John Wiley & Sons (WLY) Q1 2025 earnings summary

Executive summary

• Achieved strong year-over-year financial performance, led by growth in Research Publishing and AI-driven demand in Learning content, with adjusted revenue up 6% to $404 million and adjusted EPS up 74%.

• Completed all planned divestitures, including Wiley Edge and CrossKnowledge, and executed the $130 million Value Creation Plan ahead of schedule.

• Raised dividend for the 31st consecutive year and increased share repurchases, reflecting a focus on shareholder returns.

• Advanced AI content licensing with a second major GenAI rights project, contributing $17–21 million in Q1 revenue.

• Marked improvement in colleague engagement and satisfaction, supporting ongoing operational momentum.

Financial highlights

• Adjusted revenue rose 6% to $404 million, while GAAP revenue declined 10% due to divestitures.

• Adjusted EBITDA increased 22% to $73 million, with margin up to 18.6% from 16.3% year-over-year.

• Adjusted EPS increased 74% to $0.47, driven by higher operating income and interest income from divestitures.

• Free cash flow for the quarter was a use of $107 million, consistent with seasonal patterns.

• Operating income was $29 million, a $45 million improvement from the prior year’s loss.

Outlook and guidance

• Reaffirmed full-year guidance: Adjusted revenue of $1.65–$1.69 billion (2–4% growth), Adjusted EBITDA of $385–$410 million (4–11% growth), margin target of 23–24%, and Adjusted EPS of $3.25–$3.60 (17–29% growth).

• Free cash flow anticipated at $125 million, with capex projected at $130 million for the year, ramping up after Q1.

• Company remains on track for fiscal 2026 targets.

• Annualized cost savings of $75 million expected from restructuring, with $70 million to be realized in the current fiscal year.