EDUC sells headquarters, erases debt, but Brand Partners collapse 53% as revenues fall 33%

Filed May 19, 2026 · Period ending February 28, 2026 · Compared to 10-K May 19, 2025 · ~1 min read

Key Changes

• high

  Active Brand Partners plunged 53% to 5,800 (from 12,300 prior year), driving PaperPie revenues down 35% to $19.3M—the division has lost 60% of revenue over two years amid inflation and recruiting struggles.

  MD&A: Brand Partner Attrition verify on EDGAR →
• high

  Company sold Hilti Complex headquarters for $29.9M in October 2025, paid off all bank debt, and terminated Credit Agreement—removing going-concern doubt but replacing $4.75M credit line with new $2M facility.

  MD&A: Real Estate Sale & Debt Payoff verify on EDGAR →
• high

  FY2026 net income of $2.3M driven entirely by $12.4M real estate gain; company recorded $1.5M valuation allowance on deferred tax assets, signaling management doubts future profitability despite one-time windfall.

  MD&A: Tax Valuation Allowance verify on EDGAR →