Financial Data and Key Metrics Changes - Adjusted revenue grew by 1% and adjusted EPS rose by 2%, while adjusted EBITDA decreased by 3% [34][46] - 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 segment delivered solid 5% growth driven by AI demand, with AI licensing revenue reaching $29 million, up from $17 million in the prior year [38][13] - Research Publishing declined by 1% due to a tough comp, but Gold Open Access revenue grew by double digits [40][12] - 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 [18] - Professional publishing faced market headwinds around consumer spending in the retail channel [18] - Strong Open Access growth is expected to continue, driven by accelerating demand and output worldwide [17] Company Strategy and Development Direction - The company is focusing on leading in research and driving above-market growth in submissions and output [10] - A key strategic partnership with Anthropic was announced to integrate institutional library subscriptions into AI tools [7] - The company aims to capture transformational opportunities in AI, with a focus on corporate R&D markets [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the full-year outlook, driven by research trends and AI momentum [17] - The company is monitoring corporate spending trends and expects cost savings to ramp up in Q2 [18][43] - Management noted that the first quarter is seasonally the smallest and does not reflect the overall year performance [75] Other Important Information - The company increased its annual dividend for the thirty-second consecutive year [7] - A $250 million share repurchase authorization was approved, a 25% increase over the previous program [8] - The company received approximately $120 million in cash proceeds from a divestiture, which was used to reduce debt [46] Q&A Session Summary Question: Can you provide more color regarding the agreement with Anthropic? - The partnership focuses on integrating high-quality content into research and learning tools for students [56][58] Question: Does the agreement change the way you plan to invest in AI-related opportunities? - The vision is to integrate Wiley's content with AI tools, with many more projects in the pipeline [61][62] Question: How much of the $16 million revenue related to NEXUS is Wiley's content versus outside content? - The total deal size was $20 million, reflecting a blend of Wiley content and partner content [70] Question: Where are we for journal renewals in calendar 2025? - The outlook for renewals is positive, with no concerns noted so far [72][73] Question: What is the impact of the higher Nexus-related revenue on fiscal 2026 margin outlook? - The impact is considered de minimis, as the focus remains on the profitability of the core business [90] Question: What are the priorities for capital allocation? - The company maintains a disciplined approach, focusing on dividends, share buybacks, and debt reduction [92][93]