Exceeds Adjusted EPS Guidance, Significantly Expands Profit Margins, and Reaffirms Fiscal 2026 Growth Targets
HOBOKEN, N.J.--(BUSINESS WIRE)--June 17, 2025--
Wiley $(WLY)$ today reported results for the fourth quarter and fiscal year ended April 30, 2025.
FISCAL 2025 HIGHLIGHTS
--
GAAP performance vs. prior year: Operating Income of $221 million vs.
$52 million and Diluted Earnings Per Share (EPS) of $1.53 vs. ($3.65)
--
Exceeded Adjusted EPS guidance, delivered at top end of range for
Adjusted EBITDA margin, and achieved Free Cash Flow outlook
--
Delivered Revenue and Adjusted EBITDA margin growth in both Research
and Learning segments
--
Achieved Adjusted Operating Margin expansion of 300 basis points
--
Executed AI content licensing project this quarter with a third large
tech company; $40 million in total AI licensing revenue realized in
Fiscal 2025 compared to $23 million in Fiscal 2024
--
Drove a 34% increase in share repurchases and raised dividend for 31st
consecutive year
MANAGEMENT COMMENTARY
"We delivered another strong year of execution as we met or exceeded our financial commitments, drove profitable growth in our core, expanded margins and free cash flow, and extended further into the corporate market through AI licensing and partnership, science analytics, and knowledge services," said Matthew Kissner, President and CEO. "Our multi-year journey of continuous improvement and innovation is yielding material gains in profitable revenue growth, margin expansion, and cash generation, and we remain steadfast and confident in our continued progress."
FINANCIAL SUMMARY
Please see accompanying financial tables for more detail.
--
Q4 reported revenue of $443 million vs. $468 million due to foregone
revenue from divestitures; Adjusted Revenue (excluding divestitures)
essentially even with prior year at constant currency as expected;
Research Publishing +4% constant currency.
--
Q4 Operating Income of $76 million vs. $69 million; Adjusted Operating
Income +15% with margin up 260bps. Diluted EPS of $1.25 vs. $0.46;
Adjusted EPS +14% and Adjusted EBITDA essentially even.
--
Full year reported revenue of $1,678 million vs. $1,873 million due to
foregone revenue from divested businesses; Adjusted Revenue (excluding
divestitures) +3% at constant currency.
--
Full year Operating Income of $221 million vs. $52 million; Adjusted
Operating Income +29% with margin up 300 basis points. Diluted EPS of
$1.53 vs. ($3.65); Adjusted EPS +31% to $3.64, Adjusted EBITDA +8% to
$398 million, and Cash from Operations of $203 million vs. $208 million;
Free Cash Flow +10% to $126 million.
RESEARCH
--
Q4 Research revenue of $281 million was up 4% as reported and 3% at
constant currency driven by solid growth in recurring revenue publishing
models (calendar year 2025 journal renewals) and open access offsetting
continued softness in backfiles, archives, and other ancillary products.
Q4 Adjusted EBITDA of $97 million was up 4% as reported and at constant
currency due to revenue growth. Adjusted EBITDA margin for the quarter
rose modestly to 34.7%.
--
Full year Research revenue was up 3% as reported and at constant
currency driven by growth in publishing and solutions. Research Adjusted
EBITDA was up 4% or 5% at constant currency with margin up 30 basis
points to 32.1%. Key performance indicators remained strong for the year,
with submissions up 19% and output up 8%.
LEARNING
--
Q4 Learning revenue of $162 million was down 5% as reported and at
constant currency as expected due to a $23 million AI licensing agreement
in the prior year, partially offset by growth in Academic and additional
AI licensing revenue this quarter. Academic growth excluding AI licensing
was driven by strong demand for inclusive access and digital courseware.
Professional performance excluding AI licensing was impacted by retail
channel softness. Q4 Adjusted EBITDA of $70 million for the quarter was
down 6% as reported and at constant currency due to lower revenues.
Adjusted EBITDA margin was 43.0% compared to 43.5% in prior year period.
--
Full year Learning revenue of $585 million was up 2% as reported and at
constant currency driven by growth in Academic and AI licensing. Learning
Adjusted EBITDA of $219 million for the year was up 9% as reported and at
constant currency. Adjusted EBITDA margin rose 250 basis points to
37.4%.
CORPORATE EXPENSES
"Corporate Expenses" are the portion of shared services costs not allocated to segments.
--
Q4 Corporate Expenses declined by 8% or 7% at constant currency due to
lower depreciation and amortization, or 3% on an Adjusted EBITDA basis at
constant currency due to restructuring savings.
--
Full year Corporate Expenses declined by 3% as reported and at constant
currency due to lower depreciation and amortization, but rose 2% on an
Adjusted EBITDA basis at constant currency due to enterprise
modernization.
BALANCE SHEET, CASH FLOW, AND CAPITAL ALLOCATION
--
Net Debt-to-EBITDA Ratio was 1.8 compared to 1.7 in the year-ago
period.
--
Net Cash provided by Operating Activities was $203 million compared to
$208 million primarily due to spend on cloud-based solutions related to
targeted enterprise modernization work. This spend is capitalized and
amortized, like capex, but reported in this section of the cash flow
statement. Otherwise, cash flow benefited from higher adjusted EBITDA and
favorable working capital movements.
--
Free Cash Flow was up 10% to $126 million primarily driven by lower
capex. Fiscal 2025 capex was $77 million vs. $93 million in prior year,
however, capitalization between the two years were comparable when capex
and cloud-based solution spend are combined.
--
Returns to Shareholders: Wiley allocated $137 million toward dividends
and share repurchases, up from $122 million in the prior year. $60
million was allocated to share repurchases at an average cost basis of
$44.16. This allocation is up from $45 million in the prior year period.
--
Divestiture Proceeds: After the year closed, Wiley received $120
million in cash proceeds related to the University Services divestiture,
with the total outstanding note paid in full.
FISCAL 2026 OUTLOOK
------------------------------------------------------------------------------
Fiscal 2024 Fiscal 2025
Metric Results Results Fiscal 2026 Outlook
------------------ ----------------- ------------------ -------------------
Low to mid-single
Adj. Revenue $1,617M $1,660M digit growth
------------------ ----------------- ------------------ -------------------
Adj. EBITDA
Margin 22.8% 24% 25.5% to 26.5%
------------------ ----------------- ------------------ -------------------
Adj. EPS $2.78 $3.64 $3.90 to $4.35
------------------ ----------------- ------------------ -------------------
Free Cash Flow $114M $126M Approximately $200M
------------------ ----------------- ------------------ -------------------
Note, growth outlook is comprehensive and includes adverse variances,
including AI revenue in Fiscal 2025. 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.
--
Adjusted Revenue -- growth expectation driven by demand to publish and
Calendar Year 2025 journal renewal growth in Research Publishing, steady
market trends in Academic, and continued demand for our content and data
in AI development, partially offset by large AI agreements in prior
year.
--
Adjusted EBITDA Margin -- initial margin target was a range of 24 to
25% (January 2024). Wiley raised the target to 25%+ in March 2025, and
this quarter to a range of 25.5% to 26.5%. Outlook is driven by
anticipated cost savings, efficiency gains, and revenue growth.
--
Adjusted EPS -- growth expectation driven by higher expected Adjusted
Operating Income.
--
Free Cash Flow -- growth outlook driven by expected Adjusted EBITDA
growth, lower restructuring payments, and favorable working capital.
EARNINGS CONFERENCE CALL
Scheduled for today, June 17 at 10:00 am $(ET)$. Access webcast at Investor Relations at investors.wiley.com, or directly at https://events.q4inc.com/attendee/978555203. 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 one of the world's largest publishers and a trusted leader in research and learning. Our industry-leading content, services, platforms, and knowledge networks are tailored to meet the evolving needs of our customers and partners, including researchers, students, instructors, professionals, institutions, and corporations. We enable knowledge-seekers to transform today's biggest obstacles into tomorrow's brightest opportunities. For more than two centuries, Wiley has been delivering on its timeless mission to unlock human potential. Visit us at Wiley.com and investors.wiley.com.
NON-GAAP FINANCIAL MEASURES
Wiley provides non-GAAP financial measures and performance results such as "Adjusted EPS," "Adjusted Operating Income," "Adjusted EBITDA," "Adjusted Income before Taxes," "Adjusted Income Tax Provision," "Adjusted Effective Income Tax Rate," "Free Cash Flow less Product Development Spending," "organic revenue," "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; and (xiii) 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. SUPPLEMENTARY INFORMATION (1)(2) CONDENSED
CONSOLIDATED STATEMENTS OF NET INCOME (LOSS) (Dollars in thousands, except per
share information) (unaudited)
Three Months Ended Year Ended
April 30, April 30,
------------------ -------------------------- ------------------------------
2025 2024 2025 2024
------- ------- --------- ---------
Revenue, net $442,579 $468,461 $1,677,609 $1,872,987
Costs and
expenses:
Cost of sales 110,941 123,345 431,380 579,722
Operating and
administrative
expenses 229,767 252,062 947,437 1,013,520
Impairment of
goodwill(3) - - - 108,449
Restructuring
and related
charges 12,490 11,008 25,561 63,041
Amortization of
intangible
assets 12,909 13,264 51,822 55,994
------- ------- --------- ---------
Total costs and
expenses 366,107 399,679 1,456,200 1,820,726
------- ------- --------- ---------
Operating income 76,472 68,782 221,409 52,261
As a % of revenue 17.3% 14.7% 13.2% 2.8%
Interest expense (11,270) (11,411) (52,547) (49,003)
Net foreign
exchange
transaction
(losses) gains (826) 530 (8,142) (2,959)
Net loss on sale
of businesses,
assets, and
impairment
charges related
to assets
held-for-sale(3) (13,580) (3,642) (23,340) (183,389)
Other income
(expense), net 1,469 (257) 5,498 (3,957)
------- ------- --------- ---------
Income (loss)
before taxes 52,265 54,002 142,878 (187,047)
(Benefit)
provision for
income taxes (15,828) 28,737 58,717 13,272
Effective tax rate -30.3% 53.2% 41.1% -7.1%
------- ------- --------- ---------
Net income (loss) $ 68,093 $ 25,265 $ 84,161 $ (200,319)
======= ======= ========= =========
As a % of revenue 15.4% 5.4% 5.0% -10.7%
Earnings (loss)
per share
Basic $ 1.27 $ 0.46 $ 1.56 $ (3.65)
------- ------- --------- ---------
Diluted(4) $ 1.25 $ 0.46 $ 1.53 $ (3.65)
------- ------- --------- ---------
Weighted average
number of common
shares
outstanding
Basic 53,683 54,591 54,054 54,945
------- ------- --------- ---------
Diluted(4) 54,458 55,356 54,830 54,945
------- ------- --------- ---------
Notes:
------------------ ------- ------- --------- ---------
(1) The supplementary information included in this press release for the three
months and year ended April 30, 2025 is preliminary and subject to change
prior to the filing of our upcoming Annual Report on Form 10-K with the
Securities and Exchange Commission.
(2) All amounts are approximate due to rounding.
(3) Net loss on sale of businesses, assets, and impairment charges related to
assets held-for-sale For the three months and year ended April 30, 2025 and
2024, we recorded net pretax (loss) gain on sale of businesses, assets, and
impairment charges related to assets held-for-sale as follows:
------------------------------------------------------------------------------
Three Months Ended Year Ended
April 30, April 30,
-------------------------- ------------------------------
2025 2024 2025 2024
------------------ ------- ------- --------- ---------
Wiley Edge $ (74) $ 1,275 $ (14,852) $ (19,401)
University
Services (13,428) (5,636) (12,578) (107,048)
CrossKnowledge (78) 719 4,119 (55,440)
Tuition Manager - - 120 (1,500)
Sale of assets - - (149) -
------- ------- --------- ---------
Net loss on sale
of businesses,
assets, and
impairment
charges related
to assets
held-for-sale $(13,580) $ (3,642) $ (23,340) $ (183,389)
======= ======= ========= =========
As previously announced in fiscal year 2024, we executed a plan to divest
non-core businesses included in our Held for Sale or Sold segment, including
University Services, Wiley Edge, and CrossKnowledge. These three businesses
met the held-for-sale criteria starting in the first quarter of fiscal year
2024. We measured each disposal group at the lower of carrying value or fair
value less costs to sell prior to its disposition.
On January 1, 2024, we completed the sale of University Services. On June 5,
2025, Wiley entered into an agreement to sell the Seller Note, the fiscal year
2026 earnout, the TVG Investment, and agreed on the fiscal year 2025 earnout
for total cash consideration of $119.5 million, which was fully paid in June
2025. In the year ended April 30, 2025, due to the process of selling these
assets, as well as third-party customer consents, working capital adjustments,
and changes in the costs to sell, we recognized an additional net loss on sale
and impairments of assets of $12.6 million. In the three months ended April
30, 2025, we recognized an additional net loss of $13.4 million.
On May 31, 2024, we completed the sale of Wiley Edge, with the exception of
its India operations which sold on August 31, 2024. Upon the completion of the
sale, we recognized a net loss of $14.9 million in the year ended April 30,
2025 primarily due to subsequent changes in the fair value less costs to sell
including reducing the fair value of the contingent consideration in the form
of an earnout from $15.0 million to zero in the third quarter of fiscal year
2025, partially offset by the sale of the India operations.
On August 31, 2024, we completed the sale of CrossKnowledge. On May 31, 2023,
we completed the sale of Tuition Manager.
In the second quarter of fiscal year 2025, we sold a facility which was
reflected in Technology, property, and equipment, net in our Unaudited
Condensed Consolidated Statements of Financial Position.
Impairment of goodwill
------------------------------------------------------------------------------
In fiscal year 2024, we reorganized our segments and recorded pretax noncash
goodwill impairments of $108.4 million which included $81.7 million related to
Wiley Edge, $11.4 million related to University Services, and $15.3 million
related to CrossKnowledge.
(4) In calculating diluted net loss per common share for the year ended April
30, 2024, our diluted weighted average number of common shares outstanding
excludes the effect of unvested restricted stock units and other stock awards
as the effect was antidilutive. This occurs when a US GAAP net loss is
reported and the effect of using dilutive shares is antidilutive.
JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) (2) RECONCILIATION OF US
GAAP MEASURES to NON-GAAP MEASURES (unaudited)
Reconciliation of US GAAP Earnings (Loss) per Share to Non-GAAP Adjusted EPS
---------------------------------------------------------------------------------
Three Months Ended Year Ended
April 30, April 30,
-------------------------- ---------------------------
2025 2024 2025 2024
------- ------- ------- --------
US GAAP Earnings (Loss)
Per Share - Diluted $ 1.25 $ 0.46 $ 1.53 $ (3.65)
Adjustments:
Impairment of
goodwill - - - 1.90
Restructuring and
related charges 0.14 0.16 0.36 0.85
Foreign exchange
losses on
intercompany
transactions,
including the
write off of
certain
cumulative
translation
adjustments (3) (0.01) 0.01 0.08 0.02
Amortization of
acquired
intangible
assets (4) 0.15 0.02 0.76 0.68
Net loss on sale
of businesses,
assets, and
impairment
charges related
to assets
held-for-sale
(5) 0.18 0.04 0.38 2.81
Held for Sale or
Sold segment
Adjusted Net
(Income) Loss
(5) - (0.03) 0.05 (0.42)
Income tax
adjustments (0.34) 0.55 0.48 0.54
EPS impact of
using
weighted-average
dilutive shares
for adjusted EPS
calculation (6) - - - 0.05
------- ------- ------- --------
Non-GAAP Adjusted
Earnings Per Share -
Diluted $ 1.37 $ 1.21 $ 3.64 $ 2.78
======= ======= ======= ========
Reconciliation of US GAAP Income (Loss) Before Taxes to Non-GAAP Adjusted Income
Before Taxes
---------------------------------------------------------------------------------
Three Months Ended Year Ended
(amounts in thousands) April 30, April 30,
-------------------------- ---------------------------
2025 2024 2025 2024
------- ------- ------- --------
US GAAP Income (Loss)
Before Taxes $ 52,265 $ 54,002 $142,878 $(187,047)
Pretax Impact of
Adjustments:
Impairment of
goodwill - - - 108,449
Restructuring and
related charges 12,490 11,008 25,561 63,041
Foreign exchange
losses on
intercompany
transactions,
including the
write off of
certain
cumulative
translation
adjustments (3) - 815 5,590 1,903
Amortization of
acquired
intangible
assets (4) 12,908 13,324 51,864 57,874
Net loss on sale
of businesses,
assets, and
impairment
charges related
to assets
held-for-sale
(5) 13,580 3,642 23,340 183,389
Held for Sale or
Sold segment
Adjusted
(Income) Loss
Before Taxes
(5) - (2,409) 3,578 (30,661)
------- ------- ------- --------
Non-GAAP Adjusted
Income Before Taxes $ 91,243 $ 80,382 $252,811 $ 196,948
======= ======= ======= ========
Reconciliation of US GAAP Income Tax (Benefit) Provision to Non-GAAP Adjusted
Income Tax Provision, including our US GAAP Effective Tax Rate and our Non-GAAP
Adjusted Effective Tax Rate
---------------------------------------------------------------------------------
US GAAP Income Tax
(Benefit) Provision $(15,828) $ 28,737 $ 58,717 $ 13,272
Income Tax Impact of
Adjustments (7)
Impairment of
goodwill - 255 - 2,953
Restructuring and
related charges 4,633 2,425 5,947 15,662
Foreign exchange
losses on
intercompany
transactions,
including the
write off of
certain
cumulative
translation
adjustments (3) 571 471 1,170 582
Amortization of
acquired
intangible
assets (4) 4,720 11,459 10,231 20,127
Net loss on sale
of businesses,
assets, and
impairment
charges related
to assets
held-for-sale
(5) 3,715 1,197 2,368 26,908
Held for Sale or
Sold segment
Adjusted Tax
(Provision)
Benefit (5) - (622) 807 (7,140)
Income Tax Adjustments
Impact of
valuation
allowance on the
US GAAP
effective tax
rate (8) 18,776 (30,249) (26,008) (30,249)
Impact of change
in certain US
state tax rates
in 2025 (8) (117) - (117) -
------- ------- ------- --------
Non-GAAP Adjusted
Income Tax Provision $ 16,470 $ 13,673 $ 53,115 $ 42,115
======= ======= ======= ========
US GAAP Effective Tax
Rate -30.3% 53.2% 41.1% -7.1%
Non-GAAP Adjusted
Effective Tax Rate 18.1% 17.0% 21.0% 21.4%
Notes:
------------------------ ------- ------- ------- --------
(1) See Explanation of Usage of Non-GAAP Performance Measures included in this
supplementary information for additional details on the reasons why management
believes presentation of each non-GAAP performance measure provides useful
information to investors. The supplementary information included in this press
release for the three months and year ended April 30, 2025 is preliminary and
subject to change prior to the filing of our upcoming Annual Report on Form 10-K
with the Securities and Exchange Commission.
(2) All amounts are approximate due to rounding.
(3) In fiscal year 2023 due to the closure of our operations in Russia, the
Russia entity was deemed substantially liquidated. The formal liquidation was
completed in the fourth quarter of fiscal year 2025. In the three months and year
ended April 30, 2025, we wrote off an additional $1.1 million and $1.4 million,
respectively, of cumulative translation adjustments in earnings. In the three
months and year ended April 30, 2024, we wrote off an additional $0.2 million and
$1.0 million, respectively, of cumulative translation adjustments in earnings.
These amounts are reflected in Net foreign exchange transaction (losses) gains on
our Condensed Consolidated Statements of Net Income (Loss).
(4) Reflects the amortization of intangible assets established on the opening
balance sheet for an acquired business. This includes the amortization of
intangible assets such as developed technology, customer relationships,
tradenames, etc., which is reflected in the "Amortization of intangible assets"
line in the Condensed Consolidated Statements of Net Income (Loss). It also
includes the amortization of acquired product development assets, which is
reflected in Cost of sales in the Condensed Consolidated Statements of Net Income
(Loss).
(5) For the three months and year ended April 30, 2025 and 2024, we recorded net
pretax loss (gain) on sale of businesses, assets, and impairment charges related
to assets held-for-sale as follows:
Three Months Ended Year Ended
April 30, April 30,
-------------------------- ---------------------------
2025 2024 2025 2024
------------------------ ------- ------- ------- --------
Wiley Edge $ 74 $ (1,275) $ 14,852 $ 19,401
University Services 13,428 5,636 12,578 107,048
CrossKnowledge 78 (719) (4,119) 55,440
Tuition Manager - - (120) 1,500
Sale of assets - - 149 -
------- ------- ------- --------
Net pretax loss on sale
of businesses, assets,
and impairment charges
related to assets
held-for-sale $ 13,580 $ 3,642 $ 23,340 $ 183,389
======= ======= ======= ========
For the three months and year ended April 30, 2025 and 2024, we recorded income
tax benefit (provision) on sale of businesses, assets, and impairment charges
related to assets held-for-sale as follows:
Three Months Ended Year Ended
April 30, April 30,
-------------------------- ---------------------------
2025 2024 2025 2024
------------------------ ------- ------- ------- --------
Wiley Edge $ 263 $ 890 $ (1,054) $ 890
University Services 3,109 307 3,109 25,643
CrossKnowledge 344 - 344 -
Tuition Manager - - (30) 374
Sale of assets - - - -
------- ------- ------- --------
Benefit on sale of
businesses, assets, and
impairment charges
related to assets
held-for-sale $ 3,715 $ 1,197 $ 2,368 $ 26,908
======= ======= ======= ========
In addition, our
Adjusted EPS excludes
the Adjusted Net Income
or Loss of our Held for
Sale or Sold segment.
(6) Represents the impact of using diluted weighted-average number of common
shares outstanding (55.7 million for the year ended April 30, 2024) included in
the Non-GAAP Adjusted EPS calculation in order to apply the dilutive impact on
adjusted net income due to the effect of unvested restricted stock units and
other stock awards. This impact occurs when a US GAAP net loss is reported and
the effect of using dilutive shares is antidilutive.
(7) For the three months and year ended April 30, 2025 and 2024, respectively,
substantially all of the tax impact was from deferred taxes.
(8) In fiscal year 2024, due to temporary differences in the US, our deferred
taxes reversed from a net deferred tax liability position to a net deferred tax
asset position. Due to losses in the US resulting from impairments,
restructuring, and acceleration of amortization expense on capitalized software,
we concluded it was more-likely-than-not that all or a portion of our deferred
tax asset may not be realized. As a result, we established a valuation allowance
of $30.2 million. During fiscal year 2025 we increased this valuation allowance
by $26.0 million, because of an increase in the US net deferred tax asset
attributable primarily to interest expense disallowance and intangible and fixed
assets. In connection with the increase in certain US state tax apportionment
factors and state rate changes in 2025, we recorded income tax expense of $0.1
million for the three months and year ended April 30, 2025.
JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) RECONCILIATION OF US
GAAP NET INCOME (LOSS) TO NON-GAAP EBITDA AND ADJUSTED EBITDA (unaudited)
Three Months Ended Year Ended
April 30, April 30,
-------------------------- ---------------------------
2025 2024 2025 2024
------- ------- ------- --------
Net Income (Loss) $ 68,093 $ 25,265 $ 84,161 $(200,319)
Interest
expense 11,270 11,411 52,547 49,003
(Benefit)
provision for
income taxes (15,828) 28,737 58,717 13,272
Depreciation
and
amortization 36,681 47,613 147,126 176,989
------- ------- ------- --------
Non-GAAP EBITDA 100,216 113,026 342,551 38,945
Impairment of
goodwill - - - 108,449
Restructuring
and related
charges 12,490 11,008 25,561 63,041
Net foreign
exchange
transaction
losses
(gains) 826 (530) 8,142 2,959
Net loss on
sale of
businesses,
assets, and
impairment
charges
related to
assets
held-for-sale 13,580 3,642 23,340 183,389
Other (income)
expense, net (1,469) 257 (5,498) 3,957
Held for Sale
or Sold
segment
Adjusted
EBITDA (2) - (2,409) 3,578 (32,148)
------- ------- ------- --------
Non-GAAP Adjusted
EBITDA $125,643 $124,994 $397,674 $ 368,592
======= ======= ======= ========
Adjusted
EBITDA
Margin 28.4% 28.3% 24.0% 22.8%
Notes:
--------------------- ------- ------- ------- --------
(1) See Explanation of Usage of Non-GAAP Performance Measures included in this
supplementary information for additional details on the reasons why management
believes presentation of each non-GAAP performance measure provides useful
information to investors. The supplementary information included in this press
release for the three months and year ended April 30, 2025 is preliminary and
subject to change prior to the filing of our upcoming Annual Report on Form
10-K with the Securities and Exchange Commission.
(2) Our Non-GAAP Adjusted EBITDA excludes the Held for Sale or Sold segment
Non-GAAP Adjusted EBITDA.
JOHN WILEY & SONS, INC.
SUPPLEMENTARY INFORMATION (1) (2) SEGMENT RESULTS
(in thousands)
(unaudited)
% Change
-----------------------
Three Months Ended Favorable
April 30, (Unfavorable)
-------------------------- -----------------------
Constant
2025 2024 Reported Currency
------- ------- ---------- -----------
Research:
Revenue, net
Research
Publishing $243,061 $233,455 4% 4%
Research
Solutions 37,660 37,577 0% 0%
------- -------
Total Revenue,
net $280,721 $271,032 4% 3%
======= =======
Non-GAAP Adjusted
Operating
Income $ 75,168 $ 68,282 10% 10%
Depreciation and
amortization 22,303 25,513 13% 13%
------- -------
Non-GAAP Adjusted
EBITDA $ 97,471 $ 93,795 4% 4%
======= =======
Adjusted
EBITDA
margin 34.7% 34.6%
Learning:
Revenue, net
Academic $100,146 $ 98,908 1% 1%
Professional 61,712 71,237 -13% -14%
------- -------
Total Revenue,
net $161,858 $170,145 -5% -5%
======= =======
Non-GAAP Adjusted
Operating
Income $ 58,715 $ 57,682 2% 1%
Depreciation and
amortization 10,948 16,358 33% 33%
------- -------
Non-GAAP Adjusted
EBITDA $ 69,663 $ 74,040 -6% -6%
======= =======
Adjusted
EBITDA
margin 43.0% 43.5%
Held for Sale or
Sold:
------- -------
Total Revenue,
net $ - $ 27,284 # #
======= =======
Non-GAAP Adjusted
Operating Income $ - $ 2,409 # #
Depreciation and
amortization - - # #
------- -------
Non-GAAP Adjusted
EBITDA $ - $ 2,409 # #
======= =======
Adjusted
EBITDA
margin 0.0% 8.8%
Corporate
Expenses:
Non-GAAP Adjusted
Corporate
Expenses $(44,921) $(48,583) 8% 7%
Depreciation and
amortization 3,430 5,742 40% 40%
------- -------
Non-GAAP Adjusted
EBITDA $(41,491) $(42,841) 3% 3%
======= =======
Consolidated
Results:
Revenue, net $442,579 $468,461 -6% -6%
Less: Held for
Sale or Sold
Segment (3) - (27,284) # #
------- -------
Adjusted Revenue,
net $442,579 $441,177 0% 0%
======= =======
Operating Income $ 76,472 $ 68,782 11% 11%
Adjustments:
Restructuring
charges 12,490 11,008 -13% -13%
Held for Sale
or Sold
Segment
Adjusted
Operating
Income (3) - (2,409) # #
------- -------
Non-GAAP Adjusted
Operating
Income $ 88,962 $ 77,381 15% 15%
Adjusted
Operating
Income
margin 20.1% 17.5%
Depreciation and
amortization 36,681 47,613 23% 23%
Less: Held for
Sale or Sold
Segment
depreciation and
amortization (3) - - # #
------- -------
Non-GAAP Adjusted
EBITDA $125,643 $124,994 1% 0%
======= =======
Adjusted
EBITDA
margin 28.4% 28.3%
Notes:
----------------- ------- ------- ---- ---- --- ------
(1) The supplementary information included in this press release for
the three months and year ended April 30, 2025 is preliminary and
subject to change prior to the filing of our upcoming Annual Report on
Form 10-K with the Securities and Exchange Commission.
(2) All amounts are approximate due to rounding.
(3) Our Adjusted Revenue, Adjusted Operating Income and Adjusted
EBITDA excludes the impact of our Held for Sale or Sold segment
Revenue, Adjusted Operating Income or Loss and Adjusted EBITDA
results.
# Variance greater than 100%
JOHN WILEY & SONS, INC.
SUPPLEMENTARY INFORMATION (1) (2) SEGMENT RESULTS
(in thousands)
(unaudited)
% Change
Year Ended Favorable
April 30, (Unfavorable)
------------------------------ -----------------------
Constant
2025 2024 Reported Currency
--------- --------- ---------- -----------
Research:
Revenue, net
Research
Publishing $ 922,553 $ 892,784 3% 3%
Research
Solutions 152,906 149,921 2% 2%
--------- ---------
Total Revenue,
net $1,075,459 $1,042,705 3% 3%
========= =========
Non-GAAP Adjusted
Operating
Income $ 255,580 $ 237,763 7% 8%
Depreciation and
amortization 89,302 93,422 4% 5%
--------- ---------
Non-GAAP Adjusted
EBITDA $ 344,882 $ 331,185 4% 5%
========= =========
Adjusted
EBITDA
margin 32.1% 31.8%
Learning:
Revenue, net
Academic $ 333,693 $ 323,541 3% 3%
Professional 251,075 251,198 0% 0%
--------- ---------
Total Revenue,
net $ 584,768 $ 574,739 2% 2%
========= =========
Non-GAAP Adjusted
Operating
Income $ 174,850 $ 142,733 23% 22%
Depreciation and
amortization 43,900 57,696 24% 24%
--------- ---------
Non-GAAP Adjusted
EBITDA $ 218,750 $ 200,429 9% 9%
========= =========
Adjusted
EBITDA
margin 37.4% 34.9%
Held for Sale or
Sold:
--------- ---------
Total Revenue,
net $ 17,382 $ 255,543 -93% -93%
========= =========
Non-GAAP Adjusted
Operating (Loss)
Income $ (3,578) $ 28,711 # #
Depreciation and
amortization - 3,437 # #
--------- ---------
Non-GAAP Adjusted
EBITDA $ (3,578) $ 32,148 # #
========= =========
Adjusted
EBITDA
margin -20.6% 12.6%
Corporate
Expenses:
Non-GAAP Adjusted
Corporate
Expenses $ (179,882) $ (185,456) 3% 3%
Depreciation and
amortization 13,924 22,434 38% 38%
--------- ---------
Non-GAAP Adjusted
EBITDA $ (165,958) $ (163,022) -2% -2%
========= =========
Consolidated
Results:
Revenue, net $1,677,609 $1,872,987 -10% -10%
Less: Held for
Sale or Sold
Segment (3) (17,382) (255,543) -93% -93%
--------- ---------
Adjusted Revenue,
net $1,660,227 $1,617,444 3% 3%
========= =========
Operating Income $ 221,409 $ 52,261 # #
Adjustments:
Restructuring
charges 25,561 63,041 59% 59%
Impairment of
goodwill - 108,449 # #
Held for Sale
or Sold
Segment
Adjusted
Operating
Loss (Income)
(3) 3,578 (28,711) # #
--------- ---------
Non-GAAP Adjusted
Operating
Income $ 250,548 $ 195,040 28% 29%
Adjusted
Operating
Income
margin 15.1% 12.1%
Depreciation and
amortization 147,126 176,989 17% 17%
Less: Held for
Sale or Sold
depreciation and
amortization
(3) - (3,437) # #
--------- ---------
Non-GAAP Adjusted
EBITDA $ 397,674 $ 368,592 8% 8%
========= =========
Adjusted
EBITDA
margin 24.0% 22.8%
# Variance greater than 100%
JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) CONDENSED
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in thousands) (unaudited)
April 30, April 30,
2025 2024
--------- ---------
Assets:
Current assets
Cash and cash equivalents $ 85,882 $ 83,249
Accounts receivable, net 228,410 224,198
Inventories, net 22,875 26,219
Prepaid expenses and other current assets 102,717 85,954
Current assets held-for-sale - 34,422
--------- ---------
Total current assets 439,884 454,042
Technology, property and equipment, net 162,125 192,438
Intangible assets, net 595,044 615,694
Goodwill 1,121,505 1,091,368
Operating lease right-of-use assets 66,128 69,074
Other non-current assets 306,780 283,719
Non-current assets held-for-sale - 19,160
--------- ---------
Total assets $ 2,691,466 $2,725,495
========= =========
Liabilities and shareholders' equity:
Current liabilities
Accounts payable $ 60,948 $ 55,659
Accrued royalties 109,765 97,173
Short-term portion of long-term debt 10,000 7,500
Contract liabilities 462,693 483,778
Accrued employment costs 93,117 96,980
Short-term portion of operating lease
liabilities 18,282 18,294
Other accrued liabilities 66,051 76,266
Current liabilities held-for-sale - 37,632
--------- ---------
Total current liabilities 820,856 873,282
Long-term debt 789,435 767,096
Accrued pension liability 71,899 70,832
Deferred income tax liabilities 105,145 97,186
Operating lease liabilities 81,482 94,386
Other long-term liabilities 70,443 71,760
Long-term liabilities held-for-sale - 11,237
--------- ---------
Total liabilities 1,939,260 1,985,779
--------- ---------
Shareholders' equity 752,206 739,716
--------- ---------
Total liabilities and shareholders'
equity $ 2,691,466 $2,725,495
========= =========
Notes:
--------------------------------------------------------------------------
(1) The supplementary information included in this press release for April
30, 2025 is preliminary and subject to change prior to the filing of our
upcoming Annual Report on Form 10-K with the Securities and Exchange
Commission.
JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)
Year Ended
April 30,
2025 2024
-------- --------
Operating activities:
Net income (loss) $ 84,161 $(200,319)
Impairment of goodwill - 108,449
Net loss on sale of businesses,
assets, and impairment charges
related to assets held-for-sale 23,340 183,389
Amortization of intangible assets 51,822 55,994
Amortization of product development
assets 16,610 22,835
Amortization of cloud computing
arrangements 1,081 1,210
Depreciation and amortization of
technology, property, and equipment 78,694 98,160
Other noncash charges 101,808 106,507
Net change in operating assets and
liabilities (154,925) (168,587)
-------- --------
Net cash provided by operating
activities 202,591 207,638
Investing activities:
Additions to technology, property, and
equipment (61,473) (76,080)
Product development spending (15,228) (17,262)
Businesses acquired in purchase
transactions, net of cash acquired (3,602) (3,116)
Net cash transferred related to the
sale of businesses and assets (7,642) (1,771)
Acquisitions of publication rights and
other (6,073) (8,414)
-------- --------
Net cash used in investing
activities (94,018) (106,643)
Financing activities:
Net debt borrowings 13,509 27,767
Cash dividends (76,101) (76,964)
Purchases of treasury shares (60,421) (45,050)
Other (2,317) (12,974)
-------- --------
Net cash used in financing
activities (125,330) (107,221)
Effects of exchange rate changes on cash,
cash equivalents and restricted cash 3,146 (1,493)
-------- --------
Change in cash, cash equivalents and
restricted cash for period (13,611) (7,719)
-------- --------
Cash, cash equivalents and restricted cash -
beginning 99,543 107,262
-------- --------
Cash, cash equivalents and restricted cash -
ending $ 85,932 $ 99,543
======== ========
CALCULATION OF NON-GAAP FREE CASH FLOW LESS PRODUCT DEVELOPMENT
SPENDING (2)
----------------------------------------------------------------------
Year Ended
April 30,
------------------------
2025 2024
-------- --------
Net cash provided by operating activities $ 202,591 $ 207,638
Less: Additions to technology, property, and
equipment (61,473) (76,080)
Less: Product development spending (15,228) (17,262)
-------- --------
Free cash flow less product development
spending $ 125,890 $ 114,296
======== ========
Notes:
-------------------------------------------- -------- --------
(1) The supplementary information included in this press release for
the year ended April 30, 2025 is preliminary and subject to change
prior to the filing of our upcoming Annual Report on Form 10-K with
the Securities and Exchange Commission.
(2) See Explanation of Usage of Non-GAAP Performance Measures included
in this supplemental information.
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; -- Organic revenue; 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, Adjusted
Income Before Taxes, Adjusted Income Tax Provision, Adjusted Effective
Tax Rate, Adjusted EBITDA, and organic revenue (excluding acquisitions)
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/20250617821533/en/
CONTACT: Brian Campbell
Investor Relations
201.748.6874
brian.campbell@wiley.com
(END) Dow Jones Newswires
June 17, 2025 07:30 ET (11:30 GMT)