EDUC EDUCATIONAL DEVELOPMENT CORP

Overview and Growth

Fiscal 2025 results for EDUCATIONAL DEVELOPMENT CORP combined $22.91M of revenue with net income of $2.33M and an operating cash inflow of $2.01M. At $22.91M, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. The top line contracted 33.0% from $34.19M in fiscal 2024; this top-line contraction left the company with a smaller revenue base. The company reported diluted EPS of $0.27, adding a shareholder-level measure to the absolute income figures considered below. Revenue equaled 0.42x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

After reported cost of revenue, the company retained $13.60M as gross profit before recognizing operating expenses and other items. The gross-profit relationship equaled 59.4% of revenue, quantifying the portion retained before operating expenses were recognized. After all reported below-operating-line items, the company recorded net income of $2.33M for the fiscal year. The final earnings result represented 10.1% of revenue, connecting the absolute net income figure with the company’s top-line scale. The earnings statement records $5.35M of pretax income, the profit base against which the reported tax provision can be assessed. Pretax income represented 23.3% of revenue, placing earnings before tax in the context of the company’s operating scale. The reported income-tax provision was $3.02M, the amount recognized between pretax income and the final net-income result. The effective relationship between income tax and positive pretax income was 56.5%, without assuming a statutory-rate comparison. Return on period-end equity was 5.4%, relating annual net income to the equity capital on the balance sheet. The net-income-to-assets relationship measured 4.3%, showing earnings relative to the full balance sheet.

Liquidity and Capital Structure

Total assets were $54.31M, supported by $11.52M of liabilities and $42.79M of shareholder equity. At period end, current assets of $20.55M compared with current liabilities of $6.17M, defining the company’s short-term resource position. The current ratio was 3.33x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $1.12M, identifying the most liquid reported component available within the broader current-asset balance. The cash balance equaled 18.1% of current liabilities, showing how much near-term coverage came from cash alone. Total debt was $0.00, establishing the amount of borrowing carried within the company’s capital structure. The debt-to-equity relationship was 0.0x, showing how much debt the company carried for each unit of book equity. The debt-to-assets relationship was 0.0%, comparing borrowing with the total asset balance. The liabilities-to-assets relationship was 21.2%, placing reported obligations against the full positive asset balance. Cash and equivalents equaled 2.1% of total assets, showing the liquid cash component within the company’s broader resource base. Compared with $78.31M in fiscal 2024, the current asset base moved 30.6% and finished lower.

Cash Flow and Earnings Quality

The company reported $2.01M of operating cash flow, a cash inflow that shows the cash generated by operations. Operating cash flow equaled 0.86x of net income, showing how strongly accounting earnings converted into cash from operations. Capital expenditures used $542.80K, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital spending absorbed 27.1% of operating cash flow, quantifying the share of cash from operations directed to investment. After capital spending, free cash flow was $1.46M, leaving cash available for debt reduction, shareholder returns, or further investment. Free cash flow represented 6.4% of revenue, linking post-investment cash generation with the company’s operating scale. The free-cash-flow-to-assets relationship was 2.7%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Feb 28, 2026. Analysis generated Oct 21, 2026.