John Wiley Sons Inc (WLY) Q3 2025 Earnings Report

Management guidance reiterated for FY2025 and outlined a clear path to FY2026: - Revenue outlook: Approximately $1.65–$1.69 billion (midpoint growth around ~3%). - Adjusted EBITDA: $385–$410 million, implying high-single-digit to low-double-digit EBITDA growth and an EBITDA margin in the 23%–24% range for FY2025. - EPS: $3.25–$3.60 (high end implying double-digit growth versus the prior year). - Free cash flow: About $125 million for FY2025, with a plan to reach $200 million in FY2026 as previously targeted in longer-term guidance; capex expected to be lighter than initial projections, with higher restructuring costs reflecting ongoing cost-reduction initiatives. - Margin improvement targets for FY2026: Wiley is raising its margin target to above 25%, supported by corporate cost rationalization (notably in shared services) and ongoing efficiency initiatives. Assessment: The guidance reflects a deliberate strategy to embed margin expansion, supported by recurring revenue strength, AI-related licensing (now a core albeit nonrecurring revenue stream in early stages), and cost-structure simplification. The key risk to achievement includes potential volatility in AI licensing contributions, external funding policy changes affecting research spend, and the pace of renewal/retention in learning segments. Investors should monitor: (1) progression and sustainability of corporate cost-savings programs, (2) the cadence of AI licensing deals and their transition into a durable recurring revenue stream, (3) renewal renewals cadence in the US/UK/India/Brazil, and (4) the impact of US federal funding uncertainty on longer-cycle research programs.