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- **Research Dominance**: 7% growth in Research Publishing, driven by open access and recurring models, with AI licensing adding $6 million in Q2.
- **AI Expansion**: Strategic partnerships with leading AI firms and corporate R&D clients, positioning for long-term growth in AI applications.
- **Financial Resilience**: 250 basis point margin expansion, disciplined cost management, and $73 million returned to shareholders in buybacks and dividends.
- **Learning Challenges**: Cyclical downturn in professional books and education, with digital repositioning to mitigate risks.
- **Balance Sheet Strength**: Reduced leverage to 2.0x, supporting capital allocation flexibility for growth and shareholder returns.

**【CEO Summary Section】**
- **Research Publishing growth**: 7% year-over-year, driven by 28% increase in author-funded open access and 12% growth in recurring revenue models.
- **AI Licensing Momentum**: Secured $6 million in Q2 AI training revenue, bringing year-to-date total to $35 million. Expanded corporate partnerships with AWS, Anthropic, and Mistral AI.
- **Challenges in Learning**: 11% revenue decline due to Amazon inventory adjustments, soft consumer spending, and enrollment declines in computer science programs. Strategy includes digital product repositioning and cost optimization.
- **Financial Highlights**: Adjusted EBITDA margin expanded 250 basis points to 18.8%, share buybacks increased 69% to $21 million in Q2.

**【CFO Financial Commentary】**
- **Research Segment**: 5% revenue growth, 220 basis point margin improvement to 33.5%, supported by record submissions and AI-driven productivity gains.
- **Learning Segment**: 11% decline, with targeted actions to stabilize revenue through digital courseware and inclusive access programs.
- **Operational Excellence**: $8 million reduction in corporate expenses, AI-driven cost savings, and multiyear technology transformation initiatives.
- **Capital Allocation**: Free cash flow of $108 million (Q2), with a focus on share buybacks and strategic journal acquisitions.

**【Q&A Key Highlights】**
- **Research Growth Prospects**: CEO expects to outperform market growth (3-4%) due to strong article submission trends and renewal pipeline strength.
- **AI Revenue Pipeline**: CFO confirms AI revenue for FY26 will exceed $40 million, with subscription-based corporate R&D solutions gaining traction.
- **Learning Recovery**: Management anticipates stabilization in H2 as inventory adjustments normalize, though full-year revenue decline is expected.
- **Capital Allocation Strategy**: Prioritizes share buybacks and deleveraging, with a focus on maintaining disciplined growth investments.


John Wiley & Sons, Inc. (WLY) Q2 2026 Earnings Call Transcript

- **AI-Driven Growth**: Secured $29M AI licensing revenue (vs. $17M prior year), including $16M from partner content via Wiley Nexus. Q2+ outlook strong with $20M+ AI projects.
- **Platform Innovation**: New research platform reduces submission time by 70%, flags 25 quality metrics, and automates 30% of article transfers.
- **Shareholder Returns**: $14M buybacks (vs. $10M prior year), $250M authorization (25% increase), and 3.5% dividend yield.
- **Financial Strength**: 25.5%–26.5% EBITDA margin guidance, $200M free cash flow, and 1.9x net debt ratio.

**【CEO Summary Section】**
- **Revenue Growth**: Adjusted revenue grew 1% year-over-year, driven by AI licensing and open access growth. AI licensing revenue reached $29 million in Q1, up from $17 million in the prior year period.
- **AI Strategy**: Launched the Wiley Nexus platform, combining own content with publisher partners to offer comprehensive AI solutions. Secured a landmark $20 million AI project with $16 million from partner content.
- **Operational Excellence**: Rolled out a new research publishing platform, transitioning 1,000 journals to a unified AI-powered system, improving author experience and efficiency.
- **Capital Allocation**: Increased share repurchases to $14 million and raised the buyback authorization to $250 million, up 25%. Dividend yield remains at 3.5%.

**【CFO Financial Commentary】**
- **Financial Performance**: GAAP net income of $420 million, Non-GAAP EPS of $1.08 (vs. $0.95 prior year). Adjusted EBITDA margin of 25.5%–26.5% for FY26, up from 24% in FY25.
- **Cost Control**: Reduced operating expenses by 5% YoY, with $100 million free cash flow (vs. -$107 million prior year). Capitalized cloud spend and CapEx totaled $20 million.
- **Balance Sheet**: Net debt-to-EBITDA improved to 1.9x, with $551 million liquidity. Received $120 million from University Services divestiture, reducing annual interest payments by $6 million.

**【Q&A Key Highlights】**
- **Anthropic Partnership**: Integrated Wiley content into Claude for institutional access, enabling AI tools to connect to high-quality research. Revenue model focuses on upselling subscriptions and corporate R&D contracts.
- **Nexus Margin Impact**: $16 million of $20 million AI deal from partner content, with 45% EBITDA margins vs. 75% for own content. Additive, not substitutional, with potential for recurring subscription inference models.
- **Professional Publishing Softness**: 8% decline due to retail channel weakness, but 27% title signings and 9% output growth provide confidence in FY26 recovery.
- **Capital Allocation Priorities**: Share buybacks ($14M in Q1), dividend increases (32nd consecutive year), and disciplined capex ($77M FY26 vs. $77M FY25).

John Wiley & Sons, Inc. (WLY) Q1 2026 Earnings Call Transcript

- **Record Margins and Cash Flow**: 300 basis point EBITDA margin expansion to 24%, free cash flow up 10% to $126 million. Secured $120 million from divestiture to reduce debt.
- **AI Growth Engine**: $40 million AI licensing revenue in FY25, including $18 million deal with new tech customer. Vertical-specific AI applications generated $1 million recurring revenue.
- **Resilient Business Model**: 80% digital revenue, half recurring, 45% from APAC. Open Access submissions up 19%, output up 8%.
- **FY26 Outlook**: Low to mid-single-digit revenue growth, EBITDA margin target 25.5-26.5%. Free cash flow reaffirmed at $200 million.

**【CEO Summary Section】**
- **Revenue Growth and Margin Expansion**: Fiscal 2025 revenue grew 3%, driven by research and AI licensing. Adjusted EBITDA margin improved 300 basis points to 24%, with AI licensing contributing $40 million. 
- **AI and Corporate Expansion**: Secured $18 million AI licensing deal in Q4, with $9 million recognized in Q4 and $9 million in Q1. Vertical-specific AI applications generated $1 million in recurring revenue, targeting corporate R&D use cases.
- **Market Resilience**: Half of revenue is recurring, 80% digital, with strong geographic diversity (APAC 45%, EMEA 30%). Open Access submissions up 19%, output up 8%.
- **Free Cash Flow Target**: Reaffirmed $200 million free cash flow for FY26, up from $126 million in FY25. Secured $120 million from University Services divestiture to reduce debt.

**【CFO Financial Commentary】**
- **FY25 Financial Highlights**: Adjusted revenue $1.2 billion (3% growth), adjusted EPS $3.64 (31% growth), adjusted EBITDA $288 million (8% growth). Free cash flow $126 million (10% growth).
- **Segment Performance**: Research revenue +3%, Learning revenue +2% (driven by AI and inclusive access). Learning EBITDA margin improved 850 basis points to 37.4%.
- **FY26 Guidance**: Revenue low to mid-single digits, adjusted EBITDA margin 25.5-26.5% (vs 24% in FY25). Q1 revenue expected modest decline due to $17 million AI comp.
- **Cost Management**: Corporate expenses down 10% in Q4, 4% for FY25. Targeting further reductions in FY26 through tech transformation and process efficiency.

**【Q&A Key Highlights】**
- **AI Outlook**: CEO notes AI market is "rapidly evolving and unpredictable," with $1 million in vertical-specific revenue in FY25. CFO expects additional AI revenue in FY26 but not comparable to FY25's $40 million.
- **Submission/Output Growth**: Submissions up 19% (vs output +8%), driven by Open Access demand. Lag time between submissions and publications 6-8 months.
- **Macroeconomic Planning**: Half of revenue outside US, 80% digital. Planning for R&D funding volatility, with flexibility to adjust costs. Sales team confident in FY26 renewals.
- **Capital Allocation**: Returned $137 million to shareholders in FY25 ($60M buybacks, $77M dividends). FY26 plans balanced between growth investments and shareholder returns.


John Wiley & Sons (WLY)-17 Jun 25-2025 Q4 Earnings call transcript

- **AI-Driven Growth**: Q3 AI licensing revenue reached $9M, with $30M YoY total. New corporate AI agreements position for recurring revenue.
- **Margin Expansion**: 280bps operating margin improvement to 14.2%, with 2026 EBITDA margin target raised to above 25%.
- **Resilient Research**: 5% Q3 growth in Research, 3% YoY, supported by Open Access (8% growth) and AI licensing.
- **Free Cash Flow**: FY25 target of $125M, with FY26 goal of $200M, enabling shareholder returns and strategic investments.

**【CEO Overview】**
- Q3 revenue grew 1% YoY, driven by 5% growth in the Research segment and $30M in AI licensing revenue. Learning segment declined 6% due to tough comparisons and softness in academic books.
- Operating margin improved 280bps to 14.2%, with adjusted EBITDA up 4% to $114M. Adjusted EPS increased 39% to $1.08.
- AI strategy expansion: Q3 AI revenue reached $9M, bringing total to $30M YoY. New agreements with leading corporations for vertical-specific AI models.
- Margin expansion focus: 280bps operating margin improvement, with plans to raise 2026 EBITDA margin target to above 25%.

**【CFO Financial Breakdown】**
- Research segment: 5% Q3 growth, 3% YoY, driven by Open Access (8% growth) and AI licensing. Adjusted EBITDA margin improved 180bps to 32.7%.
- Learning segment: 6% Q3 decline, 4% YoY growth in professional content. Adjusted EBITDA margin improved 30bps to 35.4%.
- Free cash flow on track for $125M FY25, with FY26 target of $200M. Share buybacks totaled $35M Q3, bringing dividend yield to 3.5%.

**【Q&A Highlights】**
- **AI Revenue Growth**: Q3 AI licensing expanded to $9M, with pipeline for recurring corporate AI solutions. Total AI revenue up 30% YoY.
- **Cost Optimization**: 100+bps margin improvement expected from 2026 cost restructuring. Shared services rationalization to reduce corporate expenses.
- **Learning Recovery**: ZyBooks courseware growth and digital licensing to drive FY26 Learning recovery. FY25 tough comps due to $23M GenAI deal in Q4.
- **Capital Allocation**: Free cash flow of $335M+ over next 5Qs. Buybacks and dividend to balance debt reduction, with sub-10x EV/EBITDA valuation.


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