HOBOKEN, N.J.--(BUSINESS WIRE)--December 04, 2025--
Wiley $(WLY)$, a global leader in authoritative content and research intelligence for the advancement of scientific discovery, innovation, and learning, today reported results for the second quarter ended October 31, 2025.
SECOND QUARTER SUMMARY
-- GAAP performance vs. prior year: Revenue of $422 million vs. $427 million
including foregone revenue of $3 million from divested businesses;
Operating Income of $73 million up 14%; and Diluted Earnings Per Share
(EPS) of $0.84 up 14%
-- Adjusted Results at constant currency: Adjusted Revenue of $422 million
down 1% with solid Research growth more than offset by market-related
declines in Learning; Adjusted Operating Income of $79 million up 14% and
margin of 18.8% up 250 basis points; Adjusted EBITDA of $115 million up
8% and margin of 27.3% up 240 basis points; and Adjusted EPS of $1.10 up
12%
-- Delivered strong growth and margin expansion in Research driven by global
demand to publish, read, and license
-- Executed $6 million content licensing project for AI model training; $35
million realized year-to-date
-- Reduced Corporate Expenses (Adjusted EBITDA) by 18% at constant currency
as part of multi-year margin expansion initiatives
-- Delivered YTD Operating Cash Flow and Free Cash Flow improvement of 19%
and 17%, respectively
-- Increased share repurchases by 69% over prior year period to $21 million
with Wiley's dividend yield around 3.9%
MANAGEMENT COMMENTARY
"We continue to deliver strong performance in Research and accelerating momentum in AI as we capitalize on record research volume and expanding corporate R&D opportunities," said Matthew Kissner, President and CEO. "In Research, strong global demand is driving defensible growth in our recurring revenue and open access models. In AI, we are turning high-value knowledge into impact through the execution of content licensing projects for large language models and corporate AI applications. Finally, operational excellence and margin expansion are a way of life for us as we continuously optimize our cost structure, drive investment and expense discipline, and advance our transformative publishing platform."
FINANCIAL SUMMARY
Please see the accompanying financial tables for more detail.
Research
-- Q2 Research revenue of $279 million was up 6% as reported and 5% at
constant currency driven by 7% growth in Research Publishing including AI
revenue of $5 million. Article submissions and output rose by 28% and 12%,
respectively, with robust growth across all key geographies. Strong
volume drove double-digit growth in author-funded open access and solid
growth in Wiley's recurring revenue models, combining subscriptions and
transformational agreements. Year-to-date, Research revenue was up 6% as
reported and 5% at constant currency.
-- Q2 Adjusted EBITDA of $93 million was up 14% as reported and 13% at
constant currency driven by revenue growth and cost savings initiatives.
Adjusted EBITDA margin for the quarter was 33.5% vs. 31.3% in the prior
year period. Year-to-date, Research Adjusted EBITDA was up 8% as reported
and at constant currency.
Learning
-- Q2 Learning revenue of $143 million was down 11% as reported and at
constant currency due to market-related softness, including a sharp
inventory drop off at an online retailer and a slowdown in consumer and
corporate spending. Professional was down 16%. Academic was down 8%.
Learning was also impacted by $4 million of AI revenue in the prior year.
Across the segment, print declines more than offset digital growth.
Year-to-date, Learning revenue was down 10% as reported and at constant
currency. Declines are expected to moderate in the second half of the
year as retail inventory levels stabilize.
-- Q2 Adjusted EBITDA of $57 million for the quarter was down 14% as
reported and at constant currency due to lower revenue. Adjusted EBITDA
margin was 40.1% down from 41.3%. Year-to-date, Learning Adjusted EBITDA
was down 12% as reported and at constant currency.
Corporate Expenses
"Corporate Expenses" are the portion of shared services costs not allocated to segments.
-- Q2 Corporate Expenses on an Adjusted EBITDA basis were lower by 18% as
reported and at constant currency due to restructuring efforts and
expense management across functional areas, notably Technology.
Year-to-date, Corporate Expenses on an Adjusted EBITDA basis were lower
by 7% as reported and 8% at constant currency.
EPS
-- Q2 GAAP EPS of $0.84 compared to $0.74 in prior year period. Q2 Adjusted
EPS of $1.10 was up 12% at constant currency with operating performance
offsetting a higher adjusted effective tax rate. Diluted shares
outstanding were down by 1.3 million to 53.5 million. Year-to-date, GAAP
EPS rose 48% on a reported basis and Adjusted EPS was up 9% at constant
currency.
BALANCE SHEET, CASH FLOW, AND CAPITAL ALLOCATION
-- Net Debt-to-EBITDA Ratio (Trailing Twelve Months) at quarter end was 2.0
compared to 2.2 in the year-ago period. Wiley recently utilized
approximately $120 million of divestiture proceeds to reduce debt and
expects leverage to come down materially in Fiscal 2026.
-- Net Cash Used in Operating Activities was $77 million compared to $94
million in the prior year period. Note, Wiley's regular use of cash in
the first half of the fiscal year is driven by the timing of cash
collections for annual journal renewals, which are concentrated in Q3 and
Q4.
-- Free Cash Flow improved to a use of $108 million from a use of $130
million in the prior year largely due to higher cash earnings and lower
capex and interest payments. Capex was $31 million compared to $36
million.
-- Returns to Shareholders: Wiley allocated $40 million in the quarter
toward both repurchases ($21 million) and dividends ($19 million), up 26%
over prior year. The Company acquired approximately 553,000 shares at an
average cost of $38.11/share. Year-to-date, Wiley allocated $73 million
to repurchases and dividends. During the first half, the Board approved a
$250 million share repurchase authorization, deployed a 10b5-1 plan for
repurchases outside open windows, and raised its dividend for the 32nd
consecutive year.
FISCAL 2026 OUTLOOK
Wiley is reaffirming its full year outlook for Adjusted EBITDA margin, Adjusted EPS, and Free Cash Flow and narrowing its Revenue guidance to the low end of the range due to market challenges in Learning. Research and AI momentum are expected to remain strong. The revenue range is narrowed to low-single digit growth from low-to-mid single digit growth.
Fiscal 2024 Fiscal 2025
Metric Results Results Fiscal 2026 Outlook
------------------- ----------------- ----------------- -------------------
Low-single digit
Adj. Revenue $1,617M $1,660M growth*
------------------- ----------------- ----------------- -------------------
Adj. EBITDA Margin 22.8% 24% 25.5% to 26.5%
------------------- ----------------- ----------------- -------------------
Adj. EPS $2.78 $3.64 $3.90 to $4.35
------------------- ----------------- ----------------- -------------------
Free Cash Flow $114M $126M Approximately $200M
------------------- ----------------- ----------------- -------------------
*Narrowed from low-to-mid single digit growth
Adjusted metrics exclude impact of divestitures, which were primarily completed in Fiscal 2024 with remainder completed in first half of Fiscal 2025. Approximately $17 million of divestiture-related revenue was recorded in Fiscal 2025.
EARNINGS CONFERENCE CALL
Scheduled for today, December 4 at 10:00 am $(ET)$. Access webcast at Investor Relations at investors.wiley.com, or directly at https://events.q4inc.com/attendee/792761606. U.S. callers, please dial (888) 210-3346 and enter the participant code 2521217#. International callers, please dial (646) 960-0253 and enter the participant code 2521217#.
ABOUT WILEY
Wiley (NYSE: WLY) is a global leader in authoritative content and research intelligence for the advancement of scientific discovery, innovation, and learning. With more than 200 years at the center of the scholarly ecosystem, Wiley combines trusted publishing heritage with AI-powered platforms to transform how knowledge is discovered, accessed, and applied. From individual researchers and students to Fortune 500 R&D teams, Wiley enables the transformation of scientific breakthroughs into real-world impact. From knowledge to impact--Wiley is redefining what's possible in science and learning. Visit us at Wiley.com and Investors.Wiley.com. Follow us on Facebook, X, LinkedIn and Instagram.
NON-GAAP FINANCIAL MEASURES
Wiley provides non-GAAP financial measures and performance results such as "Adjusted EPS," "Adjusted Operating Income and Margin," "EBITDA, Adjusted EBITDA and Margin," "Adjusted Income before Taxes," "Adjusted Income Tax Provision," "Adjusted Effective Tax Rate," "Free Cash Flow less Product Development Spending," "Adjusted Revenue," and results on a Constant Currency basis to assess underlying business performance and trends. Management believes non-GAAP financial measures, which exclude the impact of restructuring charges and credits and certain other items, and the impact of divestitures and acquisitions provide a useful comparable basis to analyze operating results and earnings. See the reconciliations of non-GAAP financial measures and explanations of the uses of non-GAAP measures in the supplementary information. We have not provided our 2026 outlook for the most directly comparable U.S. GAAP financial measures, as they are not available without unreasonable effort due to the high variability, complexity, and low visibility with respect to certain items, including restructuring charges and credits, gains and losses on foreign currency, and other gains and losses. These items are uncertain, depend on various factors, and could be material to our consolidated results computed in accordance with U.S. GAAP.
FORWARD-LOOKING STATEMENTS
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 contingencies, many of which are beyond the control of the Company and are subject to change based on many important factors. Such factors include, but are not limited to: (i) the level of investment in new technologies and products; (ii) subscriber renewal rates for the Company's journals; (iii) the financial stability and liquidity of journal subscription agents; (iv) the consolidation of book wholesalers and retail accounts; (v) the market position and financial stability of key online retailers; (vi) the seasonal nature of the Company's educational business and the impact of the used book market; (vii) worldwide economic and political conditions; (viii) the Company's ability to protect its copyrights and other intellectual property worldwide (ix) the ability of the Company to successfully integrate acquired operations and realize expected opportunities; (x) the ability to realize operating savings over time and in fiscal year 2026 in connection with our multiyear Global Restructuring Program and completed dispositions; (xi) cyber risk and the failure to maintain the integrity of our operational or security systems or infrastructure, or those of third parties with which we do business; (xii) as a result of acquisitions, we have and may record a significant amount of goodwill and other identifiable intangible assets and we may never realize the full carrying value of these assets; (xiii) our ability to leverage artificial intelligence technologies in our products and services, including generative artificial intelligence, large language models, machine learning, and other artificial intelligence tools; and (xiv) other factors detailed from time to time in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise forward-looking statements to reflect subsequent events.
CATEGORY: EARNINGS RELEASES
JOHN WILEY & SONS, INC.
SUPPLEMENTARY INFORMATION (1) (2)
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
(in USD thousands, except per share information)
(unaudited)
Three Months Ended Six Months Ended
October 31, October 31,
-------------------------- --------------------------
2025 2024 2025 2024
------- ------- ------- -------
Revenue, net $421,751 $426,595 $818,551 $830,404
Costs and expenses:
Cost of sales 104,388 107,000 213,647 216,220
Operating and
administrative
expenses 225,087 238,891 465,417 487,710
Restructuring
and related
charges 6,032 3,627 9,070 7,497
Amortization of
intangible
assets 13,248 12,944 26,458 25,871
------- ------- ------- -------
Total costs and
expenses 348,755 362,462 714,592 737,298
------- ------- ------- -------
Operating income 72,996 64,133 103,959 93,106
As a % of revenue 17.3% 15.0% 12.7% 11.2%
Interest expense (11,670) (14,463) (22,712) (27,250)
Net foreign
exchange
transaction gains
(losses) 956 (3,328) (15) (3,094)
Net (loss) gain on
sale of
businesses,
assets, and
impairment charges
related to assets
held-for-sale (2,309) 369 (3,425) 6,170
Other (expense)
income, net (1,963) 2,226 (2,090) 3,008
------- ------- ------- -------
Income before taxes 58,010 48,937 75,717 71,940
Provision for
income taxes 13,119 8,479 19,126 32,918
Effective tax rate 22.6% 17.3% 25.3% 45.8%
------- ------- ------- -------
Net income $ 44,891 $ 40,458 $ 56,591 $ 39,022
======= ======= ======= =======
As a % of revenue 10.6% 9.5% 6.9% 4.7%
Earnings per share
Basic $ 0.85 $ 0.75 $ 1.06 $ 0.72
------- ------- ------- -------
Diluted $ 0.84 $ 0.74 $ 1.05 $ 0.71
------- ------- ------- -------
Weighted average
number of common
shares
outstanding
Basic 53,089 54,191 53,233 54,284
------- ------- ------- -------
Diluted 53,515 54,850 53,735 54,928
------- ------- ------- -------
Notes:
------------------- ------- ------- ------- -------
(1) The supplementary information included in this press release for the
three and six months ended October 31, 2025 is preliminary and subject to
change prior to the filing of our upcoming Quarterly Report on Form 10-Q
with the Securities and Exchange Commission.
(2) All amounts are approximate due to rounding.
JOHN WILEY & SONS, INC.
SUPPLEMENTARY INFORMATION (1) (2)
RECONCILIATION OF US GAAP MEASURES to NON-GAAP MEASURES
(in USD thousands, except per share information)
(unaudited)
Reconciliation of US
GAAP Earnings per
Share to Non-GAAP
Adjusted EPS
--------------------- ------ ------ ------- -------
Three Months Ended Six Months Ended
October 31, October 31,
------------------------ --------------------------
2025 2024 2025 2024
------ ------ ------- -------
US GAAP Earnings Per
Share - Diluted $ 0.84 $ 0.74 $ 1.05 $ 0.71
Adjustments:
Restructuring
and related
charges 0.09 0.06 0.14 0.12
Foreign
exchange
(gains) losses
on
intercompany
transactions,
including the
write off of
certain
cumulative
translation
adjustments (0.02) 0.04 (0.01) -
Amortization of
acquired
intangible
assets 0.22 0.21 0.42 0.40
Net loss (gain)
on sale of
businesses,
assets, and
impairment
charges
related to
assets
held-for-sale 0.04 - 0.06 (0.08)
Held for Sale
or Sold
segment
Adjusted Net
Loss - 0.01 - 0.05
Legal
settlement - - - -
Income tax
adjustments (0.07) (0.09) (0.07) 0.24
------ ------ ------- -------
Non-GAAP Adjusted
Earnings Per Share -
Diluted $ 1.10 $ 0.97 $ 1.59 $ 1.44
====== ====== ======= =======
Reconciliation of US GAAP Income Before Taxes to Non-GAAP Adjusted Income
Before Taxes
---------------------------------------------------------------------------
Three Months Ended Six Months Ended
October 31, October 31,
------------------------ --------------------------
2025 2024 2025 2024
------ ------ ------- -------
US GAAP Income Before
Taxes $58,010 $48,937 $ 75,717 $ 71,940
Pretax Impact of
Adjustments:
Restructuring
and related
charges 6,032 3,627 9,070 7,497
Foreign
exchange
(gains) losses
on
intercompany
transactions,
including the
write off of
certain
cumulative
translation
adjustments (1,111) 2,943 (1,550) 351
Amortization of
acquired
intangible
assets 13,248 12,944 26,458 25,913
Net loss (gain)
on sale of
businesses,
assets, and
impairment
charges
related to
assets
held-for-sale 2,309 (369) 3,425 (6,170)
Held for Sale
or Sold
segment
Adjusted Loss
Before Taxes - 1,059 - 3,578
Legal
settlement 108 - 108 -
------ ------ ------- -------
Non-GAAP Adjusted
Income Before Taxes $78,596 $69,141 $113,228 $103,109
====== ====== ======= =======
Reconciliation of US GAAP Income Tax Provision to Non-GAAP Adjusted Income
Tax Provision, including our US GAAP Effective Tax Rate and our Non-GAAP
Adjusted Effective Tax Rate
---------------------------------------------------------------------------
US GAAP Income Tax
Provision $13,119 $ 8,479 $ 19,126 $ 32,918
Income Tax Impact of
Adjustments (3)
Restructuring
and related
charges 1,271 161 1,790 911
Foreign
exchange
(gains) losses
on
intercompany
transactions,
including the
write off of
certain
cumulative
translation
adjustments (217) 729 (967) 338
Amortization of
acquired
intangible
assets 2,133 1,792 4,126 3,601
Net loss (gain)
on sale of
businesses,
assets, and
impairment
charges
related to
assets
held-for-sale - (588) 54 (1,513)
Held for Sale
or Sold
segment
Adjusted Tax
Benefit - 515 - 887
Legal
settlement - - - -
Income Tax
Adjustments
Impact of
valuation
allowance on
the US GAAP
effective tax
rate (212) 4,911 29 (13,119)
Impact of
change in
Germany
statutory tax
rate on
deferred tax
balances 3,869 - 3,869 -
------ ------ ------- -------
Non-GAAP Adjusted
Income Tax
Provision $19,963 $15,999 $ 28,027 $ 24,023
====== ====== ======= =======
US GAAP Effective Tax
Rate 22.6% 17.3% 25.3% 45.8%
Non-GAAP Adjusted
Effective Tax Rate 25.4% 23.1% 24.8% 23.3%
Notes:
--------------------- ------ ------ ------- -------
(1) All amounts are approximate due to rounding.
(2) See Explanation of Usage of Non-GAAP Performance Measures included in
this supplementary information for additional details on the reasons why
management believes presentation of each non-GAAP performance measure
provides useful information to investors.
(3) For the three and six months ended October 31, 2025 and 2024,
respectively, substantially all of the tax impact was from deferred taxes.
JOHN WILEY & SONS, INC.
SUPPLEMENTARY INFORMATION (1)(2)
RECONCILIATION OF US GAAP NET INCOME TO NON-GAAP EBITDA AND ADJUSTED EBITDA
(in USD thousands)
(unaudited)
Three Months Ended Six Months Ended
October 31, October 31,
-------------------------- --------------------------
2025 2024 2025 2024
------- ------- ------- -------
Net Income $ 44,891 $ 40,458 $ 56,591 $ 39,022
Interest
expense 11,670 14,463 22,712 27,250
Provision for
income taxes 13,119 8,479 19,126 32,918
Depreciation
and
amortization 35,929 36,718 72,375 73,971
------- ------- ------- -------
Non-GAAP EBITDA 105,609 100,118 170,804 173,161
Restructuring
and related
charges 6,032 3,627 9,070 7,497
Net foreign
exchange
transaction
(gains)
losses (956) 3,328 15 3,094
Net loss (gain)
on sale of
businesses,
assets, and
impairment
charges
related to
assets
held-for-sale 2,309 (369) 3,425 (6,170)
Other expense
(income), net 1,963 (2,226) 2,090 (3,008)
Held for Sale
or Sold
segment
Adjusted
EBITDA - 1,059 - 3,578
Legal
settlement 108 - 108 -
------- ------- ------- -------
Non-GAAP Adjusted
EBITDA $115,065 $105,537 $185,512 $178,152
======= ======= ======= =======
Adjusted
EBITDA
Margin 27.3% 24.9% 22.7% 21.9%
Notes:
--------------------- ------- ------- ------- -------
(1) All amounts are approximate due to rounding.
(2) See Explanation of Usage of Non-GAAP Performance Measures included in
this supplementary information for additional details on the reasons why
management believes presentation of each non-GAAP performance measure
provides useful information to investors.
JOHN WILEY & SONS, INC.
SUPPLEMENTARY INFORMATION (1) (2) (3)
SEGMENT RESULTS
(in USD thousands)
(unaudited)
% Change
------------------
Three Months Ended October Favorable
31, (Unfavorable)
--------------------------- ------------------
Constant
2025 2024 Reported Currency
------- ------- -------- --------
Research:
Revenue, net
Research
Publishing $241,382 $222,667 8% 7%
Research
Solutions 37,132 39,218 -5% -6%
------- -------
Total Revenue, net $278,514 $261,885 6% 5%
======= =======
Non-GAAP Adjusted
Operating Income $ 69,961 $ 59,527 18% 16%
Depreciation and
amortization 23,319 22,522 -4% -2%
------- -------
Non-GAAP Adjusted
EBITDA $ 93,280 $ 82,049 14% 13%
======= =======
Adjusted EBITDA
margin 33.5% 31.3%
Learning:
Revenue, net
Academic $ 87,030 $ 94,788 -8% -8%
Professional 56,207 66,726 -16% -16%
------- -------
Total Revenue, net $143,237 $161,514 -11% -11%
======= =======
Non-GAAP Adjusted
Operating Income $ 46,755 $ 55,871 -16% -16%
Depreciation and
amortization 10,680 10,897 2% 2%
------- -------
Non-GAAP Adjusted
EBITDA $ 57,435 $ 66,768 -14% -14%
======= =======
Adjusted EBITDA
margin 40.1% 41.3%
Held for Sale or
Sold:
------- -------
Total Revenue, net $ - $ 3,196 # #
======= =======
Non-GAAP Adjusted
Operating Loss $ - $ (1,059) # #
Depreciation and
amortization - - # #
------- -------
Non-GAAP Adjusted
EBITDA $ - $ (1,059) # #
======= =======
Adjusted EBITDA
margin 0.0% -33.1%
Corporate Expenses:
Non-GAAP Adjusted
Corporate Expenses $(37,580) $(46,579) 19% 20%
Depreciation and
amortization 1,930 3,299 41% 42%
------- -------
Non-GAAP Adjusted
EBITDA $(35,650) $(43,280) 18% 18%
======= =======
Consolidated Results:
Revenue, net $421,751 $426,595 -1% -2%
Less: Held for Sale
or Sold Segment - (3,196) # #
------- -------
Adjusted Revenue, net $421,751 $423,399 0% -1%
======= =======
Operating Income $ 72,996 $ 64,133 14% 13%
Adjustments:
Restructuring
charges 6,032 3,627 -66% -66%
Held for Sale
or Sold
Segment
Adjusted
Operating
Loss - 1,059 # #
Legal
settlement 108 - # #
------- -------
Non-GAAP Adjusted
Operating Income $ 79,136 $ 68,819 15% 14%
Adjusted
Operating
Income margin 18.8% 16.3%
Depreciation and
amortization 35,929 36,718 2% 3%
Less: Held for Sale
or Sold Segment
depreciation and
amortization - - # #
------- -------
Non-GAAP Adjusted
EBITDA $115,065 $105,537 9% 8%
======= =======
Adjusted EBITDA
margin 27.3% 24.9%
Notes:
--------------------- ------- ------- -------- --------
(1) The supplementary information included in this press release for
the three and six months ended October 31, 2025 is preliminary and
subject to change prior to the filing of our upcoming Quarterly Report
on Form 10-Q with the Securities and Exchange Commission.
(2) All amounts are approximate due to rounding.
(3) See Explanation of Usage of Non-GAAP Performance Measures included
in this supplementary information for additional details on the
reasons why management believes presentation of each non-GAAP
performance measure provides useful information to investors.
# Variance greater than 100%
JOHN WILEY & SONS, INC.
SUPPLEMENTARY INFORMATION (1) (2) (3)
SEGMENT RESULTS
(in USD thousands)
(unaudited)
% Change
Six Months Ended October Favorable
31, (Unfavorable)
--------------------------- ------------------
Constant
2025 2024 Reported Currency
------- ------- -------- --------
Research:
Revenue, net
Research
Publishing $473,209 $453,618 4% 3%
Research
Solutions 86,997 73,576 18% 17%
------- -------
Total Revenue, net $560,206 $527,194 6% 5%
======= =======
Non-GAAP Adjusted
Operating Income $126,209 $114,743 10% 10%
Depreciation and
amortization 46,704 45,081 -4% -2%
------- -------
Non-GAAP Adjusted
EBITDA $172,913 $159,824 8% 8%
======= =======
Adjusted EBITDA
margin 30.9% 30.3%
Learning:
Revenue, net
Academic $142,502 $154,752 -8% -8%
Professional 115,843 131,076 -12% -12%
------- -------
Total Revenue, net $258,345 $285,828 -10% -10%
======= =======
Non-GAAP Adjusted
Operating Income $ 68,410 $ 78,371 -13% -13%
Depreciation and
amortization 20,524 22,191 8% 8%
------- -------
Non-GAAP Adjusted
EBITDA $ 88,934 $100,562 -12% -12%
======= =======
Adjusted EBITDA
margin 34.4% 35.2%
Held for Sale or
Sold:
------- -------
Total Revenue, net $ - $ 17,382 # #
======= =======
Non-GAAP Adjusted
Operating Loss $ - $ (3,578) # #
Depreciation and
amortization - - # #
------- -------
Non-GAAP Adjusted
EBITDA $ - $ (3,578) # #
======= =======
Adjusted EBITDA
margin 0.0% -20.6%
Corporate Expenses:
Non-GAAP Adjusted
Corporate Expenses $(81,482) $(88,933) 8% 9%
Depreciation and
amortization 5,147 6,699 23% 23%
------- -------
Non-GAAP Adjusted
EBITDA $(76,335) $(82,234) 7% 8%
======= =======
Consolidated Results:
Revenue, net $818,551 $830,404 -1% -2%
Less: Held for Sale
or Sold Segment - (17,382) # #
------- -------
Adjusted Revenue, net $818,551 $813,022 1% 0%
======= =======
Operating Income $103,959 $ 93,106 12% 12%
Adjustments:
Restructuring
charges 9,070 # 7,497 -21% -21%
Held for Sale
or Sold
Segment
Adjusted
Operating
Loss - 3,578 # #
Legal
settlement 108 - # #
------- -------
Non-GAAP Adjusted
Operating Income $113,137 $104,181 9% 9%
Adjusted
Operating
Income margin 13.8% 12.8%
Depreciation and
amortization 72,375 73,971 2% 3%
Less: Held for Sale
or Sold depreciation
and amortization - - # #
------- -------
Non-GAAP Adjusted
EBITDA $185,512 $178,152 4% 4%
======= =======
Adjusted EBITDA
margin 22.7% 21.9%
# Variance greater than 100%
JOHN WILEY & SONS, INC.
SUPPLEMENTARY INFORMATION (1) (2)
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in USD thousands)
(unaudited)
October 31, April 30,
2025 2025
------------- ----------
Assets:
Current assets
Cash and cash equivalents $ 67,404 $ 85,882
Accounts receivable, net 209,679 228,410
Inventories, net 21,387 22,875
Prepaid expenses and other current
assets 82,753 102,717
--------- ---------
Total current assets 381,223 439,884
Technology, property and equipment, net 146,796 162,125
Intangible assets, net 581,998 595,044
Goodwill 1,116,174 1,121,505
Operating lease right-of-use assets 62,152 66,128
Other non-current assets 178,396 306,780
--------- ---------
Total assets $ 2,466,739 $2,691,466
========= =========
Liabilities and shareholders' equity:
Current liabilities
Accounts payable $ 47,654 $ 60,948
Accrued royalties 126,130 109,765
Short-term portion of long-term debt 10,000 10,000
Contract liabilities 218,787 462,693
Accrued employment costs 52,796 93,117
Short-term portion of operating lease
liabilities 16,636 18,282
Other accrued liabilities 68,348 66,051
--------- ---------
Total current liabilities 540,351 820,856
Long-term debt 861,713 789,435
Accrued pension liability 72,053 71,899
Deferred income tax liabilities 102,986 105,145
Operating lease liabilities 76,278 81,482
Other long-term liabilities 73,169 70,443
--------- ---------
Total liabilities 1,726,550 1,939,260
--------- ---------
Shareholders' equity 740,189 752,206
--------- ---------
Total liabilities and shareholders'
equity $ 2,466,739 $2,691,466
========= =========
Notes:
--------------------------------------------- --------- ---------
(1) The supplementary information included in this press release for
October 31, 2025 is preliminary and subject to change prior to the
filing of our upcoming Quarterly Report on Form 10-Q with the Securities
and Exchange Commission.
(2) All amounts are approximate due to rounding.
JOHN WILEY & SONS, INC.
SUPPLEMENTARY INFORMATION (1) (2)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in USD thousands)
(unaudited)
Six Months Ended
October 31,
------------------------
2025 2024
-------- --------
Operating activities:
Net income $ 56,591 $ 39,022
Net loss (gain) on sale of
businesses, assets, and impairment
charges related to assets
held-for-sale 3,425 (6,170)
Amortization of intangible assets 26,458 25,871
Amortization of product development
assets 7,663 8,622
Depreciation and amortization of
technology, property, and
equipment 38,254 39,478
Other noncash charges 40,325 45,638
Net change in operating assets and
liabilities (249,221) (246,453)
-------- --------
Net cash used in operating
activities (76,505) (93,992)
Investing activities:
Additions to technology, property,
and equipment (25,125) (29,030)
Product development spending (6,296) (7,127)
Businesses acquired in purchase
transactions, net of cash acquired - (915)
Net cash proceeds (transferred)
related to the sale of businesses
and assets 114,132 (8,117)
Acquisitions of publication rights
and other (10,273) 700
-------- --------
Net cash provided by (used in)
investing activities 72,438 (44,489)
Financing activities:
Net debt borrowings 75,501 184,066
Cash dividends (37,772) (38,264)
Purchases of treasury shares (35,085) (25,421)
Other (15,617) (7,298)
-------- --------
Net cash (used in) provided by
financing activities (12,973) 113,083
Effects of exchange rate changes on cash,
cash equivalents and restricted cash (1,438) 1,441
-------- --------
Change in cash, cash equivalents and
restricted cash for period (18,478) (23,957)
-------- --------
Cash, cash equivalents and restricted cash
- beginning 85,932 99,543
-------- --------
Cash, cash equivalents and restricted cash
- ending $ 67,454 $ 75,586
======== ========
CALCULATION OF NON-GAAP FREE CASH FLOW LESS PRODUCT DEVELOPMENT
SPENDING (3)
--------------------------------------------------------------------
Six Months Ended
October 31,
------------------------
2025 2024
-------- --------
Net cash used in operating activities $ (76,505) $ (93,992)
Less: Additions to technology, property,
and equipment (25,125) (29,030)
Less: Product development spending (6,296) (7,127)
-------- --------
Free cash flow less product development
spending $(107,926) $(130,149)
======== ========
Notes:
------------------------------------------ -------- --------
(1) The supplementary information included in this press release for
the six months ended October 31, 2025 is preliminary and subject to
change prior to the filing of our upcoming Quarterly Report on Form
10-Q with the Securities and Exchange Commission.
(2) All amounts are approximate due to rounding.
(3) See Explanation of Usage of Non-GAAP Performance Measures
included in this supplementary information for additional details on
the reasons why management believes presentation of each non-GAAP
performance measure provides useful information to investors.
JOHN WILEY & SONS, INC.
EXPLANATION OF USAGE OF NON-GAAP PERFORMANCE MEASURES
In this earnings release and supplemental information, management may present the following non-GAAP performance measures:
-- Adjusted Earnings Per Share (Adjusted EPS); -- Free Cash Flow less Product Development Spending; -- Adjusted Revenue; -- Adjusted Operating Income and margin; -- Adjusted Income Before Taxes; -- Adjusted Income Tax Provision; -- Adjusted Effective Tax Rate; -- EBITDA, Adjusted EBITDA and margin; and -- Results on a constant currency basis.
Management uses these non-GAAP performance measures as supplemental indicators of our operating performance and financial position as well as for internal reporting and forecasting purposes, when publicly providing our outlook, to evaluate our performance and calculate incentive compensation.
We present these non-GAAP performance measures in addition to US GAAP financial results because we believe that these non-GAAP performance measures provide useful information to certain investors and financial analysts for operational trends and comparisons over time. The use of these non-GAAP performance measures may also provide a consistent basis to evaluate operating profitability and performance trends by excluding items that we do not consider to be controllable activities for this purpose.
The performance metric used by our chief operating decision maker to evaluate performance of our reportable segments is Adjusted Operating Income. We present both Adjusted Operating Income and Adjusted EBITDA for each of our reportable segments as we believe Adjusted EBITDA provides additional useful information to certain investors and financial analysts for operational trends and comparisons over time. It removes the impact of depreciation and amortization expense, as well as presents a consistent basis to evaluate operating profitability and compare our financial performance to that of our peer companies and competitors.
For example:
-- Adjusted EPS, Adjusted Revenue, Adjusted Operating Income and margin,
Adjusted Income Before Taxes, Adjusted Income Tax Provision, Adjusted
Effective Tax Rate, EBITDA, and Adjusted EBITDA and margin provide a more
comparable basis to analyze operating results and earnings and are
measures commonly used by shareholders to measure our performance.
-- Free Cash Flow less Product Development Spending helps assess our ability,
over the long term, to create value for our shareholders as it represents
cash available to repay debt, pay common stock dividends, and fund share
repurchases and acquisitions.
-- Results on a constant currency basis remove distortion from the effects
of foreign currency movements to provide better comparability of our
business trends from period to period. We measure our performance
excluding the impact of foreign currency (or at constant currency), which
means that we apply the same foreign currency exchange rates for the
current and equivalent prior period.
In addition, we have historically provided these or similar non-GAAP performance measures and understand that some investors and financial analysts find this information helpful in analyzing our operating margins and net income, and in comparing our financial performance to that of our peer companies and competitors. Based on interactions with investors, we also believe that our non-GAAP performance measures are regarded as useful to our investors as supplemental to our US GAAP financial results, and that there is no confusion regarding the adjustments or our operating performance to our investors due to the comprehensive nature of our disclosures.
We have not provided our 2026 outlook for the most directly comparable US GAAP financial measures, as they are not available without unreasonable effort due to the high variability, complexity, and low visibility with respect to certain items, including restructuring charges and credits, gains and losses on foreign currency, and other gains and losses. These items are uncertain, depend on various factors, and could be material to our consolidated results computed in accordance with US GAAP.
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