Cengage Learning II (CNGO) Q2 2026 earnings summary

Executive summary

• Q2 results aligned with expectations, driven by digital acceleration in U.S. Higher Ed and strong Ed2Go growth, while School and ELL segments faced headwinds from low adoption years and funding uncertainty.

• Strategic investments in workforce skills, digital transformation, and modernization are positioning the business for future growth, especially in upcoming large adoption years for School and ELL.

• Simplification and modernization efforts continue to scale operations and improve efficiency.

Financial highlights

• Trailing 12-month adjusted cash revenues at $1.522B, up 1% year-on-year when normalized for non-recurring items; TTM Adjusted Cash EBITDA grew $33M or 7% YoY.

• Q2 adjusted cash revenues at $612M, up 1.5% year-on-year normalized for non-recurring items; Q2 adjusted Cash EBITDA up 1% YoY normalized.

• September YTD adjusted cash revenues flat year-on-year; adjusted Cash EBITDA down 5% YoY normalized.

• Net income for Q2 was $36.4M, compared to a net loss of $17.6M in the prior year quarter.

Outlook and guidance

• Positioned for growth in large K-12 adoption years (2027, 2028) in California and Florida, with School and ELL segments expected to benefit.

• Anticipate strong collections in Q3 and Q4 as SAP system issues are resolved and sales timing improves.

• Continued investment in AI, digital-first, and workforce businesses to drive future growth.