Fourth Quarter & Fiscal 2025 Earnings Review June 17, 2025 NYSE: WLY SAFE HARBOR STATEMENT This release contains certain forward-looking statements concerning the Company's operations, performance, and financial condition. Reliance should not be placed on forward-looking statements, as actual results may differ materially from those in any forward-looking statements. Any such forward-looking statements are based upon a number of assumptions and estimates that are inherently subject to uncertainties and cont ...

John Wiley & Sons (WLY) Q4 2025 Earnings Call June 17, 2025 10:00 AM ET Company Participants Brian Campbell - VP - IRMatthew Kissner - President & CEOChristopher Caridi - Interim CFODaniel Moore - Partner - Director of ResearchJay Flynn - EVP & General Manager for Research & Learning Operator Good morning, and welcome to Wiley's Fourth Quarter and Fiscal twenty twenty five Earnings Call. As a reminder, this conference is being recorded. All lines have been placed on mute to prevent any background noise. Aft ...

Research Growth, AI Licensing, and Cost Reduction Drive Wiley's Fiscal 2025 Results Exceeds Adjusted EPS Guidance, Significantly Expands Profit Margins, and Reaf irms Fiscal 2026 Growth Targets June 17, 2025 - Hoboken, NJ – Wiley (NYSE: WLY) today reported results for the fourth quarter and fiscal year ended April 30, 2025. Fiscal 2025 Highlights MANAGEMENT COMMENTARY "We delivered another strong year of execution as we met or exceeded our financial commitments, drove profitable growth in our core, expanded ...

Financial Data and Key Metrics Changes - The company reported a 10% increase in free cash flow to $126 million and reaffirmed a target of $200 million for fiscal 2026 [12][46] - Adjusted operating margin improved by 300 basis points, and adjusted EBITDA margin increased by 120 basis points [12] - Adjusted revenue for the full year rose by 3%, driven by research and academic growth, while adjusted EPS increased by 318% [40][41] Business Line Data and Key Metrics Changes - Research segment revenue increased by 3% for the full year, supported by recurring revenue models and new AI licensing revenue [41][42] - Learning segment revenue declined by 5% in Q4 but rose by 2% for the year, driven by AI licensing and steady market conditions [44] - AI licensing revenue totaled $40 million for the year, with significant contributions from corporate partnerships [11][27] Market Data and Key Metrics Changes - Strong demand for publishing was noted across key markets, with double-digit growth in submissions from India and China, as well as high single-digit growth in the U.S. and Japan [18][19] - The company executed landmark multi-year agreements in India and Brazil, expanding access to research for thousands of institutions [19] - The corporate market, which currently makes up about 10% of revenue, is expected to expand significantly as the company extends its offerings into corporate R&D [26][28] Company Strategy and Development Direction - The company is focused on margin expansion and capitalizing on AI opportunities, with a commitment to improving its cost structure [12][24] - Wiley aims to leverage its content and data for AI development, positioning itself as a key player in the corporate R&D space [28][31] - The company is committed to maintaining a balanced approach to capital allocation, investing in high-return initiatives while returning cash to shareholders [54][84] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and growth despite uncertainties in the economic environment [32][78] - The company anticipates low to mid-single-digit revenue growth for fiscal 2026, factoring in the impact of prior year AI licensing revenue [50] - Management highlighted strong internal indicators and a favorable renewal season, providing optimism for the upcoming fiscal year [75][78] Other Important Information - The company completed all divestitures and secured $120 million in cash proceeds from the university services divestiture, which will be used to reduce debt [12][47] - The company has improved its EBITDA margin in the learning segment by 850 basis points since fiscal 2023 [44] - The company is actively working on a technology transformation program aimed at reducing costs and improving delivery [37][39] Q&A Session Summary Question: What is the outlook for organic growth excluding AI? - Management noted that strong Open Access revenues and a favorable renewal year provide confidence for continued organic growth [61][62] Question: What is the potential contribution from the emerging AI market? - Management indicated that the $1 million in revenue from vertical-specific applications is just the beginning, with expectations for high-margin, recurring revenue models in the future [66][67] Question: How is the company planning for the uncertain economic environment? - Management emphasized a balanced approach of discipline and flexibility in planning, with strong visibility into the calendar year 2025 renewals [78][80] Question: Will the company continue to return cash to shareholders? - Management confirmed that while returning cash to shareholders remains a priority, they will also maintain the ability to invest in the business and take advantage of opportunities as they arise [84]

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Revenue Performance - For the three months ended January 31, 2025, revenue decreased by $56.1 million, or 12%, compared to the prior year, with Adjusted Revenue increasing by 1% on a constant currency basis[163][164]. - Digital products and services accounted for over 83% of total revenue for the year ended April 30, 2024, with 48% of revenue being recurring[158]. - Revenue for the nine months ended January 31, 2025, decreased by $169.5 million, or 12%, compared to the prior year[216]. - Total Learning Revenue for the three months ended January 31, 2025 decreased by 6% to $137.08 million compared to $146.33 million in 2024[206]. - Total Held for Sale or Sold Revenue decreased by $210.9 million, or 92%, compared to the prior year, primarily due to the sale of the University Services, Wiley Edge, and CrossKnowledge businesses[262]. Operating Income and Expenses - Operating income for the three months ended January 31, 2025, was $51.8 million, a significant increase from the prior year operating loss of $46.4 million[181]. - Operating and administrative expenses decreased by $23.4 million, or 9%, for the three months ended January 31, 2025, mainly due to lower employee-related costs[169]. - Operating income for the nine months ended January 31, 2025, was $144.9 million, an increase of $161.5 million compared to the prior year loss[234]. - Adjusted Operating Income on a constant currency basis increased by 38% compared to the prior year[235]. - Restructuring and related charges for the nine months ended January 31, 2025, were $13.1 million, compared to $52.0 million in the prior year[228]. Adjusted Metrics - Adjusted EBITDA for the three months ended January 31, 2025, was $93.9 million, an increase of 4% compared to the prior year[185]. - Adjusted EBITDA for the nine months ended January 31, 2025, increased by 12% compared to the prior year, primarily due to an increase in Adjusted Revenue[235]. - Adjusted EBITDA for the nine months ended January 31, 2025, increased by 5% on a constant currency basis, attributed to higher revenue and lower cost of sales[257]. - Adjusted EPS for the three months ended January 31, 2025 was $0.84, compared to $0.59 in the same period of 2024, reflecting a 39% increase on a constant currency basis[201]. - Adjusted Operating Income for the Learning segment increased by 37% for the nine months ended January 31, 2025, reflecting improved operational efficiency[258]. Impairments and Losses - The company recorded a goodwill impairment of $81.7 million in the three months ended January 31, 2024, impacting prior year results[171][172]. - The company recorded a goodwill impairment of $108.4 million for the nine months ended January 31, 2024[224]. - The total pretax loss on the sale of Wiley Edge was $34.2 million, with a net loss of $15.6 million recognized in the three months ended January 31, 2025[191]. - For the three months ended January 31, 2025, the net loss on sale of businesses, assets, and impairment charges related to assets held-for-sale was $15.93 million, a decrease from $52.40 million in the same period of 2024[189]. - For the nine months ended January 31, 2025, the net loss on sale of businesses, assets, and impairment charges related to assets held-for-sale was $9.76 million, a significant improvement from a loss of $179.75 million in the same period of 2024[242]. Taxation - The US GAAP effective tax rate for the three months ended January 31, 2025 was 222.9%, compared to (1.4)% for the same period in 2024, primarily due to US ordinary losses with no tax benefit recognized[198]. - The US GAAP effective tax rate for the nine months ended January 31, 2025, was 82.3%, significantly higher than 6.4% in the prior year, primarily due to ordinary losses with no tax benefit recognized[251]. - The Non-GAAP Adjusted Effective Tax Rate was 22.7% for the nine months ended January 31, 2025, down from 24.4% in the prior year, mainly due to the mix of income and a discrete item related to the release of a tax reserve[252]. Cash Flow and Debt - As of January 31, 2025, the company had cash and cash equivalents of $104.5 million, with approximately all located outside the US[268]. - The company had approximately $887.2 million of debt outstanding as of January 31, 2025, with $415.6 million of unused borrowing capacity under its credit facilities[270]. - Net cash provided by operating activities increased to $52.3 million for the nine months ended January 31, 2025, compared to $24.4 million for the same period in 2024[272]. - Free cash flow less product development spending was $(1.15) million for the nine months ended January 31, 2025, compared to $(45.25) million in the prior year[274]. - Net cash used in investing activities was $69.7 million for the nine months ended January 31, 2025, a decrease from $78.5 million in the prior year[280]. Foreign Exchange and Market Risks - Net foreign exchange transaction losses were $(4.2) million for the three months ended January 31, 2025, primarily due to fluctuations in foreign currency exchange rates[187]. - Net foreign exchange transaction losses for the nine months ended January 31, 2025, were $(7.3) million, primarily due to foreign currency denominated intercompany accounts[240]. - The company recorded foreign currency translation losses of approximately $(32.2) million during the three months ended January 31, 2025, primarily due to fluctuations in the US dollar relative to the British pound sterling[290]. - The company recorded foreign currency translation gains of approximately $10.7 million during the nine months ended January 31, 2025, primarily due to fluctuations of the US dollar relative to the euro[290]. - The company is exposed to market risks related to interest rates, foreign exchange, and credit risk, and uses derivative financial instruments to manage these exposures[285]. Other Financial Metrics - Interest expense increased to $14.0 million for the three months ended January 31, 2025, compared to $13.3 million in the prior year due to a higher effective interest rate[186]. - Interest expense for the nine months ended January 31, 2025, was $41.3 million, an increase from $37.6 million in the prior year[239]. - A hypothetical one percent change in interest rates for the $387.7 million of unhedged variable rate debt would affect net income and cash flow by approximately $3.0 million[287]. - The quarterly dividend to shareholders was increased to $1.41 per share annualized, compared to $1.40 per share in the prior year[282]. - Subscription agents account for approximately 16% of total annual consolidated revenue, with no single group accounting for more than 10%[295].

John Wiley & Sons (WLY) Q3 2025 Earnings Call March 07, 2025 12:00 PM ET Company Participants Brian Campbell - VP - IRMatthew Kissner - President & CEOChristopher Caridi - Interim CFO, Senior VP, Chief Accounting Officer & Global Corporate ControllerDaniel Moore - Partner - Director of ResearchJay Flynn - EVP & General Manager of Research Conference Call Participants Sami Kassab - Equity Research Analyst Operator Good morning, and welcome to wireless Q3 Fiscal twenty twenty five Earnings Call. As a reminder ...

John Wiley & Sons, Inc. (NYSE:WLY) Q3 2025 Earnings Conference Call March 6, 2025 10:00 AM ET Company Participants Brian Campbell - Vice President, Investor Relations Matt Kissner - President and CEO Christopher Caridi - Interim Chief Financial Officer Jay Flynn - Executive Vice President and General Manager, Research and Learning Conference Call Participants Daniel Moore - CJS Securities Sami Kassab - BNP Paribas Operator Good morning, and welcome to Wallace Q3 Fiscal 2025 Earnings Call. As a reminder, thi ...

Revenue Performance - Third quarter reported revenue was $405 million, down from $461 million, with Adjusted Revenue (excluding divestitures) increasing by 1.2% at constant currency[5]. - Year-to-date reported revenue reached $1,235 million, compared to $1,405 million, with Adjusted Revenue (excluding divestitures) up 3.5% at constant currency[5]. - Research revenue for the third quarter was $268 million, up 4% as reported and 5% at constant currency, driven by growth in open access, solutions, and AI licensing[6]. - Total revenue for the three months ended January 31, 2025, was $404.626 million, a decrease of 12% compared to $460.705 million in the same period of 2024[39]. - Research Publishing revenue for the three months ended January 31, 2025, was $225.874 million, up 4% from $216.586 million in 2024[39]. - Learning segment revenue for the nine months ended January 31, 2025, was $422.910 million, a 5% increase from $404.594 million in 2024[43]. Earnings and Profitability - Adjusted EBITDA for the third quarter was $88 million, an increase of 11% as reported and 12% at constant currency, with a margin rise to 32.7%[6]. - Adjusted EPS for the third quarter was $0.84, up 39% at constant currency, while GAAP EPS was a loss of ($0.43), improved from a loss of ($2.08) in the prior year[11]. - Non-GAAP adjusted earnings per share for the three months ended January 31, 2025, was $0.84, compared to $0.59 for the same period in 2024[25]. - Non-GAAP Adjusted EBITDA for the nine months ended January 31, 2025, was $272.031 million, an increase of 12% from $243.598 million in the same period of 2024[43]. - Non-GAAP Adjusted Operating Income for the nine months ended January 31, 2025, increased by 37% to $161.586 million from $117.659 million in 2024[43]. - Adjusted EBITDA margin for the nine months ended January 31, 2025, improved to 22.3% from 20.7% in the same period of 2024[43]. Cash Flow and Financial Position - Free Cash Flow for Fiscal 2025 is reaffirmed at approximately $125 million, representing a growth of about 10% over the prior year[11]. - Year-to-date Cash from Operations increased by 115% to $52 million, with Free Cash Flow improving by $44 million[5]. - Net cash provided by operating activities increased to $52,250 for the nine months ended January 31, 2025, compared to $24,352 in the prior year, marking a growth of approximately 114.4%[48]. - Free cash flow less product development spending was $(1,151) for the nine months ended January 31, 2025, an improvement from $(45,247) in the same period of 2024[49]. - Cash and cash equivalents at the end of the period were $104,560, slightly down from $108,907 at the end of the previous year[48]. Debt and Liabilities - Total current liabilities decreased to $717,258 as of January 31, 2025, from $873,282 as of April 30, 2024, reflecting a reduction of approximately 18%[45]. - Long-term debt increased to $877,205 as of January 31, 2025, compared to $767,096 as of April 30, 2024, indicating an increase of about 14.4%[45]. Strategic Initiatives and Outlook - The company reaffirmed its Fiscal 2025 outlook for Adjusted Revenue in the range of $1,650 million to $1,690 million, and Adjusted EBITDA in the range of $385 million to $410 million[7]. - Fiscal 2026 margin target has been raised to over 25% from a previous range of 24-25%[12]. - The company executed two significant recurring revenue agreements in India and Brazil, expanding access to over 6,000 and 430 institutions, respectively[6]. - The company has not provided a 2025 outlook for the most directly comparable US GAAP financial measures due to high variability and complexity[56]. - Management emphasizes the use of non-GAAP performance measures to provide additional insights into operational trends and financial performance[52]. Losses and Impairments - The company recognized a net loss of $15.6 million for Wiley Edge due to changes in fair value[20]. - The company recorded pretax noncash goodwill impairments of $108.4 million in fiscal year 2024, including $81.7 million related to Wiley Edge[22]. - The company incurred a net pretax loss on the sale of businesses and assets of $15.9 million for the three months ended January 31, 2025[32]. - The company reported a net loss on sale of businesses and assets of $9,760 for the nine months ended January 31, 2025, compared to $179,747 in the prior year[48]. - For the three months ended January 31, 2025, John Wiley & Sons reported a net loss of $22.954 million compared to a net loss of $113.875 million for the same period in 2024[35].

Revenue Performance - For the three months ended October 31, 2024, consolidated revenue was $426.6 million, a decrease of 13% compared to the prior year, primarily due to divested businesses[186]. - Adjusted revenue, excluding the Held for Sale or Sold segment, increased by 3% on a constant currency basis, reaching $423.4 million[188]. - Research revenue for the three months ended October 31, 2024, increased by $4.2 million, or 2%, compared to the prior year, with a constant currency increase of 1%[232]. - Total research revenue for the three months ended October 31, 2024, was $261,885 million, with Research Publishing revenue at $222,667 million and Research Solutions revenue at $39,218 million[231]. - Learning revenue increased by $12.6 million, or 8%, compared to the prior year, with a constant currency increase of 7%[236]. - Total Research Revenue for the six months ended October 2024 was $527.2 million, a 2% increase from $515.5 million in the prior year[292]. - Learning Revenue rose to $285.8 million, an 11% increase compared to $258.3 million in the previous year[296]. Operating Income and Expenses - Operating income for the same period was $64.1 million, reflecting a 39% increase compared to the prior year, driven by lower costs of sales and restructuring charges[205]. - Operating and administrative expenses decreased by $13.4 million, or 5%, to $238.9 million, mainly due to lower employee-related costs[195]. - Adjusted Operating Income for the three months ended October 31, 2024, was $59,527 million, reflecting a 1% increase compared to the prior year[231]. - Operating income for the six months ended October 31, 2024, increased by $63.2 million compared to the prior year, primarily due to lower costs of sales and restructuring charges[264]. - Adjusted Operating Income increased by 46% on a constant currency basis compared to the prior year[265]. EBITDA and Adjusted Metrics - Adjusted EBITDA for the three months ended October 31, 2024, was $105.5 million, a 14% increase compared to the prior year[208]. - Adjusted EBITDA for the six months ended October 31, 2024, was $178.2 million, an increase from $152.1 million in the prior year, reflecting a significant recovery[269]. - Adjusted EBITDA for Learning increased by 34% to $100.6 million, driven by revenue performance[298]. - Adjusted EBITDA increased by 23% on a constant currency basis, primarily due to revenue performance and a decrease in employee costs[237]. Net Income and Earnings Per Share - For the six months ended October 31, 2024, the company reported a net income of $39.0 million compared to a net loss of $111.7 million for the same period in 2023[269]. - The diluted earnings per share for the three months ended October 31, 2024, was $0.74, compared to a loss per share of $(0.35) for the same period in 2023[226]. - Diluted earnings per share for the six months ended October 31, 2024, was $0.71, a significant improvement from a loss per share of $(2.02) in the same period of 2023[288]. - Non-GAAP Adjusted EPS for the three months ended October 31, 2024, was $0.97, compared to $0.73 for the same period in 2023, representing a 36% increase on a constant currency basis[228]. - Non-GAAP Adjusted EPS increased to $1.44 from $0.99 year-over-year[290]. Cost Management and Restructuring - Cost of sales decreased by $48.6 million, or 31%, to $107.0 million, primarily due to the sale of University Services and lower employee costs related to Wiley Edge[192]. - The company anticipates annualized cost savings of approximately $80 million from its Global Restructuring Program, with $75 million expected to be realized in the current fiscal year[199]. - Restructuring charges for the six months ended October 31, 2024, were $7.5 million, down from $37.2 million in the prior year[258]. - Amortization of intangible assets decreased by $3.3 million, or 11%, compared to the prior year[263]. Divestitures and Asset Sales - The company completed the divestiture of non-core businesses, including University Services and Wiley Edge, to focus on its core operations in Research and Learning[181]. - For the three months ended October 31, 2024, the net gain on sale of businesses, assets, and impairment charges related to assets held-for-sale was $369 million, compared to a loss of $51,414 million in the same period of 2023[213]. - The company recognized a net gain of $0.8 million from the sale of Wiley Edge, which included $1.0 million in the three months ended October 31, 2024[215]. - The net gain on the sale of businesses, assets, and impairment charges related to assets held-for-sale was $6.2 million for the six months ended October 31, 2024, compared to a loss of $127.3 million in the prior year[274]. Interest and Foreign Exchange - Interest expense increased to $14.5 million for the three months ended October 31, 2024, compared to $12.9 million in the prior year, due to a higher effective interest rate[210]. - Interest expense increased to $27.3 million for the six months ended October 31, 2024, up from $24.3 million in the previous year, primarily due to a higher effective interest rate[270]. - Net foreign exchange transaction losses were $(3.3) million for the three months ended October 31, 2024, primarily due to changes in foreign exchange rates[211]. - The company recorded net foreign exchange transaction losses of $3.1 million for the six months ended October 31, 2024, compared to losses of $4.0 million in the same period of 2023[271][272]. - Foreign currency translation gains for the six months ended October 31, 2024 were approximately $42.9 million, compared to losses of $(22.7) million for the same period in 2023[332]. Cash Flow and Debt - Cash and cash equivalents as of October 31, 2024, were $75.5 million, primarily located outside the US[307]. - Total debt outstanding as of October 31, 2024, was approximately $961.0 million, with $344.3 million of unused borrowing capacity[309]. - Net cash used in operating activities for the six months ended October 31, 2024 was $(93.99) million, compared to $(83.49) million for the same period in 2023, reflecting a $10.5 million increase[316]. - Free cash flow less product development spending was $(130.15) million for the six months ended October 31, 2024, compared to $(131.98) million for the same period in 2023[315]. - Net cash used in investing activities decreased to $(44.49) million for the six months ended October 31, 2024, from $(51.92) million in the prior year, primarily due to a $11.3 million decrease in cash used for additions to technology, property, and equipment[322]. - Net cash provided by financing activities was $113.08 million for the six months ended October 31, 2024, down from $129.70 million in the same period of 2023, mainly due to lower net borrowings of $14.1 million[323]. Shareholder Returns and Stock Activity - The quarterly dividend increased to $1.41 per share annualized, compared to $1.40 per share annualized in the prior year[324]. - The company repurchased 556,000 shares of Class A common stock at an average price of $44.89 during the six months ended October 31, 2024, compared to 668,000 shares at an average price of $33.64 in the prior year[325]. Customer and Revenue Concentration - Subscription agents account for approximately 16% of total annual consolidated revenue, with no single group accounting for more than 10%[338]. - The top 10 book customers account for about 14% of total consolidated revenue and approximately 43% of accounts receivable as of October 31, 2024[339]. - No single book customer accounts for more than 7% of total consolidated revenue as of October 31, 2024[339]. - The company has minimal credit risk exposure to subscription agents currently, but future receipts depend on their financial condition[338]. - The company’s book business is not reliant on a single customer, indicating a diversified revenue stream[339].