AI Surge Boosts Wiley's Q1 2026 Results

HOBOKEN, N.J.--(BUSINESS WIRE)-- Wiley (NYSE: WLY), a leading global provider of authoritative content, data-driven insights, and knowledge services for the advancement of science and learning, today reported results for the first quarter ended July 31, 2025.

FIRST QUARTER SUMMARY

• GAAP performance vs. prior year: Revenue of $397 million vs. $404 million due to foregone revenue from divested businesses, Operating Income of $31 million up 7%, and Diluted Earnings Per Share (EPS) of $0.22 vs. (-$0.03) in prior year
• Adjusted Results at constant currency in line with expectations: Adjusted Revenue of $397 million up 1%, Adjusted Operating Income of $34 million down 2%, Adjusted EBITDA of $70 million down 3%, and Adjusted EPS of $0.49 up 2%
• Growth in Research revenue (+5% at constant currency) driven by AI licensing projects and open access growth offsetting timing of prior year journal renewals
• Executed landmark AI licensing project with large tech company on behalf of Wiley publisher partners; announced strategic partnership with Anthropic to accelerate AI integration across scholarly research
• Increased dividend for the 32^nd consecutive year and share repurchases to $14 million; Board approved $250 million share repurchase authorization, a 25% increase over its 2020 authorization

MANAGEMENT COMMENTARY

"We continue to see strong demand trends in research as we open up new growth pathways in AI and corporate R&D," said Matthew Kissner, President and CEO. "Wiley is now a recognized leader in AI licensing and innovation, executing projects for multi-national corporations and strategically partnering with top AI innovators. At the same time, we continue to drive operational excellence across the organization, reaching important milestones in our multi-stage research publishing platform launch and expanding AI innovation across our product portfolio. Given leading indicators, the strength of our recurring revenue models and open access programs, and anticipated cost savings, we remain fully confident in our Fiscal 2026 outlook."

FINANCIAL SUMMARY

Please see accompanying financial tables for more detail.

Research

• Q1 Research revenue of $282 million was up 6% as reported and 5% at constant currency driven by AI licensing revenue of $16 million (vs. $1 million in prior year period) and open access growth offsetting an unfavorable comparison to prior year due to the timing of journal renewals, as well as softness in ancillary material. Wiley continues to see strong demand to publish with article submissions and output growing by 25% and 13%, respectively, with robust growth across all key geographies. Note, it takes approximately six months for a submitted article to be published.
• Q1 Adjusted EBITDA of $80 million was up 2% as reported and at constant currency due to revenue growth partially offset by AI mix (higher royalties for the partner portion of the AI licensing agreement) and the timing of costs. Adjusted EBITDA margin for the quarter was 28.3% vs. 29.3% in the prior year period.

Learning

• Q1 Learning revenue of $115 million was down 7% as reported and 8% at constant currency largely due to $16 million of AI licensing revenue in the prior year (vs. $13 million this quarter) and market-related softness in Professional.
• Q1 Adjusted EBITDA of $31 million for the quarter was down 7% as reported and at constant currency due to lower revenue. Adjusted EBITDA margin was 27.4%, up slightly over prior year.

Corporate Expenses

"Corporate Expenses" are the portion of shared services costs not allocated to segments.

• Q1 Corporate Expenses rose 4% on an Adjusted EBITDA basis at constant currency driven primarily by costs related to strategic consulting projects (now complete), enterprise modernization, and other one-time items. Wiley expects Corporate Expenses to decline starting in Q2 as cost savings ramp up.

EPS

• GAAP EPS of $0.22 compared to a ($0.03) loss in the prior year period, which was impacted by a $0.33/share, non-cash income tax adjustment.
• Adjusted EPS of $0.49 was up 2% at constant currency mainly due to lower interest expense from lower rates.

BALANCE SHEET, CASH FLOW, AND CAPITAL ALLOCATION

• Net Debt-to-EBITDA Ratio (Trailing Twelve Months) at quarter end was 1.9 compared to 2.0 in the year-ago period.
• Net Cash Used in Operating Activities was $85 million compared to $89 million in the prior year period. Note, Wiley's regular use of cash in the first half of the fiscal year is driven by the timing of cash collections for annual journal renewals, which are concentrated in Q3 and Q4.
• Free Cash Flow less Product Development Spending was a use of $100 million compared to a use of $107 million in the prior year. Capex was $15 million compared to $18 million.
• Returns to Shareholders: Wiley allocated $32 million toward dividends and repurchases this quarter, up approximately $1 million from the prior year period. In Q1, the Company acquired approximately 332,000 shares at an average cost of $42.22/share and raised its dividend for the 32nd consecutive year. In June, the Wiley Board of Directors approved a $250 million share repurchase authorization, a 25% increase over its 2020 authorization.
• Divestiture Proceeds: During the quarter, Wiley received approximately $120 million in cash proceeds related to the University Services divestiture, with the total outstanding note paid in full. Wiley has utilized these proceeds to further reduce its debt.

FISCAL 2026 OUTLOOK

Based on leading demand and output indicators, the success of calendar year 2025 journal renewals, and anticipated cost savings, Wiley is reaffirming its full year outlook.

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.

EARNINGS CONFERENCE CALL

Scheduled for today, September 4 at 10:00 am (ET). Access webcast at Investor Relations at investors.wiley.com, or directly at http://events.q4inc.com/attendee/819546756. 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 a leading global provider of authoritative content, data-driven insights, and knowledge services that advance science and learning. For over 200 years, we've empowered researchers, learners and institutions worldwide to drive progress and solve the world's most pressing challenges.

Learn more at Wiley.com and Investors.Wiley.com