Revenue Performance - For the three months ended October 31, 2025, consolidated revenue decreased by $4.8 million, or 1%, compared to the prior year, with Adjusted Revenue of $421.8 million[150][151]. - Research revenue increased by $16.6 million, or 6%, to $278,514 million for the three months ended October 31, 2025, driven by growth in Research Publishing[185]. - Learning revenue decreased by $18.3 million, or 11%, to $143,237 million for the same period, attributed to market-related softness and a decline in print sales[189]. - Revenue for the six months ended October 31, 2025 decreased by $11.9 million, or 1%, compared to the prior year, with a constant currency decrease of 2%[196]. - Research revenue for the six months ended October 31, 2025, increased by $33 million, or 6%, compared to the prior year, with Research Solutions revenue growing by 18%[227]. - Learning revenue decreased by $27.5 million, or 10%, for the six months ended October 31, 2025, compared to the prior year, primarily due to declines in print sales and license revenue[231]. Income and Earnings - Operating income for the same period increased by $8.9 million, or 14%, to $73.0 million, driven by lower operating and administrative expenses[155][164]. - Adjusted EBITDA for the three months ended October 31, 2025, was $115.1 million, reflecting an 8% increase compared to the prior year[155][166]. - US GAAP Income Before Taxes was $58,010 million, an increase from $48,937 million in the same period of 2024, representing a growth of 20%[177]. - Non-GAAP Adjusted Income Before Taxes for the same period was $78,596 million, up from $69,141 million in 2024, reflecting a 14% increase[177]. - Diluted earnings per share increased to $0.84 for the three months ended October 31, 2025, compared to $0.74 in 2024, marking a 14% rise[182]. - Diluted Earnings per Share rose to $1.05 for the six months ended October 31, 2025, up from $0.71 in 2024, marking an increase of 48.6%[224]. Expenses and Cost Management - Operating and administrative expenses decreased by $13.8 million, or 6%, to $225.1 million, primarily due to restructuring and cost savings initiatives[154]. - Operating and administrative expenses decreased by $22.3 million, or 5%, to $465.4 million for the six months ended October 31, 2025[201]. - Interest expense decreased to $11.7 million for the three months ended October 31, 2025, down from $14.5 million in the prior year[169]. - Interest expense decreased to $22.7 million for the six months ended October 31, 2025, down from $27.3 million in the prior year[213]. - The company recorded restructuring and related charges of $6.0 million for the three months ended October 31, 2025, compared to $3.6 million in the prior year[156]. AI and Research Segment - Artificial intelligence (AI) license revenue increased to $6.0 million for the three months ended October 31, 2025, up from $4.0 million in the prior year[150]. - Research AI license revenue reached $4.8 million for the three months ended October 31, 2025, compared to none in the prior year[186]. - AI license revenue increased to $34.9 million for the six months ended October 31, 2025, up from $21 million in the prior year, including $15.7 million from licensed content[196]. - Research AI license revenue surged to $20.7 million for the six months ended October 31, 2025, compared to approximately $1 million in the prior year[228]. - Adjusted EBITDA for the Research segment increased by 14% to $93,280 million on a constant currency basis, driven by higher revenue[187]. - Adjusted Operating Income for the Research segment increased by 18% to $69,961 million for the three months ended October 31, 2025[184]. Tax and Financial Position - The US GAAP Effective Tax Rate increased to 22.6% for the three months ended October 31, 2025, compared to 17.3% in 2024, primarily due to a change in jurisdictional mix of earnings[178]. - The US GAAP Effective Tax Rate decreased to 25.3% for the six months ended October 31, 2025, down from 45.8% in 2024, mainly due to a change in jurisdictional mix of earnings[222]. - The company maintains a strong liquidity position, with operating cash flow and credit facilities expected to meet operational and investment needs over the next twelve months[238]. - As of October 31, 2025, the company had cash and cash equivalents of $67.4 million, with approximately 95% located outside the US[239]. - The company reported approximately $871.7 million of debt outstanding as of October 31, 2025, with $423.5 million of unused borrowing capacity under its Amended and Restated Credit Agreement[241]. Cash Flow and Dividends - For the six months ended October 31, 2025, net cash used in operating activities was $(76.5) million, an improvement from $(94.0) million in the same period of 2024[243]. - Free cash flow less product development spending for the six months ended October 31, 2025 was $(107.9) million, compared to $(130.1) million in the prior year[245]. - Net cash provided by investing activities for the six months ended October 31, 2025 was $72.4 million, a significant increase from net cash used of $(44.5) million in the prior year[252]. - Net cash used in financing activities was $(13.0) million for the six months ended October 31, 2025, compared to net cash provided of $113.1 million in the same period of 2024[253]. - The company increased its quarterly dividend to shareholders to $1.42 per share annualized, up from $1.41 per share in the prior year[254]. Foreign Exchange and Other - Net foreign exchange transaction gains were $1.0 million for the three months ended October 31, 2025, compared to losses of $(3.3) million in the prior year[170][171]. - The company recorded foreign currency translation losses of approximately $(10.0) million for the six months ended October 31, 2025, primarily due to fluctuations in the US dollar relative to the British pound sterling[263]. - Other expense, net was $(2.1) million for the six months ended October 31, 2025, compared to other income, net of $3.0 million in the prior year[220].

Financial Data and Key Metrics Changes - The company reported a mixed revenue picture with strong growth in research and AI, offset by declines in the learning segment [6][10] - Adjusted EBITDA grew 8%, and adjusted operating margin expanded 250 basis points to 18.8% [27][34] - Free cash flow was a use of $108 million, a 17% or $22 million improvement from the prior year [32] Business Line Data and Key Metrics Changes - Research publishing delivered strong 7% growth on worldwide demand, with record submission levels [6][10] - Learning segment revenue declined 11%, primarily due to headwinds in professional and academic areas [30] - Research solutions declined 6% due to lower corporate spending on advertising and recruiting [29] Market Data and Key Metrics Changes - The company noted strong demand across all regions, with double-digit submissions growth in China, India, Japan, the U.K., Germany, and the U.S. [10][11] - Corporate R&D represents a substantial future growth opportunity, currently making up only 10% of the company's revenue base [19] Company Strategy and Development Direction - The company aims to lead in research and drive growth in AI and adjacent markets, with a focus on operational excellence and discipline [10][12] - Strategic partnerships with AI innovators are expected to yield early results, enhancing the company's position in the AI economy [17][25] - The company is prioritizing digital offerings and inclusive access to stabilize revenue in the learning segment [9][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the learning segment due to external factors, including changes in inventory management from Amazon and soft consumer spending [9][30] - The company expects learning declines to moderate in the second half of the year, although revenue is anticipated to be down for the full year [10][34] - Guidance for adjusted EBITDA margin, adjusted EPS, and free cash flow has been reaffirmed, with revenue growth expected to be in the low single digits [34] Other Important Information - The company executed another AI licensing project, bringing total AI training revenue close to $100 million in less than two years [7][20] - Share repurchases increased by 69% to $21 million, with a current yield around 3.9% [8][33] Q&A Session Summary Question: Research revenue growth and potential upside - Management indicated that they expect to grow at the top of the market growth, with strong article growth as a leading indicator [41][46] Question: AI licensing revenue and pipeline opportunities - The company confirmed a $6 million licensing deal with an existing LLM customer, indicating a continuing pipeline for AI opportunities [48][49] Question: Decline in learning segment and inventory management impact - Management noted that the decline is primarily cyclical rather than structural, with expectations for normalization in the second half [54][56] Question: Share buybacks and capital allocation strategy - The company maintains a disciplined approach to capital allocation, balancing share buybacks with growth opportunities and managing leverage [58][60]

Revenue Performance - Q2 2026 revenue of $422 million, down 1% year-over-year, with operating income of $73 million, up 14%, and diluted EPS of $0.84, also up 14%[7] - Total revenue for the three months ended October 31, 2025, was $421.8 million, a slight decrease of 1% compared to $426.6 million in 2024[30] - Total revenue for the six months ended October 31, 2025, was $818,551,000, a decrease of 1% compared to $830,404,000 in the same period of 2024[34] Segment Performance - Research revenue for Q2 was $279 million, up 6% as reported, driven by 7% growth in Research Publishing, including $5 million from AI revenue; article submissions rose by 28%[8] - Learning revenue for Q2 was $143 million, down 11% due to market-related softness, with professional and academic segments down 16% and 8%, respectively[8] - Research Publishing revenue for the three months ended October 31, 2025, was $241.4 million, an 8% increase from $222.7 million in 2024[30] - Learning segment revenue decreased by 10% to $258,345,000, with Academic revenue down 8% and Professional revenue down 12%[34] Profitability Metrics - Adjusted EBITDA for Q2 was $93 million, up 14%, with a margin of 33.5%, compared to 31.3% in the prior year[8] - Non-GAAP Adjusted EBITDA for the six months ended October 31, 2025, was $185.5 million, compared to $178.2 million in 2024, indicating a 4.7% increase[27] - The Adjusted EBITDA margin for the three months ended October 31, 2025, was 27.3%, up from 24.9% in the same period of 2024[27] - Non-GAAP adjusted operating income for the six months ended October 31, 2025, was $113,137,000, reflecting a 9% increase from $104,181,000 in 2024[34] Cash Flow and Capital Management - Year-to-date operating cash flow improved by 19%, and free cash flow improved by 17%[7] - Free cash flow usage improved to $108 million from $130 million in the prior year, largely due to higher cash earnings and lower capex[16] - Net cash used in operating activities was $(76,505,000) for the six months ended October 31, 2025, compared to $(93,992,000) in 2024[39] - Free cash flow less product development spending was $(107,926,000) for the six months ended October 31, 2025, compared to $(130,149,000) in 2024[40] Shareholder Returns - Share repurchases increased by 69% year-over-year to $21 million, with a dividend yield around 3.9%[7] - Full-year outlook for adjusted EBITDA margin is 25.5% to 26.5%, with adjusted EPS guidance of $3.90 to $4.35[12] - Adjusted EPS, Adjusted Revenue, Adjusted Operating Income, and margin are key metrics used by shareholders to evaluate the company's performance[50] Debt and Financial Position - Net debt-to-EBITDA ratio improved to 2.0 from 2.2 in the prior year, with $120 million of divestiture proceeds used to reduce debt[16] - Total assets decreased to $2,466,739,000 as of October 31, 2025, from $2,691,466,000 as of April 30, 2025[36] - Total liabilities decreased to $1,726,550,000 as of October 31, 2025, from $1,939,260,000 as of April 30, 2025[36] - Cash and cash equivalents at the end of the period were $67,454,000, down from $75,586,000 at the end of the previous year[39] Income Metrics - For the three months ended October 31, 2025, the diluted US GAAP Earnings Per Share (EPS) was $0.84, compared to $0.74 for the same period in 2024, representing a 13.5% increase[23] - Non-GAAP Adjusted EPS for the same period was $1.10, up from $0.97 in 2024, reflecting a 13.4% increase[23] - US GAAP Income Before Taxes for the three months ended October 31, 2025, was $58.01 million, compared to $48.94 million in 2024, marking an 18.5% increase[24] - Non-GAAP Adjusted Income Before Taxes for the same period was $78.60 million, up from $69.14 million in 2024, reflecting a 13.5% increase[24] Currency Impact - Results on a constant currency basis provide better comparability of business trends by removing the effects of foreign currency movements[50]

Financial Data and Key Metrics Changes - The company reported a strong adjusted EBITDA growth of 8% and an adjusted operating margin expansion of 250 basis points to 18.8% [24][31] - Free cash flow was a use of $108 million, representing a 17% improvement from the prior year [29] - Net debt to EBITDA improved to 2.0 times, down from 2.2 times in the prior year [31] Business Line Data and Key Metrics Changes - Research publishing experienced a 7% revenue growth driven by worldwide demand, with a 220 basis point improvement in EBITDA margin to 33.5% [6][24] - Learning segment revenue declined by 11%, primarily due to headwinds in professional and academic sectors, with professional books down 16% [27] - Author-funded open access grew by 28%, contributing to the overall strength in research [9][24] Market Data and Key Metrics Changes - The company noted strong demand for research across all regions, with double-digit submissions growth in China, India, Japan, the U.K., Germany, and the U.S. [9][12] - Corporate R&D spending represents a significant future growth opportunity, currently making up only 10% of the company's revenue base [17] Company Strategy and Development Direction - The company aims to lead in research and capitalize on AI growth, integrating scientific research into new technologies [5][9] - Strategic partnerships with AI innovators like AWS and Anthropic are being leveraged to enhance growth opportunities [10][15] - The focus is on operational excellence, with initiatives to reduce corporate costs and improve margins [28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the learning segment due to external factors, including changes in inventory management from Amazon and soft consumer spending [8][41] - The outlook for learning revenue is expected to decline for the full year, but declines are anticipated to moderate in the second half [9][31] - The company reaffirmed guidance for adjusted EBITDA margin and adjusted EPS while narrowing revenue outlook to the lower end of the range [31] Other Important Information - The company increased share repurchases by 69% to $21 million this quarter, with a current yield of around 3.9% [7][30] - The company is actively pursuing acquisitions of high-impact journals to strengthen its portfolio [30] Q&A Session Summary Question: Research revenue growth and potential upside - Management expressed optimism about maintaining growth at the top end of market expectations, driven by strong article submissions [36][37] Question: AI licensing revenue and pipeline opportunities - The company confirmed a $6 million licensing deal with an existing LLM customer, indicating ongoing demand for AI training [37][38] Question: Decline in learning segment and inventory management impact - Management noted that the decline is primarily cyclical rather than structural, with expectations for normalization in the second half [41][42] Question: Share buybacks and capital allocation strategy - The company emphasized a disciplined approach to capital allocation, balancing share buybacks with maintaining leverage ratios [44][45]

Financial Performance - Adjusted revenue decreased by 1% to $422 million, but excluding divestitures and foreign exchange impacts, the decrease was driven by an 11% decline in Learning, offset by 5% growth in Research [38, 41] - Adjusted EPS increased by 12% to $1.10, driven by a 14% increase in Adjusted Operating Income [38, 41] - Adjusted EBITDA increased by 8% to $115 million, with the Adjusted EBITDA margin up 240 basis points to 273% [38, 41] Segment Performance - Research revenue increased by 5%, with Research Publishing up 7% and Research Solutions down 5% [41, 14, 42] - Learning revenue decreased by 11%, with Academic down 8% and Professional down 16% [41, 45] AI Initiatives - Secured a $6 million LLM training licensing agreement in Q2, bringing year-to-date AI revenue to $35 million [14] - Launched the AI Gateway, a content enrichment and distribution platform, and have over 30 publisher partners for the Nexus content licensing service [8, 14, 25] Operational Efficiency and Capital Allocation - Corporate expenses reduced by 18% in Q2 [8, 14, 52] - Share repurchases increased by 69% to $21 million in Q2, with a total of $73 million returned to shareholders YTD through dividends and repurchases [8, 54] Outlook - The company is on track to deliver full year Free Cash Flow outlook of $200M [56]

Core Insights - Wiley is scheduled to release its second quarter 2026 earnings results on December 4, 2025, prior to market open, followed by a conference call at 10am ET to discuss the results [1] - The company has a long-standing history of over 200 years in the scholarly ecosystem, focusing on transforming scientific breakthroughs into real-world impact through AI-powered platforms [2] Financial Performance - For the first quarter ended July 31, 2025, Wiley reported revenue of $397 million, a decrease from $404 million due to foregone revenue from divested businesses [7] - Operating income for the same period was $31 million, reflecting a 7% increase year-over-year [7] - Diluted earnings per share (EPS) for the first quarter was $0.22, compared to a loss in the previous year [7] Dividend Information - Wiley's Board of Directors declared a quarterly cash dividend of $0.355 per share on its Class A and Class B Common Stock, payable on October 23, 2025, to shareholders of record on October 7, 2025 [3][6] - This quarterly dividend translates to an annual dividend of $1.42 per share, marking the 32nd consecutive year of dividend increases [3][6]

Core Insights - Access Investment Management LLC increased its stake in John Wiley & Sons by purchasing 66,660 shares for an estimated $2.69 million, reflecting confidence in the company's direction [2][9][10] - Post-transaction, Access Investment Management holds a total of 155,940 shares valued at $6.31 million, which constitutes 1.7% of its reported U.S. equity assets under management (AUM) [1][3] Financial Performance - John Wiley & Sons reported trailing twelve-month (TTM) revenue of $1.67 billion and a net income of $97.30 million, with a dividend yield of 3.7% [4][10] - As of November 3, 2025, the share price was $37.47, which is down 24.0% over the past year, underperforming the S&P 500 by 41.4 percentage points [3][4] Company Overview - John Wiley & Sons is a global research and education publisher with a diversified portfolio that includes journals, books, and digital learning solutions, serving academic, professional, and corporate customers [5][6] - The company generates revenue through subscriptions, licensing of journals, direct sales of content, and online program management services [8][10] Strategic Direction - The company is focusing on its core business model, which relies on peer-reviewed journals and recurring contracts, while also exploring new revenue streams through AI licensing agreements [10][11] - John Wiley & Sons is undergoing a restructuring process to streamline operations and build a steadier foundation for growth, emphasizing disciplined execution for future success [10][11]

Core Insights - Wiley has launched the AI Gateway, which integrates trusted research content from scholarly publishers into leading AI tools through a single endpoint [1] Company Overview - The AI Gateway aims to enhance access to scholarly research by providing a streamlined interface for users to engage with high-quality academic content [1]

Core Insights - John Wiley & Sons (NYSE: WLY) is recognized as one of the Best Dividend Stocks for a Dividend Champions List [1] - The company has transitioned from traditional publishing to digital content, focusing on online courses and study aids [2] Revenue Streams - Approximately 48% of John Wiley & Sons' revenue is derived from recurring streams, highlighting its shift towards digital subscriptions and global partnerships [3] - The growth strategy includes maintaining high recurring revenue, strengthening relationships with professional societies, expanding internationally, and leveraging growth in open-access and AI-driven publishing [3] Dividend Performance - John Wiley & Sons has a strong dividend history, having announced a quarterly payout of $0.355 per share, consistent with previous dividends [4] - The company has increased its dividend for 32 consecutive years, with a current yield of 3.54% as of October 2 [4]

Core Insights - John Wiley & Sons, Inc. (NYSE:WLY) is recognized as one of the Best High Yield Stocks to Buy in October [1] - The company generates a significant portion of its revenue from digital and online products, accounting for 83% of Adjusted Revenue in FY2025 [2] - The company has a strong focus on digital transformation, aiming to enhance recurring revenue streams and expand international partnerships [3] Financial Performance - John Wiley & Sons is currently paying a quarterly dividend of $0.355 per share, marking a 0.7% increase in June, which is the 32nd consecutive year of dividend increases [4] - The dividend yield stands at 3.56% as of September 27 [4]