The following is a summary of the Educational Development Corporation (EDUC) Q1 2025 Earnings Call Transcript:

Financial Performance:

• Q1 2025 net revenues were $10 million, down from $14.5 million in the previous year.

• Educational Development Corporation reported a net loss of $1.3 million this quarter, compared to $0.9 million in the prior year.

• Loss per share increased to $0.15 from $0.11 last year.

• The company is focusing on prioritizing cash flow over profitability and has decreased net inventories by $2.9 million.

Business Progress:

• Launched strategic promotions to drive sales and engagement, including a site-wide sales event and a special one-day account activation offer.

• Hosted a successful convention in Tulsa with over 50 presenters which re-energized the sales force and led to an influx of 3,700 new brand partners.

• Introduced new product lines in June, including educational tools and STEAM based kits, under the PaperPie brand.

Opportunities:

• The anticipated sale and leaseback of the headquarters, expected to generate $35.5 million, aims to improve financial liquidity and reduce interest expenses.

• Signed a new lease for half of the headquarters' space to improve cash flow and support the company's return to profitability.

Risks:

• The financial strategy remains heavily dependent on the successful execution of the headquarters' sale leaseback and the management's ability to maintain operational stability and control inventory levels.

More details: EDC Publishing IR

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.