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John Wiley & Sons (WLY) investor relations material
John Wiley & Sons Q3 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q3 revenue reached $410 million, up 1% year-over-year, with operating income up 21% and diluted EPS at $0.56 versus a loss last year; adjusted results at constant currency: revenue flat, adjusted operating income up 22%, adjusted EBITDA up 12%, and adjusted EPS up 19%.
AI and data services generated $7 million in Q3 and $42 million year-to-date, surpassing last year's total, with recurring models and new partnerships driving growth.
Margin expansion and cash flow growth continue, with significant cost reductions and technology transformation underway; operational excellence initiatives reduced corporate expenses by 21% at constant currency.
Strategic partnerships with IQVIA and OpenEvidence are driving recurring revenue and embedding content into high-value workflows.
Free cash flow year-to-date improved to $56 million from a $1 million use last year; $126 million returned to shareholders via repurchases and dividends.
Financial highlights
Q3 GAAP revenue: $410 million (+1% YoY); operating income: $63 million (+21% YoY); diluted EPS: $0.56 (vs. -$0.43 YoY); adjusted EBITDA: $105 million (+12% YoY), margin 25.7% (+250 bps); adjusted EPS: $0.97 (+19% YoY).
Adjusted Operating Margin improved by 280 basis points to 17%; Adjusted EBITDA margin up 250 basis points to 25.7%.
Operating cash flow nearly doubled to $103 million; net debt-to-EBITDA ratio at 1.7, down from 2.0 a year ago.
$70 million in share repurchases year-to-date, with $126 million returned to shareholders in nine months.
Q3 operating and administrative expenses fell 5% YoY due to restructuring and cost savings.
Outlook and guidance
Fiscal 2026 guidance: low single-digit adjusted revenue growth, adjusted EBITDA margin 25.5%-26.5%, adjusted EPS $3.90-$4.35, free cash flow ~$200 million; guidance reaffirmed for revenue and free cash flow, expecting high end of range for adjusted EBITDA margin and EPS.
Research expected to finish at the top end of the market; learning segment remains challenged.
Fiscal 2027 expected to see continued research growth, AI revenue acceleration, and further margin expansion.
Annualized cost savings of ~$125 million expected from restructuring, with $110 million to be realized in FY26.
Management expects operating cash flow, credit facilities, and available debt to meet liquidity needs for the next 12 months.
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