📊 EDUC Key Takeaways
Is Educational Development Corp. (EDUC) a Good Investment?
Educational Development Corp faces severe operational headwinds with a 33% YoY revenue collapse and negative operating margins despite healthy 59% gross margins, indicating cost structure misalignment. With only $1.7M in cash against $1.4M quarterly operating losses, the company has limited runway to reverse course without immediate restructuring or significant revenue stabilization.
Fundamentals are deteriorating sharply, with revenue down 33.0% year over year and substantial operating and net losses despite a healthy 59.3% gross margin. The debt-free balance sheet, strong current ratio, and positive free cash flow provide resilience, but sustainable improvement requires significant revenue stabilization and operating-cost reductions.
Educational Development Corp. Key Strengths (EDUC)
- No long-term debt provides financial flexibility
- 59.3% gross margin demonstrates product viability and pricing power
- Positive free cash flow of $468K provides near-term liquidity buffer
- Debt-free capital structure with $41.39M of stockholders' equity
- Strong 3.20x current ratio and liabilities representing only about 22% of assets
- Positive $468.30K free cash flow despite the reported net loss
EDUC Stock Risks: Educational Development Corp. Investment Risks
- 33% YoY revenue collapse with no clear stabilization suggests structural demand erosion
- Operating losses and negative operating margins indicate unsustainable cost structure relative to revenue base
- Cash runway of approximately 5 quarters at current $1.4M quarterly burn rate without operational turnaround
- Revenue contracted 33.0% year over year, indicating severe demand or execution weakness
- Operating and net margins of approximately negative 29% show an unsustainable cost structure
- Quick ratio of 0.55x and only $1.66M of cash indicate dependence on inventory conversion for liquidity
Key Metrics to Watch
- Quarterly revenue trend and stabilization
- Operating expense reduction toward positive operating income
- Cash burn rate and cash position sustainability
- Revenue growth and operating margin
- Operating cash flow and inventory conversion
Educational Development Corp. (EDUC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.20x current ratio provides a solid financial cushion.
EDUC Profit Margin, ROE & Profitability Analysis
EDUC vs Market Sector: How Educational Development Corp. Compares
How Educational Development Corp. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Educational Development Corp. Stock Overvalued? EDUC Valuation Analysis 2026
Based on fundamental analysis, Educational Development Corp. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Educational Development Corp. Balance Sheet: EDUC Debt, Cash & Liquidity
EDUC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Educational Development Corp.'s revenue has declined by 83% over the 5-year period, indicating business contraction. The most recent EPS of $-0.15 indicates the company is currently unprofitable.
EDUC Revenue Growth, EPS Growth & YoY Performance
EDUC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2027 | $4.8M | -$1.1M | $-0.13 |
| Q3 2026 | $7.0M | -$835.7K | $-0.10 |
| Q2 2026 | $4.6M | -$1.1M | $-0.15 |
| Q1 2026 | $7.1M | -$1.1M | $-0.13 |
| Q3 2025 | $11.1M | -$835.7K | $-0.10 |
| Q2 2025 | $6.5M | $188.9K | $0.02 |
| Q1 2025 | $10.0M | -$872.8K | $-0.11 |
| Q3 2024 | $16.9M | $900 | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Educational Development Corp. Dividends, Buybacks & Capital Allocation
EDUC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Educational Development Corp. (CIK: 0000031667)
📋 Recent SEC Filings
❓ Frequently Asked Questions about EDUC
What is the AI rating for EDUC?
Educational Development Corp. (EDUC) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EDUC's key strengths?
Claude: No long-term debt provides financial flexibility. 59.3% gross margin demonstrates product viability and pricing power. ChatGPT: Debt-free capital structure with $41.39M of stockholders' equity. Strong 3.20x current ratio and liabilities representing only about 22% of assets.
What are the risks of investing in EDUC?
Claude: 33% YoY revenue collapse with no clear stabilization suggests structural demand erosion. Operating losses and negative operating margins indicate unsustainable cost structure relative to revenue base. ChatGPT: Revenue contracted 33.0% year over year, indicating severe demand or execution weakness. Operating and net margins of approximately negative 29% show an unsustainable cost structure.
What is EDUC's revenue and growth?
Educational Development Corp. reported revenue of $4.8M.
Does EDUC pay dividends?
Educational Development Corp. does not currently pay dividends.
Where can I find EDUC SEC filings?
Official SEC filings for Educational Development Corp. (CIK: 0000031667) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EDUC's EPS?
Educational Development Corp. has a diluted EPS of $-0.16.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is EDUC's fundamental grade?
Based on our AI fundamental analysis in August 2026, Educational Development Corp. has a C grade with 80% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is EDUC stock overvalued or undervalued?
Valuation metrics for EDUC: ROE of -3.4% (sector avg: 15%), net margin of -29.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is EDUC's AI grade for 2026?
Our dual AI analysis gives Educational Development Corp. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is EDUC's free cash flow?
Educational Development Corp.'s operating cash flow is $564.3K, with capital expenditures of $96.0K. FCF margin is 9.8%.
How does EDUC compare to other Market stocks?
Vs Default sector averages: Net margin -29.3% (avg: 12%), ROE -3.4% (avg: 15%), current ratio 3.20 (avg: 1.8).