John Wiley & Sons Inc.
03/06/2026 | Press release | Distributed by Public on 03/06/2026 08:49
Quarterly Report for Quarter Ending January 31, 2026 (Form 10-Q)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The information in our Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read together with our Condensed Consolidated Financial Statements and related notes set forth in Item 1 of Part I of this Quarterly Report on Form 10-Q, our MD&A set forth in Item 7 of Part II of our 2025 Form 10-K and our Consolidated Financial Statements and related notes set forth in Item 8 of Part II of our 2025 Form 10-K. See Part II, Item 1A, "Risk Factors," below and "Cautionary Notice Regarding Forward-Looking Statements "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995," above, and the information referenced therein, for a description of risks that we face and important factors that we believe could cause actual results to differ materially from those in our forward-looking statements. All amounts and percentages are approximate due to rounding and all dollars are in thousands, except per share amounts or where otherwise noted. When we cross-reference to a "Note," we are referring to our "Notes to Unaudited Condensed Consolidated Financial Statements," unless the context indicates otherwise.
OVERVIEW
Wiley is a global leader in authoritative content and research intelligence for the advancement of scientific discovery, innovation, and learning. The Company's content, services, platforms, and knowledge networks are tailored to meet the evolving needs of its customers and partners, including researchers, students, instructors, professionals, institutions, and corporations. Wiley is a predominantly digital company with over 83% of its Adjusted Revenue for the year ended April 30, 2025 generated by digital products and services. For the year ended April 30, 2025, 48% of Adjusted Revenue is recurring which includes revenue that is contractually obligated or set to recur with a high degree of certainty. See below for the reconciliation of consolidated Revenue to Adjusted Revenue.
We report financial information for the following segments, as well as a Corporate category, which includes certain costs that are not allocated to the reportable segments:
•Researchincludes the reporting lines of Research Publishing and Research Solutions;
•Learningincludes the Academic and Professional reporting lines and consists of publishing, courseware, and assessments.
Wiley also reported a Held for Sale or Sold segment in fiscal year 2025, which primarily includes non-core businesses which were classified as held-for-sale until the date of sale, as well other businesses which were sold.
Through the Research segment, we provide peer-reviewed scientific, technical, and medical (STM) journals, content platforms, and related publishing and audience solutions to academic, corporate, and government customers, academic societies, and individual researchers. The Learning segment provides scientific, professional, and education print and digital books to researchers, professionals, and students, digital courseware for instructors and students, and assessment services to businesses and professionals.
Wiley's business strategies are tightly aligned with consistent long-term growth trends, including ever-increasing global research and development (R&D) investment, leading to growth in scientific research output and the number of institutions and researchers worldwide. These strategies include expanding our publishing program and journal portfolio to meet the global demand for peer-reviewed research, driving additional value in our subscription-based models for universities and corporations, volume-based models for open access, content licensing opportunities for applications in science and innovation, and content platform and service offerings for corporations and societies. Learning strategies include selectively scaling high-value digital content, courseware, and assessments to meet targeted opportunities in education and professional development.
INDEX
RESULTS OF OPERATIONS - THREE MONTHS ENDED JANUARY 31, 2026
THIRD QUARTER SUMMARY
•US GAAP Results: Consolidated Revenue of $410.0 million (+1%, compared with the prior year), Operating Income of $62.8 million (+21%, compared with the prior year), and Diluted Earnings per Share of $0.56 (+$0.99, compared with the prior year diluted loss per share).
•Adjusted Results at Constant Currency:
◦Beginning in the third quarter of fiscal year 2026, our adjusted results at constant currency no longer include any contributions from the Held for Sale or Sold segment in either the current or prior year periods. As a result, the comparative figures for both periods are now presented on a consistent basis, fully excluding the Held for Sale or Sold segment results.
◦Revenue of $410.0 million (consistent with the prior year), Adjusted Operating Income of $69.8 million (+22%, compared with the prior year), Adjusted EBITDA of $105.4 million (+12%, compared with the prior year), and Adjusted EPS of $0.97 (+19%, compared with the prior year).
CONSOLIDATED RESULTS OF OPERATIONS
Revenue:
Revenue for the three months ended January 31, 2026 increased $5.4 million, or 1%, as compared with the prior year. On a constant currency basis, revenue was consistent with the prior year. Artificial intelligence (AI) license revenue was $7.3 million for the three months ended January 31, 2026 as compared with $9 million in the prior year. The period to period comparability of AI license revenue can fluctuate due to timing and the nature of the underlying content.
See the "Segment Operating Results" below for additional details on each segment's revenue and Adjusted EBITDA performance.
Cost of Sales:
Cost of sales for the three months ended January 31, 2026 of $107.8 million increased $3.6 million, or 3% as compared with the prior year. On a constant currency basis, cost of sales increased 2% as compared with the prior year primarily due to higher royalty costs, partially offset by lower inventory costs.
Operating and Administrative Expenses:
Operating and administrative expenses for the three months ended January 31, 2026 of $219.1 million decreased $10.9 million, or 5% as compared with the prior year. On a constant currency basis, operating and administrative expenses decreased 7%. This decline was primarily due to restructuring and cost savings initiatives resulting in lower employee costs, and professional fees. This was partially offset by higher bad debt expense.
Restructuring and Related Charges:
We recorded restructuring and related charges in the three months ended January 31, 2026 and 2025of $7.1 millionand $5.6 million, respectively. These charges are reflected in Restructuring and related charges on our Unaudited Condensed Consolidated Statements of Net Income (Loss).
Global Restructuring Program
Beginning in fiscal year 2023, the Company initiated the Global Restructuring Program which was expanded in fiscal year 2024 to include those actions that will focus Wiley on its leading global position in the development and application of new knowledge and drive greater profitability, growth, and cash flow. We will focus on our strongest and most profitable businesses and large market opportunities in Research and Learning, as well as streamline our organization and rightsize our cost structure to reflect these portfolio actions. Under this program, we reduced our real estate square footage occupancy by approximately 35%.
INDEX
In the fourth quarter of fiscal year 2025, the program was further extended due to the completion of our divestitures with a focus on optimizing our cost structure, with particular emphasis on aligning our technology costs and other corporate expenses. As a result of these initiatives, this expanded program will include severance related charges, facility-related costs associated with certain properties, and other activities.
Excluding actions related to the Held for Sale or Sold segment, we anticipate to yield annualized cost savings of approximately $125 million, with approximately $110 million of that to be realized in fiscal year 2026 from actions taken starting in fiscal year 2024.
For the three months ended January 31, 2026 and 2025, we recorded pretax restructuring charges of $7.1 million and $5.6 million, respectively, related to this program.
See Note 9, "Restructuring and Related Charges" for more details on the Global Restructuring Program charges.
Business Optimization Program
For both the three months ended January 31, 2026 and 2025, we recorded net pretax restructuring credits of less than $(0.1) million related to this program.
See Note 9, "Restructuring and Related Charges" for more details on the Business Optimization Program credits.
For the impact of our restructuring programs on diluted earnings (loss) per share, see the section below, "Diluted Earnings (Loss) per Share."
Amortization of Intangible Assets:
Amortization of intangible assets was $13.3 million for the three months ended January 31, 2026, an increase of $0.3 million, or 2%, as compared with the prior year. On a constant currency basis, amortization of intangible assets decreased 1% as compared with the prior year primarily due to the completion of amortization of certain acquired intangible assets, partially offset by the amortization expense related to acquired definite lived intangible assets, including those acquired as part of an acquisition.
Operating Income, Adjusted Operating Income (OI) and Adjusted EBITDA:
Operating income for the three months ended January 31, 2026 of$62.8 million increased$10.9 million, or 21% as compared with the prior year. On a constant currency basis, operating income increased 21% ascompared with the prior year. The increase was primarily due to lower operating and administrative expenses, partially offset by higher cost of sales, and restructuring charges.
Adjusted OI and Adjusted EBITDA on a constant currency basis for the three months ended January 31, 2026 increased 22% and 12%, respectively, as compared with the prior year. These increases were primarily due to lower operating and administrative expenses, partially offset by an increase in costs of sales.
Adjusted OI
Below is a reconciliation of our consolidated US GAAP Operating Income to Non-GAAP Adjusted OI:
|
Three Months Ended January 31, |
|||||||||||
| 2026 | 2025 | ||||||||||
| US GAAP Operating Income | $ | 62,758 | $ | 51,831 | |||||||
| Adjustments: | |||||||||||
| Restructuring and related charges | 7,057 | 5,574 | |||||||||
| Non-GAAP Adjusted OI | $ | 69,815 | $ | 57,405 | |||||||
INDEX
Adjusted EBITDA
Below is a reconciliation of our consolidated US GAAP Net Income (Loss) to Non-GAAP EBITDA and Adjusted EBITDA:
|
Three Months Ended January 31, |
|||||||||||
| 2026 | 2025 | ||||||||||
| Net Income (Loss) | $ | 29,679 | $ | (22,954) | |||||||
| Interest expense | 11,490 | 14,027 | |||||||||
| Provision for income taxes | 14,717 | 41,627 | |||||||||
| Depreciation and amortization | 35,592 | 36,474 | |||||||||
| Non-GAAP EBITDA | 91,478 | 69,174 | |||||||||
| Restructuring and related charges | 7,057 | 5,574 | |||||||||
| Net foreign exchange transaction losses | 5,187 | 4,222 | |||||||||
| Net loss on sale of businesses, assets, and impairment charges related to assets held-for-sale | 161 | 15,930 | |||||||||
| Other expense (income), net | 1,524 | (1,021) | |||||||||
| Non-GAAP Adjusted EBITDA | $ | 105,407 | $ | 93,879 | |||||||
Interest Expense:
Interest expense for the three months ended January 31, 2026was $11.5 million compared with the prior year of $14.0 million. This decrease was primarily due to a lower weighted average effective interest rate and, to a lesser extent, a decrease in the total debt outstanding.
Net Foreign Exchange Transaction (Losses):
Net foreign exchange transaction losses of $(5.2) million for the three months ended January 31, 2026were primarily due to losses on our foreign currency denominated intercompany accounts receivable and payable balances and, to a lesser extent, losses on our foreign currency denominated third party accounts receivable and payable balances due to the impact of the change in average foreign exchange rates as compared to the US dollar.
Net foreign exchange transaction losses of $(4.2) million for the three months ended January 31, 2025were primarily due to losses on our foreign currency denominated intercompany accounts receivable and payable balances, partially offset by gains on our foreign currency denominated third party accounts receivable and payable balances due to the impact of the change in average foreign exchange rates as compared to the US dollar.
Net Loss on Sale of Businesses, Assets, and Impairment Charges Related to Assets Held-For-Sale:
We recorded net pretax loss on sale of businesses, assets, and impairment charges related to assets held-for-sale as follows:
|
Three Months Ended January 31, |
|||||||||||
| 2026 | 2025 | ||||||||||
|
Wiley Edge
|
$ | (161) | $ | (15,566) | |||||||
|
CrossKnowledge
|
- | 275 | |||||||||
|
University Services
|
- | (639) | |||||||||
|
Net loss on sale of businesses, assets, and impairment charges related to assets held-for-sale
|
$ | (161) | $ | (15,930) | |||||||
INDEX
These charges are reflected in Net loss on sale of businesses, assets, and impairment charges related to assets held-for-sale on our Unaudited Condensed Consolidated Statements of Net Income (Loss). See Note 3, "Divestitures" for more details on the divestitures.
Other (Expense) Income, Net:
Other expense, net was $(1.5) millionfor the three months ended January 31, 2026, compared to other income, net of $1.0 millionin the prior year. This decrease was primarily due to foregone interest income due to the sale of the University Services Seller Note on June 4, 2025. See Note 3, "Divestitures" for more details on the sale.
Provision for Income Taxes:
Below is a reconciliation of our US GAAP Income Before Taxes to Non-GAAP Adjusted Income Before Taxes:
|
Three Months Ended January 31, |
|||||||||||
| 2026 | 2025 | ||||||||||
| US GAAP Income Before Taxes | $ | 44,396 | $ | 18,673 | |||||||
| Pretax Impact of Adjustments: | |||||||||||
| Restructuring and related charges | 7,057 | 5,574 | |||||||||
| Foreign exchange losses on intercompany transactions, including the write off of certain cumulative translation adjustments | 3,430 | 5,239 | |||||||||
| Amortization of acquired intangible assets | 13,343 | 13,042 | |||||||||
| Net loss on sale of businesses, assets, and impairment charges related to assets held-for-sale | 161 | 15,930 | |||||||||
| Non-GAAP Adjusted Income Before Taxes | $ | 68,387 | $ | 58,458 | |||||||
Below is a reconciliation of our US GAAP Income Tax Provision to Non-GAAP Adjusted Income Tax Provision, including our US GAAP Effective Tax Rate and our Non-GAAP Adjusted Effective Tax Rate:
|
Three Months Ended January 31, |
|||||||||||
| 2026 | 2025 | ||||||||||
| US GAAP Income Tax Provision | $ | 14,717 | $ | 41,627 | |||||||
|
Income Tax Impact of Adjustments(1):
|
|||||||||||
| Restructuring and related charges | 1,448 | 404 | |||||||||
| Foreign exchange losses intercompany transactions, including the write off of certain cumulative translation adjustments | 1,314 | 260 | |||||||||
| Amortization of acquired intangible assets | 1,859 | 1,910 | |||||||||
|
Net loss on sale of businesses, assets, and impairment charges related to assets held-for-sale
|
(1,257) | 154 | |||||||||
| Income Tax Adjustments | |||||||||||
|
Impact of withholding tax on Sri Lanka distribution
|
(1,208) | - | |||||||||
|
Impact of valuation allowance on the US GAAP effective tax rate
|
305 | (31,744) | |||||||||
| Non-GAAP Adjusted Income Tax Provision | $ | 17,178 | $ | 12,611 | |||||||
|
|
|||||||||||
| US GAAP Effective Tax Rate | 33.1 | % | 222.9 | % | |||||||
| Non-GAAP Adjusted Effective Tax Rate | 25.1 | % | 21.6 | % | |||||||
|
(1)
|
For the three months ended January 31, 2026 and 2025, substantially all of the tax impact was from deferred taxes.
|
||||
INDEX
The US GAAP effective tax rate for the three months ended January 31, 2026 was 33.1% compared to 222.9% for the three months ended January 31, 2025. The US GAAP effective tax rate for the three months ended January 31, 2026 was lowerthan the prior year primarily due to a change in jurisdictional mix of earnings.
The Non-GAAP Adjusted Effective Tax Rate was 25.1% for the three months ended January 31, 2026 compared to 21.6% for the three months ended January 31, 2025. The increasein the Non-GAAP Adjusted Effective Tax Rate for the three months ended January 31, 2026 compared with the prior year was primarily due to the mix of income.
Enactment of the "One Big Beautiful Bill Act" (OBBBA)
On July 4, 2025, President Trump signed into law the OBBBA. Key corporate tax provisions of the OBBBA include a handful of elective tax measures such as restoration of 100% bonus depreciation, and the introduction of new Section 174A permitting immediate expensing of domestic research and experimental (R&E) expenditures. Other tax measures include modifications to Section 163(j) interest expense limitations, updates to the rules governing global intangible low-taxed income (GILTI) and foreign-derived intangible income (FDII), amendments to energy credit provisions, and the expansion of Section 162(m) aggregation requirements.
Under US GAAP, the effects of changes in tax laws are recognized in the period in which the new law is enacted. Upon initial assessment of the elective tax measures, we determined the impact of these to be insignificant and reflected these in our financial statements using management's best estimate through the third quarter of fiscal year 2026. We are continuing to evaluate the full year impact of the OBBBA and, based on our preliminary analysis, we do not anticipate a material effect on our consolidated financial statements for the year ended April 30, 2026.
Diluted Earnings (Loss) per Share:
Diluted earnings per share for the three months ended January 31, 2026was $0.56 per share compared with a loss per share of $(0.43) per share for the three months ended January 31, 2025. This increase was primarily due to a decrease in the provision for income taxes and, to a lesser extent, an increase in income before taxes.
Below is a reconciliation of our US GAAP Earnings (Loss) per Share to Non-GAAP Adjusted EPS. The amount of the pretax, and the related income tax impact for the adjustments included in the table below are presented in the section above, "Provision for Income Taxes."
|
Three Months Ended January 31, |
|||||||||||
| 2026 | 2025 | ||||||||||
| US GAAP Earnings (Loss) Per Share | $ | 0.56 | $ | (0.43) | |||||||
| Adjustments: | |||||||||||
| Restructuring and related charges | 0.11 | 0.09 | |||||||||
| Foreign exchange losses on intercompany transactions, including the write off of certain cumulative translation adjustments | 0.04 | 0.09 | |||||||||
| Amortization of acquired intangible assets | 0.21 | 0.20 | |||||||||
|
Net loss on sale of businesses, assets, and impairment charges related to assets held-for-sale
|
0.03 | 0.29 | |||||||||
| Income tax adjustments | 0.02 | 0.58 | |||||||||
|
EPS impact of using weighted-average dilutive shares for adjusted EPS calculation(1)
|
- | 0.02 | |||||||||
| Non-GAAP Adjusted EPS | $ | 0.97 | $ | 0.84 | |||||||
|
(1)
|
Represents the impact of using diluted weighted-average number of common shares outstanding (54.6 million shares for the three months ended January 31, 2025) 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.
|
||||
On a constant currency basis, Adjusted EPS increased 19% primarily due to an increase in Adjusted Operating Income and, to a lesser extent, lower diluted weighted-average number of common shares outstanding, partially offset by an increase in the Adjusted Income Tax Provision.
INDEX
SEGMENT OPERATING RESULTS
|
Three Months Ended January 31, |
% Change Favorable (Unfavorable) |
Constant Currency % Change Favorable (Unfavorable) |
|||||||||||||||||||||
| RESEARCH | 2026 | 2025 | |||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Research Publishing | $ | 233,435 | $ | 225,874 | 3 | % | 1 | % | |||||||||||||||
| Research Solutions | 40,684 | 41,670 | (2) | % | (3) | % | |||||||||||||||||
| Total Research Revenue | 274,119 | 267,544 | 2 | % | 1 | % | |||||||||||||||||
|
|
|||||||||||||||||||||||
| Cost of sales | 73,228 | 69,157 | (6) | % | (5) | % | |||||||||||||||||
| Direct expenses | 80,786 | 81,685 | 1 | % | 5 | % | |||||||||||||||||
| Allocated Corporate expenses | 41,062 | 40,316 | (2) | % | 0 | % | |||||||||||||||||
| Amortization of intangible assets | 11,312 | 10,717 | (6) | % | (1) | % | |||||||||||||||||
| Adjusted Operating Income | 67,731 | 65,669 | 3 | % | 3 | % | |||||||||||||||||
| Depreciation and amortization | 23,024 | 21,918 | (5) | % | (3) | % | |||||||||||||||||
| Adjusted EBITDA | $ | 90,755 | $ | 87,587 | 4 | % | 3 | % | |||||||||||||||
| Adjusted EBITDA Margin | 33.1% | 32.7% | |||||||||||||||||||||
Revenue:
Research revenue for the three months ended January 31, 2026 increased $6.6 million, or 2%, as compared with the prior year on a reported basis. On a constant currency basis, Research revenue increased 1% as compared with the prior year. Research Publishing revenue on a constant currency basis increased 1% as compared with the prior year primarily due to continued growth in author-funded open access and, to a lesser extent, an increase in recurring revenue models which includes subscriptions and transformational agreements. These increases were partially offset by lower licensing revenue including AI, and softness in ancillary products. Research Publishing on a constant currency basis excluding AI revenue increased 4%. Research Solutions revenue on a constant currency basis decreased 3% as compared with the prior year primarily due to softness in recruiting and databases, partially offset by higher AI license revenue which includes content licensed from other publishers.
Research AI license revenue for the three months ended January 31, 2026 was $6.2 million as compared with $9 million in the prior year. Open access article output growth was approximately 28% as compared with the prior year.
Adjusted EBITDA:
On a constant currency basis, Adjusted EBITDA increased 3% as compared with the prior year. This increase was primarily due to cost savings initiatives and, to a lesser extent, higher revenue, partially offset by higher royalty costs.
INDEX
|
Three Months Ended January 31, |
% Change
Favorable
(Unfavorable)
|
Constant Currency
% Change
Favorable
(Unfavorable)
|
|||||||||||||||||||||
| LEARNING | 2026 | 2025 | |||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Academic | $ | 80,108 | $ | 78,795 | 2 | % | 1 | % | |||||||||||||||
| Professional | 55,809 | 58,287 | (4) | % | (5) | % | |||||||||||||||||
| Total Learning Revenue | 135,917 | 137,082 | (1) | % | (2) | % | |||||||||||||||||
|
|
|||||||||||||||||||||||
| Cost of sales | 34,553 | 35,062 | 1 | % | 3 | % | |||||||||||||||||
| Direct expenses | 34,699 | 33,808 | (3) | % | (1) | % | |||||||||||||||||
| Allocated Corporate expenses | 26,364 | 28,441 | 7 | % | 9 | % | |||||||||||||||||
| Amortization of intangible assets | 2,031 | 2,007 | (1) | % | (1) | % | |||||||||||||||||
| Adjusted Operating Income | 38,270 | 37,764 | 1 | % | 1 | % | |||||||||||||||||
| Depreciation and amortization | 10,179 | 10,761 | 5 | % | 6 | % | |||||||||||||||||
| Adjusted EBITDA | $ | 48,449 | $ | 48,525 | 0 | % | (1) | % | |||||||||||||||
| Adjusted EBITDA Margin | 35.6% | 35.4% | |||||||||||||||||||||
Revenue:
Learning revenue decreased $1.2 million, or 1%, as compared with the prior year on a reported basis. On a constant currency basis, revenue decreased 2% as compared with the prior year. Academic revenue on a constant currency basis increased 1% as compared with the prior year due to an increase in licensing revenue including AI and, to a lesser extent, digital content growth, partially offset by a decline in print book sales and, to a lesser extent, digital courseware. Professional revenue on a constant currency basis decreased 5% as compared with the prior year due to a decline in print and digital revenue due to inventory reductions at an online retailer and a slowdown in consumer and corporate spending, partially offset by an increase in licensing revenue including AI.
Learning AI license revenue for the three months ended January 31, 2026 was $1.2 million included in both Academic and Professional compared with none in the prior year.
Adjusted EBITDA:
On a constant currency basis, Adjusted EBITDA decreased 1% as compared with the prior year. This decrease was primarily due to lower revenue, partially offset by restructuring and cost savings initiatives, and favorable product mix.
HELD FOR SALE OR SOLD
Our Held for Sale or Sold segment has no operating results for the three months ended January 31, 2026 and 2025, respectively. This is due to the completion of the sale of all businesses within this segment prior to the beginning of the current and comparative reporting periods. As a result, no revenues or expenses attributable to these businesses are included in the Unaudited Condensed Consolidated Statements of Net Income (Loss) for the three months ended January 31, 2026 and 2025. See Note 3, "Divestitures" for more details on the divestitures.
INDEX
|
Three Months Ended January 31, |
% Change
Favorable
(Unfavorable)
|
Constant Currency
% Change
Favorable
(Unfavorable)
|
|||||||||||||||||||||
| CORPORATE EXPENSES | 2026 | 2025 | |||||||||||||||||||||
| Unallocated Corporate expenses | $ | 36,186 | $ | 45,710 | 21 | % | 22 | % | |||||||||||||||
| Amortization of intangible assets | - | 318 | # | # | |||||||||||||||||||
| Adjusted Unallocated Corporate Expenses | (36,186) | (46,028) | 21 | % | 22 | % | |||||||||||||||||
| Depreciation and amortization | 2,389 | 3,795 | 37 | % | 37 | % | |||||||||||||||||
| Adjusted EBITDA | $ | (33,797) | $ | (42,233) | 20 | % | 21 | % | |||||||||||||||
# Variance greater than 100%
On a constant currency basis, adjusted unallocated corporate expenses of $33.8 millionon an Adjusted EBITDA basis decreased 21% as compared with the prior year.This was primarily due to restructuring and expense management across functional areas, namely technology.
RESULTS OF OPERATIONS - NINE MONTHS ENDED JANUARY 31, 2026
NINE MONTHS SUMMARY
•US GAAP Results: Consolidated Revenue of $1,228.6 million (-1%, compared with the prior year), Operating Income of $166.7 million (+15%, compared with the prior year), and Diluted Earnings per Share of $1.62 (+$1.33 , compared with the prior year).
•Adjusted Results at Constant Currency (excluding Held for Sale or Sold segment results): Adjusted Revenue of $1,228.6 million (consistent with the prior year), Adjusted Operating Income of $183.0 million (+13%, compared with the prior year), Adjusted EBITDA of $290.9 million (+6%, compared with the prior year), and Adjusted EPS of $2.56 (+13%, compared with the prior year).
CONSOLIDATED RESULTS OF OPERATIONS
Revenue:
Revenue for the nine months ended January 31, 2026 decreased $6.4 million, or 1%, as compared with the prior year. On a constant currency basis, revenue decreased 2%as compared with the prior year. Excluding the revenues from the Held for Sale or Sold segment, Adjusted Revenue was consistent with the prior year on a constant currency basis. AI license revenue was $42.3 million for the nine months ended January 31, 2026 as compared with $30 million in the prior year. The AI license revenue in the nine months ended January 31, 2026 includes $19.4 million of revenue related to content which Wiley has licensed from other publishers.
Adjusted Revenue
Below is a reconciliation of our consolidated US GAAP Revenue, net to Non-GAAP Adjusted Revenue, net:
|
Nine Months Ended January 31, |
|||||||||||
| 2026 | 2025 | ||||||||||
| US GAAP Revenue, net | $ | 1,228,587 | $ | 1,235,030 | |||||||
|
Less: Held for Sale or Sold segment
|
- | (17,382) | |||||||||
| Non-GAAP Adjusted Revenue, net | $ | 1,228,587 | $ | 1,217,648 | |||||||
See the "Segment Operating Results" below for additional details on each segment's revenue and Adjusted EBITDA performance.
INDEX
Cost of Sales:
Cost of sales for the nine months ended January 31, 2026 of $321.4 million increased $1.0 millionand was consistent with the prior year. On a constant currency basis, cost of sales decreased 1%as compared with the prior year. This was primarily due to the prior year including employee costs primarily related to the Wiley Edge business which was sold on May 31, 2024 and, to a lesser extent, lower inventory costs primarily in Learning. These factors were partially offset by higher royalty costs.
Excluding the cost of sales from the Held for Sale or Sold segment, cost of sales increased 2% as compared with the prior year on a constant currency basis primarily due to higher royalty costs, partially offset by lower inventory costs primarily in Learning.
Operating and Administrative Expenses:
Operating and administrative expenses for the nine months ended January 31, 2026 of $684.5 million decreased $33.2 million, or 5% as compared with the prior year. On a constant currency basis, operating and administrative expenses decreased 6% as compared with the prior year due to restructuring and cost savings initiatives resulting in lower employee costs and, to a lesser extent, lower professional fees, and travel and entertainment costs.
On a constant currency basis, operating and administrative expenses excluding expenses from the Held for Sale or Sold segment decreased 4% as compared with the prior year. These declines were primarily due to restructuring and cost savings initiatives resulting in lower employee costs and, to a lesser extent, lower professional fees, and travel and entertainment costs.
Restructuring and Related Charges:
We recorded restructuring and related charges in the nine months ended January 31, 2026 and 2025of $16.1 millionand $13.1 million, respectively. These charges are reflected in Restructuring and related charges on our Unaudited Condensed Consolidated Statements of Net Income (Loss).
Global Restructuring Program
For the nine months ended January 31, 2026 and 2025, we recorded pretax restructuring charges of $16.2 million and $16.8 million, respectively, related to this program.
See Note 9, "Restructuring and Related Charges" for more details on the Global Restructuring Program charges.
Business Optimization Program
For the nine months ended January 31, 2026 and 2025, we recorded pretax restructuring credits of less than $(0.1) million and $(3.8) million, respectively, related to this program.
See Note 9, "Restructuring and Related Charges" for more details on the Business Optimization Program credits.
For the impact of our restructuring programs on diluted earnings per share, see the section below, "Diluted Earnings per Share."
Amortization of Intangible Assets:
Amortization of intangible assets was $39.8 million for the nine months ended January 31, 2026, an increase of $0.9 million, or 2%, as compared with the prior year. On a constant currency basis, amortization of intangible assets decreased 1%as compared with the prior year primarily due to the completion of amortization of certain acquired intangible assets, partially offset by amortization expense related to acquired definite lived intangible assets, including those acquired as part of an acquisition.
INDEX
Operating Income, Adjusted Operating Income (OI) and Adjusted EBITDA:
Operating income of $166.7 millionfor the nine months ended January 31, 2026 increased $21.8 million, or 15% as compared with the prior year on a reported and constant currency basis. The increase was primarily due to lower operating and administrative expenses, partially offset bya decrease in revenue.
Adjusted OI and Adjusted EBITDA on a constant currency basis for the nine months ended January 31, 2026 increased 13% and 6%, respectively, as compared with the prior year. The increase in Adjusted OI and Adjusted EBITDA was primarily due to lower operating and administrative expenses, partially offset by higher cost of sales.
Adjusted OI
Below is a reconciliation of our consolidated US GAAP Operating Income to Non-GAAP Adjusted OI:
|
Nine Months Ended January 31, |
|||||||||||
| 2026 | 2025 | ||||||||||
| US GAAP Operating Income | $ | 166,717 | $ | 144,937 | |||||||
| Adjustments: | |||||||||||
| Restructuring and related charges | 16,127 | 13,071 | |||||||||
|
Held for Sale or Sold segment Adjusted Operating Loss
|
- | 3,578 | |||||||||
|
Legal settlement
|
108 | - | |||||||||
| Non-GAAP Adjusted OI | $ | 182,952 | $ | 161,586 | |||||||
Adjusted EBITDA
Below is a reconciliation of our consolidated US GAAP Net Income to Non-GAAP EBITDA and Adjusted EBITDA:
|
Nine Months Ended January 31, |
|||||||||||
| 2026 | 2025 | ||||||||||
| Net Income | $ | 86,270 | $ | 16,068 | |||||||
| Interest expense | 34,202 | 41,277 | |||||||||
| Provision for income taxes | 33,843 | 74,545 | |||||||||
| Depreciation and amortization | 107,967 | 110,445 | |||||||||
| Non-GAAP EBITDA | 262,282 | 242,335 | |||||||||
| Restructuring and related charges | 16,127 | 13,071 | |||||||||
| Net foreign exchange transaction losses | 5,202 | 7,316 | |||||||||
| Net loss on sale of businesses, assets, and impairment charges related to assets held-for-sale | 3,586 | 9,760 | |||||||||
| Other expense (income), net | 3,614 | (4,029) | |||||||||
|
Held for Sale or Sold segment Adjusted EBITDA
|
- | 3,578 | |||||||||
| Legal settlement | 108 | - | |||||||||
| Non-GAAP Adjusted EBITDA | $ | 290,919 | $ | 272,031 | |||||||
INDEX
Interest Expense:
Interest expense for the nine months ended January 31, 2026,was $34.2 million compared with the prior year of $41.3 million. This decreasewas primarily due to a lower weighted average effective interest rate and, to a lesser extent, a decrease in the total debt outstanding.
Net Foreign Exchange Transaction (Losses):
Net foreign exchange transaction losses of $(5.2) million for the nine months ended January 31, 2026were primarily due to losses on our foreign currency denominated intercompany accounts receivable and payable balances and, to a lesser extent, losses on our foreign currency denominated third party accounts receivable and payable balances due to the impact of the change in average foreign exchange rates as compared to the US dollar.
Foreign exchange transaction losses of $(7.3) million for the nine months ended January 31, 2025were primarily due to losses on our foreign currency denominated intercompany accounts receivable and payable balances and, to a lesser extent, on our foreign currency denominated third party accounts receivable and payable balances due to the impact of the change in average foreign exchange rates as compared to the US dollar. In the nine months ended January 31, 2025, we wrote off an additional net $0.4 million in cumulative translation adjustments in earnings due to the closure of our operations in Russia.
Net Loss on Sale of Businesses, Assets, and Impairment Charges Related to Assets Held-for-Sale:
For the nine months ended January 31, 2026 and 2025, we recorded net pretax loss on sale of businesses, assets, and impairment charges related to assets held-for-sale as follows:
|
Nine Months Ended January 31, |
|||||||||||
| 2026 | 2025 | ||||||||||
|
University Services
|
$ | (934) | $ | 850 | |||||||
|
CrossKnowledge
|
(2,309) | 4,197 | |||||||||
|
Wiley Edge
|
(161) | (14,778) | |||||||||
| Tuition Manager | - | 120 | |||||||||
|
Other disposition activity
|
(182) | (149) | |||||||||
|
Net loss on sale of businesses, assets, and impairment charges related to assets held-for-sale
|
$ | (3,586) | $ | (9,760) | |||||||
These charges are reflected in Net loss on sale of businesses, assets, and impairment charges related to assets held-for-sale on our Unaudited Condensed Consolidated Statements of Net Income (Loss). See Note 3, "Divestitures" for more details on the divestitures.
Other (Expense) Income, Net:
Other expense, net was $(3.6) million for the ninemonths ended January 31, 2026, compared to other income, net of $4.0 million in the prior year. This decrease was primarily due to foregone interest income due to the sale of the University Services Seller Note on June 4, 2025.
INDEX
Provision for Income Taxes:
Below is a reconciliation of our US GAAP Income Before Taxes to Non-GAAP Adjusted Income Before Taxes:
|
Nine Months Ended January 31, |
|||||||||||
| 2026 | 2025 | ||||||||||
| US GAAP Income Before Taxes | $ | 120,113 | $ | 90,613 | |||||||
| Pretax Impact of Adjustments: | |||||||||||
| Restructuring and related charges | 16,127 | 13,071 | |||||||||
| Foreign exchange losses on intercompany transactions, including the write off of certain cumulative translation adjustments | 1,880 | 5,590 | |||||||||
| Amortization of acquired intangible assets | 39,801 | 38,956 | |||||||||
| Net loss on sale of businesses, assets, and impairment charges related to assets held-for-sale | 3,586 | 9,760 | |||||||||
|
Held for Sale or Sold segment Adjusted Loss Before Taxes
|
- | 3,578 | |||||||||
|
Legal settlement
|
108 | - | |||||||||
| Non-GAAP Adjusted Income Before Taxes | $ | 181,615 | $ | 161,568 | |||||||
Below is a reconciliation of our US GAAP Income Tax Provision to Non-GAAP Adjusted Income Tax Provision, including our US GAAP Effective Tax Rate and our Non-GAAP Adjusted Effective Tax Rate:
|
Nine Months Ended January 31, |
|||||||||||
| 2026 | 2025 | ||||||||||
| US GAAP Income Tax Provision | $ | 33,843 | $ | 74,545 | |||||||
|
Income Tax Impact of Adjustments(1):
|
|||||||||||
| Restructuring and related charges | 3,238 | 1,315 | |||||||||
| Foreign exchange losses on intercompany transactions, including the write off of certain cumulative translation adjustments | 346 | 599 | |||||||||
| Amortization of acquired intangible assets | 5,985 | 5,511 | |||||||||
|
Net loss on sale of businesses, assets, and impairment charges related to assets held-for-sale
|
(1,203) | (1,360) | |||||||||
|
Held for Sale or Sold segment Adjusted Tax Benefit
|
- | 887 | |||||||||
|
Legal settlement
|
- | - | |||||||||
| Income Tax Adjustments | |||||||||||
|
Impact of withholding tax on Sri Lanka distribution
|
(1,208) | - | |||||||||
|
Impact of valuation allowance on the US GAAP effective tax rate
|
334 | (44,863) | |||||||||
|
Impact of change in Germany statutory tax rate on deferred tax balances
|
3,869 | - | |||||||||
| Non-GAAP Adjusted Income Tax Provision | $ | 45,204 | $ | 36,634 | |||||||
|
|
|||||||||||
| US GAAP Effective Tax Rate | 28.2 | % | 82.3 | % | |||||||
| Non-GAAP Adjusted Effective Tax Rate | 24.9 | % | 22.7 | % | |||||||
|
(1)
|
For the nine months ended January 31, 2026 and 2025, substantially all of the tax impact was from deferred taxes.
|
||||
INDEX
The US GAAP effective tax rate for the nine months ended January 31, 2026, was 28.2% compared to 82.3% for the nine months ended January 31, 2025. The US GAAP effective tax rate for the nine months ended January 31, 2026 was lower than the prior year primarily due to a change in jurisdictional mix of earnings and a deferred tax benefit being recorded this year as a result of the enactment of tax rate reductions in Germany.
The Non-GAAP Adjusted Effective Tax Rate was 24.9% for the nine months ended January 31, 2026 compared to 22.7% for the nine months ended January 31, 2025. The increase in the Non-GAAP Adjusted Effective Tax Rate for the nine months ended January 31, 2026 compared with the prior year was primarily due to the mix of income.
Diluted Earnings per Share:
Diluted earnings per share for the nine months ended January 31, 2026was $1.62per share compared with earnings per share of $0.29per share for the nine months ended January 31, 2025. This increasewas primarily due to a lower provision for income taxes and, to a lesser extent, higher income before taxes.
Below is a reconciliation of our US GAAP Earnings per Share to Non-GAAP Adjusted EPS. The amount of the pretax, and the related income tax impact for the adjustments included in the table below are presented in the section above, "Provision for Income Taxes."
|
Nine Months Ended January 31, |
|||||||||||
| 2026 | 2025 | ||||||||||
| US GAAP Earnings Per Share | $ | 1.62 | $ | 0.29 | |||||||
| Adjustments: | |||||||||||
| Restructuring and related charges | 0.24 | 0.21 | |||||||||
| Foreign exchange losses on intercompany transactions, including the write off of certain cumulative translation adjustments | 0.03 | 0.09 | |||||||||
| Amortization of acquired intangible assets | 0.64 | 0.62 | |||||||||
| Net loss on sale of businesses, assets, and impairment charges related to assets held-for-sale | 0.09 | 0.20 | |||||||||
|
Held for Sale or Sold segment Adjusted Net Loss
|
- | 0.05 | |||||||||
|
Legal settlement
|
- | - | |||||||||
| Income tax adjustments | (0.06) | 0.82 | |||||||||
| Non-GAAP Adjusted EPS | $ | 2.56 | $ | 2.28 | |||||||
On a constant currency basis, Adjusted EPS increased 13%primarily due to an increase in Adjusted Operating Income and, to a lesser extent, lower diluted weighted-average number of common shares outstanding, partially offset by an increase in the Adjusted Income Tax Provision.
INDEX
SEGMENT OPERATING RESULTS
|
Nine Months Ended January 31, |
% Change Favorable (Unfavorable) |
Constant Currency % Change Favorable (Unfavorable) |
|||||||||||||||||||||
| RESEARCH | 2026 | 2025 | |||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Research Publishing | $ | 706,644 | $ | 679,492 | 4 | % | 2 | % | |||||||||||||||
| Research Solutions | 127,681 | 115,246 | 11 | % | 10 | % | |||||||||||||||||
| Total Research Revenue | 834,325 | 794,738 | 5 | % | 4 | % | |||||||||||||||||
|
|
|||||||||||||||||||||||
| Cost of sales | 227,656 | 207,406 | (10) | % | (9) | % | |||||||||||||||||
| Direct expenses | 251,544 | 251,157 | 0 | % | 2 | % | |||||||||||||||||
| Allocated Corporate expenses | 127,536 | 122,918 | (4) | % | (3) | % | |||||||||||||||||
| Amortization of intangible assets | 33,649 | 32,845 | (2) | % | 1 | % | |||||||||||||||||
| Adjusted Operating Income | 193,940 | 180,412 | 7 | % | 7 | % | |||||||||||||||||
| Depreciation and amortization | 69,728 | 66,999 | (4) | % | (2) | % | |||||||||||||||||
| Adjusted EBITDA | $ | 263,668 | $ | 247,411 | 7 | % | 6 | % | |||||||||||||||
| Adjusted EBITDA Margin | 31.6% | 31.1% | |||||||||||||||||||||
Revenue:
Research revenue for the nine months ended January 31, 2026 increased $39.6 million, or 5%, as compared with the prior year on a reported basis. On a constant currency basis, Research revenue increased 4% as compared with the prior year. Research Publishing revenue on a constant currency basis increased 2% primarily due to continued growth in author-funded open access and, to a lesser extent, recurring revenue models which includes subscriptions and transformational agreements. These increases were partially offset by lower licensing revenue including AI, and softness in ancillary products. Research Solutions revenue on a constant currency basis increased 10% primarily due to AI license revenue which includes content licensed from other publishers, partially offset by a decrease in recruitment and databases due to lower corporate spending.
Research AI license revenue for the nine months ended January 31, 2026 was $26.8 million as compared to approximately $10 million in the prior year. Open access article output growth was approximately 24% as compared with the prior year.
Adjusted EBITDA:
On a constant currency basis, Adjusted EBITDA increased 6% as compared with the prior year. This increase was primarily due to higher revenue and, to a lesser extent, restructuring and cost savings initiatives, partially offset by higher royalty costs.
INDEX
|
Nine Months Ended January 31, |
% Change Favorable (Unfavorable) |
Constant Currency % Change Favorable (Unfavorable) |
|||||||||||||||||||||
| LEARNING | 2026 | 2025 | |||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Academic | $ | 222,610 | $ | 233,547 | (5) | % | (5) | % | |||||||||||||||
| Professional | 171,652 | 189,363 | (9) | % | (10) | % | |||||||||||||||||
| Total Learning Revenue | 394,262 | 422,910 | (7) | % | (7) | % | |||||||||||||||||
|
|
|||||||||||||||||||||||
| Cost of sales | 93,772 | 105,278 | 11 | % | 12 | % | |||||||||||||||||
| Direct expenses | 105,779 | 107,844 | 2 | % | 3 | % | |||||||||||||||||
| Allocated Corporate expenses | 81,879 | 87,580 | 7 | % | 8 | % | |||||||||||||||||
| Amortization of intangible assets | 6,152 | 6,073 | (1) | % | (1) | % | |||||||||||||||||
| Adjusted Operating Income | 106,680 | 116,135 | (8) | % | (8) | % | |||||||||||||||||
| Depreciation and amortization | 30,703 | 32,952 | 7 | % | 7 | % | |||||||||||||||||
| Adjusted EBITDA | $ | 137,383 | $ | 149,087 | (8) | % | (8) | % | |||||||||||||||
| Adjusted EBITDA Margin | 34.8% | 35.3% | |||||||||||||||||||||
Revenue:
Learning revenue decreased $28.6 million,or 7%, as compared with the prior year on a reported basis. On a constant currency basis, revenue decreased 7% as compared with the prior year. Academic revenue on a constant currency basis decreased 5%primarily due to a decline in print book sales and, to a lesser extent, a decrease in digital courseware, and licensing revenue including AI, partially offset by higher digital content growth. Professional revenue on a constant currency basis decreased 10%primarily due to a decline in print and digital sales through retail channels and, to a lesser extent, a decrease in licensing revenue including AI.
Learning AI license revenue for the nine months ended January 31, 2026 was $15.4 million as compared with approximately $20 million in the prior year.
Adjusted EBITDA:
On a constant currency basis, Adjusted EBITDA decreased 8% as compared with the prior year. This decrease was primarily due to lower revenue, partially offset by lower royalty costs, inventory costs, and restructuring and cost savings initiatives.
INDEX
|
Nine Months Ended January 31, |
% Change
Favorable
(Unfavorable)
|
Constant Currency
% Change
Favorable
(Unfavorable)
|
|||||||||||||||||||||
| HELD FOR SALE OR SOLD | 2026 | 2025 | |||||||||||||||||||||
| Total Held for Sale or Sold Revenue | $ | - | $ | 17,382 | # | # | |||||||||||||||||
|
|
|||||||||||||||||||||||
| Cost of sales | - | 7,755 | # | # | |||||||||||||||||||
| Direct expenses | - | 10,364 | # | # | |||||||||||||||||||
| Allocated Corporate expenses | - | 2,841 | # | # | |||||||||||||||||||
| Amortization of intangible assets | - | - | # | # | |||||||||||||||||||
|
Adjusted Operating Loss
|
- | (3,578) | # | # | |||||||||||||||||||
| Depreciation and amortization | - | - | # | # | |||||||||||||||||||
| Adjusted EBITDA | $ | - | $ | (3,578) | # | # | |||||||||||||||||
| Adjusted EBITDA Margin | 0.0% | (20.6)% | |||||||||||||||||||||
# Variance greater than 100%
Revenue:
Revenue for Held for Sale or Sold decreased $17.4 million as compared with the prior year due to the sale of Wiley Edge on May 31, 2024, with the exception of its India operations which sold on August 31, 2024, and CrossKnowledge on August 31, 2024.
Adjusted EBITDA:
On a constant currency basis, Adjusted EBITDA was zero for the nine months ended January 31, 2026 compared to a loss of $3.6 million in the prior year due to the sale of the Wiley Edge and CrossKnowledge businesses.
|
Nine Months Ended January 31, |
% Change
Favorable
(Unfavorable)
|
Constant Currency
% Change
Favorable
(Unfavorable)
|
|||||||||||||||||||||
| CORPORATE EXPENSES | 2026 | 2025 | |||||||||||||||||||||
| Unallocated Corporate expenses | $ | 117,668 | $ | 134,966 | 13 | % | 13 | % | |||||||||||||||
| Amortization of intangible assets | - | (5) | # | # | |||||||||||||||||||
| Adjusted Unallocated Corporate Expenses | (117,668) | (134,961) | 13 | % | 13 | % | |||||||||||||||||
| Depreciation and amortization | 7,536 | 10,494 | 28 | % | 28 | % | |||||||||||||||||
| Adjusted EBITDA | $ | (110,132) | $ | (124,467) | 12 | % | 12 | % | |||||||||||||||
# Variance greater than 100%
On a constant currency basis, adjusted corporate expenses of $110.1 millionon an Adjusted EBITDA basis decreased 12%as compared with the prior year. This was primarily due to restructuring and costs savings initiatives resulting in lower employment costs, and professional fees.
INDEX
LIQUIDITY AND CAPITAL RESOURCES
Principal Sources of Liquidity
We believe that our operating cash flow, together with our revolving credit facilities and other available debt financing, will be adequate to meet our operating, investing, and financing needs in the next twelve months. Operating cash flow provides the primary source of cash to fund operating needs and capital expenditures. Excess operating cash is used to fund shareholder dividends and share repurchases. Other discretionary uses of cash flow include investments and acquisitions to complement and grow our portfolio of businesses. As necessary, we may supplement operating cash flow with debt to fund these activities. The overall cash position of the Company reflects our durable business results and a global cash management strategy that considers liquidity management, economic factors and tax considerations. Our cash and cash equivalents are maintained at a number of financial institutions. To mitigate the risk of uninsured balances, we select financial institutions based on their credit ratings and financial strength, and we perform ongoing evaluations of these institutions to limit our concentration risk exposure to any financial institution.
As of January 31, 2026, we had cash and cash equivalents of $95.1 million, of which approximately all was located outside the US. Maintenance of these cash and cash equivalent balances outside the US does not have a material impact on the liquidity or capital resources of our operations. We intend to repatriate earnings from our non-US subsidiaries, and to the extent we repatriate these funds to the US, we may be required to pay taxes in various US state and local jurisdictions and withholding or similar taxes in applicable non-US jurisdictions in the periods in which such repatriation occurs. Accordingly, as of January 31, 2026 we have recorded a deferred tax liability of approximately $1.4 million related to the estimated taxes that would be incurred upon repatriating certain non-US earnings to the US.
On November 30, 2022, we entered into the second amendment to the Third Amended and Restated Credit Agreement (collectively, the Amended and Restated CA). See Note 15, "Debt and Available Credit Facilities" for more details on the amendment. The Amended and Restated CA provided for senior unsecured credit facilities comprised of the following (i) a five-year revolving credit facility in an aggregate principal amount up to $1.115 billion which matures November 2027, (ii) a five-year term loan A facility consisting of $200 million which matures November 2027, and (iii) $185 million aggregate principal amount revolving credit facility which matured in May 2024.
As of January 31, 2026, we had approximately $807.5 million of debt outstanding, net of unamortized issuance costs of $0.3 million, and approximately $485.2 million of unused borrowing capacity under our Amended and Restated CA and other facilities. Our Amended and Restated CA contains certain restrictive covenants related to our consolidated leverage ratio and interest coverage ratio, which we were in compliance with as of January 31, 2026.
Analysis of Historical Cash Flows
The following table shows the changes in our Unaudited Condensed Consolidated Statements of Cash Flows.
|
Nine Months Ended January 31, |
|||||||||||
| 2026 | 2025 | ||||||||||
| Net cash provided by operating activities | $ | 103,312 | $ | 52,250 | |||||||
| Net cash provided by (used in) investing activities | 45,606 | (69,694) | |||||||||
| Net cash (used in) provided by financing activities | (139,972) | 24,076 | |||||||||
| Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash | $ | 287 | $ | (1,615) | |||||||
Cash flow from operations is seasonally a use of cash in the first half of Wiley's fiscal year principally due to the timing of collections for annual Journal Subscriptions and Transformational Agreements, which typically occurs in the beginning of the second half of our fiscal year.
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 dividends, and fund share repurchases, and acquisitions. Below are the details of Free cash flow less product development spending.
INDEX
Free Cash Flow Less Product Development Spending:
|
Nine Months Ended January 31, |
|||||||||||
| 2026 | 2025 | ||||||||||
| Net cash provided by operating activities | $ | 103,312 | $ | 52,250 | |||||||
|
Less: Additions to technology, property, and equipment
|
(37,984) | (42,347) | |||||||||
|
Less: Product development spending
|
(9,785) | (11,054) | |||||||||
| Free cash flow less product development spending | $ | 55,543 | $ | (1,151) | |||||||
Net Cash Provided By Operating Activities
The following is a summary of the $51.0 million change in Net cash provided by operating activities for the nine months ended January 31, 2026 compared with the nine months ended January 31, 2025 (amounts in millions).
|
Net cash provided by operating activities - Nine Months Ended January 31, 2025
|
$ | 52.3 | |||
|
Net income adjusted for items to reconcile net income to net cash provided by operating activities, which would include such noncash items as depreciation and amortization, net losses on sale of businesses, assets, and impairment charges related to assets held-for-sale, restructuring charges, and the change in deferred taxes
|
67.4 | ||||
| Working capital changes: | |||||
| Accounts receivable, net and contract liabilities | (22.3) | ||||
| Accounts payable and accrued royalties | 10.8 | ||||
| Changes in other assets and liabilities | (4.9) | ||||
|
Net cash provided by operating activities - Nine Months Ended January 31, 2026
|
$ | 103.3 | |||
The unfavorable change in accounts receivable, net and contract liabilities was primarily due to the timing of billings to and collections from customers, and lower revenue.
The favorable change in accounts payable and accrued royalties was primarily due to the timing of payments.
The unfavorable change in other assets and liabilities was primarily due to the change in income taxes including higher net income tax payments in fiscal year 2026. This was partially offset by lower employee related costs which includes lower payments for annual incentive compensation in fiscal year 2026 related to the prior fiscal year, and lower contributions to defined benefit plans in fiscal year 2026.
Our negative working capital (current assets less current liabilities) was $281.2 million and $381.0 million as of January 31, 2026 and April 30, 2025, respectively. This $99.8 million change in negative working capital was primarily due to the seasonality of our business. The primary driver of the negative working capital is the benefit realized from unearned contract liabilities related to subscriptions for which cash has been collected in advance. The contract liabilities will be recognized as revenue when the products are shipped or made available online to the customers over the term of the subscription. Current liabilities as of January 31, 2026 and as of April 30, 2025 includes $292.8 million and $462.7 million, respectively, primarily related to deferred subscription revenue for which cash was collected in advance.
Cash collected in advance for subscriptions is used by us for a number of purposes, including funding operations, capital expenditures, acquisitions, debt repayments, dividend payments, and share repurchases.
Net Cash Provided By (Used In) Investing Activities
Net cash provided by investing activities for the nine months ended January 31, 2026 was $45.6 million compared to net cash used in investing activities of $69.7 million in the prior year. The change in investing activities was primarily due to the $115.3 million in cash received in fiscal year 2026 as a result of selling the remaining University Services assets in June 2025, partially offset by higher additions for publication rights. See Note 3, "Divestitures" for further details on the sale of the University Services assets.
INDEX
Net Cash (Used In) Provided By Financing Activities
Net cash used in financing activities was $140.0 million for the nine months ended January 31, 2026 compared to net cash provided by financing activities of $24.1 million for the nine months ended January 31, 2025. This change was primarily due to lower net borrowings in fiscal year 2026 of $113.2 million and, to a lesser extent, an increase of $34.5 million in cash used for purchases of treasury shares, and a $16.9 million change in book overdrafts.
In the nine months ended January 31, 2026, we increased our quarterly dividend to shareholders to $1.42 per share annualized versus $1.41 per share annualized in the prior year.
During the three months ended July 31, 2025, our Board of Directors approved an additional share repurchase program of $250 million of Class A or B Common Stock. As of January 31, 2026, we had authorization from our Board of Directors to repurchase up to $237.3 million that was remaining under this program.
This share repurchase program is in addition to the share repurchase program approved by our Board of Directors during the year ended April 30, 2020 of $200 million of Class A or B Common Stock. As of January 31, 2026, no additional shares were remaining under this program for purchase.
The following table summarizes the shares repurchased of Class A and Class B Common Stock (shares in thousands):
|
Nine Months Ended January 31, |
|||||||||||
| 2026 | 2025 | ||||||||||
| Shares repurchased - Class A | 1,973 | 782 | |||||||||
| Shares repurchased - Class B | 6 | 2 | |||||||||
| Average price - Class A and Class B | $ | 35.42 | $ | 44.66 | |||||||
During the nine months ended January 31, 2026 and 2025, we repurchased $70.1 million and $35.0 million, respectively, under these programs.
The total amount repurchased and the average price per share excludes excise taxes payable on share repurchases and may differ from the share repurchases reflected in Purchases of treasury shares in our Unaudited Condensed Consolidated Statements of Cash Flows. For the nine months ended January 31, 2026, the total amount repurchased and the total shares repurchased includes unsettled purchases, and such amount differs from the amount reflected in Purchases of treasury shares in our Unaudited Condensed Consolidated Statements of Cash Flows.
ACCOUNTING STANDARDS UPDATE
We are required to prepare our Unaudited Condensed Consolidated Financial Statements in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) which is the source for all authoritative US GAAP. The FASB ASC is subject to updates by the FASB, which are known as Accounting Standards Updates (ASU). See Note 2, "Recent Accounting Standards" of Part I, Item 1, "Notes to Unaudited Condensed Consolidated Financial Statements" for further information.
INDEX
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