John Wiley & Sons Q3 Earnings Call Highlights

Core Insights - The company reported fiscal third-quarter results that met expectations, with revenue growth of 1% on a reported basis and flat at constant currency, while emphasizing profit and margin gains despite revenue softness [2][4][7] Financial Performance - Adjusted operating income increased by 22%, adjusted EPS rose by 19%, and adjusted EBITDA grew by 12%, with adjusted operating margin improving by 280 basis points and adjusted EBITDA margin up by 250 basis points [1][7] - Operating cash flow nearly doubled to $103 million, and the company is on track for approximately $200 million of free cash flow for the year [19] Segment Performance - The Research segment showed momentum with publishing revenue up over 4% excluding prior-year AI revenue, strong renewals, and an Advanced portfolio expected to exceed $70 million in FY26 [5][8][11] - The Learning segment faced challenges, with total learning revenue down approximately 2% and professional learning down about 5% due to macroeconomic pressures [5][15] AI and Data Services - The company generated $42 million in AI revenue year-to-date, with guidance of $45–50 million for the year, and anticipates recurring AI revenue to triple next year [6][14][15] - Wiley has migrated over 80% of journals to its Research Exchange platform, enhancing its content for AI applications [10][12] Strategic Initiatives - The company appointed a Chief AI and Data Services Officer to focus on monetizing content through high-margin data services and AI-driven offerings [16] - Wiley has established partnerships, including a multimillion-dollar licensing agreement with OpenEvidence and a managed services partnership with Virtusa valued at approximately $150 million over five years [18][19] Geographic Trends - Growth was broad-based across major research markets, including China, India, North America, and Europe, with Japan showing signs of recovery [12]