Educational Development Corporation (EDUC)

Over the past six months, Educational Development Corp.'s stock price has experienced a significant decline. The stock price decreased by 33.51% over the last 12 months and by 17.22% in the past month as of November 27, 2025. From November 13, 2024, to November 12, 2025, the share price fell by 29.53%, from $1.93 to $1.36. As of November 26, 2025, the stock traded at $1.25. Key events impacting the stock include challenging Q2 FY2025 financial results with net revenues declining by 38.6% year-over-year and a net loss of $1.8 million. Q3 FY2025 financial results also showed a drop in net revenues and a net loss. The company completed the sale of its corporate headquarters for $32.2 million, using the proceeds to pay off outstanding loans. Inventory reduction efforts have been actively pursued through promotions and discounted pricing. Heather N. Cobb, Chief Sales & Marketing Officer, sold 11,419 shares of common stock at $1.35 per share.

There are indications of demand seasonality for Educational Development Corp.'s products and services. The company expects the "fall selling season to contribute" to its inventory reduction efforts. The company experienced a decline in its home representative sales team as "children returned to school," suggesting that demand for its educational products and direct sales activities may be influenced by the academic calendar.

Educational Development Corp. (EDUC) is a publishing company specializing in children's books, educational toys, and games, primarily distributing these products within the United States. The company operates in the Communication Services sector, specifically within the Publishing industry. EDUC's business is divided into two main segments: PaperPie and Publishing. Through these segments, it offers a diverse range of products including touchy-feely board books, activity books, flashcards, adventure and search books, art books, sticker books, foreign language books, and internet-linked books covering science, math, chapter books, and novels. The company also produces learning manipulatives and STEAM-based toys and games. Educational Development Corp. is the owner and publisher of Kane Miller Books, Learning Wrap-Ups, and SmartLab Toys, and serves as a distributor for Usborne Publishing Limited children's books. Products are sold to retail accounts such as book, school supply, toy, and gift stores, as well as museums, through commissioned sales representatives, wholesalers, an internal tele-sales group, and a network of independent sales representatives.

Educational Development Corp. primarily conducts its operations and distributes its products within the United States. Its Publishing segment specifically targets retail accounts across the U.S. The PaperPie segment utilizes a network of independent brand partners for sales through internet channels, direct sales, home shows, and book fairs. A distinct non-profit organization, Education Development Center (EDC), operates globally in over 80 countries, but this is separate from the publicly traded Educational Development Corp. (EDUC).

Educational Development Corp.'s brand reputation has likely been impacted by its significant financial challenges, including declining net revenues, substantial net losses, and a decrease in its average active PaperPie Brand Partners. These financial struggles, coupled with efforts to reduce excess inventory and debt, suggest a period of operational difficulty. Concerns regarding its sales structure and its impact on the company's standing have also been raised, with a decline in brand partners reflecting challenges in its direct sales environment.

Educational Development Corp. has 30 institutional owners and shareholders, holding a total of 3,236,063 shares, representing 20.18% institutional ownership. Major institutional shareholders include NEAGX, Needham Investment Management Llc, Ameriprise Financial Inc, CSMIX, Renaissance Technologies Llc, COLUMBIA FUNDS VARIABLE INSURANCE TRUST, Vanguard Group Inc, VEXMX, Geode Capital Management, Llc, and Bridgeway Capital Management Inc. Among individual owners, Heather N. Cobb, the Chief Sales & Marketing Officer, directly owned 160,391 shares as of November 14, 2025.