John Wiley & Sons(WLYB) - 2026 Q1 - Quarterly Report

FORM 10-Q Filing Information Details registrant status, outstanding stock, and disclosures on forward-looking statements and non-GAAP financial measures - The registrant, John Wiley & Sons, Inc., is a large accelerated filer and is not a shell company[4][5] - As of August 31, 2025, Class A Common Stock outstanding was 44,434,726 shares and Class B Common Stock outstanding was 8,767,793 shares[5] - The report includes a 'Safe Harbor' Statement for forward-looking statements and defines various non-GAAP financial measures used by management for performance evaluation and investor analysis[8][11][12] PART I - FINANCIAL INFORMATION Item 1. Financial Statements Presents unaudited condensed consolidated financial statements for Q1 FY2026, with detailed notes on accounting, divestitures, revenue, and other financial aspects Condensed Consolidated Statements of Financial Position – Unaudited Total assets decreased by $167.1 million, while total liabilities decreased by $148.0 million, and total shareholders' equity decreased by $19.1 million | Metric | July 31, 2025 (in thousands) | April 30, 2025 (in thousands) | Change (in thousands) | | :--------------------------------- | :--------------------------- | :---------------------------- | :-------------------- | | Assets: | | | | | Total current assets | $420,295 | $439,884 | $(19,589) | | Total assets | $2,524,332 | $2,691,466 | $(167,134) | | Liabilities & Equity: | | | | | Total current liabilities | $648,843 | $820,856 | $(172,013) | | Total liabilities | $1,791,273 | $1,939,260 | $(147,987) | | Total shareholders' equity | $733,059 | $752,206 | $(19,147) | | Total liabilities and shareholders' equity | $2,524,332 | $2,691,466 | $(167,134) | Condensed Consolidated Statements of Net Income (Loss) – Unaudited Net revenue decreased by $7.0 million, while operating income increased by $2.0 million, and net income improved significantly to $11.7 million | Metric | Three Months Ended July 31, 2025 (in thousands) | Three Months Ended July 31, 2024 (in thousands) | Change (in thousands) | % Change | | :---------------------------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :-------------------- | :------- | | Revenue, net | $396,800 | $403,809 | $(7,009) | -1.74% | | Total costs and expenses | $365,837 | $374,836 | $(8,999) | -2.40% | | Operating income | $30,963 | $28,973 | $1,990 | 6.87% | | Income before taxes | $17,707 | $23,003 | $(5,296) | -23.02% | | Provision for income taxes | $6,007 | $24,439 | $(18,432) | -75.42% | | Net income (loss) | $11,700 | $(1,436) | $13,136 | -914.76% | | Basic EPS | $0.22 | $(0.03) | $0.25 | -833.33% | | Diluted EPS | $0.22 | $(0.03) | $0.25 | -833.33% | Condensed Consolidated Statements of Comprehensive Income – Unaudited Net income improved to $11.7 million, with total other comprehensive income at $0.5 million, resulting in comprehensive income of $12.2 million | Metric | Three Months Ended July 31, 2025 (in thousands) | Three Months Ended July 31, 2024 (in thousands) | | :---------------------------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Net income (loss) | $11,700 | $(1,436) | | Foreign currency translation adjustment | $(5,852) | $14,963 | | Unamortized retirement costs, net of tax | $4,224 | $(2,040) | | Unrealized gain (loss) on interest rate swaps, net of tax | $2,141 | $(8,076) | | Total other comprehensive income | $513 | $4,847 | | Comprehensive income | $12,213 | $3,411 | Condensed Consolidated Statements of Cash Flows – Unaudited Operating cash outflow decreased by $3.7 million, investing activities generated $98.9 million cash, while financing activities shifted to a $16.9 million cash outflow | Metric | Three Months Ended July 31, 2025 (in thousands) | Three Months Ended July 31, 2024 (in thousands) | Change (in thousands) | | :------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :-------------------- | | Net cash used in operating activities | $(85,005) | $(88,712) | $3,707 | | Net cash provided by (used in) investing activities | $98,856 | $(23,807) | $122,663 | | Net cash (used in) provided by financing activities | $(16,924) | $101,589 | $(118,513) | | Effects of exchange rate changes on cash | $(959) | $798 | $(1,757) | | Decrease for the period | $(4,032) | $(10,132) | $6,100 | | Balance at end of period (Cash & cash equivalents) | $81,900 | $89,411 | $(7,511) | Condensed Consolidated Statements of Shareholders' Equity – Unaudited Total shareholders' equity decreased by $19.1 million, reflecting $14.0 million in treasury share purchases and $19.0 million in dividends paid | Metric | Balance at April 30, 2025 (in thousands) | Balance at July 31, 2025 (in thousands) | Change (in thousands) | | :-------------------------------- | :--------------------------------------- | :-------------------------------------- | :-------------------- | | Total shareholders' equity | $752,206 | $733,059 | $(19,147) | | Purchases of treasury shares | N/A | $(14,000) | N/A | | Class A common stock dividends | N/A | $(15,932) | N/A | | Class B common stock dividends | N/A | $(3,112) | N/A | | Comprehensive income, net of tax | N/A | $12,213 | N/A | Notes to Unaudited Condensed Consolidated Financial Statements Detailed explanations and disclosures supporting the unaudited condensed consolidated financial statements, covering accounting policies and financial events Note 1. Basis of Presentation Financial statements are prepared under SEC interim reporting requirements and US GAAP, relying on management's estimates and assumptions - Financial statements are prepared in accordance with SEC interim reporting requirements and US GAAP, with normal recurring adjustments[28][29] - Management's estimates and assumptions are used, and actual results may differ[29] Note 2. Recent Accounting Standards No material impact from recently adopted accounting standards, with ongoing assessment of new ASUs on credit losses, expense disaggregation, and income tax disclosures - No recently adopted accounting standards had a material impact[31] - FASB issued ASU 2025-05 on credit losses (effective May 1, 2026), ASU 2024-03/2025-01 on expense disaggregation (effective FY2028/**