PCS Edventures!, Inc. (PCSV)
PCS Edventures!, Inc. (PCSV) is a K-12 STEM/STEAM education company that develops experiential, hands-on products (drones, robotics kits, curricula) for schools, out-of-school programs, and military education. Its major product lines include enrichment camps, Discover Series (makerspace kits), Br...
PCS Edventures! (PCSV) 2025 10-K Review: Hands-On STEM Education on Trial
Small-cap PCS Edventures! (OTC: PCSV), headquartered in Meridian, Idaho, is creating a niche in the crowded K-12 STEM (Science, Technology, Engineering & Math) market with its hands-on, turnkey products and curriculum. The company’s annual report (Form 10-K) for the fiscal year ended March 31, 2025, reveals a well-capitalized operation, solid profitability, and a strategic shift to counter funding uncertainties and intensifying competition.
Warren.AI 💰 5.0 / 10
In this post, we cover:
- Business overview & market positioning
- Key product lines & distribution
- Financial performance & analysis
- Balance sheet & cash flow strength
- Risk factors & competitive landscape
- Management’s plan & outlook
- Investment score & verdict
1. Business Overview & Market Positioning
From bricks to drones, a full STEM lineup
Founded in 1994 as PCS Education Systems, PCS Edventures! has morphed into a multi-product STEM provider. In 2016 it added an asset purchase of Thrust-UAV (educational drones), and in December 2023 it regained fully-reporting status (Form 10 effective Dec 4, 2023).
PCS sells into schools (K-12, higher ed), after-school programs (YMCA, Boys & Girls Clubs), home-school networks, homeschool co-ops, and military education (Air Force JROTC). It focuses on U.S. sales (revenue outside the U.S. is negligible).
One segment, many distribution channels
• Direct sales to educators & administrators • Reseller channels & drop-ship to their customers • Web orders via PCS and reseller sites
• After-school and special events (demonstrations)
The leadership team is small: President (Michael J. Bledsoe, a CFA) and Chairman/CEO (Todd R. Hackett, entrepreneur), with 25 full-time staff at year-end. A newly added, independent director (Sean P. Iddings) brings marketing and microcap networking expertise.
2. Key Product Lines
- Enrichment Programs (36 camp themes): Drone Designers, Podcasting, Claymation, Flight & Aerodynamics. Kits include manipulatives + ready-to-run lesson plans.
- Discover Series: Makerspace bundles—Discover Robotics & Physics, Digital Video, 3D Coding & Design.
- BrickLAB: Proprietary, Lego-compatible bricks + curriculum for grades 2–5.
- Discover Drones: RubiQ educational drones + indoor/outdoor coding/racing add-ons.
- STEAMventures BUILD: TK–3 build/activity books for distance and in-class learning.
- Professional Development: Paid workshops for teachers and facilitators (break-even service to build loyalty).
Kitting, packaging, and final QA run from PCS’s 20,880 sq ft warehouse; curriculum design and quality control occur adjacent in dedicated office/R&D space.
3. Financial Performance & Analysis
Revenue Falloff & Profit Retention (FY2025 vs. FY2024)
| Key Metric | FY2025 | FY2024 | Change |
|---|---|---|---|
| Revenue | $7.42 M | $9.09 M | –18.4% |
| Gross Profit | $4.44 M | $5.73 M | –22.5% |
| Gross Margin | 59.8% | 63.1% | –330 bps |
| Operating Expenses | $3.35 M | $2.93 M | +14.5% |
| Net Income | $0.95 M | $4.44 M | –78.7% |
| Net Margin | 12.8% | 48.8% | –3,600 bps |
What drove the revenue drop?
- Loss of Iowa STEM Scale-Up ($823 K in FY2024, 9% of sales): no renewal.
- Lower Catapult order (summer MO programs): $587 K vs. $1.29 M prior year.
- AFJROTC sale decline as existing inventories and cycles mature: $0.45 M vs. $1.27 M.
- End of ESSER grant extension (September 2024): schools spent final funds in 2024.
- Federal to state funding shift: confusion during policy changes slowed decisions.
Operating expenses rose a modest 14.5%, largely due to expanded facilities (split warehouse/office leases) and staffing increases (25 vs. 22 employees).
Per-unit costs: pricing vs. raw materials
Gross margin compressed by 330 bps as supply costs climbed ahead of the annual repricing (calendar Q1). Management reprices once yearly, addressing multi-year inflation trends and tariffs.
4. Balance Sheet & Cash Flow Strength
| Category | 3/31/2025 | 3/31/2024 |
|---|---|---|
| Cash & Eq. | $3.22 M | $1.33 M |
| A/R (net) | $0.38 M | $1.68 M |
| Inventory | $2.06 M | $2.03 M |
| Def. Tax Asset | $2.28 M | $2.54 M |
| Right-of-Use | $1.14 M | $0.27 M |
| Total LP | $1.19 M | $0.29 M |
| Working Capital | $5.59 M | $5.01 M |
No debt. Pristine current ratio (18.1×) and ample liquidity to fund FY2026 growth.
Cash flow: +$2.52 M from ops; –$80 K capex; –$548 K buybacks. Investment grade cash cushion of $3.22 M.
5. Risk Factors & Competitive Landscape
Major risks
- Customer concentration: four clients drove 27.8% of FY25 sales; losing two could chill revenues.
- Seasonality: heavy skew to Q4–Q1; poor visibility in winter months.
- Funding shifts: ESSER/grant cycles and federal vs. state policy can delay commitments.
- Supply/tariffs: raw materials inflation impacts margins until annual price resets.
- Competition: brick-majors (Lego, Vex, Fischertechnik), DIY teachers, free online curricula, ed-nonprofits (Project Lead the Way).
Management edge
• Curriculum expertise: STEM educators design turnkey lessons that minimize training.
• Product breadth: cross-sell across camps, makerspaces, and drones.
• Cash-flow resilience: strong liquidity to weather contract gaps.
6. Management’s Plan & Outlook
Management is pivoting to:
- State Standards alignment: retool lesson plans to fit state rubrics, anticipating reduced federal oversight.
- Evidence-based selling: commissioning outcome studies on key products to meet state grant evidence requirements (results due 2026).
- Larger accounts: deepen activity with AFJROTC and big summer program providers, tailor add-on products to multi-site deals.
- Annual repricing discipline: offset tariff-driven input cost increases in January repricing.
Continued growth hinges on 1) winning larger, recurring state/grant contracts with evidence in hand; 2) diversifying major accounts; 3) keeping margins resilient through disciplined pricing.
7. Investment Score & Verdict 5/10
PCS Edventures! (PCSV) scores 5.0 out of 10:
Strengths:
- Profitable & cash-flow positive, no debt
- $3.2 M cash + $2.3 M deferred tax asset
- Unique turnkey curriculum advantage
Weaknesses:
- Flat to down revenue, key program losses
- Customer concentration & seasonality risks
- Rising costs, competitive toymaker entrants
Verdict: A mid-cycle turnaround play. Strong cash cushion and lean operations support a patient buy; but fund-driven volatility, competitive headwinds, and reliance on a handful of large clients keep this firmly speculative. Pursue small position for moderate risk appetite.
Read our 10-K deep dive, stay tuned for evidence-report updates, and follow for ongoing scorecards.