Financial Data and Key Metrics Changes - Revenue performance for Q3 2026 was up 1% on a reported basis and flat at constant currency, with adjusted operating income, adjusted EPS, and adjusted EBITDA all increasing by double digits: 22%, 19%, and 12% respectively [26][27] - Adjusted operating margin improved by 280 basis points and adjusted EBITDA margin by 250 basis points [27] - Operating cash flow nearly doubled to $103 million, with free cash flow up $57 million year-to-date [6][30] Business Line Data and Key Metrics Changes - Research publishing revenue was up 4% at constant currency, with adjusted EBITDA up 6% [6][28] - Research solutions declined by 3% due to lower corporate spending on recruiting and database revenue [28] - Learning revenue was down 2%, with a 5% decline in professional offsetting 1% growth in academic [29] Market Data and Key Metrics Changes - Global research publishing output increased by 11%, with revenue growth of 4% excluding AI revenue [5] - AI revenue reached a record $42 million year-to-date, surpassing last year's total of $40 million [8][19] - Strong demand was noted across all regions, with significant growth in submissions and output, particularly in China and India [33][54] Company Strategy and Development Direction - The company aims to lead in research publishing, with a focus on expanding its journal portfolio and enhancing its AI and data services [10][12] - A multi-year managed services partnership with Virtusa was announced to accelerate technology transformation and operational efficiencies [31][32] - The company is strategically investing in high-return growth opportunities, particularly in emerging markets like China and India [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of U.S. research funding and its importance for economic growth and competitiveness [11] - The company anticipates continued strong growth in research publishing and AI revenue, with expectations for margin expansion and cash flow growth [36][39] - Management highlighted the importance of adapting to customer needs in the evolving AI landscape [45] Other Important Information - The company has returned $126 million in dividends and share repurchases year-to-date, a 37% increase over the prior year [6] - The Advanced Journal brand, particularly Advanced Science, is expected to exceed $70 million in revenue in fiscal 2026, growing at strong double digits [13] - The company is actively managing its portfolio for profitability and strategic fit, including recent divestitures and acquisitions [34][35] Q&A Session Summary Question: What can you tell us about the momentum and direction of AI-related revenue? - Management noted that AI-related revenue is expected to triple next year, with a focus on recurring revenue models [44][46] Question: Can you elaborate on the partnership with Virtusa and its implications for EBITDA margins? - The partnership is expected to generate productivity and agility, contributing to margin expansion objectives [49][50] Question: Are there any fast-growing regions outside of China and India? - Growth is being observed across major global research markets, including North America and Europe, with a rebound in Japan [53][54] Question: How does the professional side of the business fit into the overall strategy? - The professional side produces strong earnings and cash flow, but the company is continuously evaluating its strategic fit [56] Question: What other strategies are in place to unlock shareholder value? - The company is focused on organic growth investments and disciplined capital allocation, with a strong emphasis on returning capital to shareholders [62]

Third Quarter 2026 Earnings Review NYSE: WLY MARCH 05, 2026 SAFE HARBOR STATEMENT This release contains certain forward-looking statements concerning the Company's operations, performance, and financial condition. Reliance should not be placed on forward-looking statements, as actual results may differ materially from those in any forward-looking statements. Any such forward- looking statements are based upon a number of assumptions and estimates that are inherently subject to uncertainties and contingencie ...

Financial Data and Key Metrics Changes - Adjusted revenue grew by 1% and adjusted EPS rose by 2%, while adjusted EBITDA decreased by 3% [35][36] - Free cash flow was a use of $100 million, an improvement from a use of $107 million last year [43] - The net debt to EBITDA ratio improved to 1.9 compared to 2.0 in the prior year period [45] Business Line Data and Key Metrics Changes - Research Publishing declined by 1% due to a tough comparison from the previous year, but Gold Open Access revenue grew by double digits [39][40] - Research Solutions grew by 44%, driven by the Nexus AI project [39] - Learning revenue declined by 8% due to lower AI revenue and market-related softness in professional publishing [40] Market Data and Key Metrics Changes - The academic market remains steady with no early signals of enrollment challenges, while professional publishing has encountered market headwinds [20] - The company reported strong growth in submissions and output, with submissions up 25% year-over-year [78] Company Strategy and Development Direction - The company is focusing on leading in research and driving above-market growth in submissions and output [11] - A strategic partnership with Anthropic was announced to enhance AI integration into scholarly research [7] - The company aims to define how the industry approaches knowledge licensing and partnership in the AI space [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the full-year outlook, driven by research trends and AI momentum [18] - The company is monitoring corporate spending trends and expects cost savings to ramp up in Q2 [20][42] - Management noted that the first quarter is seasonally the smallest and does not reflect the overall year performance [78] Other Important Information - The company increased its annual dividend for the thirty-second consecutive year [7] - A new $250 million share repurchase authorization was approved, a 25% increase over the previous program [8][45] - The company received approximately $120 million in cash proceeds from the University Services divestiture, which will reduce debt [46] Q&A Session Summary Question: Can you provide more details about the agreement with Anthropic? - The partnership focuses on integrating high-quality content into research tools for students and researchers, enhancing AI safety and learning experiences [58][60] Question: How does the agreement affect investment in AI-related growth opportunities? - The agreement represents a first step in tighter content integration and is expected to lead to more projects in the future [63][64] Question: What is the revenue model for the Nexus project? - The revenue model is primarily to underpin the value of institutional library subscriptions and as a potential upsell vector [61] Question: What is the status of journal renewals for calendar 2025? - The renewal season is just beginning, and the outlook is positive with no current concerns [73][76] Question: Why did research publishing revenue decline despite increased submissions? - The decline is attributed to a tough comparison from the previous year and the seasonal nature of the business [78][81] Question: What is the outlook for professional publishing? - There has been softness in retail channels, but the company is monitoring the situation closely [86][88] Question: How will the Nexus-related revenue impact fiscal 2026 margin outlook? - The impact is expected to be de minimis, as the focus remains on the profitability of the core business [91]

Financial Data and Key Metrics Changes - The company reported a 10% increase in free cash flow to $126 million and reaffirmed a target of $200 million for fiscal 2026 [11][47] - Adjusted operating margin improved by 300 basis points, and adjusted EBITDA margin increased by 120 basis points [11][42] - Adjusted revenue for the full year rose by 3%, driven by research and academic growth, while adjusted operating income and adjusted EPS increased by 29% and 318% respectively [42][45] Business Line Data and Key Metrics Changes - Research segment revenue increased by 3% for the full year, supported by growth in recurring revenue models and Open Access programs [42][44] - Learning segment revenue declined by 5% in Q4 but rose by 2% for the year, driven by AI licensing and steady market conditions in academic [45][46] - AI licensing revenue totaled $40 million for the year, with significant contributions from new agreements [10][27] Market Data and Key Metrics Changes - Strong demand for publishing was noted across key markets, with double-digit growth in submissions from India and China, as well as growth in the UK, France, Italy, Brazil, and Canada [17][18] - The company executed landmark multi-year agreements in India and Brazil, expanding access to thousands of institutions [18][20] - The corporate market, which currently makes up about 10% of revenue, is expected to expand significantly as the company extends into corporate R&D [26][30] Company Strategy and Development Direction - The company aims to capitalize on AI opportunities and has established partnerships with major tech companies for AI model training and development [7][29] - A focus on margin expansion and cost structure optimization remains a strategic priority, with ongoing investments in technology and research publishing platforms [36][40] - The company is committed to delivering profitable revenue growth and expanding margins in an uncertain economic environment [50][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and growth despite external uncertainties, citing strong internal indicators and a diversified revenue base [32][78] - The outlook for fiscal 2026 includes low to mid-single-digit revenue growth, with expectations for continued strength in Open Access and inclusive access models [51][62] - The company is prepared to navigate potential economic disruptions while maintaining a disciplined approach to margin expansion [77][80] Other Important Information - The company returned $137 million to shareholders through dividends and share repurchases, with a current dividend yield of approximately 3.5% [48][84] - Following the divestiture of university services, the company secured $120 million in cash proceeds, which will be used to reduce debt and interest expenses [11][48] Q&A Session Summary Question: Outlook for organic growth excluding AI - Management noted that strong Open Access revenues and a favorable renewal season provide visibility for continued organic growth [61][62] Question: Contribution of AI licensing revenue - The company indicated that the $1 million in vertical-specific applications is just the beginning, with potential for high-margin, recurring revenue models [66][68] Question: Planning and budgeting in the current environment - Management emphasized a balanced approach to planning, with strong visibility into the calendar year 2025 and a focus on maintaining flexibility amid uncertainties [75][78] Question: Future cash return strategy - The company plans to adopt a mixed approach to returning cash to shareholders while still investing in business opportunities [84][85]