Company Overview - Sanoma is an innovative and agile learning and media company impacting the lives of millions across Europe, providing best-in-class learning content and solutions for K12 education [2] - The company operates across Europe and employs close to 5,000 professionals, with net sales of approximately €1.3 billion in 2025 and an adjusted operating profit margin of 14.4% [5] Business Strategy - Sanoma has a clear organic growth pathway in K12 education and aims to accelerate growth through value-creating mergers and acquisitions (M&A) [4] - The company is responsibly harnessing opportunities in artificial intelligence (AI) while emphasizing human oversight [4] - Sanoma's Sustainability Strategy focuses on maximizing its positive impact on society and minimizing its environmental footprint, aligning with the UN Sustainable Development Goals and being a signatory to the UN Global Compact [4] Media and Content - The Finnish media segment of Sanoma provides independent journalism and engaging entertainment, ensuring a wide reach and tailored marketing solutions for business partners [3]

Group 1: Share Buyback Details - Sanoma Corporation executed a share buyback on 25 February 2026, acquiring 17,589 shares at an average price of EUR 8.9763 per share, with a total cost of EUR 157,884.14 [1] - The highest price per share during the buyback was EUR 8.9900, while the lowest was EUR 8.9400 [1][2] Group 2: Company Overview - Sanoma holds a total of 945,358 of its own shares, including those acquired on 25 February 2026 [2] - The company operates across Europe, employing close to 5,000 professionals, and reported net sales of approximately EUR 1.3 billion in 2025 with an adjusted operating profit margin of 14.4% [5] Group 3: Business Strategy and Focus - Sanoma is focused on organic growth in K12 education and aims to accelerate this growth through value-creating mergers and acquisitions [4] - The company emphasizes the responsible use of AI while ensuring human oversight and is committed to sustainability, aligning with the UN Sustainable Development Goals [4]

Core Insights - Sanoma Corporation reported improved adjusted operating profit and free cash flow for the full year 2025, primarily driven by its Learning segment [1] Financial Performance - Q4 2025 net sales were EUR 225.8 million, a decrease of 6% from EUR 241.5 million in Q4 2024. The comparable net sales development for the Group was -7% [2] - For FY 2025, net sales totaled EUR 1,302.5 million, down 3% from EUR 1,344.8 million in FY 2024. The Group's comparable net sales development was -3% [4] - Adjusted operating profit for FY 2025 improved to EUR 188.2 million, up 5% from EUR 180.0 million in FY 2024. However, operating profit decreased to EUR 48.6 million from EUR 81.8 million in the previous year [4] - Free cash flow for FY 2025 increased to EUR 159.7 million, a 10% improvement from EUR 145.3 million in FY 2024 [4] Strategic Developments - Sanoma aims for high single-digit growth in adjusted operating profit from 2026 to 2030, with a leverage target adjusted to below 2.5 [4][5] - The company signed a EUR 220 million syndicated term loan facility in December 2025 to support its financial strategy [4] - The Learning segment's adjusted operating profit margin is expected to improve to clearly above 23% in 2026, driven by a more digital sales mix and improved cost base [7][14] Dividend Proposal - The Board proposes a dividend of EUR 0.42 per share for 2025, an increase of 8% from EUR 0.39 in 2024, reflecting 43% of the free cash flow [10][20] Outlook - For 2026, Sanoma expects net sales to be between EUR 1.29 billion and EUR 1.34 billion, with adjusted operating profit projected to be between EUR 205 million and EUR 225 million [5][14] - The demand for learning content is anticipated to increase due to curriculum renewals in various operating markets, while the advertising market in Finland is expected to remain stable [11][14] AI Integration - AI is becoming integral to Sanoma's operations, enhancing personalized learning pathways in the Learning segment and improving content delivery in Media Finland [6][15]

Core Viewpoint - Sanoma Corporation reported an increase in operational EBIT driven by its Learning segment, despite a slight decline in net sales compared to the previous year [1][4]. Financial Performance - For Q2 2025, net sales were EUR 339.8 million, a decrease of 1% from EUR 342.4 million in Q2 2024. For H1 2025, net sales totaled EUR 560.9 million, remaining stable compared to EUR 563.3 million in H1 2024 [5][13]. - Operational EBIT excluding Purchase Price Allocation (PPA) for Q2 2025 was EUR 62.0 million, up 2% from EUR 61.0 million in Q2 2024. For H1 2025, it increased by 16% to EUR 43.3 million from EUR 37.2 million in H1 2024 [5][14]. - The overall EBIT for Q2 2025 rose to EUR 48.9 million, a 13% increase from EUR 43.2 million in Q2 2024, while H1 2025 EBIT increased by 50% to EUR 17.6 million from EUR 11.8 million in H1 2024 [5][14]. - The operational EPS for Q2 2025 was EUR 0.21, a 20% increase from EUR 0.17 in Q2 2024, and for H1 2025, it was EUR 0.04 compared to a loss of EUR 0.02 in H1 2024 [5][14]. Segment Performance - The Learning segment saw growth in net sales driven by increased sales of learning content in the Netherlands and Italy, as well as digital platform sales in Poland. However, Media Finland experienced a decline in net sales due to lower advertising demand [7][9]. - In Media Finland, subscription sales increased slightly, particularly from the SVOD service Ruutu+ and digital news media subscriptions. However, advertising sales decreased, primarily due to lower TV advertising [9]. Outlook and Strategic Initiatives - The company maintains its outlook for 2025, expecting reported net sales between EUR 1.28 billion and EUR 1.33 billion, with operational EBIT excluding PPA projected at EUR 170 million to EUR 190 million [4][11]. - Sanoma is focusing on increasing profitability and free cash flow while strengthening its balance sheet. The company anticipates that curriculum renewals in major learning markets will accelerate organic net sales growth from 2026 onwards [12]. - The company is advancing the use of AI in its operations, enhancing efficiency in content creation and automating processes in newsrooms [8]. Key Indicators - Key financial indicators for Q2 2025 include a net sales decrease of 1%, operational EBIT growth of 2%, and an operational EPS increase of 20% compared to Q2 2024 [13][14]. - The net debt to Adjusted EBITDA ratio improved to 2.5 from 2.9 in the previous year, remaining within the long-term target of below 3.0 [10].

Financial Performance - Adjusted Revenue reached $1.66 billion, with 48% being recurring revenue[11] - Adjusted EPS increased by 31% from $2.78 to $3.64[16] - Adjusted EBITDA grew by 8% from $369 million to $398 million[16] - Free Cash Flow increased by 10% to $126 million, with a Fiscal Year 2026 target of $200 million reaffirmed[13] - Adjusted Operating Margin increased by 300 bps to 15.1%, and Adjusted EBITDA Margin increased by 120 bps to 24.0%[13] Business Segments - Research revenue grew by 3%, driven by a 19% increase in article submissions and an 8% increase in article output[19] - Learning revenue grew by 2%, with Inclusive Access showing a 22% increase and Professional Title Signings up by 16%[22] - AI licensing revenue reached $40 million in Fiscal Year 2025, up from $23 million in Fiscal Year 2024[13,31] Corporate Strategy and Outlook - The company is focused on continuous margin expansion beyond Fiscal Year 2026[39] - The company reaffirms Fiscal Year 2026 Free Cash Flow target of approximately $200 million[26,59] - The company expects low-to-mid single digit growth in Adjusted Revenue for Fiscal Year 2026[59] - The company anticipates Adjusted EBITDA Margin between 25.5% and 26.5% and Adjusted EPS between $3.90 and $4.35 for Fiscal Year 2026[59]