Edison Schools to Change Reporting

Edison Schools Inc., the largest private U.S. manager of public schools, agreed to change its revenue reporting as part of a settlement with the Securities and Exchange Commission.

The commission challenged Edison’s practice of not disclosing that as much as 41% of its reported revenue was money that never went to the company. In previous SEC filings, Edison reported that money going from school districts to employees such as teachers was Edison revenue.

Edison’s second-quarter loss widened to $16.9 million, or 31 cents a share, from $5.98 million, or 13 cents, in the year-earlier quarter. Revenue rose 31% to $121.9 million.

Shares of New York-based Edison rose 28 cents to $2.94 on Nasdaq.