Educational Development Corp

edcpub.com

What Do They Do?

Sells children’s books, educational toys and games to individuals, schools and libraries through independent sales representatives, and markets books and toys to retail outlets.

How Do They Make Money?

Customers pay for children’s books and related products. PaperPie orders are generally paid when ordered, while Publishing customers pay at shipment or under payment terms; products are counted as sold when they ship.

FY2026 revenue by reportable segment revenue

Segment	Share	Revenue	How money arrives
Publishing Sold outright	16% FY2023: 15%		Sold outright
PaperPie Sold outright	84% FY2023: 85%		Sold outright

Who Are Their Customers?

PaperPie sells to individuals, schools and public libraries through independent Brand Partners, using online and in-person events and book fairs. Publishing sells to retail accounts, including bookstores, toy and gift stores, school-supply stores and museums, through commissioned representatives and in-house sales staff.

Do Revenues Turn Into Profits?

Yes. It kept 10 cents of every revenue dollar as net income in FY2026 and turned 6 cents into free cash flow.

Operating income, FY2026

−31% of revenue

▲ +6% (Loss) vs FY2025 (−$6.8M, −20%)

Net income, FY2026

10% of revenue

▲ Now profitable vs FY2025 (−$5.3M, −15%)

Free cash flow, FY2026

6% of revenue

▼ −47% vs FY2025 ($2.8M, 8%)

How Are They Changing?

Since the FY2026 annual report

Latest quarter: Q2 FY2027, the three months to Aug 31, 2026

Revenue: ▼ −12%; vs $4.6M in Q2 FY2026
Net income: ▲ +22% (Loss); vs −$1.3M in Q2 FY2026

PaperPie share of revenue vs 80.7% in Q2 FY2026

Shrinking. Revenue fell 84% in 4 years, from $142.2M in FY2022 to $22.9M in FY2026, about 37% a year.

Revenue over time

Publishing PaperPie Usborne Books and More

$200M$100M$0

FY2022 FY2023 FY2024 FY2025 FY2026

Who Do They Compete With?

Competes with Scholastic

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