Q4 2025 John Wiley & Sons Inc Earnings Call Transcript
Key Points
- John Wiley & Sons Inc (WLY) reported revenue growth and margin improvement in both segments, with a 300 basis point improvement in adjusted operating margin.
- The company achieved strong growth in Open Access driven by global demand to publish, with a 19% submissions growth rate and 8% output growth in fiscal '25.
- AI licensing revenue reached $40 million, with significant partnerships formed with major tech companies for AI model training.
- Free cash flow increased by 10% to $126 million, and the company reaffirmed its $200 million target for fiscal '26.
- The company completed divestitures, securing $120 million in cash proceeds from the University Services divestiture to reduce debt and interest expenses.
- The learning segment experienced a 5% revenue decline in Q4 due to a large AI agreement in the prior year and retail channel softness in professional publishing.
- Adjusted revenue was flat in Q4, with some softness in ancillary and print products, including back files and digital archives.
- The company faces uncertainty in the AI market, which is rapidly evolving and not as predictable as desired.
- Corporate expenses rose modestly due to enterprise modernization, although they are expected to decrease in fiscal '26.
- The macroeconomic environment remains uncertain, with potential headwinds from geopolitical risks and policy volatility.
Good morning, and welcome to Wiley's fourth-quarter and fiscal 2025 earnings call. As a reminder, this conference is being recorded. (Operator Instructions) Thank you. At this time, I'd like to introduce Wiley's Vice President of Investor Relations, Brian Campbell, please go ahead.
Thank you all for joining us. On the call with me are Matt Kissner, Wiley's President and CEO; Christopher Caridi, Interim CFO; and Jay Flynn, Executive Vice President and General Manager of Research and Learning.
Note that our comments and responses reflect management's views as of today, and will include forward-looking statements. Actual results may differ materially from those statements. The company does not undertake any obligation to update them to reflect subsequent events. Also, Wiley provides non-GAAP measures as a supplement to evaluate underlying operating profitability and performance trends.
These measures do not have standardized meanings prescribed by US GAAP
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