholastic delivered strong financial and strategic results in fiscal 2025, while positioning the Company for profitable growth in fiscal 2026 and beyond. As we look ahead, we are positive about our longterm opportunity as a global leader in children s publishing, media and education, where Scholastic s unmatched brand, IP and distribution channels present compelling growth opportunities. - Peter Warwick President & CEO 557 Broadway, New York, NY 10012 212 343 6100 scholastic.com
August 6, 2025 Fellow Shareholders, Scholastic delivered strong financial and strategic results in fiscal 2025, while advancing our mission to inspire a love of reading and learning in children around the world and positioning the Company for profitable growth in fiscal 2026 and beyond. Scholastic s publishing once again demonstrated its unique ability to deliver global bestsellers and enduring franchises that engage readers across generations. The launch of Sunrise on the Reaping, the latest installment in Suzanne Collins The Hunger Games series, was a major global publishing event, following the release of Dav Pilkey s Dog Man: Big Jim Begins, which became another worldwide bestseller. These and other bestsellers more than offset softness in the broader retail book market. We saw strong performance in our school-based channels. In Book Fairs, total fair count grew 4% for the year, as we executed effectively on our selling, marketing, and customer experience strategies. In Book Clubs, new strategies implemented at the start of the school year resulted in higher profit contribution. We closed and successfully integrated 9 Story Media Group into Scholastic Entertainment, accelerating our 360-degree IP strategy. Scholastic continued to advance its evolution as a global children s media company, expanding our ability to reach more kids where they are, and profitably participate in the full life cycle of our children s franchises and IP. In our Education Solutions segment, revenues and profits declined in fiscal 2025, reflecting ongoing pressure on supplemental curriculum spending across schools and districts, though our successful state and community literacy partnerships continued to expand. In response, we conducted a strategic review of the business, validating our market position and evaluating our organization structure and product development pipeline. As we now start fiscal 2026, Scholastic is well positioned for profitable, strategic growth, building on our strong execution in 2025: First, with the newly integrated Children s Book Group, we have brought together Trade Publishing, Book Fairs, and Book Clubs under unified leadership to deliver exceptional experiences to kids. We expect this integration to drive long-term revenue growth and increased profitability through operational efficiencies and the alignment of our editorial, merchandising and distribution teams. This collaborative structure is uniquely possible at Scholastic. It will also facilitate more productive collaboration between our book and media businesses and the ability of Scholastic IP to reach kids on both screens and the page. We expect this change will progressively drive revenue growth and increased profitability in fiscal 2026 and beyond. Second, in Education Solutions, we have taken decisive steps to reposition the business for long-term
success following our strategic review. Under new leadership, we have begun to refocus our go-tomarket strategy around our core strengths, rationalize our product portfolio, focus investment on highimpact offerings, and simplify legacy operations and organizational structures. Education market conditions are cyclical, and we anticipate conditions improving over the next 12 24 months. Meanwhile, our trusted supplemental literacy products magazines, book collections, and classroom resources continue to offer significant value to customers and have clear upside potential. Third, we are poised for growth in our Entertainment segment, as greenlighting activity picks up and our 360-degree IP strategy gains traction. Digital distribution platforms especially YouTube, the largest platform for children s media consumption are also a key priority as sources of high-margin revenue and significant reach. We are moving forward with development and production of original content, based on Scholastic IP, to expand our presence on these. Fourth, we are dedicated to improving operational efficiency and financial discipline. Throughout fiscal 2025, we successfully executed on a broad set of cost-saving initiatives, carefully managing both segment and corporate-level expenses, which we will see the full-year impact of in fiscal 2026. Significant cost-saving opportunities remain, which we will pursue to improve profitability and set the stage for continued earnings growth in the years ahead. Fifth, we announced the appointment of two new independent directors, Milena Alberti and Anne Clarke Wolff, following a proactive refresh process initiated by our Nominating and Governance Committee. Both of these highly qualified individuals will support the Board s focus on business transformation, growth strategies and capital allocation, as well as other initiatives to maximize shareholder value. With these additions, we ve now appointed seven new independent directors over the past four years. In summary, we are pleased with the meaningful progress made in fiscal 2025 and the start of fiscal 2026, executing strongly, reducing significant costs, strengthening our organization and organizational structures, returning capital to shareholders and taking steps to optimize our capital structure and balance sheet. As we look to the future, we are positive about our long-term opportunity as a global leader in children s publishing, media and education, where Scholastic s unmatched brand, IP and distribution channels present compelling growth opportunities. Thank you to our employees, authors, illustrators, creators, and other valuable stakeholders who all played a role in this past year s success. I look forward to sharing our progress throughout the year. Sincerely, Peter Warwick President & CEO Forward-Looking Statements: This Chairman s 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 identified from time to time in the Company s filings with the Securities and Exchange Commission. Actual results could differ materially from those currently anticipated.
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SCHL Shareholder/Stockholder Letter Transcript:

ANNUAL REPORT 2024 / 2025

Scholastic delivered strong financial
and strategic results in fiscal 2025,
while positioning the Company
for profitable growth in fiscal 2026
and beyond. As we look ahead,
we are positive about our longterm opportunity as a global
leader in children   s publishing,
media and education, where
Scholastic   s unmatched brand, IP
and distribution channels present
compelling growth opportunities.
- Peter Warwick
President & CEO
557 Broadway, New York, NY 10012

212 343 6100

scholastic.com

August 6, 2025
Fellow Shareholders,
Scholastic delivered strong financial and strategic results in fiscal 2025, while advancing our mission
to inspire a love of reading and learning in children around the world and positioning the Company
for profitable growth in fiscal 2026 and beyond.
Scholastic   s publishing once again demonstrated its unique ability to deliver global bestsellers and
enduring franchises that engage readers across generations. The launch of Sunrise on the Reaping,
the latest installment in Suzanne Collins    The Hunger Games   series, was a major global publishing
event, following the release of Dav Pilkey   s Dog Man: Big Jim Begins, which became another
worldwide bestseller. These and other bestsellers more than offset softness in the broader retail book
market.
We saw strong performance in our school-based channels. In Book Fairs, total fair count grew 4%
for the year, as we executed effectively on our selling, marketing, and customer experience strategies.
In Book Clubs, new strategies implemented at the start of the school year resulted in higher profit
contribution.
We closed and successfully integrated 9 Story Media Group into Scholastic Entertainment,
accelerating our 360-degree IP strategy. Scholastic continued to advance its evolution as a global
children   s media company, expanding our ability to reach more kids where they are, and profitably
participate in the full life cycle of our children   s franchises and IP.
In our Education Solutions segment, revenues and profits declined in fiscal 2025, reflecting ongoing
pressure on supplemental curriculum spending across schools and districts, though our successful
state and community literacy partnerships continued to expand. In response, we conducted a
strategic review of the business, validating our market position and evaluating our organization
structure and product development pipeline.
As we now start fiscal 2026, Scholastic is well positioned for profitable, strategic growth, building on
our strong execution in 2025:
First, with the newly integrated Children   s Book Group, we have brought together Trade Publishing,
Book Fairs, and Book Clubs under unified leadership to deliver exceptional experiences to kids.
We expect this integration to drive long-term revenue growth and increased profitability through
operational efficiencies and the alignment of our editorial, merchandising and distribution teams.
This collaborative structure is uniquely possible at Scholastic. It will also facilitate more productive
collaboration between our book and media businesses     and the ability of Scholastic IP to reach kids
on both screens and the page. We expect this change will progressively drive revenue growth and
increased profitability in fiscal 2026 and beyond.
Second, in Education Solutions, we have taken decisive steps to reposition the business for long-term

success following our strategic review. Under new leadership, we have begun to refocus our go-tomarket strategy around our core strengths, rationalize our product portfolio, focus investment on highimpact offerings, and simplify legacy operations and organizational structures.
Education market conditions are cyclical, and we anticipate conditions improving over the next 12   24
months. Meanwhile, our trusted supplemental literacy products     magazines, book collections, and
classroom resources     continue to offer significant value to customers and have clear upside potential.
Third, we are poised for growth in our Entertainment segment, as greenlighting activity picks up and
our 360-degree IP strategy gains traction. Digital distribution platforms     especially YouTube, the
largest platform for children   s media consumption     are also a key priority as sources of high-margin
revenue and significant reach. We are moving forward with development and production of original
content, based on Scholastic IP, to expand our presence on these.
Fourth, we are dedicated to improving operational efficiency and financial discipline. Throughout
fiscal 2025, we successfully executed on a broad set of cost-saving initiatives, carefully managing
both segment and corporate-level expenses, which we will see the full-year impact of in fiscal 2026.
Significant cost-saving opportunities remain, which we will pursue to improve profitability and set the
stage for continued earnings growth in the years ahead.
Fifth, we announced the appointment of two new independent directors, Milena Alberti and Anne
Clarke Wolff, following a proactive refresh process initiated by our Nominating and Governance
Committee. Both of these highly qualified individuals will support the Board   s focus on business
transformation, growth strategies and capital allocation, as well as other initiatives to maximize
shareholder value. With these additions, we   ve now appointed seven new independent directors over
the past four years.
In summary, we are pleased with the meaningful progress made in fiscal 2025 and the start of fiscal
2026, executing strongly, reducing significant costs, strengthening our organization and organizational
structures, returning capital to shareholders and taking steps to optimize our capital structure and
balance sheet.
As we look to the future, we are positive about our long-term opportunity as a global leader in
children   s publishing, media and education, where Scholastic   s unmatched brand, IP and distribution
channels present compelling growth opportunities.
Thank you to our employees, authors, illustrators, creators, and other valuable stakeholders who all
played a role in this past year   s success. I look forward to sharing our progress throughout the year.
Sincerely,
Peter Warwick
President & CEO
Forward-Looking Statements: This Chairman   s 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 identified from time to time in the Company   s filings with the
Securities and Exchange Commission. Actual results could differ materially from those currently anticipated.



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