EDUCATIONAL DEVELOPMENT Business Summary

Educational Development Corp (EDUC) operates as a specialized publisher and distributor of children’s books and educational materials, primarily through its two core segments: the PaperPie Direct Sales Division and the Publishing Division. The company generates approximately 85% of its revenue via PaperPie, a multi-level marketing (MLM) platform utilizing a network of independent Brand Partners to sell products through social media, book fairs, and home events. The remaining revenue is derived from the Publishing Division, which distributes titles to over 4,000 retail outlets and online marketplaces. As of early 2026, the company has transitioned to a debt-free capital structure following the $32.2 million sale-leaseback of its Tulsa headquarters (the Hilti Complex) in late 2025, a strategic move designed to eliminate bank debt and pivot toward inventory-led growth. EDUC competes directly with Scholastic Corporation in the educational publishing space, while its MLM model places it alongside peer distributors like Natural Health Trends and Medifast; however, EDUC maintains a unique niche as the exclusive U.S. distributor for Usborne Publishing and the owner of Kane Miller Books and SmartLab Toys. Leadership is currently spearheaded by Craig White, who serves as President, CEO, and Chairman of the Board, having assumed the chairmanship in January 2025 following the resignation of his father and longtime leader Randall White. Craig White, who joined the firm in 1983, is supported by Dan O’Keefe, the Chief Financial Officer and Corporate Secretary, and Heather Cobb, the Chief Sales and Marketing Officer. The founding legacy of the company’s direct-selling powerhouse is attributed to Randall White, who established the MLM division in 1988 and remains the company’s largest individual shareholder with approximately 18% ownership. Notable institutional backing includes Needham Investment Management, Ameriprise Financial, and Renaissance Technologies, which collectively hold significant positions as the company executes its post-debt strategic realignment.