John Wiley & Sons(US:WLY)2025-12-04 16:00Revenue Performance - Q2 2026 revenue of $422 million, down 1% year-over-year, with operating income of $73 million, up 14%, and diluted EPS of $0.84, also up 14%[7] - Total revenue for the three months ended October 31, 2025, was $421.8 million, a slight decrease of 1% compared to $426.6 million in 2024[30] - Total revenue for the six months ended October 31, 2025, was $818,551,000, a decrease of 1% compared to $830,404,000 in the same period of 2024[34] Segment Performance - Research revenue for Q2 was $279 million, up 6% as reported, driven by 7% growth in Research Publishing, including $5 million from AI revenue; article submissions rose by 28%[8] - Learning revenue for Q2 was $143 million, down 11% due to market-related softness, with professional and academic segments down 16% and 8%, respectively[8] - Research Publishing revenue for the three months ended October 31, 2025, was $241.4 million, an 8% increase from $222.7 million in 2024[30] - Learning segment revenue decreased by 10% to $258,345,000, with Academic revenue down 8% and Professional revenue down 12%[34] Profitability Metrics - Adjusted EBITDA for Q2 was $93 million, up 14%, with a margin of 33.5%, compared to 31.3% in the prior year[8] - Non-GAAP Adjusted EBITDA for the six months ended October 31, 2025, was $185.5 million, compared to $178.2 million in 2024, indicating a 4.7% increase[27] - The Adjusted EBITDA margin for the three months ended October 31, 2025, was 27.3%, up from 24.9% in the same period of 2024[27] - Non-GAAP adjusted operating income for the six months ended October 31, 2025, was $113,137,000, reflecting a 9% increase from $104,181,000 in 2024[34] Cash Flow and Capital Management - Year-to-date operating cash flow improved by 19%, and free cash flow improved by 17%[7] - Free cash flow usage improved to $108 million from $130 million in the prior year, largely due to higher cash earnings and lower capex[16] - Net cash used in operating activities was $(76,505,000) for the six months ended October 31, 2025, compared to $(93,992,000) in 2024[39] - Free cash flow less product development spending was $(107,926,000) for the six months ended October 31, 2025, compared to $(130,149,000) in 2024[40] Shareholder Returns - Share repurchases increased by 69% year-over-year to $21 million, with a dividend yield around 3.9%[7] - Full-year outlook for adjusted EBITDA margin is 25.5% to 26.5%, with adjusted EPS guidance of $3.90 to $4.35[12] - Adjusted EPS, Adjusted Revenue, Adjusted Operating Income, and margin are key metrics used by shareholders to evaluate the company's performance[50] Debt and Financial Position - Net debt-to-EBITDA ratio improved to 2.0 from 2.2 in the prior year, with $120 million of divestiture proceeds used to reduce debt[16] - Total assets decreased to $2,466,739,000 as of October 31, 2025, from $2,691,466,000 as of April 30, 2025[36] - Total liabilities decreased to $1,726,550,000 as of October 31, 2025, from $1,939,260,000 as of April 30, 2025[36] - Cash and cash equivalents at the end of the period were $67,454,000, down from $75,586,000 at the end of the previous year[39] Income Metrics - For the three months ended October 31, 2025, the diluted US GAAP Earnings Per Share (EPS) was $0.84, compared to $0.74 for the same period in 2024, representing a 13.5% increase[23] - Non-GAAP Adjusted EPS for the same period was $1.10, up from $0.97 in 2024, reflecting a 13.4% increase[23] - US GAAP Income Before Taxes for the three months ended October 31, 2025, was $58.01 million, compared to $48.94 million in 2024, marking an 18.5% increase[24] - Non-GAAP Adjusted Income Before Taxes for the same period was $78.60 million, up from $69.14 million in 2024, reflecting a 13.5% increase[24] Currency Impact - Results on a constant currency basis provide better comparability of business trends by removing the effects of foreign currency movements[50]