Scholastic Corporation (NASDAQ:SCHL) stock is trading lower on Friday after the company reported worse-than-expected 2025 fiscal-year second-quarter earnings on Thursday after the bell.

The Details: Scholastic reported adjusted earnings per share of $1.82, missing analysts estimate of $2.30. In addition, the company reported sales of $554.60 million, missing analysts' estimates of $553.97 million and representing a 3% year-over-year decrease.

The company said the decrease in revenue reflects timing factors in the Children's Book Publishing and Distribution segment, and lower sales in Education Solutions but was partially offset by the contribution of 9 Story Media Group in the Entertainment segment.

The company reported other key pieces of financial data, including adjusted EBITDA of $108.7 million. Scholastic also reported operating income of $74.7 million, a 26% decrease compared to the same period last year.

Throughout the quarter, the company repurchased 185,378 shares of its common stock for $5.0 million. Additionally, the company reaffirmed its guidance for the 2025 fiscal year.

Peter Warwick, President and CEO, said, "Scholastic's trusted brand, bestselling IP, global scale and differentiated business models offer multiple opportunities to drive long-term profitable growth in our core markets while expanding beyond with new models, channels and products. With a strong balance sheet, including a recently upsized, $400 million revolving credit facility, and a history of robust free cash conversion, we remain committed to continuing to invest in these growth opportunities, while returning excess cash to shareholders."

SCHL Price Action: At the time of writing, Scholastic stock is trading 16.2% lower at $20.82, according to data from Benzinga Pro.

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