John Wiley & Sons (WLY) Q2 2025 earnings summary

Executive summary

• Revenue and profit performance met expectations, with high-single digit growth in Learning and low-single digit growth in Research, driven by favorable market conditions and AI licensing, despite a decline in legacy print and licensing revenue.

• Margin and EPS expansion continued as planned, supported by continuous improvement initiatives and cost efficiency.

• AI initiatives are progressing, with a robust pipeline, early market traction, and new licensing deals and partnerships.

• Leadership changes include a new Interim CFO, consolidation of technology and operations, and a new Chief Marketing Officer to drive digital capabilities and transformation.

• All planned divestitures of non-core businesses, including University Services, Wiley Edge, and CrossKnowledge, were completed, impacting year-over-year revenue comparisons.

Financial highlights

• Adjusted revenue (excluding divestitures) rose 3% to $423M for the quarter, with GAAP revenue down due to divestitures.

• Adjusted EBITDA increased 14% to $106M, with margin up to 24.9% from 22.7% last year.

• Adjusted EPS was $0.97 for the quarter, up 36% year-over-year; GAAP EPS was $0.74, reversing a prior year loss.

• Free cash flow for the half was a use of $130M, similar to the prior year, reflecting seasonal journal subscription receipts.

• $64M allocated to dividends and share repurchases year-to-date, including $25M for 557K shares; dividend raised for the 31st consecutive year.

Outlook and guidance

• Full-year adjusted revenue projected at $1.65–$1.69B, with adjusted EBITDA of $385–$410M (23–24% margin), and adjusted EPS of $3.25–$3.60.

• Free cash flow anticipated at $125M, up from $114M.

• Margin expansion is a multi-year objective, targeting 24–25% in fiscal 2026.

• Second half growth expected to be concentrated in Q4, with Q3 challenged by seasonality and investments.

• $80M in annualized cost savings expected from restructuring, with $75M to be realized in the current fiscal year.