Adjusted EBITDA increased 1% to $91.2 million in the fourth quarter and was up 6% to $145.4 million for the fiscal year.
Adjusted operating income decreased to $63.4 million in the fourth quarter from $66.8 million in the prior year period and was $35.8 million for the full year compared to $44.7 million last year.
Children's Book Publishing and Distribution segment revenue for Q4 increased 9% to $288.2 million, full year revenue increased 1% to $963.9 million, with adjusted operating income up $7.5 million to $131.3 million.
Education segment revenue declined 7% in Q4 to $125.7 million and 12% for the full year to $309.8 million, with adjusted operating income down to $6.9 million from $21.9 million.
Entertainment segment revenue increased significantly due to 9 Story Media Group acquisition, with Q4 revenue at $14.8 million versus $0.6 million prior year, but segment adjusted operating loss widened due to amortization expenses.
International segment revenue increased 8% in Q4 to $76.8 million and 2% for the full year to $279.6 million, with adjusted operating income improving to $2.9 million from a loss of $3.1 million.
Net cash provided by operating activities was $124.2 million for the year, down from $154.6 million prior year; free cash flow was $29.2 million versus $73.4 million last year.
Net debt was $136.6 million at fiscal year-end compared to a net cash position of $107.7 million at the end of fiscal 2024, reflecting acquisition funding and shareholder returns.
Returned over $92 million to shareholders in fiscal 2025, including $35 million in Q4, repurchasing nearly 3.5 million shares representing 11% of shares outstanding.
Revenue increased 7% to $508.3 million in the fourth quarter and was up 2% to $1,625.5 million for the fiscal year.
Adjusted net loss was $26.7 million or $0.48 per share, compared to adjusted net income of $5.6 million or $0.10 per share in Q2 2024.
Cash and cash equivalents stood at $49.2 million with total debt of approximately $256.6 million as of June 30, 2025.
Gross profit was $62 million with a gross margin of 32.1%, down from $104 million and 42% margin in Q2 2024, impacted by tariffs, inventory reserves, and royalty shortfalls.
Negative adjusted EBITDA of $16.5 million versus positive $27.9 million in the prior year quarter.
SG&A expenses increased to $82.3 million from $77.9 million in Q2 2024, which included a nonrecurring net benefit of $1.5 million last year.
Total net sales for Q2 2025 were $193.5 million, a 22% decline compared to Q2 2024, primarily due to U.S. tariff-related sales disruptions.
Dafinchi
