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John Wiley & Sons(WLY) - 2025 Q3 - Quarterly Results
WLYJohn Wiley & Sons(WLY)2025-03-06 15:59

Revenue Performance - Third quarter reported revenue was 405million,downfrom405 million, down from 461 million, with Adjusted Revenue (excluding divestitures) increasing by 1.2% at constant currency[5]. - Year-to-date reported revenue reached 1,235million,comparedto1,235 million, compared to 1,405 million, with Adjusted Revenue (excluding divestitures) up 3.5% at constant currency[5]. - Research revenue for the third quarter was 268million,up4268 million, up 4% as reported and 5% at constant currency, driven by growth in open access, solutions, and AI licensing[6]. - Total revenue for the three months ended January 31, 2025, was 404.626 million, a decrease of 12% compared to 460.705millioninthesameperiodof2024[39].−ResearchPublishingrevenueforthethreemonthsendedJanuary31,2025,was460.705 million in the same period of 2024[39]. - Research Publishing revenue for the three months ended January 31, 2025, was 225.874 million, up 4% from 216.586millionin2024[39].−LearningsegmentrevenuefortheninemonthsendedJanuary31,2025,was216.586 million in 2024[39]. - Learning segment revenue for the nine months ended January 31, 2025, was 422.910 million, a 5% increase from 404.594millionin2024[43].EarningsandProfitability−AdjustedEBITDAforthethirdquarterwas404.594 million in 2024[43]. Earnings and Profitability - Adjusted EBITDA for the third quarter was 88 million, an increase of 11% as reported and 12% at constant currency, with a margin rise to 32.7%[6]. - Adjusted EPS for the third quarter was 0.84,up390.84, up 39% at constant currency, while GAAP EPS was a loss of (0.43), improved from a loss of (2.08)intheprioryear[11].−Non−GAAPadjustedearningspershareforthethreemonthsendedJanuary31,2025,was2.08) in the prior year[11]. - Non-GAAP adjusted earnings per share for the three months ended January 31, 2025, was 0.84, compared to 0.59forthesameperiodin2024[25].−Non−GAAPAdjustedEBITDAfortheninemonthsendedJanuary31,2025,was0.59 for the same period in 2024[25]. - Non-GAAP Adjusted EBITDA for the nine months ended January 31, 2025, was 272.031 million, an increase of 12% from 243.598millioninthesameperiodof2024[43].−Non−GAAPAdjustedOperatingIncomefortheninemonthsendedJanuary31,2025,increasedby37243.598 million in the same period of 2024[43]. - Non-GAAP Adjusted Operating Income for the nine months ended January 31, 2025, increased by 37% to 161.586 million from 117.659millionin2024[43].−AdjustedEBITDAmarginfortheninemonthsendedJanuary31,2025,improvedto22.3117.659 million in 2024[43]. - Adjusted EBITDA margin for the nine months ended January 31, 2025, improved to 22.3% from 20.7% in the same period of 2024[43]. Cash Flow and Financial Position - Free Cash Flow for Fiscal 2025 is reaffirmed at approximately 125 million, representing a growth of about 10% over the prior year[11]. - Year-to-date Cash from Operations increased by 115% to 52million,withFreeCashFlowimprovingby52 million, with Free Cash Flow improving by 44 million[5]. - Net cash provided by operating activities increased to 52,250fortheninemonthsendedJanuary31,2025,comparedto52,250 for the nine months ended January 31, 2025, compared to 24,352 in the prior year, marking a growth of approximately 114.4%[48]. - Free cash flow less product development spending was (1,151)fortheninemonthsendedJanuary31,2025,animprovementfrom(1,151) for the nine months ended January 31, 2025, an improvement from (45,247) in the same period of 2024[49]. - Cash and cash equivalents at the end of the period were 104,560,slightlydownfrom104,560, slightly down from 108,907 at the end of the previous year[48]. Debt and Liabilities - Total current liabilities decreased to 717,258asofJanuary31,2025,from717,258 as of January 31, 2025, from 873,282 as of April 30, 2024, reflecting a reduction of approximately 18%[45]. - Long-term debt increased to 877,205asofJanuary31,2025,comparedto877,205 as of January 31, 2025, compared to 767,096 as of April 30, 2024, indicating an increase of about 14.4%[45]. Strategic Initiatives and Outlook - The company reaffirmed its Fiscal 2025 outlook for Adjusted Revenue in the range of 1,650millionto1,650 million to 1,690 million, and Adjusted EBITDA in the range of 385millionto385 million to 410 million[7]. - Fiscal 2026 margin target has been raised to over 25% from a previous range of 24-25%[12]. - The company executed two significant recurring revenue agreements in India and Brazil, expanding access to over 6,000 and 430 institutions, respectively[6]. - The company has not provided a 2025 outlook for the most directly comparable US GAAP financial measures due to high variability and complexity[56]. - Management emphasizes the use of non-GAAP performance measures to provide additional insights into operational trends and financial performance[52]. Losses and Impairments - The company recognized a net loss of 15.6millionforWileyEdgeduetochangesinfairvalue[20].−Thecompanyrecordedpretaxnoncashgoodwillimpairmentsof15.6 million for Wiley Edge due to changes in fair value[20]. - The company recorded pretax noncash goodwill impairments of 108.4 million in fiscal year 2024, including 81.7millionrelatedtoWileyEdge[22].−Thecompanyincurredanetpretaxlossonthesaleofbusinessesandassetsof81.7 million related to Wiley Edge[22]. - The company incurred a net pretax loss on the sale of businesses and assets of 15.9 million for the three months ended January 31, 2025[32]. - The company reported a net loss on sale of businesses and assets of 9,760fortheninemonthsendedJanuary31,2025,comparedto9,760 for the nine months ended January 31, 2025, compared to 179,747 in the prior year[48]. - For the three months ended January 31, 2025, John Wiley & Sons reported a net loss of 22.954millioncomparedtoanetlossof22.954 million compared to a net loss of 113.875 million for the same period in 2024[35].