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Oct 31, 2024

Wiley Q2 2025 Earnings Report

Wiley's Q2 2025 performance reflected revenue growth in Learning and Research, alongside margin improvement and EPS growth.

Key Takeaways

Wiley reported a 3% increase in adjusted revenue, reaching $423 million, driven by growth in Learning and Research segments. Adjusted EPS increased by 36% to $0.97. The company reaffirmed its Fiscal Year 2025 growth outlook.

Learning experienced high-single digit revenue growth due to favorable market conditions and AI licensing.

Research achieved low single-digit revenue growth, driven by demand to publish.

Margin improved and EPS grew.

Wiley reaffirmed its Fiscal Year 2025 growth outlook.

Total Revenue
$427M
Previous year: $493M
-13.4%
EPS
$0.97
Previous year: $0.73
+32.9%
Adjusted EBITDA Margin
24.9%
Previous year: 0.32%
+7779.7%
Gross Profit
$307M
Previous year: $324M
-5.2%
Cash and Equivalents
$75.5M
Previous year: $83.2M
-9.2%
Free Cash Flow
-$19.8M
Previous year: -$21.4M
-7.4%
Total Assets
$2.61B
Previous year: $2.78B
-6.1%

Wiley

Wiley

Wiley Revenue by Segment

Forward Guidance

Wiley is reaffirming its Fiscal 2025 growth outlook based on first half results and second half indicators. Wiley’s revenue outlook is driven by favorable demand trends and performance indicators. Wiley’s earnings outlook is driven by expected revenue growth and cost savings, while reflecting reinvestments to scale and optimize Research, modernize infrastructure and expand GenAI content licensing and capabilities. Wiley’s cash flow outlook is driven by lower restructuring payments and favorable working capital partially offset by a year-over-year swing in incentive compensation payments.

Positive Outlook

  • Favorable demand trends
  • Strong momentum in Research
  • Favorable comparisons in Research
  • Expected revenue growth
  • Cost savings

Challenges Ahead

  • Reinvestments to scale and optimize Research
  • Reinvestments to modernize infrastructure
  • Reinvestments to expand GenAI content licensing and capabilities
  • Year-over-year swing in incentive compensation payments
  • Projected growth in the second half of its fiscal year expected to occur in Q4

Revenue & Expenses

Visualization of income flow from segment revenue to net income