Educational Development Corporation (EDUC)

Over the past six months, several events have impacted EDUC's stock price. On October 28, 2025, Educational Development Corporation completed the sale of its corporate headquarters for $32.2 million, eliminating all its bank debt. On January 8, 2026, the company reported its Q3 2026 earnings, showing net earnings of $7.8 million, compared to an $800,000 loss in the prior year, largely driven by the gain from the Hilti Complex sale, and the stock price rose by 4.38%. On October 9, 2025, EDUC announced its Q2 2026 financial results. On September 17, 2025, the stock price had seen a 27% increase, despite a 33% decrease in revenue over the preceding year. On February 6, 2026, the stock price gained 3.05%, though it had fallen by 4.26% over the preceding 10 days.

Demand for children's educational books and products exhibits some seasonality. Search interest for children's educational books tends to show sporadic spikes, particularly in September, October, and November. For sales to educational institutions, the decision-making period for purchasing products typically occurs between January and May, with purchase orders often released in August and September, coinciding with the start of the school year. Lead generation for this school-focused selling cycle is crucial between August and the Christmas break. While the broader children's literature market demonstrated resilience to traditional holiday sales spikes in 2025, specific educational products can still be influenced by academic calendars and gift-giving seasons.

Educational Development Corp. (EDUC) is a United States trade publisher specializing in educational children's books, primarily those produced in the United Kingdom. The company operates through two main segments: PaperPie, which markets products directly to consumers through independent Brand Partners, and the Publishing Division, which sells to retail accounts through sales representatives and wholesalers. EDUC's major products include books from Usborne Publishing Limited, Kane Miller Books, Learning Wrap-Ups, and SmartLab Toys. The company is categorized within the publishing sector, focusing on educational materials.

Educational Development Corp. is headquartered in Tulsa, Oklahoma. The company's distribution network primarily covers the United States, reaching customers nationwide through its PaperPie direct sales division and its Publishing segment's retail and wholesale channels.

In the past year, Educational Development Corp.'s brand reputation, particularly for its PaperPie division, has faced challenges. The company experienced a significant decrease in its average active Brand Partners, dropping from 12,400 in Q3 FY2025 to 5,100 in Q3 FY2026. This decline is partly attributed to potential reputational challenges associated with the MLM model and broader economic difficulties impacting disposable income. Management believes that improving financial stability will help reverse this trend.

Educational Development Corp. has a diverse ownership structure. Institutional investors hold approximately 20.35% of the stock, insiders own about 32.88%, and retail investors hold 46.77%. Major institutional owners include Needham Investment Management LLC (9.40%), Ameriprise Financial Inc (6.11%), and Renaissance Technologies LLC (2.40%). Key individual owners (insiders) include Randall W. White, who is the largest individual shareholder with 18.07% of shares, and Craig M. White, holding 7.53%.