John Wiley & Sons(US:WLY)2025-03-06 15:59Revenue Performance - Third quarter reported revenue was $405 million, down from $461 million, with Adjusted Revenue (excluding divestitures) increasing by 1.2% at constant currency[5]. - Year-to-date reported revenue reached $1,235 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 $268 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 $460.705 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 $216.586 million in 2024[39]. - Learning segment revenue for the nine months ended January 31, 2025, was $422.910 million, a 5% increase from $404.594 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, up 39% at constant currency, while GAAP EPS was a loss of ($0.43), improved from a loss of ($2.08) in the prior year[11]. - Non-GAAP adjusted earnings per share for the three months ended January 31, 2025, was $0.84, compared to $0.59 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 $243.598 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 $117.659 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 $52 million, with Free Cash Flow improving by $44 million[5]. - Net cash provided by operating activities increased to $52,250 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) 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, slightly down from $108,907 at the end of the previous year[48]. Debt and Liabilities - Total current liabilities decreased to $717,258 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 $877,205 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 $1,650 million to $1,690 million, and Adjusted EBITDA in the range of $385 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 $15.6 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 $81.7 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 $9,760 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 $22.954 million compared to a net loss of $113.875 million for the same period in 2024[35].