Educational Development Corporation
EDUC Communication Services Publishing
Educational Development Corporation’s revenue for fiscal 2026 (year ended February 2026) was $22.9 million, down 33.0% from fiscal 2025. In the quarter to August 2026, revenue fell 11.9%, EPS fell 23.5% and free cash flow fell 62.0%, each against the same quarter a year earlier. Dividend growth for three consecutive years; insiders bought in the last twelve months.
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Educational Development Corporation (EDUC) Beneish M-score
Educational Development Corporation's Beneish M-score for fiscal 2026 is −2.43; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
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Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2026 | −2.43 | 0.04 |
| FY2025 | −2.47 | 0.14 |
| FY2024 | −2.61 | (0.58) |
| FY2023 | −2.03 | (1.89) |
| FY2022 | −0.14 | 1.99 |
| FY2021 | −2.13 | (0.17) |
| FY2020 | −1.96 | 0.15 |
| FY2019 | −2.11 | 1.27 |
| FY2018 | −3.38 | (8.70) |
| FY2017 | 5.32 | 8.16 |
How fiscal 2026’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 0.60 | — | 0.56 | |
| Gross margin index | 1.04 | — | 0.55 | |
| Asset quality index | 2.01 | — | 0.81 | |
| Sales growth index | 0.67 | — | 0.60 | |
| Depreciation index | 1.17 | — | 0.13 | |
| SG&A index | 1.12 | — | −0.19 | |
| Total accruals to total assets | 0.01 | — | 0.03 | |
| Leverage index | 0.24 | — | −0.08 | |
| Beneish M-score | Low — no pattern the model associates with manipulation | −2.43 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| TNMG TNL Mediagene compare | −6.3× |
| TDAY USA TODAY Co., Inc. compare | −2.8× |
| LEE Lee Enterprises, Incorporated compare | −2.8× |
| NYT The New York Times Company compare | −2.7× |
| PSO Pearson, PLC compare | −2.7× |
| WLYB John Wiley & Sons, Inc. compare | −2.5× |
| WLY John Wiley & Sons, Inc. compare | −2.5× |
| EDUC Educational Development Corporation | −2.4× |
| SCHL Scholastic Corporation compare | −2.4× |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI