Wiley's Q4 2025 Earnings Call: Unpacking Contradictions in AI Revenue, Learning Growth, and Strategic Partnerships

AI revenue impact on Research, Learning division growth outlook, article submissions and output growth, recurring revenue partnerships and growth are the key contradictions discussed in John Wiley & Sons' latest 2025Q4 earnings call.



Revenue Growth and Margin Improvement:
- Wiley reported revenue growth and margin improvement in both segments for fiscal '25.
- Growth was driven by steady increases in recurring revenue models and strong demand for Open Access publishing, alongside a 300 basis point improvement in adjusted operating margin and a 120 basis point improvement in adjusted EBITDA margin.
- The company's strategic focus on cost management and expansion into AI licensing also contributed to these positive trends.

AI Opportunity and Licensing Revenue:
- Wiley achieved total AI licensing revenue of $40 million for the year, with a significant deal worth $18 million signed in the fourth quarter.
- This was due to increasing demand from R&D-intensive corporations for AI-powered content and tools, expanding vertical-specific subscription models, and partnerships with major tech companies for AI development and training.
- The growing demand for AI-driven research and applications, along with Wiley's expansive content catalog, positioned the company well in this emerging market.

Research and Learning Segment Performance:
- Research segment revenue increased by 3% in the fourth quarter, supported by both recurring revenue and Open Access growth.
- Learning segment revenue rose by 2%, driven by AI licensing and academic demand, despite a 5% decline in the fourth quarter due to a large AI deal in the prior year.
- These trends were attributed to strong journal renewal seasons, geographical diversity in research output, and the inclusive access model in learning.

Cost Management and Efficiency Initiatives:
- Wiley executed a restructuring charge of $12 million in Q4, focusing on technology costs, with plans for significant reduction through strategic sourcing and emerging AI-driven tools.
- Corporate expenses decreased by 10% in Q4, contributing to overall margin expansion.
- These actions were aimed at aligning resources to high-return areas, improving operational efficiency, and enhancing the company's financial strength.