Scholastic Corporation (NASDAQ: SCHL) saw its stock price surge 6.22% in pre-market trading on Friday, following the release of its third-quarter fiscal 2025 results and a positive outlook for upcoming book releases.

The children's publishing and media company reported improved financial results for the quarter ended February 28, 2025. Revenue increased 4% to $335.4 million, while the operating loss narrowed to $20.9 million from $30.6 million in the prior year period. Adjusted EBITDA turned positive at $6 million, compared to a loss of $7.2 million a year ago.

Investors were particularly encouraged by the strong performance in Scholastic's core Children's Book Publishing and Distribution segment, which saw a 5% revenue increase to $203.3 million. The company's Book Fairs and Book Clubs channels showed notable growth, with Book Fair revenues up 8% and Book Club revenues rising 14%. Additionally, Scholastic's Trade Publishing division held steady despite challenging market conditions.

Looking ahead, Scholastic's management expressed optimism about upcoming book releases, including the highly anticipated fifth book in Suzanne Collins' Hunger Games series, "Sunrise on the Reaping," which was released earlier this week. The company also highlighted the success of Dav Pilkey's Dog Man series, with the 13th book selling almost 2.5 million copies globally since its release at the beginning of the quarter.

While Scholastic faces some headwinds, including pressure on consumer spending and uncertainty in education funding, the company's diversified portfolio and strong intellectual property appear to be supporting its financial performance. The stock's surge suggests that investors are confident in Scholastic's ability to navigate these challenges and capitalize on its upcoming releases.