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Revenue Composition - For fiscal year 2025, 83% of Wiley's Adjusted Revenue is generated by digital products and services, with 48% being recurring revenue[22]. - Approximately 49% of Wiley's consolidated revenue for the year ended April 30, 2025, was derived from outside the US[24]. - Research revenue accounted for approximately 64% of Wiley's consolidated revenue in the year ended April 30, 2025, with a 32.1% Adjusted EBITDA margin[27]. - Learning segment contributed approximately 35% to consolidated revenue in the year ended April 30, 2025, with a 37.4% Adjusted EBITDA margin[46]. - Approximately 96% of Research revenue is generated by digital and online products and services[27]. - For fiscal year 2025, approximately 60% of Learning revenue is from digital and online products and services[46]. - The Held for Sale or Sold segment accounted for approximately 1% of consolidated revenue for the year ended April 30, 2025, with an Adjusted EBITDA margin of (20.6)%[64]. International Revenue - Approximately 49% of Wiley's consolidated revenue for the year ended April 30, 2025, was derived from outside the US[24]. - For the year ended April 30, 2025, approximately 51% of consolidated revenue was recognized in US dollars, 29% in British pounds, 11% in euros, and 9% in other currencies[302]. Digital and Online Products - For fiscal year 2025, 83% of Wiley's Adjusted Revenue is generated by digital products and services, with 48% being recurring revenue[22]. - Approximately 96% of Research revenue is generated by digital and online products and services[27]. - For fiscal year 2025, approximately 60% of Learning revenue is from digital and online products and services[46]. - Wiley's Open Access model allows authors to publish articles with upfront payment of article publication charges, making them freely accessible online[38]. - The Atypon® publishing platform provides integrated access to over 11 million articles from more than two thousand publishers and societies[44]. Publishing and Distribution - Long-term publishing alliances contribute approximately 46% of Journal Subscriptions revenue, enhancing Wiley's publishing and distribution capabilities[34]. - The company engages in co-publishing and licensing revenue from various international publishers, enhancing its content distribution and market reach[58]. Workforce and Diversity - As of April 30, 2025, the company employed approximately 5,200 colleagues worldwide, with 57% being female and 26% identifying as persons of color[66][68]. Financial Impact and Currency - A hypothetical 1% change in interest rates for the $299.8 million of unhedged variable rate debt would affect net income and cash flow by approximately $2.4 million[301]. - The company recorded foreign currency translation gains of approximately $69.3 million during the year ended April 30, 2025, primarily due to fluctuations of the US dollar against the British pound sterling[303]. Sustainability and Environmental Impact - The company aims to achieve net-zero emissions by 2040 and has established science-based targets to drive emissions reductions across Scopes 1, 2, and 3[79]. - The company continues to promote digital adoption and sustainable publishing practices to minimize environmental impact, including print-on-demand and increased digital offerings[80]. Customer and Revenue Concentration - Subscription agents account for approximately 18% of total annual consolidated revenue, with no single agent exceeding 10% of total annual consolidated revenue[306]. - The top 10 book customers contribute around 12% of total consolidated revenue and approximately 24% of accounts receivable as of April 30, 2025[307]. - No single book customer accounts for more than 6% of total consolidated revenue and 9% of accounts receivable as of April 30, 2025[307].

I focus on producing objective, data-driven research, mostly about small- to mid-cap companies, as these tend to be overlooked by many investors. From time to time, though, I also look at large-cap names, just to give a fuller sense of the broader equity markets.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in ...

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 ...

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 [11][47] - Adjusted operating margin improved by 300 basis points, and adjusted EBITDA margin increased by 120 basis points [11][42] - Adjusted revenue for the full year rose by 3%, driven by research and academic growth, while adjusted operating income and adjusted EPS increased by 29% and 318% respectively [42][45] Business Line Data and Key Metrics Changes - Research segment revenue increased by 3% for the full year, supported by growth in recurring revenue models and Open Access programs [42][44] - Learning segment revenue declined by 5% in Q4 but rose by 2% for the year, driven by AI licensing and steady market conditions in academic [45][46] - AI licensing revenue totaled $40 million for the year, with significant contributions from new agreements [10][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 growth in the UK, France, Italy, Brazil, and Canada [17][18] - The company executed landmark multi-year agreements in India and Brazil, expanding access to thousands of institutions [18][20] - The corporate market, which currently makes up about 10% of revenue, is expected to expand significantly as the company extends into corporate R&D [26][30] Company Strategy and Development Direction - The company aims to capitalize on AI opportunities and has established partnerships with major tech companies for AI model training and development [7][29] - A focus on margin expansion and cost structure optimization remains a strategic priority, with ongoing investments in technology and research publishing platforms [36][40] - The company is committed to delivering profitable revenue growth and expanding margins in an uncertain economic environment [50][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and growth despite external uncertainties, citing strong internal indicators and a diversified revenue base [32][78] - The outlook for fiscal 2026 includes low to mid-single-digit revenue growth, with expectations for continued strength in Open Access and inclusive access models [51][62] - The company is prepared to navigate potential economic disruptions while maintaining a disciplined approach to margin expansion [77][80] Other Important Information - The company returned $137 million to shareholders through dividends and share repurchases, with a current dividend yield of approximately 3.5% [48][84] - Following the divestiture of university services, the company secured $120 million in cash proceeds, which will be used to reduce debt and interest expenses [11][48] Q&A Session Summary Question: Outlook for organic growth excluding AI - Management noted that strong Open Access revenues and a favorable renewal season provide visibility for continued organic growth [61][62] Question: Contribution of AI licensing revenue - The company indicated that the $1 million in vertical-specific applications is just the beginning, with potential for high-margin, recurring revenue models [66][68] Question: Planning and budgeting in the current environment - Management emphasized a balanced approach to planning, with strong visibility into the calendar year 2025 and a focus on maintaining flexibility amid uncertainties [75][78] Question: Future cash return strategy - The company plans to adopt a mixed approach to returning cash to shareholders while still investing in business opportunities [84][85]

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]

Albert Anthony is the pen name of a Croatian-American media personality on investor platforms Investing.com and Seeking Alpha, where he has grown over +1K followers since 2023 and covers markets & stocks, and as of 2025 hosting an ongoing set of articles called Financial Markets: Growing A Dividend Income Portfolio. His new book of the same name is planned for a 2025 global launch on Amazon soon. A native of the NYC area, he has also called home Austin Texas where he worked as a management & information sys ...

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].

Financial Data and Key Metrics Changes - Revenue growth was driven by a one percent increase overall, with research growth of five percent offsetting a six percent decline in learning [22][48] - Adjusted EPS increased by thirty-nine percent due to higher adjusted operating income and a lower adjusted effective tax rate [22] - Operating margin rose by two hundred eighty basis points to fourteen point two percent, while adjusted EBITDA grew four percent [23][50] Business Line Data and Key Metrics Changes - Research segment revenue increased by five percent in Q3 and three percent year-to-date, driven by AI licensing and open access programs [51][58] - Learning segment revenue decreased by six percent in Q3 but rose four percent year-to-date, with growth in professional content and AI licensing revenue [59][60] - Adjusted EBITDA for the research segment increased by twelve percent for the quarter, while the learning segment saw a five percent decrease [58][60] Market Data and Key Metrics Changes - Global R&D spend is projected to grow by eight percent in 2024, with similar growth expected in 2025 [13] - Approximately half of the company's revenues are recurring, with nearly seventy-five percent in the research segment [12][38] - The company has expanded access in emerging markets, notably India and Brazil, which will enhance revenue streams and support research output [33][36] Company Strategy and Development Direction - The company is focusing on margin expansion as a multi-year strategic goal, raising the fiscal 2026 margin target to above twenty-five percent [8][70] - Wiley is positioning itself as a leader in AI development, leveraging its content for training large language models and exploring corporate partnerships [16][41] - The company aims to enhance operational efficiency and cost structure while maintaining a strong focus on revenue growth [50][69] Management's Comments on Operating Environment and Future Outlook - Management acknowledged economic uncertainties but emphasized the company's resilience through various economic cycles [9][10] - The company reaffirmed its fiscal 2025 outlook and fiscal 2026 targets, citing strong demand in research and favorable renewal trends [28][64] - Management expressed confidence in the long-term growth potential of the research segment, driven by increasing global R&D investments [11][40] Other Important Information - The company has a strong balance sheet with thirty-one consecutive years of dividend increases [11] - The recent appointment of Doctor Karen Madden to the Board of Directors is expected to enhance the company's focus on corporate R&D [75] Q&A Session Summary Question: What are the drivers behind the upward revision of the 2026 margin target? - The upward revision is primarily driven by rationalizing the cost structure and improving competitive margin levels [83][85] Question: How does Wiley compare to competitors like Springer in terms of cost structure? - Wiley has identified opportunities to streamline its cost structure, although the mix of business differs from competitors [90][92] Question: Can you confirm the nine million incremental AI revenue fell in Q3 and was in research? - Yes, the full nine million was recognized in Q3 and is attributed to research [93][94] Question: What is the outlook for the learning segment over the next twelve months? - The learning segment is expected to face tough comparisons but is anticipated to return to positive growth in fiscal 2026 [95][101] Question: How is the company planning to allocate capital in the near term? - The company is evaluating the pace of share repurchases and will assess based on free cash flow availability [106]