{"schema_version":"secwatch.filing_event.v1","accession":"0001185185-26-001926","form_type":"8-K","ticker":"EDUC","cik":"0000031667","company_name":"EDUCATIONAL DEVELOPMENT CORP","filed_at":"2026-05-19T20:00:40+00:00","discovered_at":"2026-05-19T20:01:00.507678+00:00","generated_at":"2026-05-19T20:01:27.696200+00:00","sec_items":["2.02","7.01","9.01"],"event_type":"earnings","sentiment":"negative","materiality_score":0.75,"calibrated_materiality_score":0.75,"confidence":"high","headline":"EDC fiscal Q4 net loss $3.1M; full-year net income $2.3M after $12.2M building sale gain","bullets":["Net revenues FY2026 $22.9M vs $34.2M prior year; Q4 revenues $4.2M vs $6.6M.","Average active PaperPie Brand Partners fell to 5,800 from 12,300 (FY); Q4 4,500 vs 9,400.","FY net income $2.3M includes $12.2M building sale gain; operating loss without gain was $6.9M.","Company now debt-free after repaying $30.9M bank debt; secured new $2.0M line of credit from Regent Bank.","Restructuring & cost cuts expected to save >$1.2M in G&A in FY2027; inventory reduced $7.0M to $37.7M."],"urls":{"canonical":"https://secwatch.observer/filing/0001185185-26-001926","json":"https://secwatch.observer/filing/0001185185-26-001926.json","markdown":"https://secwatch.observer/filing/0001185185-26-001926.md","text":"https://secwatch.observer/filing/0001185185-26-001926.txt","edgar_index":"https://www.sec.gov/Archives/edgar/data/31667/000118518526001926/0001185185-26-001926-index.htm","edgar_primary_document":"https://www.sec.gov/Archives/edgar/data/31667/000118518526001926/educ8k051826.htm"},"model":{"generated_by":"deepseek-v4-flash:cloud@v2","generated_at":"2026-05-19T20:01:27.696200+00:00"},"review":{"review_status":"machine_generated","human_reviewed":false,"corrected":false,"correction_note":null,"correction_timestamp":null,"superseded_by":null,"related_filings":[]},"source_grounded_claims":[{"claim_id":"20e3453bed217117d9f47c5bcf1c4e333173a8d6","claim":"EDUCATIONAL DEVELOPMENT CORP reported fiscal year ended February 28, 2026 results: revenue $22,913,600, net income $2,325,200, EPS $0.27.","evidence_excerpt":"Fiscal Year Summary Compared to the Prior Year ● Net revenues of $22.9 million compared to $34.2 million. ● Average active PaperPie Brand Partners totaled 5,800 compared to 12,300. ● Earnings before income taxes totaled $5.3 million. Excluding the gain on the building sale of $12.2 million, loss before income taxes were $(6.9) million. ● Income tax expense was $3.0 million, with an effective tax of 56.5%, due to a one-time valuation allowance of $1.5 million. ● Net earnings totaled $2.3 million. ● Earnings (loss) per share totaled $0.27, compared to a loss of $(0.63), on a fully diluted basis.","evidence_source":"SEC 8-K Item 2.02","evidence_url":"https://www.sec.gov/Archives/edgar/data/31667/000118518526001926/0001185185-26-001926-index.htm","confidence":0.9,"family_label":"Earnings Releases","details":[{"label":"Period","value":"fiscal year ended February 28, 2026"},{"label":"Revenue","value":"$22,913,600"},{"label":"Net income","value":"$2,325,200"},{"label":"EPS","value":"$0.27"},{"label":"Result","value":"reported results"}],"fact_type":"earnings_release"},{"claim_id":"d572182afb258ca816ddd1937516420a4f32b921","claim":"EDUCATIONAL DEVELOPMENT CORP reported fiscal fourth quarter ended February 28, 2026 results: revenue $4,178,300, net income $(3,107,000), EPS $(0.37).","evidence_excerpt":"CORPORATION CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended February 28, Twelve Months Ended February 28, 2026 2025 2026 2025 NET REVENUES $ 4,178,300 $ 6,636,300 $ 22,913,600 $ 34,191,000 EARNINGS (LOSS) BEFORE INCOME TAXES (2,096,400 ) (1,530,000 ) 5,346,800 (6,855,000 ) INCOME TAXES 1,010,600 (184,500 ) 3,021,600 (1,591,400 )","evidence_source":"SEC 8-K Item 2.02","evidence_url":"https://www.sec.gov/Archives/edgar/data/31667/000118518526001926/0001185185-26-001926-index.htm","confidence":0.9,"family_label":"Earnings Releases","details":[{"label":"Period","value":"fiscal fourth quarter ended February 28, 2026"},{"label":"Revenue","value":"$4,178,300"},{"label":"Net income","value":"$(3,107,000)"},{"label":"EPS","value":"$(0.37)"},{"label":"Result","value":"reported results"}],"fact_type":"earnings_release"}],"license":"Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer"}