John Wiley & Sons (WLY) Q3 2025 earnings summary

Executive summary

• Revenue grew 1% in Q3, driven by 5% growth in research and offset by a 6% decline in Learning, with adjusted EPS up 39% and operating margin up 280 basis points to 14.2%.

• AI licensing generated $30 million year-to-date, with expanded agreements and a strong pipeline, contributing to margin expansion and improved cash flow.

• Recurring revenue models remain strong, with nearly 75% recurring in research and robust global demand for content and data-driven insights.

• Margin expansion is a multi-year focus, with further gains expected and FY26 margin target raised above 25%.

• Divestitures and cost re-engineering shaped results, with ongoing focus on core Research and Learning segments.

Financial highlights

• Adjusted EBITDA grew 4% in Q3 to $93.9M, with margin rising to 23.2%; adjusted EPS up 39% to $0.84.

• Year-to-date, adjusted operating income up 38%, EPS up 43%, and EBITDA up 12%.

• Free cash flow on track for $125 million in FY25, up from $114 million prior year.

• Dividends and share repurchases totaled $93 million year-to-date.

• Cost of sales and operating expenses declined significantly due to divestitures and restructuring.

Outlook and guidance

• FY25 revenue expected near midpoint of $1.65–1.69 billion, ~3% top-line growth.

• Adjusted EBITDA projected near midpoint of $385–410 million, with margin at high end of 23–24%.

• Adjusted EPS to reach high end of $3.25–$3.60 range, with strong double-digit growth.

• FY26 margin target raised to above 25%, with free cash flow target reaffirmed at $200 million.

• Ongoing cost optimization and restructuring expected to yield $90 million in annualized savings.