Research Growth, AI Momentum, and Margin Expansion Highlight Wiley's Second Quarter 2026

Wiley (NYSE: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 32^nd 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.

*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.

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.

Non-GAAP performance measures do not have standardized meanings prescribed by US GAAP and therefore may not be comparable to the calculation of similar measures used by other companies and should not be viewed as alternatives to measures of financial results under US GAAP. The adjusted metrics have limitations as analytical tools, and should not be considered in isolation from, or as a substitute for, US GAAP information. It does not purport to represent any similarly titled US GAAP information and is not an indicator of our performance under US GAAP. Non-GAAP financial metrics that we present may not be comparable with similarly titled measures used by others. Investors are cautioned against placing undue reliance on these non-GAAP measures.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251204769114/en/

Brian Campbell

Investor Relations

[email protected]

201.748.6874