Scholastic Accelerates Growth Strategy, Returns $650 Million to Shareholders
Scholastic, a leading global children's publishing, education, and media company, has made significant strides in its growth strategy during the third quarter of fiscal 2026. In a recent conference call, executives highlighted the successful completion of sale-leaseback transactions that unlocked $400 million in net proceeds, enabling the company to return cash to shareholders through an upsized share repurchase authorization.
According to Peter Warwick, President and Chief Executive Officer, Scholastic advanced its strategy to support long-term growth and enhance shareholder value. The successful completion of the sale-leaseback transactions represented an important step in optimizing the company's balance sheet, with a view toward further optimizing it and enhancing shareholder value.
Consistent with the company's disciplined approach to capital allocation, Scholastic moved quickly to return cash to shareholders under an upsized $150 million share repurchase authorization. With nearly 4.4 million shares bought back for approximately $147 million in the open market or $33.30 per share on average, the company has returned over $650 million to shareholders through share repurchases and dividends since fiscal 2022.
As a next step, the board has authorized a new $300 million share repurchase authorization comprising of a $200 million modified Dutch auction tender offer, with the remaining $100 million to be used for repurchases in the open market. The offer price range has been set to $36-$40 per share, which would represent approximately 25% of Scholastic shares outstanding as of quarter end.
Turning to operating performance, third-quarter results were in line with expectations as the company continued executing on initiatives supporting long-term growth and margin expansion. Given the seasonality of the business, revenue and profitability are typically lower during this quarter. Despite this, Scholastic reaffirmed its fiscal 2026 adjusted EBITDA and free cash flow guidance.
The Children's Book Group performed well, combining powerful publishing and beloved franchises with unique school-based distribution channels. Through Book Fairs, Trade Publishing, and the company's proprietary school network working together, Scholastic reached children and families in ways that no other company can replicate.
