UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_____ to _____ Commission File No. 001-11507 JOHN WILEY & SONS, INC. (Exact name of Registrant as specified in its charter) | New York | 13-5593032 | | --- | --- | | (Stat ...

First Quarter 2026 Highlights [1.1 Introduction and Management Commentary](index=1&type=section&id=1.1%20Introduction%20and%20Management%20Commentary) Wiley reported strong Q1 FY2026 results, driven by research demand, particularly AI, reaffirming confidence in the Fiscal 2026 outlook - Strong demand trends in research, opening new growth pathways in AI and corporate R&D[4](index=4&type=chunk) - Wiley is a recognized leader in AI licensing and innovation, executing projects for multi-national corporations and strategically partnering with top AI innovators[4](index=4&type=chunk) - Confidence in Fiscal 2026 outlook is based on leading indicators, the strength of recurring revenue models, open access programs, and anticipated cost savings[4](index=4&type=chunk) [1.2 Consolidated Financial Summary](index=1&type=section&id=1.2%20Consolidated%20Financial%20Summary) Q1 FY2026 GAAP revenue decreased 2% to $397 million, while operating income rose 7% to $31 million; adjusted results showed mixed performance Q1 FY2026 Consolidated Financial Performance (GAAP vs. Prior Year) | Metric | Q1 FY2026 (Millions $) | Q1 FY2025 (Millions $) | Change | | :-------------------- | :-------------------- | :-------------------- | :----- | | Revenue (GAAP) | $397 | $404 | -2% | | Operating Income (GAAP) | $31 | $29 | +7% | | Diluted EPS (GAAP) | $0.22 | ($0.03) | N/A | Q1 FY2026 Consolidated Financial Performance (Adjusted at Constant Currency) | Metric | Q1 FY2026 (Millions $) | Q1 FY2025 (Millions $) | Change (Constant Currency) | | :---------------------- | :-------------------- | :-------------------- | :------------------------- | | Adjusted Revenue | $397 | $389.6 | +1% | | Adjusted Operating Income | $34 | $35.4 | -2% | | Adjusted EBITDA | $70 | $72.6 | -3% | | Adjusted EPS | $0.49 | $0.47 | +2% | [1.3 Segment Performance Overview](index=1&type=section&id=1.3%20Segment%20Performance%20Overview) Research revenue grew 5% at constant currency from AI licensing and open access, while Learning declined 8% due to lower AI licensing and market softness - Growth in Research revenue (**+5% at constant currency**) driven by AI licensing projects and open access growth offsetting timing of prior year journal renewals[8](index=8&type=chunk) - Learning revenue down **7% as reported** and **8% at constant currency** largely due to **$16 million of AI licensing revenue** in the prior year (vs. **$13 million this quarter**) and market-related softness in Professional[9](index=9&type=chunk) [1.3.1 Research Segment Highlights](index=1&type=section&id=1.3.1%20Research%20Segment%20Highlights) Research Segment Q1 FY2026 Performance | Metric | Q1 FY2026 (Millions $) | Q1 FY2025 (Millions $) | Reported Change | Constant Currency Change | | :---------------------- | :-------------------- | :-------------------- | :-------------- | :----------------------- | | Revenue, net | $281.7 | $265.3 | +6% | +5% | | AI Licensing Revenue | $16 | $1 | N/A | N/A | | Adjusted EBITDA | $79.6 | $77.8 | +2% | +2% | | Adjusted EBITDA margin | 28.3% | 29.3% | -1.0 pp | | - Executed landmark AI licensing project with a large tech company and announced a strategic partnership with Anthropic to accelerate AI integration across scholarly research[8](index=8&type=chunk) - Article submissions and output grew by **25%** and **13%**, respectively, with robust growth across all key geographies[9](index=9&type=chunk) [1.3.2 Learning Segment Highlights](index=1&type=section&id=1.3.2%20Learning%20Segment%20Highlights) Learning Segment Q1 FY2026 Performance | Metric | Q1 FY2026 (Millions $) | Q1 FY2025 (Millions $) | Reported Change | Constant Currency Change | | :---------------------- | :-------------------- | :-------------------- | :-------------- | :----------------------- | | Revenue, net | $115.1 | $124.3 | -7% | -8% | | AI Licensing Revenue | $13 | $16 | -18.75% | | | Adjusted EBITDA | $31.5 | $33.8 | -7% | -7% | | Adjusted EBITDA margin | 27.4% | 27.2% | +0.2 pp | | - Market-related softness in the Professional sub-segment contributed to the revenue decline[9](index=9&type=chunk) [1.4 Corporate Expenses](index=2&type=section&id=1.4%20Corporate%20Expenses) Q1 Corporate Expenses rose 4% at constant currency due to strategic projects, with a decline expected in Q2 as cost savings ramp up - Q1 Corporate Expenses rose **4%** on an Adjusted EBITDA basis at constant currency driven primarily by costs related to strategic consulting projects (now complete), enterprise modernization, and other one-time items[10](index=10&type=chunk) - Wiley expects Corporate Expenses to decline starting in Q2 as cost savings ramp up[10](index=10&type=chunk) [1.5 EPS, Balance Sheet, Cash Flow, and Capital Allocation Highlights](index=2&type=section&id=1.5%20EPS%2C%20Balance%20Sheet%2C%20Cash%20Flow%2C%20and%20Capital%20Allocation%20Highlights) GAAP EPS improved to $0.22, Adjusted EPS rose 2% to $0.49, Net Debt-to-EBITDA improved to 1.9, and $32 million was returned to shareholders Key Financial Ratios & Capital Allocation | Metric | Q1 FY2026 | Q1 FY2025 | Change | | :------------------------------------ | :-------- | :-------- | :----- | | GAAP EPS | $0.22 | ($0.03) | N/A | | Adjusted EPS (constant currency) | $0.49 | $0.47 | +2% | | Net Debt-to-EBITDA Ratio (TTM) | 1.9 | 2.0 | -0.1 | | Net Cash Used in Operating Activities (Millions $) | ($85) | ($89) | +$4 million | | Free Cash Flow less Product Dev. Spending (Millions $) | ($100) | ($107) | +$7 million | | Returns to Shareholders (Millions $) | $32 | $31 | +$1 million | | Share Repurchases (Millions $) | $14 | $12.5 | +$1.5 million | - Increased dividend for the **32nd consecutive year** and Board approved **$250 million** share repurchase authorization, a **25% increase** over its 2020 authorization[8](index=8&type=chunk)[16](index=16&type=chunk) - Received approximately **$120 million** in cash proceeds related to the University Services divestiture, utilized to further reduce debt[16](index=16&type=chunk) Fiscal Year 2026 Outlook [2.1 Fiscal Year 2026 Outlook Reaffirmation](index=2&type=section&id=2.1%20Fiscal%20Year%202026%20Outlook%20Reaffirmation) Wiley reaffirmed its full-year Fiscal 2026 outlook, driven by positive demand indicators, successful journal renewals, and anticipated cost savings - Wiley is reaffirming its full year outlook based on leading demand and output indicators, the success of calendar year 2025 journal renewals, and anticipated cost savings[12](index=12&type=chunk) Fiscal 2026 Outlook | Metric | Fiscal 2024 Results (Millions $) | Fiscal 2025 Results (Millions $) | Fiscal 2026 Outlook | | :----------------- | :------------------ | :------------------ | :------------------ | | Adj. Revenue | $1,617 | $1,660 | Low to mid-single digit growth | | Adj. EBITDA Margin | 22.8% | 24% | 25.5% to 26.5% | | Adj. EPS | $2.78 | $3.64 | $3.90 to $4.35 | | Free Cash Flow | $114 | $126 | Approximately $200 | Detailed Financial Statements (Unaudited) [3.1 Condensed Consolidated Statements of Net Income (Loss)](index=4&type=section&id=3.1%20Condensed%20Consolidated%20Statements%20of%20Net%20Income%20(Loss)) For Q1 FY2026, Wiley reported a net income of $11.7 million, an improvement from a prior-year loss, with revenue slightly down and operating income up Condensed Consolidated Statements of Net Income (Loss) | Metric | Three Months Ended July 31, 2025 (Thousands $) | Three Months Ended July 31, 2024 (Thousands $) | | :-------------------------- | :------------------------------- | :------------------------------- | | Revenue, net | $396,800 | $403,809 | | Total costs and expenses | $365,837 | $374,836 | | Operating income | $30,963 | $28,973 | | Income before taxes | $17,707 | $23,003 | | Provision for income taxes | $6,007 | $24,439 | | Net income (loss) | $11,700 | ($1,436) | | Diluted EPS | $0.22 | ($0.03) | [3.2 Reconciliation of US GAAP Measures to Non-GAAP Measures](index=6&type=section&id=3.2%20Reconciliation%20of%20US%20GAAP%20Measures%20to%20Non-GAAP%20Measures) This section reconciles US GAAP to non-GAAP adjusted measures like EPS and EBITDA, excluding specific items for clearer operational analysis [3.2.1 Adjusted EPS Reconciliation](index=6&type=section&id=3.2.1%20Adjusted%20EPS%20Reconciliation) Adjusted EPS Reconciliation | Adjustment Item | Q1 FY2026 Impact ($) | Q1 FY2025 Impact ($) | | :---------------------------------------------------------------------------- | :--------------- | :--------------- | | US GAAP Earnings (Loss) Per Share - Diluted | $0.22 | ($0.03) | | Restructuring and related charges | $0.05 | $0.06 | | Amortization of acquired intangible assets | $0.20 | $0.20 | | Net loss (gain) on sale of businesses, assets, and impairment charges related | $0.02 | ($0.09) | | Income tax adjustments | — | $0.33 | | Non-GAAP Adjusted Earnings Per Share - Diluted | $0.49 | $0.47 | [3.2.2 Adjusted Income Before Taxes and Tax Provision Reconciliation](index=6&type=section&id=3.2.2%20Adjusted%20Income%20Before%20Taxes%20and%20Tax%20Provision%20Reconciliation) Adjusted Income Before Taxes Reconciliation | Metric | Q1 FY2026 (Thousands $) | Q1 FY2025 (Thousands $) | | :---------------------------------------------------------------------------- | :-------- | :-------- | | US GAAP Income Before Taxes | $17,707 | $23,003 | | Pretax Impact of Adjustments (Restructuring, FX, Amortization, Sale of Biz) | $16,924 | $10,966 | | Non-GAAP Adjusted Income Before Taxes | $34,631 | $33,969 | Adjusted Income Tax Provision and Effective Tax Rate | Metric | Q1 FY2026 (Thousands $) | Q1 FY2025 (Thousands $) | | :------------------------------------ | :-------- | :-------- | | US GAAP Income Tax Provision | $6,007 | $24,439 | | Non-GAAP Adjusted Income Tax Provision | $8,064 | $8,024 | | US GAAP Effective Tax Rate | 33.9% | 106.2% | | Non-GAAP Adjusted Effective Tax Rate | 23.3% | 23.6% | [3.2.3 EBITDA and Adjusted EBITDA Reconciliation](index=8&type=section&id=3.2.3%20EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation) EBITDA and Adjusted EBITDA Reconciliation | Metric | Q1 FY2026 (Thousands $) | Q1 FY2025 (Thousands $) | | :---------------------------------------------------------------------------- | :-------- | :-------- | | Net Income (Loss) | $11,700 | ($1,436) | | Non-GAAP EBITDA | $65,195 | $73,043 | | Adjustments (Restructuring, FX, Sale of Biz, Other expense, Held for Sale) | $5,252 | ($428) | | Non-GAAP Adjusted EBITDA | $70,447 | $72,615 | | Adjusted EBITDA Margin | 17.8% | 18.6% | [3.3 Segment Results](index=10&type=section&id=3.3%20Segment%20Results) This section details financial performance across Wiley's Research, Learning, Held for Sale, and Corporate segments, including revenue and adjusted EBITDA [3.3.1 Research Segment Detailed Results](index=10&type=section&id=3.3.1%20Research%20Segment%20Detailed%20Results) Research Segment Q1 FY2026 Detailed Performance | Metric | Q1 FY2026 (Millions $) | Q1 FY2025 (Millions $) | Reported Change | Constant Currency Change | | :-------------------------- | :-------------------- | :-------------------- | :-------------- | :----------------------- | | Research Publishing Revenue | $231.8 | $231.0 | 0% | -1% | | Research Solutions Revenue | $49.9 | $34.4 | +45% | +44% | | Total Revenue, net | $281.7 | $265.3 | +6% | +5% | | Non-GAAP Adjusted Operating Income | $56.2 | $55.2 | +2% | +3% | | Non-GAAP Adjusted EBITDA | $79.6 | $77.8 | +2% | +2% | | Adjusted EBITDA margin | 28.3% | 29.3% | -1.0 pp | | [3.3.2 Learning Segment Detailed Results](index=10&type=section&id=3.3.2%20Learning%20Segment%20Detailed%20Results) Learning Segment Q1 FY2026 Detailed Performance | Metric | Q1 FY2026 (Millions $) | Q1 FY2025 (Millions $) | Reported Change | Constant Currency Change | | :-------------------------- | :-------------------- | :-------------------- | :-------------- | :----------------------- | | Academic Revenue | $55.5 | $60.0 | -7% | -8% | | Professional Revenue | $59.6 | $64.4 | -7% | -8% | | Total Revenue, net | $115.1 | $124.3 | -7% | -8% | | Non-GAAP Adjusted Operating Income | $21.7 | $22.5 | -4% | -4% | | Non-GAAP Adjusted EBITDA | $31.5 | $33.8 | -7% | -7% | | Adjusted EBITDA margin | 27.4% | 27.2% | +0.2 pp | | [3.3.3 Held for Sale or Sold Segment Detailed Results](index=10&type=section&id=3.3.3%20Held%20for%20Sale%20or%20Sold%20Segment%20Detailed%20Results) Held for Sale or Sold Segment Q1 FY2026 Performance | Metric | Q1 FY2026 (Millions $) | Q1 FY2025 (Millions $) | Reported Change | | :-------------------------- | :-------------------- | :-------------------- | :-------------- | | Revenue, net | $0 | $14.2 | | | Non-GAAP Adjusted Operating Loss | $0 | ($2.5) | | | Non-GAAP Adjusted EBITDA | $0 | ($2.5) | | [3.3.4 Corporate Expenses Detailed Results](index=10&type=section&id=3.3.4%20Corporate%20Expenses%20Detailed%20Results) Corporate Expenses Q1 FY2026 Performance | Metric | Q1 FY2026 (Millions $) | Q1 FY2025 (Millions $) | Reported Change | Constant Currency Change | | :-------------------------------- | :-------------------- | :-------------------- | :-------------- | :----------------------- | | Non-GAAP Adjusted Corporate Expenses | ($43.9) | ($42.4) | -4% | -3% | | Non-GAAP Adjusted EBITDA | ($40.7) | ($39.0) | -4% | -4% | [3.3.5 Consolidated Adjusted Results](index=10&type=section&id=3.3.5%20Consolidated%20Adjusted%20Results) Consolidated Adjusted Results Q1 FY2026 | Metric | Q1 FY2026 (Millions $) | Q1 FY2025 (Millions $) | Reported Change | Constant Currency Change | | :-------------------------- | :-------------------- | :-------------------- | :-------------- | :----------------------- | | Adjusted Revenue, net | $396.8 | $389.6 | +2% | +1% | | Non-GAAP Adjusted Operating Income | $34.0 | $35.4 | -4% | -2% | | Adjusted Operating Income margin | 8.6% | 9.1% | -0.5 pp | | | Non-GAAP Adjusted EBITDA | $70.4 | $72.6 | -3% | -3% | | Adjusted EBITDA margin | 17.8% | 18.6% | -0.8 pp | | [3.4 Condensed Consolidated Statements of Financial Position](index=12&type=section&id=3.4%20Condensed%20Consolidated%20Statements%20of%20Financial%20Position) As of July 31, 2025, total assets decreased to $2,524.3 million, total liabilities to $1,791.3 million, and shareholders' equity to $733.1 million Condensed Consolidated Statements of Financial Position (Selected Items) | Metric | July 31, 2025 (Thousands $) | April 30, 2025 (Thousands $) | Change (Thousands $) | | :-------------------------- | :------------ | :------------- | :----- | | Total assets | $2,524,332 | $2,691,466 | -$167,134 | | Cash and cash equivalents | $81,850 | $85,882 | -$4,032 | | Total current assets | $420,295 | $439,884 | -$19,589 | | Goodwill | $1,117,827 | $1,121,505 | -$3,678 | | Total liabilities | $1,791,273 | $1,939,260 | -$147,987 | | Total current liabilities | $648,843 | $820,856 | -$172,013 | | Long-term debt | $818,272 | $789,435 | +$28,837 | | Shareholders' equity | $733,059 | $752,206 | -$19,147 | [3.5 Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=3.5%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 FY2026 net cash used in operating activities improved to ($85.0) million, investing activities provided $98.9 million, and financing activities used ($16.9) million Condensed Consolidated Statements of Cash Flows (Selected Items) | Metric | Q1 FY2026 (Thousands $) | Q1 FY2025 (Thousands $) | | :---------------------------------------------- | :-------- | :-------- | | Net cash used in operating activities | ($85,005) | ($88,712) | | Net cash provided by (used in) investing activities | $98,856 | ($23,807) | | Net cash (used in) provided by financing activities | ($16,924) | $101,589 | | Change in cash, cash equivalents and restricted cash | ($4,032) | ($10,132) | [3.5.1 Operating, Investing, and Financing Activities](index=13&type=section&id=3.5.1%20Operating%2C%20Investing%2C%20and%20Financing%20Activities) - Net cash proceeds related to the sale of businesses and assets contributed **$115.2 million** to investing activities[42](index=42&type=chunk) - Cash dividends of **$19.0 million** and purchases of treasury shares of **$13.5 million** were part of financing activities[42](index=42&type=chunk) [3.5.2 Free Cash Flow Less Product Development Spending](index=13&type=section&id=3.5.2%20Free%20Cash%20Flow%20Less%20Product%20Development%20Spending) Free Cash Flow Less Product Development Spending | Metric | Q1 FY2026 (Thousands $) | Q1 FY2025 (Thousands $) | | :-------------------------------------- | :-------- | :-------- | | Net cash used in operating activities | ($85,005) | ($88,712) | | Less: Additions to technology, property, and equipment | ($12,005) | ($14,502) | | Less: Product development spending | ($2,890) | ($3,351) | | Free cash flow less product development spending | ($99,900) | ($106,565) | Company Information and Disclosures [4.1 About Wiley](index=2&type=section&id=4.1%20About%20Wiley) Wiley is a leading global provider of authoritative content, data-driven insights, and knowledge services, advancing science and learning for over 200 years - Wiley (NYSE: WLY) is a leading global provider of authoritative content, data-driven insights, and knowledge services that advance science and learning[15](index=15&type=chunk) - For over **200 years**, Wiley has empowered researchers, learners and institutions worldwide to drive progress and solve the world's most pressing challenges[15](index=15&type=chunk) [4.2 Non-GAAP Financial Measures Explanation](index=3&type=section&id=4.2%20Non-GAAP%20Financial%20Measures%20Explanation) Wiley uses non-GAAP measures like Adjusted EPS and EBITDA for internal assessment and investor analysis, emphasizing they are not GAAP substitutes - Management uses non-GAAP performance measures as supplemental indicators of operating performance and financial position, as well as for internal reporting, forecasting, and incentive compensation[45](index=45&type=chunk) - Non-GAAP performance measures do not have standardized meanings prescribed by US GAAP and therefore may not be comparable to similar measures used by other companies, and should not be viewed as alternatives to US GAAP financial results[50](index=50&type=chunk) - Adjusted EPS, Adjusted Revenue, Adjusted Operating Income and margin, Adjusted Income Before Taxes, Adjusted Income Tax Provision, Adjusted Effective Tax Rate, EBITDA, and Adjusted EBITDA and margin provide a more comparable basis to analyze operating results and earnings and are measures commonly used by shareholders to measure performance[52](index=52&type=chunk) [4.3 Forward-Looking Statements](index=3&type=section&id=4.3%20Forward-Looking%20Statements) This release contains forward-looking statements subject to uncertainties, with actual results potentially differing due to various factors; the company disclaims any update obligation - Reliance should not be placed on forward-looking statements, as actual results may differ materially from those in any forward-looking statements[18](index=18&type=chunk) - Factors include, but are not limited to: (i) the level of investment in new technologies and products; (ii) subscriber renewal rates for the Company's journals; (vii) worldwide economic and political conditions; (viii) the Company's ability to protect its copyrights and other intellectual property worldwide (ix) the ability of the Company to successfully integrate acquired operations and realize expected opportunities; (xiii) our ability to leverage artificial intelligence technologies in our products and services[18](index=18&type=chunk) [4.4 Earnings Conference Call & Contact Information](index=2&type=section&id=4.4%20Earnings%20Conference%20Call%20%26%20Contact%20Information) Details for the Q1 FY2026 earnings conference call on September 4, 2025, at 10:00 am (ET) are provided, along with Investor Relations contact information - Earnings Conference Call scheduled for today, September 4 at 10:00 am (ET). Access webcast at Investor Relations at investors.wiley.com, or directly at http://events.q4inc.com/attendee/819546756[14](index=14&type=chunk) - Contact: Brian Campbell, Investor Relations, brian.campbell@wiley.com, 201.748.6874[19](index=19&type=chunk)

Financial Data and Key Metrics Changes - Adjusted revenue grew by 1% and adjusted EPS rose by 2%, while adjusted EBITDA decreased by 3% [34][46] - Free cash flow was a use of $100 million, an improvement from a use of $107 million last year [43] - The net debt to EBITDA ratio improved to 1.9 compared to 2.0 in the prior year period [45] Business Line Data and Key Metrics Changes - Research segment delivered solid 5% growth driven by AI demand, with AI licensing revenue reaching $29 million, up from $17 million in the prior year [38][13] - Research Publishing declined by 1% due to a tough comp, but Gold Open Access revenue grew by double digits [40][12] - Learning revenue declined by 8% due to lower AI revenue and market-related softness in professional publishing [40] Market Data and Key Metrics Changes - The academic market remains steady, with no early signals of enrollment challenges [18] - Professional publishing faced market headwinds around consumer spending in the retail channel [18] - Strong Open Access growth is expected to continue, driven by accelerating demand and output worldwide [17] Company Strategy and Development Direction - The company is focusing on leading in research and driving above-market growth in submissions and output [10] - A key strategic partnership with Anthropic was announced to integrate institutional library subscriptions into AI tools [7] - The company aims to capture transformational opportunities in AI, with a focus on corporate R&D markets [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the full-year outlook, driven by research trends and AI momentum [17] - The company is monitoring corporate spending trends and expects cost savings to ramp up in Q2 [18][43] - Management noted that the first quarter is seasonally the smallest and does not reflect the overall year performance [75] Other Important Information - The company increased its annual dividend for the thirty-second consecutive year [7] - A $250 million share repurchase authorization was approved, a 25% increase over the previous program [8] - The company received approximately $120 million in cash proceeds from a divestiture, which was used to reduce debt [46] Q&A Session Summary Question: Can you provide more color regarding the agreement with Anthropic? - The partnership focuses on integrating high-quality content into research and learning tools for students [56][58] Question: Does the agreement change the way you plan to invest in AI-related opportunities? - The vision is to integrate Wiley's content with AI tools, with many more projects in the pipeline [61][62] Question: How much of the $16 million revenue related to NEXUS is Wiley's content versus outside content? - The total deal size was $20 million, reflecting a blend of Wiley content and partner content [70] Question: Where are we for journal renewals in calendar 2025? - The outlook for renewals is positive, with no concerns noted so far [72][73] Question: What is the impact of the higher Nexus-related revenue on fiscal 2026 margin outlook? - The impact is considered de minimis, as the focus remains on the profitability of the core business [90] Question: What are the priorities for capital allocation? - The company maintains a disciplined approach, focusing on dividends, share buybacks, and debt reduction [92][93]

Financial Data and Key Metrics Changes - Adjusted revenue grew by 1% and adjusted EPS rose by 2%, while adjusted EBITDA decreased by 3% [35][36] - Free cash flow was a use of $100 million, an improvement from a use of $107 million last year [43] - The net debt to EBITDA ratio improved to 1.9 compared to 2.0 in the prior year period [45] Business Line Data and Key Metrics Changes - Research Publishing declined by 1% due to a tough comparison from the previous year, but Gold Open Access revenue grew by double digits [39][40] - Research Solutions grew by 44%, driven by the Nexus AI project [39] - Learning revenue declined by 8% due to lower AI revenue and market-related softness in professional publishing [40] Market Data and Key Metrics Changes - The academic market remains steady with no early signals of enrollment challenges, while professional publishing has encountered market headwinds [20] - The company reported strong growth in submissions and output, with submissions up 25% year-over-year [78] Company Strategy and Development Direction - The company is focusing on leading in research and driving above-market growth in submissions and output [11] - A strategic partnership with Anthropic was announced to enhance AI integration into scholarly research [7] - The company aims to define how the industry approaches knowledge licensing and partnership in the AI space [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the full-year outlook, driven by research trends and AI momentum [18] - The company is monitoring corporate spending trends and expects cost savings to ramp up in Q2 [20][42] - Management noted that the first quarter is seasonally the smallest and does not reflect the overall year performance [78] Other Important Information - The company increased its annual dividend for the thirty-second consecutive year [7] - A new $250 million share repurchase authorization was approved, a 25% increase over the previous program [8][45] - The company received approximately $120 million in cash proceeds from the University Services divestiture, which will reduce debt [46] Q&A Session Summary Question: Can you provide more details about the agreement with Anthropic? - The partnership focuses on integrating high-quality content into research tools for students and researchers, enhancing AI safety and learning experiences [58][60] Question: How does the agreement affect investment in AI-related growth opportunities? - The agreement represents a first step in tighter content integration and is expected to lead to more projects in the future [63][64] Question: What is the revenue model for the Nexus project? - The revenue model is primarily to underpin the value of institutional library subscriptions and as a potential upsell vector [61] Question: What is the status of journal renewals for calendar 2025? - The renewal season is just beginning, and the outlook is positive with no current concerns [73][76] Question: Why did research publishing revenue decline despite increased submissions? - The decline is attributed to a tough comparison from the previous year and the seasonal nature of the business [78][81] Question: What is the outlook for professional publishing? - There has been softness in retail channels, but the company is monitoring the situation closely [86][88] Question: How will the Nexus-related revenue impact fiscal 2026 margin outlook? - The impact is expected to be de minimis, as the focus remains on the profitability of the core business [91]

First Quarter 2026 Earnings Review NON-GAAP FINANCIAL MEASURES Wiley provides non-GAAP financial measures and performance results such as: Management believes non-GAAP financial measures, which exclude the impact of restructuring charges and credits and certain other items, and the impact of divestitures and acquisitions provide a useful comparable basis to analyze operating results and earnings. See the reconciliations of non-GAAP financial measures and explanations of the uses of non-GAAP measures in the ...

If you thought our angle on this company was interesting, you may want to check out our idea room, The Value Lab . We focus on long-only value ideas of interest to us, where we try to find international mispriced equities and target a portfolio yield of about 4% . We've done really well for ourselves over the last 5 years, but it took getting our hands dirty in international markets. If you are a value-investor, serious about protecting your wealth, our gang could help broaden your horizons and give some in ...

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].

Group 1 - The focus is on producing objective, data-driven research primarily about small- to mid-cap companies, which are often overlooked by many investors [1] - Occasionally, large-cap companies are analyzed to provide a broader perspective on the equity markets [1] Group 2 - There is no current stock, option, or similar derivative position in any of the companies mentioned, but there may be a potential beneficial long position initiated in WLY within the next 72 hours [2] - The article expresses the author's own opinions and is not compensated for it, except from Seeking Alpha [2] Group 3 - Past performance is not indicative of future results, and no specific investment recommendations are provided [3] - The views expressed may not reflect those of Seeking Alpha as a whole, and the analysts may not be licensed or certified by any regulatory body [3]

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]