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]

Financial Performance - Adjusted Revenue reached $1.66 billion, with 48% being recurring revenue[11] - Adjusted EPS increased by 31% from $2.78 to $3.64[16] - Adjusted EBITDA grew by 8% from $369 million to $398 million[16] - Free Cash Flow increased by 10% to $126 million, with a Fiscal Year 2026 target of $200 million reaffirmed[13] - Adjusted Operating Margin increased by 300 bps to 15.1%, and Adjusted EBITDA Margin increased by 120 bps to 24.0%[13] Business Segments - Research revenue grew by 3%, driven by a 19% increase in article submissions and an 8% increase in article output[19] - Learning revenue grew by 2%, with Inclusive Access showing a 22% increase and Professional Title Signings up by 16%[22] - AI licensing revenue reached $40 million in Fiscal Year 2025, up from $23 million in Fiscal Year 2024[13,31] Corporate Strategy and Outlook - The company is focused on continuous margin expansion beyond Fiscal Year 2026[39] - The company reaffirms Fiscal Year 2026 Free Cash Flow target of approximately $200 million[26,59] - The company expects low-to-mid single digit growth in Adjusted Revenue for Fiscal Year 2026[59] - The company anticipates Adjusted EBITDA Margin between 25.5% and 26.5% and Adjusted EPS between $3.90 and $4.35 for Fiscal Year 2026[59]

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]

[Executive Summary & Fiscal 2025 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Fiscal%202025%20Highlights) Wiley achieved strong Fiscal 2025 results, exceeding financial targets, driving profitable growth, and expanding margins and cash flow [Management Commentary](index=1&type=section&id=Management%20Commentary) Wiley's President and CEO, Matthew Kissner, highlighted a strong year of execution, meeting or exceeding financial commitments, driving profitable growth, expanding margins and free cash flow, and extending into the corporate market through AI licensing and partnerships - Wiley delivered a strong year, meeting or exceeding financial commitments, driving profitable growth, expanding margins and free cash flow, and extending into the corporate market through AI licensing and partnerships[3](index=3&type=chunk) - The company's multi-year journey of continuous improvement and innovation is yielding material gains in profitable revenue growth, margin expansion, and cash generation[3](index=3&type=chunk) [Key Financial & Operational Highlights](index=1&type=section&id=Key%20Financial%20%26%20Operational%20Highlights) Wiley exceeded Adjusted EPS guidance and achieved its Free Cash Flow outlook for Fiscal 2025, driven by significant profit margin expansion and growth in both Research and Learning segments - Exceeded Adjusted EPS guidance, delivered at top end of range for Adjusted EBITDA margin, and achieved Free Cash Flow outlook[7](index=7&type=chunk) - Delivered Revenue and Adjusted EBITDA margin growth in both Research and Learning segments[7](index=7&type=chunk) - Achieved Adjusted Operating Margin expansion of **300 basis points**[7](index=7&type=chunk) AI Licensing Revenue (Fiscal 2024 vs. 2025) | Metric | Fiscal 2025 | Fiscal 2024 | | :----- | :---------- | :---------- | | AI Licensing Revenue | $40 million | $23 million | - Drove a **34%** increase in share repurchases and raised dividend for the **31st** consecutive year[7](index=7&type=chunk) [Fiscal 2026 Outlook](index=2&type=section&id=Fiscal%202026%20Outlook) Wiley projects low to mid-single-digit Adjusted Revenue growth for Fiscal 2026, with increased Adjusted EBITDA Margin and Free Cash Flow [Outlook Summary](index=2&type=section&id=Outlook%20Summary) Wiley projects low to mid-single-digit Adjusted Revenue growth for Fiscal 2026, with an increased Adjusted EBITDA Margin target of 25.5% to 26.5% and approximately $200 million in Free Cash Flow Fiscal 2026 Outlook | Metric | Fiscal 2024 Results | Fiscal 2025 Results | Fiscal 2026 Outlook | | :---------------- | :------------------ | :------------------ | :------------------ | | Adj. Revenue | $1,617M | $1,660M | 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 | $114M | $126M | Approximately $200M | - The growth outlook is comprehensive and includes adverse variances, such as AI revenue in Fiscal **2025**. Adjusted metrics exclude the impact of divestitures, primarily completed in Fiscal **2024** with the remainder in the first half of Fiscal **2025**[13](index=13&type=chunk) [Outlook Drivers](index=2&type=section&id=Outlook%20Drivers) The Fiscal 2026 outlook is driven by anticipated demand in Research Publishing, steady Academic market trends, and continued demand for content in AI development, partially offset by large prior-year AI agreements - Adjusted Revenue growth is driven by demand to publish and Calendar Year **2025** journal renewal growth in Research Publishing, steady market trends in Academic, and continued demand for content and data in AI development, partially offset by large AI agreements in the prior year[18](index=18&type=chunk) - Adjusted EBITDA Margin target was raised to **25.5%** to **26.5%**, driven by anticipated cost savings, efficiency gains, and revenue growth[18](index=18&type=chunk) - Adjusted EPS growth is expected from higher Adjusted Operating Income[18](index=18&type=chunk) - Free Cash Flow growth is driven by expected Adjusted EBITDA growth, lower restructuring payments, and favorable working capital[18](index=18&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) Research and Learning segments showed growth in Fiscal 2025, while divestitures impacted the Held for Sale segment [Research Segment](index=1&type=section&id=Research%20Segment) The Research segment demonstrated solid growth in Fiscal 2025, with both Q4 and full-year revenue and Adjusted EBITDA increasing Research Segment Performance (Q4 FY2025 vs. FY2024) | Metric | Q4 FY2025 | Q4 FY2024 | Reported Change | Constant Currency Change | | :-------------------- | :-------- | :-------- | :-------------- | :----------------------- | | Total Revenue, net | $280,721 | $271,032 | 4 % | 3 % | | Non-GAAP Adjusted EBITDA | $97,471 | $93,795 | 4 % | 4 % | | Adjusted EBITDA margin | 34.7 % | 34.6 % | | | Research Segment Performance (Full Year FY2025 vs. FY2024) | Metric | FY2025 | FY2024 | Reported Change | Constant Currency Change | | :-------------------- | :------- | :------- | :-------------- | :----------------------- | | Total Revenue, net | $1,075,459 | $1,042,705 | 3 % | 3 % | | Non-GAAP Adjusted EBITDA | $344,882 | $331,185 | 4 % | 5 % | | Adjusted EBITDA margin | 32.1 % | 31.8 % | | | - Q4 Research revenue growth was driven by solid growth in recurring revenue publishing models (calendar year **2025** journal renewals) and open access, offsetting continued softness in backfiles, archives, and other ancillary products[8](index=8&type=chunk) - Full year Research revenue was driven by growth in publishing and solutions. Key performance indicators remained strong, with submissions up **19%** and output up **8%**[8](index=8&type=chunk) [Learning Segment](index=1&type=section&id=Learning%20Segment) The Learning segment experienced a Q4 revenue decline due to a large prior-year AI licensing agreement, partially offset by growth in Academic and new AI licensing revenue Learning Segment Performance (Q4 FY2025 vs. FY2024) | Metric | Q4 FY2025 | Q4 FY2024 | Reported Change | Constant Currency Change | | :-------------------- | :-------- | :-------- | :-------------- | :----------------------- | | Total Revenue, net | $161,858 | $170,145 | -5 % | -5 % | | Non-GAAP Adjusted EBITDA | $69,663 | $74,040 | -6 % | -6 % | | Adjusted EBITDA margin | 43.0 % | 43.5 % | | | Learning Segment Performance (Full Year FY2025 vs. FY2024) | Metric | FY2025 | FY2024 | Reported Change | Constant Currency Change | | :-------------------- | :------- | :------- | :-------------- | :----------------------- | | Total Revenue, net | $584,768 | $574,739 | 2 % | 2 % | | Non-GAAP Adjusted EBITDA | $218,750 | $200,429 | 9 % | 9 % | | Adjusted EBITDA margin | 37.4 % | 34.9 % | | | - Q4 Learning revenue was down due to a **$23 million** AI licensing agreement in the prior year, partially offset by growth in Academic and additional AI licensing revenue this quarter[8](index=8&type=chunk) - Full year Learning revenue was up **2%** as reported and at constant currency, driven by growth in Academic and AI licensing[8](index=8&type=chunk)[9](index=9&type=chunk) [Corporate Expenses](index=2&type=section&id=Corporate%20Expenses) Corporate Expenses, representing unallocated shared services costs, declined in Q4 due to lower depreciation and amortization - Q4 Corporate Expenses declined by **8%** (**7%** at constant currency) due to lower depreciation and amortization, or **3%** on an Adjusted EBITDA basis at constant currency due to restructuring savings[17](index=17&type=chunk) - Full year Corporate Expenses declined by **3%** as reported and at constant currency due to lower depreciation and amortization, but rose **2%** on an Adjusted EBITDA basis at constant currency due to enterprise modernization[17](index=17&type=chunk) [Held for Sale or Sold Segment](index=5&type=section&id=Held%20for%20Sale%20or%20Sold%20Segment) The 'Held for Sale or Sold' segment reflects the impact of divestitures of non-core businesses, including University Services, Wiley Edge, and CrossKnowledge, which significantly reduced revenue and shifted to an Adjusted Operating Loss for the full year Fiscal 2025 - In fiscal year **2024**, Wiley executed a plan to divest non-core businesses, including University Services, Wiley Edge, and CrossKnowledge, which met held-for-sale criteria starting in Q1 FY**2024**[24](index=24&type=chunk) - The sale of University Services was completed on January **1**, **2024**, with **$119.5 million** in cash proceeds received in June **2025**[25](index=25&type=chunk) - The sale of Wiley Edge was completed on May **31**, **2024** (excluding India operations, sold Aug **31**, **2024**), resulting in a net loss of **$14.9 million** in FY**2025** primarily due to reducing the fair value of contingent consideration to zero[26](index=26&type=chunk) Held for Sale or Sold Segment Performance (Full Year FY2025 vs. FY2024) | Metric | FY2025 | FY2024 | Reported Change | | :-------------------------- | :------- | :------- | :-------------- | | Total Revenue, net | $17,382 | $255,543 | -93 % | | Non-GAAP Adjusted Operating (Loss) Income | $(3,578) | $28,711 | | | Non-GAAP Adjusted EBITDA | $(3,578) | $32,148 | | | Adjusted EBITDA margin | -20.6 % | 12.6 % | | [Consolidated Financial Results (GAAP)](](index=4&type=section&id=Consolidated%20Financial%20Results%20(GAAP))) Wiley reported a significant GAAP net income turnaround in Fiscal 2025, driven by higher operating income and reduced losses from asset sales [Condensed Consolidated Statements of Net Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Net%20Income%20(Loss)) Wiley reported a significant turnaround in GAAP net income for Fiscal 2025, moving from a net loss in the prior year to a net income of $84.161 million Condensed Consolidated Statements of Net Income (Loss) (Q4 and Full Year FY2025 vs. FY2024) | Metric | Q4 FY2025 | Q4 FY2024 | Full Year FY2025 | Full Year FY2024 | | :-------------------------------- | :-------- | :-------- | :--------------- | :--------------- | | Revenue, net | $442,579 | $468,461 | $1,677,609 | $1,872,987 | | Operating income | $76,472 | $68,782 | $221,409 | $52,261 | | Income (loss) before taxes | $52,265 | $54,002 | $142,878 | $(187,047) | | Net income (loss) | $68,093 | $25,265 | $84,161 | $(200,319) | | Diluted EPS | $1.25 | $0.46 | $1.53 | $(3.65) | [Notes to Consolidated Statements](index=5&type=section&id=Notes%20to%20Consolidated%20Statements) The notes provide crucial context to the consolidated financial statements, detailing the impact of divestitures, goodwill impairment, and the calculation of diluted EPS, which significantly influenced the reported net income and loss figures [Net loss on sale of businesses, assets, and impairment charges related to assets held-for-sale](index=5&type=section&id=Net%20loss%20on%20sale%20of%20businesses,%20assets,%20and%20impairment%20charges%20related%20to%20assets%20held-for-sale) Net Pretax Loss on Sale of Businesses, Assets, and Impairment Charges (Q4 and Full Year FY2025 vs. FY2024) | Business | Q4 FY2025 | Q4 FY2024 | Full Year FY2025 | Full Year FY2024 | | :---------------------------------------------------------- | :-------- | :-------- | :--------------- | :--------------- | | Wiley Edge | $(74) | $1,275 | $(14,852) | $(19,401) | | University Services | $(13,428) | $(5,636) | $(12,578) | $(107,048) | | CrossKnowledge | $(78) | $719 | $4,119 | $(55,440) | | Tuition Manager | — | — | $120 | $(1,500) | | Sale of assets | — | — | $(149) | — | | Total Net loss on sale of businesses, assets, and impairment charges related to assets held-for-sale | $(13,580) | $(3,642) | $(23,340) | $(183,389) | - The company executed a plan to divest non-core businesses (University Services, Wiley Edge, CrossKnowledge) in FY**2024**, with related losses and impairments recorded in both FY**2024** and FY**2025**[24](index=24&type=chunk) - After the year closed, Wiley received **$120 million** in cash proceeds related to the University Services divestiture, with the total outstanding note paid in full[17](index=17&type=chunk) [Impairment of goodwill](index=5&type=section&id=Impairment%20of%20goodwill) - In fiscal year **2024**, Wiley recorded pretax noncash goodwill impairments of **$108.4 million** due to segment reorganization, including **$81.7 million** related to Wiley Edge, **$11.4 million** related to University Services, and **$15.3 million** related to CrossKnowledge[28](index=28&type=chunk) [Diluted Earnings (Loss) Per Share Note](index=5&type=section&id=Diluted%20Earnings%20(Loss)%20Per%20Share%20Note) - For the year ended April **30**, **2024**, the diluted weighted average number of common shares outstanding excluded the effect of unvested restricted stock units and other stock awards as the effect was anti-dilutive due to a US GAAP net loss[29](index=29&type=chunk) [Non-GAAP Financial Measures & Reconciliations](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) Wiley provides comprehensive reconciliations from GAAP to Non-GAAP measures to clarify underlying business performance [Reconciliation of US GAAP EPS to Non-GAAP Adjusted EPS](index=6&type=section&id=Reconciliation%20of%20US%20GAAP%20EPS%20to%20Non-GAAP%20Adjusted%20EPS) Wiley provides a reconciliation from US GAAP EPS to Non-GAAP Adjusted EPS, which excludes the impact of items such as goodwill impairment, restructuring charges, foreign exchange losses, amortization of acquired intangibles, and net loss on sale of businesses, to offer a clearer view of underlying business performance Reconciliation of US GAAP EPS to Non-GAAP Adjusted EPS (Q4 and Full Year FY2025 vs. FY2024) | Metric | Q4 FY2025 | Q4 FY2024 | Full Year FY2025 | Full Year FY2024 | | :---------------------------------------------------- | :-------- | :-------- | :--------------- | :--------------- | | US GAAP Earnings (Loss) Per Share - Diluted | $1.25 | $0.46 | $1.53 | $(3.65) | | Adjustments: | | | | | | Impairment of goodwill | — | — | — | 1.90 | | Restructuring and related charges | 0.14 | 0.16 | 0.36 | 0.85 | | Foreign exchange losses on intercompany transactions | (0.01) | 0.01 | 0.08 | 0.02 | | Amortization of acquired intangible assets | 0.15 | 0.02 | 0.76 | 0.68 | | Net loss on sale of businesses, assets, and impairment charges related to assets held-for-sale | 0.18 | 0.04 | 0.38 | 2.81 | | Held for Sale or Sold segment Adjusted Net (Income) Loss | — | (0.03) | 0.05 | (0.42) | | Income tax adjustments | (0.34) | 0.55 | 0.48 | 0.54 | | EPS impact of using weighted-average dilutive shares for adjusted EPS calculation | — | — | — | 0.05 | | Non-GAAP Adjusted Earnings Per Share - Diluted | $1.37 | $1.21 | $3.64 | $2.78 | [Reconciliation of US GAAP Income Before Taxes to Non-GAAP Adjusted Income Before Taxes](index=6&type=section&id=Reconciliation%20of%20US%20GAAP%20Income%20Before%20Taxes%20to%20Non-GAAP%20Adjusted%20Income%20Before%20Taxes) The reconciliation from US GAAP Income Before Taxes to Non-GAAP Adjusted Income Before Taxes adjusts for significant non-recurring or non-operational items, such as goodwill impairment, restructuring charges, and gains/losses from asset sales, providing a normalized view of pre-tax profitability Reconciliation of US GAAP Income Before Taxes to Non-GAAP Adjusted Income Before Taxes (Q4 and Full Year FY2025 vs. FY2024) | Metric | Q4 FY2025 | Q4 FY2024 | Full Year FY2025 | Full Year FY2024 | | :------------------------------------------------------------------------------------------------ | :-------- | :-------- | :--------------- | :--------------- | | US GAAP Income (Loss) Before Taxes | $52,265 | $54,002 | $142,878 | $(187,047) | | Pretax Impact of Adjustments: | | | | | | Impairment of goodwill | — | — | — | 108,449 | | Restructuring and related charges | 12,490 | 11,008 | 25,561 | 63,041 | | Foreign exchange losses on intercompany transactions | — | 815 | 5,590 | 1,903 | | Amortization of acquired intangible assets | 12,908 | 13,324 | 51,864 | 57,874 | | Net loss on sale of businesses, assets, and impairment charges related to assets held-for-sale | 13,580 | 3,642 | 23,340 | 183,389 | | Held for Sale or Sold segment Adjusted (Income) Loss Before Taxes | — | (2,409) | 3,578 | (30,661) | | Non-GAAP Adjusted Income Before Taxes | $91,243 | $80,382 | $252,811 | $196,948 | [Reconciliation of US GAAP Income Tax Provision to Non-GAAP Adjusted Income Tax Provision](index=6&type=section&id=Reconciliation%20of%20US%20GAAP%20Income%20Tax%20Provision%20to%20Non-GAAP%20Adjusted%20Income%20Tax%20Provision) This reconciliation adjusts the US GAAP income tax provision to a non-GAAP adjusted figure by accounting for the tax impact of various non-GAAP adjustments, such as goodwill impairment and restructuring charges, and also includes adjustments for valuation allowances and state tax rate changes, resulting in a more stable adjusted effective tax rate Reconciliation of US GAAP Income Tax Provision to Non-GAAP Adjusted Income Tax Provision (Q4 and Full Year FY2025 vs. FY2024) | Metric | Q4 FY2025 | Q4 FY2024 | Full Year FY2025 | Full Year FY2024 | | :------------------------------------------------------------------------------------------------ | :-------- | :-------- | :--------------- | :--------------- | | US GAAP Income Tax (Benefit) Provision | $(15,828) | $28,737 | $58,717 | $13,272 | | Income Tax Impact of Adjustments: | | | | | | Impairment of goodwill | — | 255 | — | 2,953 | | Restructuring and related charges | 4,633 | 2,425 | 5,947 | 15,662 | | Foreign exchange losses on intercompany transactions | 571 | 471 | 1,170 | 582 | | Amortization of acquired intangible assets | 4,720 | 11,459 | 10,231 | 20,127 | | Net loss on sale of businesses, assets, and impairment charges related to assets held-for-sale | 3,715 | 1,197 | 2,368 | 26,908 | | Held for Sale or Sold segment Adjusted Tax (Provision) Benefit | — | (622) | 807 | (7,140) | | Impact of valuation allowance on the US GAAP effective tax rate | 18,776 | (30,249) | (26,008) | (30,249) | | Impact of change in certain US state tax rates in 2025 | (117) | — | (117) | — | | Non-GAAP Adjusted Income Tax Provision | $16,470 | $13,673 | $53,115 | $42,115 | | US GAAP Effective Tax Rate | -30.3 % | 53.2 % | 41.1 % | -7.1 % | | Non-GAAP Adjusted Effective Tax Rate | 18.1 % | 17.0 % | 21.0 % | 21.4 % | - In fiscal year **2025**, an additional **$1.1 million** and **$1.4 million** of cumulative translation adjustments were written off in earnings for the three months and year ended April **30**, **2025**, respectively, due to the formal liquidation of Russia operations[37](index=37&type=chunk) - In fiscal year **2024**, a valuation allowance of **$30.2 million** was established due to US losses, and increased by **$26.0 million** in fiscal year **2025** due to an increase in the US net deferred tax asset[42](index=42&type=chunk) [Reconciliation of US GAAP Net Income (Loss) to Non-GAAP EBITDA and Adjusted EBITDA](index=9&type=section&id=Reconciliation%20of%20US%20GAAP%20Net%20Income%20(Loss)%20to%20Non-GAAP%20EBITDA%20and%20Adjusted%20EBITDA) This reconciliation provides a bridge from US GAAP Net Income (Loss) to Non-GAAP EBITDA and Adjusted EBITDA, adding back interest, taxes, depreciation, and amortization, along with other non-recurring items like goodwill impairment and divestiture-related losses, to present a measure of operational profitability before non-cash and non-operating impacts Reconciliation of US GAAP Net Income (Loss) to Non-GAAP EBITDA and Adjusted EBITDA (Q4 and Full Year FY2025 vs. FY22024) | Metric | Q4 FY2025 | Q4 FY2024 | Full Year FY2025 | Full Year FY2024 | | :------------------------------------------------------------------------------------------------ | :-------- | :-------- | :--------------- | :--------------- | | Net Income (Loss) | $68,093 | $25,265 | $84,161 | $(200,319) | | Interest expense | 11,270 | 11,411 | 52,547 | 49,003 | | (Benefit) provision for income taxes | (15,828) | 28,737 | 58,717 | 13,272 | | Depreciation and amortization | 36,681 | 47,613 | 147,126 | 176,989 | | Non-GAAP EBITDA | 100,216 | 113,026 | 342,551 | 38,945 | | Impairment of goodwill | — | — | — | 108,449 | | Restructuring and related charges | 12,490 | 11,008 | 25,561 | 63,041 | | Net foreign exchange transaction losses (gains) | 826 | (530) | 8,142 | 2,959 | | Net loss on sale of businesses, assets, and impairment charges related to assets held-for-sale | 13,580 | 3,642 | 23,340 | 183,389 | | Other (income) expense, net | (1,469) | 257 | (5,498) | 3,957 | | Held for Sale or Sold segment Adjusted EBITDA | — | (2,409) | 3,578 | (32,148) | | Non-GAAP Adjusted EBITDA | $125,643 | $124,994 | $397,674 | $368,592 | | Adjusted EBITDA Margin | 28.4 % | 28.3 % | 24.0 % | 22.8 % | [Explanation of Usage of Non-GAAP Performance Measures](index=19&type=section&id=Explanation%20of%20Usage%20of%20Non-GAAP%20Performance%20Measures) Wiley utilizes various non-GAAP financial measures to provide supplemental indicators of operating performance and financial position, believing they offer useful information for operational trends and comparisons by excluding non-controllable or non-recurring items - Management uses non-GAAP performance measures as supplemental indicators of operating performance and financial position, for internal reporting, forecasting, public outlook, and incentive compensation[59](index=59&type=chunk) - Non-GAAP measures provide useful information to investors and financial analysts for operational trends and comparisons over time by excluding the impact of restructuring charges, divestitures, and other items[60](index=60&type=chunk) - The performance metric used by the chief operating decision maker to evaluate reportable segments is Adjusted Operating Income, with Adjusted EBITDA providing additional useful information[61](index=61&type=chunk) - Non-GAAP performance measures do not have standardized meanings under US GAAP, may not be comparable to other companies, and should not be viewed as alternatives to US GAAP financial results[64](index=64&type=chunk) [Balance Sheet, Cash Flow, and Capital Allocation](index=2&type=section&id=Balance%20Sheet,%20Cash%20Flow,%20and%20Capital%20Allocation) Wiley's balance sheet shows slight asset/liability decrease, with increased Free Cash Flow and enhanced shareholder returns [Condensed Consolidated Statements of Financial Position](index=16&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Position) Wiley's balance sheet as of April 30, 2025, shows a slight decrease in total assets and liabilities compared to the prior year, primarily due to the divestiture of assets held-for-sale Condensed Consolidated Statements of Financial Position (April 30, 2025 vs. 2024) | Metric | April 30, 2025 | April 30, 2024 | | :-------------------------------- | :------------- | :------------- | | Total current assets | $439,884 | $454,042 | | Technology, property and equipment, net | $162,125 | $192,438 | | Intangible assets, net | $595,044 | $615,694 | | Goodwill | $1,121,505 | $1,091,368 | | Total assets | $2,691,466 | $2,725,495 | | Total current liabilities | $820,856 | $873,282 | | Long-term debt | $789,435 | $767,096 | | Total liabilities | $1,939,260 | $1,985,779 | | Shareholders' equity | $752,206 | $739,716 | | Total liabilities and shareholders' equity | $2,691,466 | $2,725,495 | - Net Debt-to-EBITDA Ratio was **1.8** compared to **1.7** in the year-ago period[11](index=11&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=17&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Wiley's net cash provided by operating activities slightly decreased in Fiscal 2025, primarily due to cloud-based solution spending, but Free Cash Flow increased by 10% to $126 million Condensed Consolidated Statements of Cash Flows (Full Year FY2025 vs. FY2024) | Metric | FY2025 | FY2024 | | :------------------------------------------ | :------- | :------- | | Net cash provided by operating activities | $202,591 | $207,638 | | Net cash used in investing activities | $(94,018) | $(106,643) | | Net cash used in financing activities | $(125,330) | $(107,221) | | Change in cash, cash equivalents and restricted cash for period | $(13,611) | $(7,719) | | Cash, cash equivalents and restricted cash - ending | $85,932 | $99,543 | | Free cash flow less product development spending | $125,890 | $114,296 | - Net Cash provided by Operating Activities was **$203 million** compared to **$208 million**, primarily due to spend on cloud-based solutions related to targeted enterprise modernization work[17](index=17&type=chunk) - Free Cash Flow was up **10%** to **$126 million**, primarily driven by lower capex[17](index=17&type=chunk) [Capital Allocation and Returns to Shareholders](index=2&type=section&id=Capital%20Allocation%20and%20Returns%20to%20Shareholders) Wiley increased its allocation to shareholder returns in Fiscal 2025, with a significant rise in share repurchases and continued dividend payments - Wiley allocated **$137 million** toward dividends and share repurchases in FY**2025**, up from **$122 million** in the prior year[17](index=17&type=chunk) - **$60 million** was allocated to share repurchases at an average cost basis of **$44.16**, up from **$45 million** in the prior year period[17](index=17&type=chunk) - After the year closed, Wiley received **$120 million** in cash proceeds related to the University Services divestiture, with the total outstanding note paid in full[17](index=17&type=chunk) [Company Information & Disclaimers](index=2&type=section&id=Company%20Information%20%26%20Disclaimers) This section provides details on Wiley's earnings call, company overview, and forward-looking statement disclaimers [Earnings Conference Call](index=2&type=section&id=Earnings%20Conference%20Call) Wiley scheduled its earnings conference call for June 17, 2025, at 10:00 am (ET), providing details for webcast and dial-in access for investors - Earnings conference call scheduled for June **17**, **2025**, at **10:00** am (ET), accessible via webcast at investors.wiley.com or direct link, and via dial-in for U.S. and international callers[14](index=14&type=chunk) [About Wiley](index=2&type=section&id=About%20Wiley) Wiley is a global leader in research and learning, providing industry-leading content, services, platforms, and knowledge networks to researchers, students, instructors, professionals, institutions, and corporations, with a mission to unlock human potential for over two centuries - Wiley (NYSE: WLY) is one of the world's largest publishers and a trusted leader in research and learning, offering industry-leading content, services, platforms, and knowledge networks[15](index=15&type=chunk) - The company serves researchers, students, instructors, professionals, institutions, and corporations, aiming to enable knowledge-seekers to transform obstacles into opportunities and unlock human potential[15](index=15&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) The release contains forward-looking statements regarding the company's operations, performance, and financial condition, which are subject to inherent uncertainties and contingencies - The release contains forward-looking statements concerning the Company's operations, performance, and financial condition, which are based on assumptions and estimates subject to uncertainties and contingencies[20](index=20&type=chunk) - Actual results may differ materially from those in any forward-looking statements due to various factors, including investment in new technologies, subscriber renewal rates, economic conditions, and the ability to protect intellectual property[20](index=20&type=chunk) - The Company undertakes no obligation to update or revise forward-looking statements to reflect subsequent events[20](index=20&type=chunk)

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]

Core Insights - Albert Anthony is a Croatian-American media personality who has gained over 1,000 followers on investor platforms since 2023, focusing on markets and stocks [1] - He is set to launch a new book titled "Financial Markets: Growing A Dividend Income Portfolio" in 2025, which aligns with his ongoing article series on the same topic [1] - Albert Anthony has a background in management and information systems, having worked in the IT department of a top-10 financial firm [1] Company Overview - Albert Anthony & Co. is a sole proprietorship registered in Austin, Texas, and is wholly owned by Albert Anthony [1] - The company does not provide personalized financial advisory services but offers general market commentary based on publicly available data [1] Investment Focus - Albert Anthony has launched the Future Investor Fund, which aims to build a dividend portfolio [1] - The brand emphasizes a focus on dividend income as a key investment strategy [1]

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]

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's adjusted EBITDA decreased by five percent [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, including a multiyear agreement in India and Brazil, enhancing its geographic diversification [33][35] Company Strategy and Development Direction - The company is focusing on margin expansion as a multiyear strategic goal, with a two hundred eighty basis points improvement in operating margin reported [20][70] - The strategic position in AI development offers multiple advantages, with significant opportunities in corporate research and development [16][41] - The company is committed to continuous improvement and value creation, with a strong emphasis on operational discipline and fiscal prudence [77][79] 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 raised its fiscal 2026 margin target, indicating confidence in revenue growth and cost structure rationalization [70][71] - Management remains optimistic about the long-term growth potential in research and AI licensing, despite short-term challenges in the learning segment [95][100] Other Important Information - The company has a strong balance sheet with thirty-one consecutive years of dividend increases, reflecting consistent cash generation [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 confidence in revenue growth, particularly in AI [82][83][85] Question: How does the company compare its cost structure with competitors like Springer? - The company has identified opportunities to streamline its cost structure, particularly in corporate shared services, while acknowledging differences in business mix [90][91][92] Question: Can you confirm the nine million incremental AI revenue for Q3? - Yes, the full nine million was recognized in Q3, specifically in the research segment [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, supported by improved margins and new business [95][101] Question: How is the company thinking about capital allocation in the near term? - The company is evaluating the pace of share repurchases and will consider its cash flow situation as it moves forward [105][106] Question: What is the company's revenue exposure to US institutions, particularly medical libraries? - The company monitors developments in US funding closely, with a low single-digit impact anticipated from potential funding changes, and maintains strong relationships with medical libraries [117][122]