Scholastic Corporation (SCHL): Business Model Canvas [Dec-2025 Updated]

You're looking to map out exactly how Scholastic Corporation turns iconic IP like Dog Man into cold, hard cash, and honestly, the Business Model Canvas shows a fascinating tension point right now. As a former analyst, I see a model built on the unmatched power of its school network, where Book Fairs alone brought in $548.3 million in fiscal year 2025, complementing the $963.9 million from publishing. Still, the Education Solutions segment, at $309.8 million, shows where the near-term pressure is, so digging into how they structure their key activities and resources-from real estate monetization to their 9 Story Media Group content engine-is crucial for understanding their next move. Dive in below to see the full, defintely clear nine-block map.

Scholastic Corporation (SCHL) - Canvas Business Model: Key Partnerships

9 Story Media Group for content development and production

• Scholastic Corporation acquired 100% of the economic interest in 9 Story Media Group for approximately USD $186 million (or CAD $250 million) in 2024.
• The Entertainment segment, which includes 9 Story Media Group, recorded revenues of $59.1 million for the first full year of consolidation in fiscal 2025.
• Revenue for the Entertainment segment in the fiscal 2025 fourth quarter was $14.8 million, compared to $0.6 million a year ago.
• The Entertainment segment revenue in Q3 2025 was over $12M.

Schools and districts to host Book Fairs and Book Clubs

• Scholastic was present in around 90,000 book fairs in the US in fiscal 2025.
• Book Fairs revenues in the fiscal 2025 fourth quarter were $177.8 million, up 5% from the prior year period.
• Book Clubs revenues in the fiscal 2025 fourth quarter were $13.1 million, a decline of 9% from the prior year period.
• Full-year Book Fairs sales for the Children's Book Publishing and Distribution division in fiscal 2025 were $548.3 million, a 1% increase.
• Full-year Book Club revenue in fiscal 2025 rose 1.5% to $64.2 million.

Literacy organizations like Kiwanis and Wells Fargo for community programs

• Successful state and community literacy partnerships continued to expand in fiscal 2025.

Authors and illustrators for continuous Intellectual Property (IP) creation

• The global success of Sunrise on the Reaping showcased Scholastic's leadership in creating enduring children's book franchises.
• Dog Man: Big Jim Begins became another worldwide bestseller.

Newmark Group for evaluating real estate sale-leaseback transactions

Scholastic Corporation retained Newmark Group to advise on the sale-leaseback of its New York City headquarters and Jefferson City, Missouri, distribution facility.

Scholastic Corporation (SCHL) - Canvas Business Model: Key Activities

Publishing and distributing children's print and digital content

Total fiscal year 2025 revenue was $1,625.5 million, a 2% increase over the prior year.

• Children's Book Publishing and Distribution segment revenue for fiscal year 2025: $963.9 million.
• Children's Book Publishing and Distribution segment revenue for the fourth quarter of fiscal 2025: $288.2 million.
• Fourth quarter revenue growth for the segment: 9%.
• Consolidated Trade revenues for fiscal year 2025: $351.4 million.

Operating the massive school-based Book Fair and Book Club network

Fair count on track to achieve 90,000 fairs in fiscal 2025.

Developing and monetizing IP via a 360-degree media strategy

Fiscal year 2025 Adjusted EBITDA was $145.4 million, up 6%.

• Fourth quarter Adjusted EBITDA: $91.2 million.
• Entertainment segment revenues for fiscal year 2025: $59.1 million.
• Entertainment segment revenues for the fourth quarter of fiscal 2025: $14.8 million.
• Target for fiscal year 2026 Adjusted EBITDA: $160 million to $170 million.

Strategic reorganization of the Children's Book Group for efficiency

Trade Publishing, Book Fairs, and Book Clubs were integrated into a unified Children's Book Group effective June 1, 2025.

The company achieved $25 million in cost savings through restructuring.

Managing costs and optimizing capital allocation

Gross profit margin for fiscal year 2025 was 55.8%.

• Total returned to shareholders in fiscal year 2025: Over $90 million.
• Dividends distributed in fiscal year 2025: $22.6 million.
• Share repurchases in fiscal year 2025: $70.0 million.
• Current authorization for stock repurchases: $70.0 million.
• Net debt as of May 31, 2025: $136.6 million.
• Net cash position as of May 31, 2024: $107.7 million.

The company retained an advisor for a potential sale-leaseback of its New York City headquarters.

Scholastic Corporation (SCHL) - Canvas Business Model: Key Resources

The foundation of Scholastic Corporation's business rests on several tangible and intangible assets that are difficult for competitors to replicate.

Iconic Intellectual Property (IP) like Dog Man and The Hunger Games

The value of Scholastic Corporation's owned IP is demonstrated by the performance of its key franchises. The launch of Sunrise on the Reaping, the latest installment in Suzanne Collins' The Hunger Games series, was cited as a major global publishing event in fiscal 2025. Also, Dav Pilkey's Dog Man: Big Jim Begins became another worldwide bestseller during the fiscal year ended May 31, 2025. The Trade Publishing component, which houses these major IP sales, saw revenues of $351.4 million in the full fiscal 2025 year. Consolidated Trade revenues for the second quarter of fiscal 2025 were $102.8 million.

Unmatched school-based distribution network and logistics

Scholastic Corporation operates as the world's largest publisher and distributor of children's books through its school-based channels. The company's global reach extends into more than 135 countries. In fiscal 2025, the Book Fairs business saw its total fair count grow by 4% for the year. The company expected to hold more than 90,000 fairs in fiscal 2025. Book Fairs revenues for the fourth quarter of fiscal 2025 were $177.8 million, a 5% increase over the prior year period. Book Club revenues for the full fiscal 2025 year were $64.2 million, marking a 1.5% rise.

• Global Reach: More than 135 countries.
• Book Fairs Fair Count Growth (FY 2025): 4%.
• Expected Book Fairs Count (FY 2025): Over 90,000.
• Book Clubs Revenue (FY 2025): $64.2 million.

Owned real estate assets in New York City and Missouri (potential for monetization)

Scholastic Corporation announced in December 2025 the entry into sale-leaseback transactions for its New York City headquarters at 555-557 Broadway and its primary distribution facility in Jefferson City, Missouri. These transactions are expected to generate estimated net proceeds of $401 million in total. The gross proceeds from the NYC sale to Empire State Realty Trust are $386 million in cash, while the Jefferson City sale to Fortress affiliates is for gross proceeds of $95 million in cash. The estimated net proceeds specifically from the Jefferson City sale are $74 million. For the NYC property, Scholastic incurred capital expenditures of $7.3 million in fiscal 2025. In fiscal 2025, the company received $11.2 million in rental income from leases at the Broadway location. The Jefferson City lease is a 20-year triple net lease, and the NYC lease is a 15-year lease, both with two 10-year lease extensions.

Global brand trust with educators and families, built over a century

Scholastic Corporation has been meeting children where they are for more than 100 years. This longevity underpins the trust educators and families place in the brand for quality content and reading experiences.

Content production studios via the 9 Story Media Group acquisition

The acquisition of 9 Story Media Group, which closed in June 2024 for just over $180 million (or 250 million Canadian dollars), forms the core of the Entertainment segment. This segment's revenues for the first full year of ownership in fiscal 2025 were $59.1 million. In the fourth quarter of fiscal 2025, Entertainment segment revenues were $14.8 million, up from $0.6 million a year ago. The contribution from 9 Story Media Group was a major factor in the total consolidated revenue for fiscal 2025 reaching $1,625.5 million, a 2% increase. The full-year fiscal 2025 Adjusted EBITDA was $145.4 million, up 6% from the $136.9 million reported in fiscal 2024.

The Entertainment segment saw revenues of $16.6 million in the first quarter of fiscal 2025. The company ended fiscal 2025 with net debt of $136.6 million, reflecting borrowings to fund the 9 Story Media Group acquisition.

Scholastic Corporation (SCHL) - Canvas Business Model: Value Propositions

You're looking at the core reasons why customers choose Scholastic Corporation, and honestly, the numbers from fiscal year 2025 tell a clear story about where the value is being delivered, even with some headwinds.

Access to high-quality, engaging, and affordable children's literature

This value proposition is primarily delivered through the newly unified Scholastic Children's Book Group, which combines Trade Publishing, Book Fairs, and Book Clubs. The strength here is demonstrated by major IP success, like the launch of Sunrise on the Reaping, which drove a 19% revenue increase in Consolidated Trade in the fourth quarter of fiscal 2025.

• FY 2025 total revenue for the Children's Book Publishing and Distribution segment was $963.9 million, a 1% increase for the year.
• Book Club revenue for the full fiscal year 2025 rose by 1.5% to $64.2 million.
• The company returned over $90 million to shareholders in fiscal 2025, signaling financial stability to support ongoing content investment.

Turnkey, profitable fundraising and literacy events for schools (Book Fairs)

The Book Fairs channel remains a cornerstone, providing schools with a structured, low-effort way to raise funds while promoting reading. The execution in this area showed positive momentum in the fourth quarter of fiscal 2025.

Here's a look at the key components that make up the Children's Book Publishing and Distribution segment:

The company operates in around 90,000 book fairs in the US in 2025, which is where a large portion of book sales take place.

Supplemental curriculum and classroom magazines for educators

This value proposition, housed in Education Solutions, faced significant market pressure in fiscal 2025, reflecting broader school budget uncertainties. The company is actively repositioning this business for long-term growth.

• Education Solutions revenues decreased 12% for the full fiscal year 2025, totaling $309.8 million.
• In the fourth quarter of fiscal 2025, Education Solutions revenues were $125.7 million, a 7% decline.
• Classroom magazines like Storyworks® offer Print with Digital subscriptions starting at $7.89 (Digital Only) or $8.75 (Print+Digital) for 6 issues, reflecting educator discounts on bulk orders.

Multi-platform monetization and global reach for authors' IP

Scholastic Corporation is evolving into a global children's media company, using its IP across more formats. The acquisition of 9 Story Media Group in 2024 is central to this, creating the Entertainment segment.

The global footprint is extensive, reaching into more than 135 countries.

Promoting lifelong literacy and learning for all children

This is the overarching mission, supported by the company's total financial performance for the fiscal year ended May 31, 2025. The focus on cost management helped improve the bottom line despite modest revenue growth.

• Total Company Revenue (FY 2025): $1,625.5 million (up 2% YoY)
• Total Company Adjusted EBITDA (FY 2025): $145.4 million (up 6% YoY)
• Total Company Operating Income (FY 2025): $15.8 million (up 9% YoY)

If you're looking at the P/E ratio as of August 29, 2025, it was 32.7, with a market cap of $644M.

Finance: draft 13-week cash view by Friday.

Scholastic Corporation (SCHL) - Canvas Business Model: Customer Relationships

You're looking at how Scholastic Corporation maintains its connection with the educational ecosystem, which is defintely a mix of high-touch field presence and digital reach as of late 2025.

High-touch, direct engagement with schools through Book Fair representatives remains a core relationship driver. Scholastic Corporation is the leading distributor of school-based book fairs in the United States, supporting schools in all 50 states. For the full fiscal year 2025, Book Fairs sales reached $548.3 million, a 1% increase year-over-year, as part of the Children's Book Publishing and Distribution segment. This success reflected a total fair count growth of 4% for the year. Even in the seasonally quiet first quarter of fiscal 2026, Book Fairs sales started strong, hitting $34.1 million, which was an 18% jump year-over-year.

Direct-to-consumer (DTC) sales via online platforms and Book Clubs show a more varied picture. Book Clubs revenue for the full fiscal year 2025 was $64.2 million, representing a 1.5% rise. However, the fourth quarter of fiscal 2025 saw Book Clubs revenues dip 9% to $13.1 million. The first quarter of fiscal 2026 was particularly soft for this channel, with Book Club sales falling 33% to just $1.8 million. Scholastic Corporation is also expanding its reach through digital distribution platforms, including YouTube, as part of its strategy to monetize its intellectual property.

The relationship with schools extends into professional consulting and training for school administrators and teachers, which is housed within the Education Solutions segment. This segment faced headwinds, with fiscal year 2025 revenues falling 12% to $309.8 million. The company is actively repositioning this business for long-term profitability amid ongoing pressure on supplemental curriculum spending.

For community-based partnerships for literacy initiatives, the context is set by the overall performance of the Education Solutions division, which saw its operating income drop to $6.3 million in fiscal 2025 from a prior year figure. The company continues to advance its state and community literacy partnerships, even as it works to optimize the segment.

• The Children's Book Publishing and Distribution division, which includes Book Fairs and Book Clubs, saw revenues of $963.9 million in fiscal 2025.
• The company returned over $90 million to shareholders during fiscal year 2025.
• Fiscal 2026 Adjusted EBITDA guidance is set between $160 million and $170 million.

Scholastic Corporation (SCHL) - Canvas Business Model: Channels

You're looking at the specific ways Scholastic Corporation gets its products and services into the hands of its customers as of late 2025. This is all about the delivery mechanism, and for Scholastic, it's heavily weighted toward school-based interactions.

The company's overall Fiscal Year 2025 revenue reached $1,625.5 million. Scholastic Corporation strategically uses a mix of proprietary school channels, direct sales, and traditional trade outlets to reach its customer segments.

• School-based Book Fairs (a major revenue driver)
• School-based Book Clubs (print and online ordering)
• Trade channels: Retail bookstores and e-commerce platforms
• Direct sales force to K-12 school districts (Education Solutions)
• Digital media platforms like YouTube for entertainment content

Here's a quick look at the financial contribution from the major segments that align with these channels for the full Fiscal Year ended May 31, 2025:

The school-based channels remain central, though they face market pressures. For instance, in the fourth quarter of Fiscal 2025, Book Fairs revenues were $177.8 million, showing a 5% increase, which management pointed to as strong performance.

Conversely, the direct sales channel, Education Solutions, saw a significant contraction. Its full-year revenue was $309.8 million, a 12% drop, which management attributed to headwinds in the supplemental curriculum market and uncertainty in school funding.

The Trade channels, covering retail bookstores and e-commerce, showed resilience, particularly when major Intellectual Property (IP) titles release. Trade Publishing revenue for the full year was $351.4 million. In the fourth quarter alone, Trade Publishing revenue hit $97.3 million, a 19% increase, largely driven by the release of Sunrise on the Reaping.

For digital media platforms, the data is captured within the Entertainment segment, which is bolstered by the acquisition of 9 Story Media Group. The segment's Q4 FY2025 revenue was $14.8 million, a massive jump from just $0.6 million in the prior year period, showing the channel's growing importance for IP monetization, including on advertising-supported platforms.

The structure of the school-based channels saw a strategic shift late in the fiscal year:

• Book Fairs saw a Q4 FY2025 revenue of $177.8 million.
• Book Clubs Q4 FY2025 revenue was $13.1 million, down 9% for the quarter.
• The Company is focused on optimizing the Book Clubs business to be a smaller, more profitable core.

To be defintely clear, Scholastic Corporation announced a strategic reorganization combining its Trade Publishing and School Reading Events divisions into a unified Children's Book Group under Sasha Quinton, aiming to deepen engagement across all these customer touchpoints.

Scholastic Corporation (SCHL) - Canvas Business Model: Customer Segments

You're looking at the core groups Scholastic Corporation serves based on their Fiscal Year 2025 performance, which ended May 31, 2025. Honestly, the business is still heavily reliant on the institutional side, but the direct-to-consumer channels, especially Trade, showed some real pop thanks to major franchises.

K-12 Schools and School Districts (primary institutional customers)

This group represents a massive chunk of Scholastic Corporation's business, even with recent headwinds. They are the primary buyers for curriculum materials and the in-school book events.

• The Education Solutions segment, which directly serves schools and districts with supplemental curriculum, generated revenues of $309.8 million in Fiscal Year 2025.
• This segment represented 19.1% of total Fiscal Year 2025 revenues.
• Management noted 'near-term uncertainty about school funding' impacting this area in early Fiscal 2026.
• Book Fairs, a key component of in-school sales, posted revenues of $177.8 million in the fourth quarter of Fiscal 2025, up 5% from the prior year period, reflecting a higher fair count.

Children and their Families (direct consumers of books and media)

These are the end-users buying books at home or through school-based clubs. The Trade channel, which includes direct consumer sales, benefited significantly from blockbuster releases.

• The Children's Book Publishing and Distribution segment, which houses Trade, Book Fairs, and Book Clubs, had total revenues of $963.9 million in Fiscal Year 2025.
• This largest segment accounted for 59.3% of total Fiscal Year 2025 revenues.
• Consolidated Trade revenues in the fourth quarter of Fiscal 2025 were $97.3 million, marking a 19% increase, driven by the success of the fifth book in Suzanne Collins' global best-selling Hunger Games series, Sunrise on the Reaping.
• Book Clubs revenue in the fourth quarter of Fiscal 2025 was $13.1 million, a decline of 9%, reflecting lower orders in that specific quarter.

Educators and Teachers (users of classroom magazines and curriculum)

Teachers are the gatekeepers for the Education Solutions products and often drive participation in Book Fairs and Book Clubs. Their spending decisions are tied closely to the institutional budget cycle.

The primary financial indicator for this group is the performance of the Education Solutions segment, which saw sales fall 12% to $309.8 million for the full Fiscal Year 2025.

International Markets, notably the UK, Canada, and Australia

Scholastic Corporation has a significant global footprint, which provided a growth buffer when domestic segments faced challenges. The International segment is a distinct customer base.

The International segment generated revenues of $279.6 million in Fiscal Year 2025, a 2% increase year-over-year. This segment represented 17.2% of total Fiscal Year 2025 revenues.

Here's a quick look at the International segment's Q4 performance:

Media and Licensing Partners for entertainment content

This segment captures customers who license Scholastic Corporation's Intellectual Property (IP) for media creation, such as television or film. This group was bolstered by the 2024 acquisition of 9 Story Media Group.

The Entertainment segment reported revenues of $59.1 million for the full Fiscal Year 2025, representing its first full year of contribution post-acquisition. This segment accounted for 3.8% of total Fiscal Year 2025 revenues.

You should note that in the first quarter of Fiscal 2026, this segment experienced an 18% revenue fall to $13.6 million due to anticipated delays in production greenlights.

Scholastic Corporation (SCHL) - Canvas Business Model: Cost Structure

You're looking at the core expenses Scholastic Corporation faced to run its global publishing and distribution machine through the fiscal year ending May 31, 2025. Honestly, the cost structure is dominated by the direct costs of getting books into kids' hands and the overhead to manage the whole operation. Here's the quick math on the major buckets based on the latest full-year figures.

The largest single component is the cost to create and move the product. For the twelve months ended May 31, 2025, Scholastic Corporation reported Cost of goods sold of $718.8 million. This number is where you'll find the bulk of your paper, printing, and inventory holding costs for all those bestsellers and classroom materials.

Next, you have the massive bucket of operating expenses that aren't direct production costs. Selling, general and administrative expenses for the full fiscal year 2025 totaled $822.3 million. This figure is a catch-all that includes the specific items you asked about, like employee costs and marketing spend.

We can break down the known elements within that structure:

• The prompt specifies that overhead costs for FY2025 were $35.5 million.
• Marketing and promotional expenses for new releases and fairs are embedded within the $822.3 million SG&A.
• Employee-related expenses are also a significant driver within SG&A, with adjusted overhead increasing by $9.6 million in FY2025 primarily due to the timing of these costs.

The Distribution and logistics costs for the Book Fair network are a critical, though integrated, expense. The Book Fairs revenue stream itself was substantial in FY2025, bringing in $548.3 million. The costs to manage the physical logistics of setting up and running those fairs-transportation, fair staff support, and inventory movement-are factored into the Cost of Goods Sold and SG&A figures above.

Looking ahead, Scholastic Corporation is already factoring in new pressures for the next period. For fiscal year 2026, the company anticipates approximately $10 million of expected incremental expense related to currently higher tariff rates. This is a direct, anticipated hit to the cost base that management is already calling out.

Here is a summary of the key cost structure figures for Scholastic Corporation for the twelve months ended May 31, 2025, alongside the forward-looking tariff estimate:

The total operating costs and expenses for the full twelve months ended May 31, 2025, reached $1,540.9 million ($718.8 million COGS + $822.3 million SG&A, excluding the separate depreciation/amortization line item found in other reports, but using the two main expense lines provided in the most comprehensive table). The total revenue for the same period was $1,625.5 million.

Scholastic Corporation (SCHL) - Canvas Business Model: Revenue Streams

You're looking at the core money-makers for Scholastic Corporation as of their fiscal year 2025 close, which ended May 31, 2025. Honestly, it's a mix of legacy strength and newer IP monetization efforts. Here's the quick math on where the revenue actually came from for the full year.

The total revenue for Scholastic Corporation in fiscal year 2025 was $1.625 billion. This revenue is carved up across a few key areas, showing where the company has its deepest roots and where it's trying to grow next.

The largest single contributor remains the core book business, which is now strategically unified. You can see the breakdown below:

The Children's Book Publishing and Distribution segment, which includes the Book Fairs, is definitely the engine here. To be fair, the Book Fairs portion alone accounted for $548.3 million of that total, showing the power of their in-school presence. Still, the Education Solutions division saw sales of $309.8 million, even while management noted they are repositioning that business for profitable growth amid a challenging supplemental curriculum market.

The growth story is also visible in the smaller, but strategically important, Entertainment segment, largely due to the acquisition of 9 Story Media Group. Here are some key data points related to the segments:

• Children's Book Publishing and Distribution sales: $963.9 million
• Book Fair revenue contribution: $548.3 million
• Education Solutions sales: $309.8 million
• International sales: $279.6 million
• Entertainment segment revenue: $59.1 million

International sales hit $279.6 million, showing global reach, and the Entertainment segment brought in $59.1 million, which reflects the contribution from the 9 Story Media Group acquisition. That's the current picture of how Scholastic Corporation is bringing in the cash.