# Wiley (WLY) Q1 2026 Financial Results Summary
On September 4, 2025, Wiley (NYSE: WLY), a prominent global provider of scientific and educational content, reported its financial results for the first quarter ended July 31, 2025. Here is a summary of the key highlights from their earnings announcement.
## First Quarter Overview
– **GAAP Results**:
– **Revenue**: $397 million, a decrease of 1.7% compared to $404 million in Q1 2025.
– **Operating Income**: $31 million, increased by 7% year-over-year.
– **Diluted Earnings Per Share (EPS)**: $0.22, compared to a loss of $0.03 in the prior year.
– **Adjusted Results at Constant Currency**:
– **Adjusted Revenue**: $397 million, up 1% from the previous year.
– **Adjusted Operating Income**: $34 million, a decrease of 2%.
– **Adjusted EBITDA**: $70 million, down 3%.
– **Adjusted EPS**: $0.49, an increase of 2%.
– **Research Revenue**:
– Up 6% as reported and 5% at constant currency.
– Driven by AI licensing projects, contributing $16 million versus $1 million in Q1 2025.
– Article submissions and output grew by 25% and 13%, respectively.
– **Learning Revenue**:
– Down 7% as reported and 8% at constant currency, largely due to declining AI licensing revenue from the prior year.
## Strategic Initiatives
– Executed a landmark AI licensing project with a major tech firm, enhancing AI integration across scholarly research.
– Announced a strategic partnership with Anthropic, aimed at accelerating AI applications in research.
## Shareholder Returns
– Increased dividends for the **32nd consecutive year**.
– **Share Repurchases**: Allocated $14 million during the quarter. The Board approved a $250 million repurchase authorization, marking a **25% increase** compared to prior authorization.
## Financial Summary
– **Corporate Expenses**: Rose by 4% at constant currency, attributed to strategic consulting and modernization projects. A decrease in expenses is anticipated starting in Q2 2026.
– **EPS Metrics**:
– **GAAP EPS**: Reported at $0.22, improved significantly from the ($0.03) loss in the prior year.
– **Effective Tax Rate**: 33.9%, reduced from 106.2% in Q1 2025.
### Balance Sheet and Cash Flow
– **Net Debt-to-EBITDA Ratio**: 1.9, down from 2.0 in the same period last year.
– **Net Cash Used in Operating Activities**: $85 million, slightly improved from $89 million in the previous year.
– **Free Cash Flow**: $(100) million, an improvement compared to $(107) million in Q1 2025.
– **Dividends and Repurchases**: Totaled approximately $32 million, a slight increase from the previous year.
### Fiscal 2026 Outlook
Wiley has reaffirmed its fiscal 2026 outlook, anticipating:
| Metric | FY 2024 Results | FY 2025 Results | FY 2026 Outlook |
|---|---|---|---|
| Adjusted Revenue | $1,617 million | $1,660 million | Low to mid-single digit growth |
| Adjusted EBITDA Margin | 22.8% | 24% | 25.5% to 26.5% |
| Adjusted EPS | $2.78 | $3.64 | $3.90 to $4.35 |
| Free Cash Flow | $114 million | $126 million | Approx. $200 million |
## Earnings Call
An earnings conference call was scheduled for September 4, 2025, at 10:00 AM (ET) for further discussions regarding the financial results.
Overall, Wiley’s Q1 2026 results reflect a balance between robust performance in Research segments propelled by AI initiatives, while facing challenges in its Learning business. The company maintains its commitment to returning value to shareholders through dividends and share repurchases, along with a strategic eye on AI and corporate R&D growth.
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### CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME (LOSS)
(in USD thousands, except per share information)
(unaudited)
| Three Months Ended | July 31, 2025 | July 31, 2024 |
|---|---|---|
| Revenue, net | $396,800 | $403,809 |
| Costs and expenses: | ||
| Cost of sales | $109,259 | $109,220 |
| Operating and administrative expenses | $240,330 | $248,819 |
| Restructuring and related charges | $3,038 | $3,870 |
| Amortization of intangible assets | $13,210 | $12,927 |
| Total costs and expenses | $365,837 | $374,836 |
| Operating income | $30,963 | $28,973 |
| As a % of revenue | 7.8% | 7.2% |
| Interest expense | -$11,042 | -$12,787 |
| Net foreign exchange transaction (losses) gains | -$971 | $234 |
| Net (loss) gain on sale of businesses, assets, and impairment charges related to assets held-for-sale | -$1,116 | $5,801 |
| Other (expense) income, net | -$127 | $782 |
| Income before taxes | $17,707 | $23,003 |
| Provision for income taxes | $6,007 | $24,439 |
| Effective tax rate | 33.9% | 106.2% |
| Net income (loss) | $11,700 | -$1,436 |
| As a % of revenue | 2.9% | -0.4% |
| Earnings (loss) per share | ||
| Basic | $0.22 | -$0.03 |
| Diluted(4) | $0.22 | -$0.03 |
| Weighted average number of common shares outstanding | ||
| Basic | 53,377 | 54,377 |
| Diluted(4) | 53,966 | 54,377 |
### CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in USD thousands)
(unaudited)
| July 31, 2025 | April 30, 2025 | |
|---|---|---|
| Assets: | ||
| Current assets | ||
| Cash and cash equivalents | $81,850 | $85,882 |
| Accounts receivable, net | $220,317 | $228,410 |
| Inventories, net | $21,951 | $22,875 |
| Prepaid expenses and other current assets | $96,177 | $102,717 |
| Total current assets | $420,295 | $439,884 |
| Technology, property and equipment, net | $152,430 | $162,125 |
| Intangible assets, net | $580,331 | $595,044 |
| Goodwill | $1,117,827 | $1,121,505 |
| Operating lease right-of-use assets | $63,626 | $66,128 |
| Other non-current assets | $189,823 | $306,780 |
| Total assets | $2,524,332 | $2,691,466 |
| Liabilities and shareholders’ equity: | ||
| Current liabilities | ||
| Accounts payable | $36,384 | $60,948 |
| Accrued royalties | $112,535 | $109,765 |
| Short-term portion of long-term debt | $10,000 | $10,000 |
| Contract liabilities | $361,677 | $462,693 |
| Accrued employment costs | $44,706 | $93,117 |
| Short-term portion of operating lease liabilities | $17,512 | $18,282 |
| Other accrued liabilities | $66,029 | $66,051 |
| Total current liabilities | $648,843 | $820,856 |
| Long-term debt | $818,272 | $789,435 |
| Accrued pension liability | $71,954 | $71,899 |
| Deferred income tax liabilities | $104,105 | $105,145 |
| Operating lease liabilities | $78,200 | $81,482 |
| Other long-term liabilities | $69,899 | $70,443 |
| Total liabilities | $1,791,273 | $1,939,260 |
| Shareholders’ equity | $733,059 | $752,206 |
| Total liabilities and shareholders’ equity | $2,524,332 | $2,691,466 |
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