[Management View]
Key metrics, strategic priorities: Adjusted revenue rose 3% for the full year, driven by growth in research, academic, and AI licensing. AI licensing revenue totaled $40 million for FY2025. Free cash flow increased 10% to $126 million. Adjusted operating income rose 15%, adjusted EPS rose 14%, and adjusted EBITDA margin reached 24%. Research segment revenue grew 3% with two-thirds recurring. Open Access delivered double-digit growth. Learning segment revenue increased 2%, aided by AI licensing and digital courseware. Dividends and share repurchases totaled $137 million.

[Outlook]
Performance guidance, future plans: Adjusted EBITDA margin outlook raised to 25.5%-26.5% for next year. Free cash flow target reaffirmed at $200 million. Continued investment in AI and digital growth initiatives. University services divestiture proceeds to reduce debt and save $5 million in annual interest payments. Recurring pilots and partnerships in vertical-specific AI contexts may accelerate growth.

[Financial Performance]
YoY/QoQ trends compared to expectations/estimates: Adjusted revenue up 3% YoY. Adjusted operating income up 15% YoY. Adjusted EPS up 14% YoY. Adjusted EBITDA margin reached 24%, up from 22.8% in FY2024. Free cash flow up 10% YoY. Research segment revenue up 3% YoY. Learning segment revenue up 2% YoY.

[Q&A Highlights]
Question 1: Congrats on the strong progress in 2026 revenue guidance. Can you talk about the outlook for organic growth excluding AI and the factors that might impact the range of growth?
Answer: AI is a rapidly evolving market, so it's not as predictable. Drivers from this year, like strong Open Access revenues and inclusive access in Learning, are expected to continue. We have good visibility into calendar year '25 renewals, which were strong. Submissions were up 19%, giving confidence in the journal article pipeline.

Question 2: Can you confirm the recurring revenue from partnerships and what the contribution might look like in 2026 and beyond?
Answer: The $1 million in recurring revenue from vertical-specific AI applications is just the start. These models are high margin and recurring, deeply embedded in R&D workflows. We expect this to grow as corporations fine-tune their AI models with our data.

Question 3: Article submissions are up 19%, while output is up 8%. Will these growth rates converge over time?
Answer: Submission growth supports subscription revenue value. There's a lag between submissions and publications, and no direct correlation in any given year. We aim to keep driving submission volume for ongoing value.

Question 4: Given the uncertain macro environment, how are you planning and budgeting for 2026?
Answer: We are approaching 2026 with discipline and flexibility. Our business is globally diversified, with half of revenue from outside the U.S. We have strong recurring revenue and multiyear contracts. We are prepared to pull levers if needed and are actively modeling various scenarios.

Question 5: With the $120 million from the university services divestment, will you focus on deleveraging or more aggressive buybacks?
Answer: We returned most of our free cash flow to shareholders this year. Going forward, we will maintain a mixed approach, balancing investment in the business with returning cash to shareholders.

[Sentiment Analysis]
Tone of analysts/management: Analysts were positive and congratulatory about the strong progress and guidance. Management was confident and optimistic about future growth, emphasizing recurring revenue and AI opportunities.

[Quarterly Comparison]
| Metric | Q4 FY2025 | Q4 FY2024 |
|----------------------------|-----------|-----------|
| Adjusted Revenue | +3% | - |
| Adjusted Operating Income | +15% | - |
| Adjusted EPS | +14% | - |
| Adjusted EBITDA Margin | 24% | 22.8% |
| Free Cash Flow | +10% | - |
| Research Segment Revenue | +3% | - |
| Learning Segment Revenue | +2% | - |

[Risks and Concerns]
Risks and concerns content: Uncertainty in the macro environment, including policy swings, tariffs, and economic climate. AI market unpredictability. Potential softness in professional channels and retail.

[Final Takeaway]
Wiley demonstrated strong financial performance in FY2025, driven by growth in research, academic, and AI licensing. The company is well-positioned for future growth with a focus on recurring revenue models and AI opportunities. Management remains confident in their ability to navigate macroeconomic uncertainties and continue delivering value to shareholders through disciplined capital allocation and strategic investments.