What Scholastic Corporation told the SEC could break it.

Scholastic's school-based businesses (book fairs and clubs) depend on the fall and spring school calendar, driving seasonal revenue and a large seasonal workforce.

“The seasonal employees are largely associated with the school-based businesses which are dependent on the fall and spring”

Scholastic faces ongoing headwinds and softness in the education market, with revenues expected to remain pressured in fiscal 2026.

“The Company expects the revenues to remain consistent in fiscal 2026 due to the on-going headwinds in the education market.”

Certain Scholastic activities (notably in-school book fairs) are subject to weather and natural-disaster risks that could disrupt operations.

“Certain of our activities are subject to weather and natural disaster risks as well as other events outside our control, which could disrupt our operations or otherwise adv”

Significant 2025 tariff increases on U.S. imports/exports (Canada, Mexico, EU, China) are expected to raise Scholastic's cost of goods sold in fiscal 2026; if it cannot pass price increases to customers, margins will compress.

“Since the beginning of 2025 there have been significant increases in tariffs on certain goods imported into or exported from the U.S., and adverse responses by foreign governments arising from these tariffs. Depending upon the course of future negotiations among the United States and certain of its major trading partners, including Canada, Mexico, the EU and China, more tariffs may be added in the future.”