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Educational Development (EDUC) earnings and revenue breakdown

Latest: Q2 FY27 · 10-Q filed Oct 14, 2026 · Educational Development (EDUC) Q2 FY27 earnings results →

Q2 FY27 Revenue down 12% year over year to $4.1M · 39¢ of every $1 of revenue lost · operating margin -38.4%

Educational Development made $4.1M in Q2 FY27 (-12% Y/Y): Product $3.9M, Transportation Revenue $179K. Operating margin -38.4%, net loss $1.6M. See where every dollar goes — costs, profit and cash — as a Sankey from the 10-Q filed Oct 14, 2026.

Revenue$4.1M
Year over year-12%
Operating margin-38.4%
Net earnings−$1.6M
Operating cash flow−$510K

Drawing the Sankey…

Open the interactive Sankey → click any line for what the company wrote about it, compare Y/Y and Q/Q, export as PNG or PDF

What changed this quarter

Revenue was $4.1M in Q2 FY27, down 12% year over year and down 14% from the previous quarter. Product was the largest line at 96% of revenue. Product lost $505K year over year (down 11%), 92% of the total change.

Gross margin was 59.7%, up 1.6 points from Q2 FY26. Operating costs exceeded revenue by $1.6M, an operating margin of -38.4%. Operating expenses fell 10% while revenue fell 12%. The quarter ended with a net loss of $1.6M, wider than the previous quarter's $1.4M loss.

Operating cash flow was −$510K. Non-cash charges added back $268K of depreciation and amortization. Working capital and other items added $800K. Capital expenditures of $93K exceeded it, leaving free cash flow of −$603K.

Quarterly history

Educational Development revenue by quarterEducational Development revenue by quarter$6.6MQ4 FY25$7.1MQ1 FY26$4.6MQ2 FY26$7.0MQ3 FY26$4.2MQ4 FY26$4.8MQ1 FY27$4.1MQ2 FY27
Educational Development net earnings by quarterEducational Development net earnings by quarter−$1.3MQ4 FY25−$1.1MQ1 FY26−$1.3MQ2 FY26$7.8MQ3 FY26−$3.1MQ4 FY26−$1.4MQ1 FY27−$1.6MQ2 FY27
QuarterFormFiledRevenueY/YOp. marginNet earningsOp. cash flow
Q2 FY2710-QOct 14, 2026$4.1M-12%-38.4%−$1.6M−$510K
Q1 FY2710-QJul 9, 2026$4.8M-33%-29.0%−$1.4M$564K
Q4 FY2610-KMay 19, 2026$4.2M-37%-50.2%−$3.1M−$2.0M
Q3 FY2610-QJan 13, 2026$7.0M-37%151.9%$7.8M$2.5M
Q2 FY2610-QOct 9, 2025$4.6M-29%-37.9%−$1.3M$63K
Q1 FY2610-QJul 7, 2025$7.1M-29%-20.4%−$1.1M$1.4M
Q4 FY2510-KMay 19, 2025$6.6M-26%-23.1%−$1.3M−$1.6M

Charts

Educational Development: revenue growth, year over year and quarter over quarterEducational Development: revenue growth, year over year and quarter over quarterY/YQ/Q-26%Q4 FY25-29%+7%Q1 FY26-29%-35%Q2 FY26-37%+52%Q3 FY26-37%-40%Q4 FY26-33%+14%Q1 FY27-12%-14%Q2 FY27
Latest (Q2 FY27): Y/Y -12%, Q/Q -14%.
Educational Development: where the cash came from (+) and went (−), TTM to Q2 FY27Educational Development: where the cash came from (+) and went (−), TTM to Q2 FY27Asset & business sales$29.9MNet borrowing (+) / repaid (−)−$25.8MOther financing−$4.3MOperating cash flow$600KCapital spending−$423KCash drawn (+) / kept (−)$66K
From the cash-flow statement as filed (SEC XBRL). Cash is fungible: the bars do not say which dollar paid for what.
Educational Development: profit against cash, quarter by quarterEducational Development: profit against cash, quarter by quarterNet incomeOperating cash flow−$836K$4.4MQ3 FY25−$1.3M−$1.6MQ4 FY25−$1.1M$1.4MQ1 FY26−$1.3M$63KQ2 FY26$7.8M$2.5MQ3 FY26−$3.1M−$2.0MQ4 FY26−$1.4M$564KQ1 FY27−$1.6M−$510KQ2 FY27
Latest (Q2 FY27): Net income −$1.6M, Operating cash flow −$510K.
Educational Development: diluted shares by fiscal yearEducational Development: diluted shares by fiscal year8MFY218MFY228MFY238MFY248MFY259MFY26
+1.6% since FY21: more shares outstanding (issuance, stock pay).
Educational Development in its industry: growth against margin (6 companies, SIC 5190)Educational Development in its industry: growth against margin (6 companies, SIC 5190)revenue growth, year over year →↑ operating marginmedian -8%median -4%CENTVSTSHYFMNHTCSTRGEDUC (-12%, -38%)
Wholesale-Miscellaneous Nondurable Goods; dot size is quarterly revenue; dashed lines are the industry's medians.

Interactive views

The same charts as the app — open one to draw it.

💵Where each $1 goesinteractive

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🌏Named in Asian annual reportsinteractive

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🔄Rotation against the market and its industry (RRG)interactive

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🔍Earnings qualityinteractive

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⚖️Fair value by methodinteractive

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🔭Outlook & guidanceinteractive

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📈Investments: gains and what it boughtinteractive

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🏭Its industry’s money flow (input-output)interactive

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About Educational Development

We are the owner and exclusive publisher of Kane Miller children’s books; Learning Wrap-Ups, maker of educational manipulatives; and SmartLab Toys, maker of STEAM-based toys and games. We are also the exclusive United States Multi-Level Marketing (“MLM”) distributor of Usborne Publishing Limited (“Usborne”) children’s books. We are a corporation incorporated under the laws of the State of Delaware on August 23, 1965. Our fiscal year ends on February 28 (29). Our Company vision statement reflects “We believe that education is the catalyst for wonderment, kindness, and connection. Our vision is to empower the world by sparking a child’s natural curiosity and lifelong love of learning through products and experiences that meet at the intersection of education and play.”

In its own words, from its 10-K, filed May 19, 2026.

Educational Development against its Wholesale-Miscellaneous Nondurable Goods peers

The largest companies of the same SEC industry, each at its latest quarter. Revenue growth: -12% against the peers' median -8%. Operating margin: -38.4% against the peers' median -32.0%.

CompanyQuarterRevenueY/YOp. margin
EDUC Educational DevelopmentQ2 FY27$4.1M-12%-38.4%
CENT Central Garden & PetQ3 FY26$882M-8%14.3%
VSTS VestisQ3 FY26$662M-2%5.6%
HYFM Hydrofarm Holdings GroupQ2 2026$23.2M-41%-32.0%
NHTC Natural Health TrendsQ3 2026$7.6M-20%-3.7%
QPRC Quest Patent ResearchQ2 2026$2.0M—-74.5%
STRG Starguide GroupQ4 FY26$88+319%n/m

Source: Educational Development 10-Q on SEC EDGAR · CIK 31667 · Wholesale-Miscellaneous Nondurable Goods

13F: who owns EDUC and who is buying

Largest holders of EDUC (13F)Largest holders of EDUC (13F)Needham Investment Management LLC$1.2MAmeriprise Financial$785KRenaissance Technologies LLC$304KCitadel Advisors LLC$111KVanguard Group$86KGeode Capital Management, LLC$75KVanguard Capital Management LLC$70KState Street$48KBridgeway Capital Management, LLC$34KVanguard Fiduciary Trust$31K
Funds' net buying of EDUC by quarter (13F)Funds' net buying of EDUC by quarter (13F)$60K2024-09$16K2024-12$34K2025-03−$40K2025-06−$290K2025-09$67K2025-12$27K2026-03$34K2026-06
Value of shares 13F filers added minus the value they sold, each quarter (quarters with most filings in).

More on EDUC

History

Every quarter: Q2 FY27 results · Q1 FY27 results · Q4 FY26 results · Q3 FY26 results · Q2 FY26 results · Q1 FY26 results · Q4 FY25 results

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