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]

Core Points - Wiley has declared a quarterly cash dividend of $0.355 per share, marking the 32nd consecutive year of dividend increases, with an annual dividend now at $1.42 per share, up from $1.41 in Fiscal 2025 [1][9] - The company has approved a $250 million share repurchase authorization, an increase from the previous $200 million authorization in 2020 [2] - For Fiscal 2025, Wiley allocated $76 million to dividends and $60 million to share repurchases [2] - In the first quarter of Fiscal 2026, Wiley reported revenue of $397 million, a decrease from $404 million due to divested businesses, but operating income increased by 7% to $31 million [7]

Revenue Performance - Revenue for the three months ended July 31, 2025, decreased by $7.0 million, or 2%, compared to the prior year, with Adjusted Revenue increasing by 1% on a constant currency basis [137]. - Adjusted Revenue for the three months ended July 31, 2025, was $396.8 million, reflecting a 1% increase compared to the prior year [143]. - Research revenue increased by $16.4 million, or 6%, for the three months ended July 31, 2025, with AI license revenue rising to $15.8 million from $1.1 million in the prior year [177]. - Learning revenue decreased by $9.2 million, or 7%, for the three months ended July 31, 2025, with AI license revenue in Learning dropping to $13.1 million from $16.1 million in the prior year [180]. - Revenue for Held for Sale or Sold decreased by $14.2 million compared to the prior year, attributed to the sale of Wiley Edge and CrossKnowledge businesses [183]. Operating Income and Expenses - Operating income for the three months ended July 31, 2025, was $31.0 million, an increase of $2.0 million, or 7%, compared to the prior year [152]. - Operating and administrative expenses decreased by $8.5 million, or 3%, to $240.3 million for the three months ended July 31, 2025 [142]. - Adjusted Operating Income for the Research segment was $56.2 million for the three months ended July 31, 2025, a 2% increase from the prior year [176]. AI License Revenue - AI license revenue reached $28.9 million for the three months ended July 31, 2025, up from $17.2 million in the prior year, including $15.7 million from licensed content [137]. - Adjusted EBITDA for the three months ended July 31, 2025, increased by 2% on a constant currency basis, primarily due to higher revenue, despite increased royalty costs on AI license revenue [178]. Tax and Earnings - The US GAAP effective tax rate for the three months ended July 31, 2025, was 33.9%, significantly lower than 106.2% for the same period in 2024, primarily due to year-to-date US ordinary losses [167]. - Diluted earnings per share for the three months ended July 31, 2025, was $0.22, compared to a loss of $(0.03) per share for the same period in 2024 [171]. - Non-GAAP Adjusted EPS for the three months ended July 31, 2025, was $0.49, an increase from $0.47 in the prior year [173]. Cash Flow and Financing - Net cash provided by investing activities was $98.9 million for the three months ended July 31, 2025, compared to net cash used of $23.8 million in the prior year, mainly due to $115.3 million received from the Sale Agreement [200]. - Net cash used in financing activities was $16.9 million for the three months ended July 31, 2025, compared to net cash provided of $101.6 million in the prior year, reflecting lower net borrowings of $113.2 million [201]. - The company increased its quarterly dividend to shareholders to $1.42 per share annualized, up from $1.41 per share in the prior year [202]. - The company approved an additional share repurchase program of $250 million, with $14.0 million repurchased during the three months ended July 31, 2025 [203]. Restructuring and Cost Savings - The Global Restructuring Program is expected to yield annualized cost savings of approximately $105 million, primarily realized in fiscal year 2026 [148]. - Adjusted EBITDA decreased by 7% on a constant currency basis compared to the prior year, primarily due to lower revenue, partially offset by reduced bad debt expense and royalty costs [181]. Foreign Exchange and Impairment - Net foreign exchange transaction losses were $(1.0) million for the three months ended July 31, 2025, primarily due to losses on foreign currency denominated receivables [157]. - The company recorded foreign currency translation losses of approximately $(5.9) million, compared to gains of $15.0 million for the same period in 2024 [212]. - The company recognized a reduction in cumulative impairment charges of $4.4 million related to the sale of CrossKnowledge in the three months ended July 31, 2024 [161]. Other Financial Metrics - Negative working capital was $228.5 million as of July 31, 2025, a decrease of $152.5 million from April 30, 2025, primarily due to seasonality and unearned contract liabilities [198]. - A hypothetical one percent change in interest rates for the $328.7 million of unhedged variable rate debt as of July 31, 2025 would affect net income and cash flow by approximately $2.5 million [209]. - The print book sales return reserves amounted to a net liability balance of $9.1 million as of July 31, 2025, slightly up from $9.0 million as of April 30, 2025 [215]. - A one percent change in the estimated sales return rate could affect net income by approximately $0.3 million [216]. - Subscription agents accounted for approximately 18% of total revenue for the year ended April 30, 2025 [217]. - No single book customer accounts for more than 7% of total consolidated revenue as of July 31, 2025, while the top 10 book customers account for approximately 12% of total consolidated revenue [218].

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]