Scholastic’s QQ3 2025 results reveal modest revenue growth driven by strength in the Children's Book Publishing and Distribution segment, aided by the 9 Story Media Group acquisition. Revenue rose 3.6% year-over-year to $335.4 million, while gross margin remained robust at 53.9%; however, the company posted an operating loss of $23.9 million and a net loss of $3.6 million as higher operating expenses and a large, non-cash amortization impact in Entertainment weighed on results. Management emphasized discipline on costs, ongoing opportunities from frontlist/backlist dynamics (notably Dog Man and Hunger Games releases), and a strategic review of Education Solutions to optimize long-term profitability. The quarter featured meaningful buyback activity and a strong liquidity stance, including an expanded share-repurchase authorization. Looking ahead, Scholastic guided for approximately $140 million of adjusted EBITDA for the full year (low end of prior guidance) with modest revenue growth and free cash flow in the $20–$30 million range, reflecting planned capital expenditure and working capital investments. Tariffs are expected to have minimal near-term impact, with ongoing efforts to mitigate through sourcing and price actions. Investors should monitor consumer discretionary spending in books, school district purchasing cycles, federal funding uncertainties, tariff dynamics, and the progress of 9 Story-driven monetization across YouTube and streaming platforms.