Revenue Performance - For the three months ended October 31, 2025, consolidated revenue decreased by $4.8 million, or 1%, compared to the prior year, with Adjusted Revenue of $421.8 million[150][151]. - Revenue for the six months ended October 31, 2025 decreased by $11.9 million, or 1%, compared to the prior year, with a constant currency decrease of 2%[196]. - Adjusted Revenue for the six months ended October 31, 2025 was $818.6 million, consistent with the prior year, while US GAAP Revenue was $818.6 million, a decrease of 1%[197][200]. - 48% of Adjusted Revenue for the year ended April 30, 2025, was recurring revenue, indicating a stable revenue stream[144]. Segment Performance - Research revenue increased by $16.6 million, or 6%, to $278,514 million for the three months ended October 31, 2025, driven by growth in Research Publishing[185]. - Learning revenue decreased by $18.3 million, or 11%, to $143,237 million for the three months ended October 31, 2025, due to market-related softness[189]. - Research revenue increased by $33.0 million, or 6%, for the six months ended October 31, 2025, compared to the prior year[227]. - Learning revenue decreased by $27.5 million, or 10%, for the six months ended October 31, 2025, compared to the prior year[231]. Income and Earnings - Operating income for the same period increased by $8.9 million, or 14%, to $73.0 million, driven by lower operating and administrative expenses[155][164]. - US GAAP Income Before Taxes for the six months ended October 31, 2025, was $75.7 million, an increase from $71.9 million in 2024, representing a growth of 2.4%[221]. - Non-GAAP Adjusted Income Before Taxes increased to $113.2 million for the six months ended October 31, 2025, compared to $103.1 million in 2024, reflecting a growth of 9.8%[221]. - Diluted earnings per share increased to $0.84 for the three months ended October 31, 2025, compared to $0.74 in 2024, marking a 14% rise[182]. - Diluted Earnings per Share rose to $1.05 for the six months ended October 31, 2025, up from $0.71 in 2024, marking an increase of 48.6%[224]. Expenses and Cost Management - Operating and administrative expenses decreased by $13.8 million, or 6%, to $225.1 million, primarily due to restructuring and cost savings initiatives[154]. - Operating and administrative expenses decreased by $22.3 million, or 5%, to $465.4 million for the six months ended October 31, 2025[201]. - Interest expense decreased to $11.7 million for the three months ended October 31, 2025, down from $14.5 million in the prior year[169]. - Interest expense decreased to $22.7 million for the six months ended October 31, 2025, down from $27.3 million in the prior year[213]. Cash Flow and Financial Position - As of October 31, 2025, the company had cash and cash equivalents of $67.4 million, with approximately 95% located outside the US[239]. - The company reported approximately $871.7 million of debt outstanding as of October 31, 2025, with $423.5 million of unused borrowing capacity[241]. - For the six months ended October 31, 2025, net cash used in operating activities was $(76.5) million, an improvement from $(94.0) million in the prior year[243]. - Net cash provided by investing activities for the six months ended October 31, 2025 was $72.4 million, compared to net cash used of $(44.5) million in the prior year[252]. - Net cash used in financing activities was $(13.0) million for the six months ended October 31, 2025, a decrease from net cash provided of $113.1 million in the prior year[253]. Taxation - The US GAAP Effective Tax Rate increased to 22.6% for the three months ended October 31, 2025, compared to 17.3% in 2024, primarily due to a change in jurisdictional mix of earnings[178]. - The US GAAP Effective Tax Rate decreased to 25.3% for the six months ended October 31, 2025, down from 45.8% in 2024, mainly due to a change in jurisdictional mix of earnings[222]. Shareholder Returns - The company increased its quarterly dividend to shareholders to $1.42 per share annualized, up from $1.41 per share in the prior year[254]. - The company repurchased $35.1 million of shares during the six months ended October 31, 2025, compared to $25.0 million in the prior year[255]. Restructuring and Cost Savings - The Global Restructuring Program is expected to yield annualized cost savings of approximately $115 million, with about $110 million realized in fiscal year 2026[159]. - Adjusted EBITDA for the three months ended October 31, 2025, was $115.1 million, reflecting an 8% increase compared to the prior year[155][166]. - Adjusted EBITDA for the six months ended October 31, 2025 was $185.5 million, an increase of 4% compared to the prior year[210]. - Adjusted EBITDA for the Research segment increased by 14% to $93,280 million on a constant currency basis[187]. - Adjusted EBITDA for the Learning segment decreased by 14% to $57,435 million on a constant currency basis, primarily due to lower revenue[190][233]. Foreign Currency Impact - The company recorded foreign currency translation losses of approximately $(10.0) million for the six months ended October 31, 2025, primarily due to fluctuations in the US dollar relative to the British pound sterling[263].
John Wiley & Sons(WLYB) - 2026 Q2 - Quarterly Report