NASDAQ: EDUC
EDUCATIONAL DEVELOPMENT CORPCIK 0000031667 · Misc Nondurable Goods
We are the owner and exclusive publisher of Kane Miller children’s books; Learning Wrap-Ups, maker of educational manipulatives; and SmartLab Toys, maker of STEAM-based toys and games. We are also the exclusive United States Multi-Level Marketing (“MLM”) distributor of Usborne Publishing Limited… About this business →
EDUC sells headquarters, erases debt, but Brand Partners collapse 53% as revenues fall 33%
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Educational Development reports fiscal 2026 full-year and Q4 results, schedules earnings call
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About EDUCATIONAL DEVELOPMENT CORP
Source: Item 1 (Business) from the 10-K filed May 19, 2026. Description as filed by the company with the SEC.
Item 1. BUSINESS
(a) General Description of Business
We are the owner and exclusive
publisher of Kane Miller children’s books; Learning Wrap-Ups, maker of educational manipulatives; and SmartLab Toys, maker of STEAM-based
toys and games. We are also the exclusive United States Multi-Level Marketing (“MLM”) distributor of Usborne Publishing Limited
(“Usborne”) children’s books. We are a corporation incorporated under the laws of the State of Delaware on August 23,
1965. Our fiscal year ends on February 28 (29).
Our Company vision statement
reflects “We believe that education is the catalyst for wonderment, kindness, and connection. Our vision is to empower the world
by sparking a child’s natural curiosity and lifelong love of learning through products and experiences that meet at the intersection
of education and play.”
Our Company mission statement
reflects “We are creating the story of tomorrow through people, products, and purpose.”
(b) Financial Information about Our Segments
We sell children’s books,
educational toys and games and other related products (collectively referred to as “products” or “books”) through
two business segments described below, which we refer to as “divisions” or “sales channels:”
●
Direct Sales Division (“PaperPie”) – This division sells our books and products through independent sales representatives (“Brand Partners”) direct to the customer. Our Brand Partners sell our products in various ways, including hosting home parties, through social media collaboration platforms on the internet, hosting book fairs with schools and public libraries and through other events. This division had approximately 4,300 active Brand Partners as of February 28, 2026.
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●
Publishing Division (“EDC Publishing” or “Publishing”) – This is our trade division which markets our Kane Miller, SmartLab Toys, and Learning Wrap-Ups products through commissioned trade representatives who call on retail book, toy and specialty stores along with other retail outlets. This division also has in-house representatives marketing by telephone and email to other customers and potential customers. This division markets to approximately 4,000 retail outlets. In addition to exhibiting at national trade and regional bookselling shows, our products are featured in agency showrooms in AmericasMart Atlanta, Dallas Market Center, and Minneapolis Mart. In accordance with our distribution agreement with Usborne Publishing, the Company does not have the rights to distribute Usborne’s products to retail customers.
Percent of Net Revenues by Division
FY 2026
FY 2025
PaperPie
84%
87%
Publishing
16%
13%
Total net revenues
100%
100%
Additional financial information relating to the
Company’s reportable segments is included in Note 16, “Business Segments”, of the Notes to Financial Statements in Item
15, “Exhibits and Financial Statement Schedules,” which is included herein.
(c) Narrative Description of Business
Products
EDC’s current
catalog contains approximately 2,000 titles, with new additions added periodically across all lines of our products. Additionally, a
similar number of titles that do not have sufficient sales are identified as “out of print” and these titles are no
longer re-printed or included in future catalogs. The Company sells the remaining quantities of these out-of-print titles through
their normal sales channels at normal pricing and has not historically participated in the publishing industry’s
“remainder” market. Many of our products are interactive in nature, including our touchy-feely board books, activity
books and flashcards, adventure and search books, art books, sticker books, foreign language books, learning manipulatives and toys.
We also have a broad line of ‘internet-linked’ books which allow readers to expand their educational experience by
referring them to relevant non-Company websites. Our books also include science and math titles, as well as chapter books and
novels. Many of our Kane Miller books were originally published in other countries, in their native languages, and we translate them
to common American English and have exclusive rights to publish the titles in the United States. Certain Kane Miller agreements
include North American rights, and these titles are also sold into Canada. Our SmartLab Toys and Learning Wrap-Ups imprints are
product lines that are sold domestically and internationally, including the sale of foreign distribution rights to specific
customers.
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Table of Contents
Seasonality
Sales for both divisions are
greatest during the fall due to the holiday season. Additionally, there is a seasonal increase in spring associated with our annual PaperPie
day as well as the Easter holiday season.
Competition
While we have the exclusive
rights to sell Kane Miller books, Learning Wrap-Ups, and SmartLab Toys and are the exclusive United States Multi-Level Marketing (“MLM”)
distributor of Usborne books, we face competition from other publishers selling on the internet and directly to our customer base. Our
PaperPie division competes in recruiting and retaining Brand Partners, who continuously receive opportunities to work for other direct
selling companies, as well as other non-traditional employment opportunities, especially in the gig marketplace that provides multiple
opportunities for part-time supplemental income. We also compete with other publishers in the school and library book-fair market, of
which Scholastic Corporation is the largest.
Our Publishing division faces
competition from U.S. and international publishing companies that sell online and through the same retail bookstores, toy stores, and
gift and novelty stores that offer a variety of non-book products.
Employees
As of February 28, 2026, 64
full-time employees worked at our Tulsa, OK, San Diego, CA, and Ogden, UT facilities. Of these employees, approximately 41% work in our
distribution warehouse in Tulsa, OK.
Company Reports
Pursuant to Section 13 or
15 of the Exchange Act, as soon as reasonably practicable after filing electronically or otherwise furnishing it to the Securities and
Exchange Commission (“SEC”), we make available, free of charge, on our website (www.edcpub.com) copies of our Annual Reports,
Quarterly Reports and Definitive Proxy Statements. Our website also includes an internet link to the federal SEC website that contains
additional public reports, including Current Reports on Form 8-K, amendments to those reports filed or furnished to the SEC and reports
of holdings of our securities filed by our officers and directors under Section 16 of the Exchange Act. These reports can also be provided
electronically, free of charge, upon request.