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Financial Analysis

Filing-based analysis. Market pricing is not included. Fundamentals from SEC filings; economic data from FRED and the BLS. About our data

Fundamentals

EDUCATIONAL DEVELOPMENT CORP EDUC

· Consumer · Wholesale-Miscellaneous Nondurable Goods

FY2026 10-K, filed 2026-05-19
SEC EDGAR

Filing evidence summary

Mixed evidenceCoverage 3/5 core metrics

Latest reported annual revenue changed -33.0% from the prior reported annual observation.

Backward-looking filed evidence under visible rules - not a rating, forecast or investment advice. Missing data is never scored.

Evidence signals

  • Revenue contracted

    Latest reported annual revenue changed -33.0% from the prior reported annual observation.

    Why this surfaced

    Direction threshold: above +2% constructive; below -2% caution; otherwise monitor. This is not labeled one-year growth when filing periods have a gap. Period end 2026-02-28.

  • 1 filing risk check flagged

    Flagged areas: Solvency & liquidity.

    Why this surfaced

    The full financial analysis shows each value, threshold, and sector limitation.

  • Free cash flow was positive

    Latest reported free cash flow was $1M.

    Why this surfaced

    Free cash flow = operating cash flow minus capital expenditures; positive is supporting evidence, not a valuation conclusion. Period end 2026-02-28.

Core trend metrics

Latest annual revenue growth
-33.0%
as of 2026-02-28
Free cash flow
$1M
as of 2026-02-28
Debt / equity
0.00x
as of 2026-02-28

Hover a tile for its exact definition; the Statements tab carries per-cell filing citations.

Where to look next

Risk checks

1of 10 rule-based checks flagged
  • Solvency & liquidity

Financial movement

  • Cash→ flat
  • Long-term debt→ flat
  • Inventory→ flat
  • Receivables→ flat
  • Current assets→ flat

Source & freshness

Source
SEC EDGAR XBRL
Fetched
2026-09-06
Latest period end
2026-02-28
Filings
EDGAR ↗

Reported segment mix

figures as filed · share of the filed sum · change vs the prior period in the same filing
Fiscal year ending 2026-02-2810-K filed 2026-05-19prior period 2025-02-28 from the same filingView filing
By business segment
Revenue
  • Paper Pie$19.3M
    84.4%
    -35.2% yoy
  • Publishing$3.57M
    15.6%
    -17.8% yoy

Members sum to the consolidated $22.9M for this period.

Operating income
  • Paper Pie$944K
    55.8%
    -51.6% yoy
  • Publishing$748K
    44.2%
    -35.3% yoy

No consolidated figure stored for this period; shares are of the filed sum.

By product or service
Revenue
  • Product$21.8M
    95.2%
    -33.0% yoy
  • Transportation Revenue$1.1M
    4.8%
    -33.1% yoy

Members sum to the consolidated $22.9M for this period.

Latest quarter
Quarter ending 2026-05-3110-Q filed 2026-07-09prior period 2025-05-31 from the same filingView filing
  • Paper Pie$4.17M
    87.8%
    -31.1% yoy
  • Publishing$581K
    12.2%
    -44.5% yoy

Change is against the same quarter a year earlier, as reported in the same 10-Q.

Source: SEC DERA Financial Statement and Notes data sets. Dimensional XBRL facts on the business-segment, product/service and geographic axes; the engine keeps the accession of every figure. Descriptive and educational, not advice.

Peer percentiles

latest fiscal year ending 2026-02-28 · among 4,058 US-listed filers · 480 in Consumer
MetricValuevs all filersvs sector
Revenue
latest fiscal-year revenue as filed
$23M
16thof 3,301
bottom third
7thof 465
bottom third
Revenue growth
latest fiscal-year revenue vs the prior fiscal year
-33.0%
4thof 3,137
bottom third
2ndof 452
bottom third
Gross margin
gross profit ÷ revenue
59.4%
76thof 1,603
top third
91stof 330
top third
Net margin
net income ÷ revenue
10.2%
71stof 3,263
top third
85thof 461
top third
Free-cash-flow margin
(operating cash flow − |capex|) ÷ revenue
6.4%
56thof 2,679
middle third
66thof 418
middle third
Return on equity
net income ÷ stockholders' equity (positive equity only)
5.4%
52ndof 3,577
middle third
44thof 412
middle third
Stock comp ÷ revenue
stock-based compensation ÷ revenue · lower is ranked higher
0.0%
100thof 2,895
top third
100thof 416
top third
Days sales outstanding
receivables ÷ revenue × 365 · lower is ranked higher
14 days
87thof 2,398
top third
65thof 384
middle third
Net debt ÷ operating cash flow
net debt ÷ operating cash flow (OCF > 0) · lower is ranked higher
-0.6×
86thof 1,547
top third
90thof 242
top third

Each filer's latest fiscal year as stored by the nightly crawl; fiscal year ends differ across the universe. A metric ranks only filers for which it is computable from filed facts. Ties split; a rank reads "better than N% of filers" in the metric's own direction. Descriptive and educational, not a rating.

Earnings quality

Not available for EDUC yet: Earnings-quality fields arrive with this issuer's next re-crawl (sec_screen_v6)..

Point-in-time ledger

Not available for EDUC yet: The point-in-time ledger arrives with this issuer's next re-crawl (sec_screen_v6)..

Notes by disclosure type

debt, leases, revenue, segments, contingencies, taxes and more · the filer's own words
Latest quarterly report10-Q FY2027 Q1 · filed 20260709View filing
Debt · 990 characters as filed

Note 6 DEBT In March 2026, the Company executed a new credit agreement with Regent Bank (the Lender). The loan agreement establishes a revolving promissory note in the principal amount up to $2,000,000. Interest shall be calculated each month on the outstanding borrowings. The credit agreement was secured by the assets of the Company including accounts receivable, inventory, equipment and excess land. The Lender also required the personal guarantee of Craig White, President, Chief Executive Officer, and Chairman of the Board of the Company. Available credit under the current revolving line of credit with the Companys Lender was $2,000,000 as of May 31, 2026. Features of the loan agreement include: (i) $2.0 million revolving loan with maturity date of March 6, 2027. (i)(a) The revolving loan bears variable interest at a rate per annum equal to the U.S. Prime Rate + 2.00%. (i)(b) The U.S. Prime Rate was 6.75% as of May 31, 2026, making the total interest rate equal to 8.75%.

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Fair value · 481 characters as filed

Note 11 FINANCIAL INSTRUMENTS The following methods and assumptions are used in estimating the fair-value disclosures for financial instruments: - The carrying amounts reported on the balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturity of these instruments. - The estimated fair value of our assets held for sale was $450,000 as of May 31, 2026 and $563,600 February 28, 2026, respectively.

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income taxes · 3,662 characters as filed

Note 8 INCOME TAXES Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of significant items comprising our net deferred tax assets and liabilities are as follows: May 31, February 28 2026 2026 Deferred tax assets: Allowance for credit losses $ 19,700 $ 29,600 Inventory overhead capitalization 208,700 182,700 Inventory valuation allowance 100,200 96,900 Inventory valuation allowance noncurrent 232,500 217,300 Allowance for sales returns 27,200 27,200 Net operating loss carry forward (1) 399,600 109,300 Disallowed interest (2) 2,001,300 2,001,300 Accruals 20,100 12,100 Total deferred tax assets 3,009,300 2,676,400 Deferred tax liabilities: Property, plant, and equipment (1,082,400 ) (1,121,600 ) Total deferred tax liabilities (1,082,400 ) (1,121,600 ) Valuation allowance (3) (1,926,900 ) (1,554,800 ) Net deferred tax assets $ - $ - (1) The Companys net operating loss (NOL) carry forward was generated from losses incurred in fiscal 2025 and first quarter of fiscal 2027. The Companys NOL can be carried forward indefinitely but are limited to an 80% maximum offset of taxable income. (2) The Companys disallowed interest was generated from interest expense that was not deductible for tax purposes due to a maximum allowable deduction of 30% of taxable income. The disallowed interest is carried forward to be deduc

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

New accounting pronouncements · 3,239 characters as filed

New Accounting Pronouncements The Financial Accounting Standards Board (FASB) periodically issues new accounting standards in a continuing effort to improve standards of financial accounting and reporting. We have reviewed the recently issued pronouncements and concluded the following new accounting standard updates (ASU) apply to us: New Accounting Standards or Updates Not Yet Adopted In December 2025, the FASB issued ASU 2025-12, Codification Improvements (ASU 2025-12). ASU 2025-12 addresses suggestions received from stakeholders regarding the Accounting Standards Codification and makes other incremental improvements to U.S. GAAP. The update represents changes to the Codification that clarify, correct errors in or make other improvements to a variety of topics that are intended to make it easier to understand and apply. ASU 2025-12 is effective for fiscal years beginning after December 15, 2026 and interim periods within those fiscal years. Entities are required to apply the amendments to ASC 260 retrospectively. All other amendments may be applied prospectively or retrospectively. We have adopted ASU 2025-12 and implemented its changes. In December 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2025-11, Interim Reporting (Topic 270) Improvements to Interim Disclosure Requirements. The standard clarifies disclosure requirements for interim financial statements and is effective for interim periods beginning after December 15, 2

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Segment reporting · 4,075 characters as filed

Note 10 BUSINESS SEGMENTS We have two reportable segments: PaperPie and Publishing. These reportable segments are business units that offer different methods of distribution to different types of customers. They are managed separately based on the fundamental differences in their operations. Our PaperPie segment markets its products through a network of independent Brand Partners using a combination of internet sales, direct sales, home shows, and book fairs. Our Publishing segment markets its products to retail accounts, which include book, school supply, toy and gift stores, museums, trade and specialty wholesalers, through commissioned sales representatives, and our internal tele-sales group. See Note 7 for the impact of our updated Usborne distribution agreement on the Publishing segment. The accounting policies for the segments are the same as those for the rest of the Company. We evaluate segment performance based on earnings before income taxes of the segments, which is defined as segment net revenues reduced by cost of sales and direct expenses. Direct expenses are composed of payroll, commissions, general and administrative, and operating and selling expenses. Corporate expenses, depreciation, interest expense, other income, and income taxes are not allocated to the segments but are listed in the Other row below. Corporate expenses include the executive department, accounting department, information services department, general office management, warehouse operations

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Significant accounting policies · 5,480 characters as filed

Note 1 BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying Unaudited Condensed Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim condensed financial information and in accordance with the rules and regulations of the Securities and Exchange Commission. The Unaudited Condensed Financial Statements include all adjustments considered necessary for a fair presentation of the financial position and results of operations for the interim periods presented. Such adjustments consist only of normal recurring items, unless otherwise disclosed herein. Accordingly, the Unaudited Condensed Financial Statements do not include all of the information and notes required by GAAP for complete financial statements. However, we believe that the disclosures made are adequate to make the information not misleading. These interim Unaudited Condensed Financial Statements should be read in conjunction with our audited financial statements as of and for the year ended February 28, 2026 included in our Form 10-K. The results of operations for interim periods are not necessarily indicative of the results to be expected for a full year due to the seasonality of our product sales. Use of Estimates in the Preparation of Financial Statements The preparation of the Unaudited Condensed Financial Statements in conformity with GAAP requires management to make estimates

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Source: SEC DERA Financial Statement and Notes data sets (txt.tsv), excerpts of the filer's own note text; the full note is in the linked filing. Excerpts are the first part of each note exactly as tagged in the filing; open the filing for the full text and the tables. Descriptive and educational, not advice.

Fundamentals from SEC EDGAR. Scores, the DCF, and every model shown are educational analysis, not investment advice or price predictions.

Educational content only. Not financial advice. TrendNalysis provides educational and informational financial analysis built from public SEC filings and economic data (FRED, BLS). It is not financial, investment, tax, or legal advice and is not a recommendation to buy or sell any security. Market pricing is not currently included. Past performance does not guarantee future results. Always do your own research and consult a licensed financial professional before investing.