John Wiley & Sons(WLYB) - 2026 Q2 - Quarterly Results

Revenue 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] - Research revenue for Q2 was $279 million, up 6% as reported, driven by a 7% growth in Research Publishing, including $5 million from AI revenue[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] - 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[36] - Research segment revenue increased by 6% to $560,206,000, driven by an 18% increase in Research Solutions revenue[34] - Learning segment revenue decreased by 10% to $258,345,000, with Academic and Professional revenues declining by 8% and 12%, respectively[34] Profitability Metrics - Adjusted EBITDA for Q2 was $93 million, up 14% as reported, with an adjusted EBITDA margin of 33.5%, compared to 31.3% in the prior year[8] - The Adjusted EBITDA margin for the three months ended October 31, 2025, improved to 27.3%, up from 24.9% in the same period of 2024[30] - Non-GAAP Adjusted Operating Income for the three months ended October 31, 2025, was $79.1 million, a 15% increase from $68.8 million in 2024[30] - Non-GAAP adjusted operating income rose by 9% to $113,137,000, with an adjusted operating income margin of 13.8%[34] - The adjusted EBITDA margin improved to 22.7% from 21.9% year-over-year, indicating enhanced operational efficiency[34] Cash Flow and Debt Management - Free cash flow improved to a use of $108 million from a use of $130 million in the prior year, largely due to higher cash earnings[16] - Year-to-date operating cash flow and free cash flow improved by 19% and 17%, respectively[7] - The net debt-to-EBITDA ratio improved to 2.0 from 2.2 year-over-year, with approximately $120 million of divestiture proceeds used to reduce debt[16] - 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 the prior year[40] Shareholder Returns - The company allocated $40 million in Q2 toward share repurchases ($21 million) and dividends ($19 million), up 26% over the prior year[16] - Adjusted EPS, Adjusted Revenue, Adjusted Operating Income, and margin are key metrics used by shareholders to assess performance[50] Income and Earnings - 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] - The US GAAP Income Before Taxes for the three months ended October 31, 2025, was $58.0 million, up from $48.9 million in 2024, representing a 18.5% increase[24] - The Non-GAAP Adjusted Income Before Taxes for the same period was $78.6 million, compared to $69.1 million in 2024, reflecting a 13.5% increase[24] - Net income for the six months ended October 31, 2025, was $56,591,000, compared to $39,022,000 in the prior year, reflecting a significant increase[39] Asset Management - Cash and cash equivalents decreased to $67,404,000 from $85,882,000, indicating a reduction in liquidity[36] - Total assets decreased to $2,466,739,000 from $2,691,466,000, reflecting a decline in overall asset value[36] Corporate Expenses - Corporate expenses on an adjusted EBITDA basis decreased by 18% in Q2 due to restructuring and expense management efforts[9] - Corporate expenses decreased by 8% to $(81,482,000), contributing positively to the overall financial performance[34] Other Financial Insights - Results on a constant currency basis provide better comparability of business trends by removing the effects of foreign currency movements[50]