Scholastic Corporation (NASDAQ: SCHL) saw its stock soar 6.22% in pre-market trading on Friday, following the release of its fiscal 2025 third-quarter results. The children's publishing and media company reported improved financial performance and strong book sales, particularly in its core Children's Book Publishing and Distribution segment.

Key highlights from the earnings report include: - Revenue increased 4% to $335.4 million - Operating loss improved to $20.9 million from $30.6 million in the prior year period - Adjusted EBITDA of $6 million, compared to a loss of $7.2 million a year ago - Children's Book Publishing and Distribution revenue grew 5% to $203.3 million - Book Fairs revenue increased 8% to $110.7 million - Book Club revenue rose 14% to $15.2 million

Investors were particularly encouraged by the success of Scholastic's recent book releases, especially the 13th book in Dav Pilkey's bestselling Dog Man series, "Dog Man: Big Jim Begins." The title has already sold almost 2.5 million copies globally since its release at the beginning of the quarter. Additionally, the company's strong presence in the graphic novel market, holding 12 of the top 15 spots on the New York Times' graphic novel Best Sellers list, has contributed to its positive performance.

Looking ahead, Scholastic anticipates further growth driven by upcoming 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 now forecasts full-year adjusted EBITDA of approximately $140 million, consistent with the low end of its fiscal 2025 guidance.

While the company faces some headwinds, including pressure on consumer spending and uncertainty in educational funding, Scholastic's strong brand, diverse revenue streams, and upcoming book releases position it well for continued growth in the coming quarters.