Wiley delivered a mixed yet constructive Q2 FY2026, underscored by resilient performance in the Research Publishing segment and meaningful AI-related monetization, even as the Learning segment faced cyclical headwinds. Revenue for the quarter was $421.8 million, up 4.4% year over year and 6.3% quarter over quarter, with gross margin near 72% and EBITDA of $105.6 million (EBITDA margin 25.0%). Adjusted operating margin rose 250 basis points to 18.8%, driven by cost discipline and AI-driven productivity gains. Research publishing led growth with 7% revenue expansion and a 33.5% EBITDA margin, supported by 28% growth in author-funded open access and a near $100 million AI training revenue contribution on a trailing basis. AI licensing momentum continued, with a $6 million licensing win in the quarter and $35 million year-to-date, reflecting a durable demand for LLM training and knowledge feeds.
Conversely, Learning declined 11% in the quarter and roughly 10% through the first half, pressured by Amazon inventory actions, softer consumer spending, and a 8% enrollment drop in computer science. Wiley is addressing this with a sharpened editorial focus, acceleration of digital offerings, and targeted pricing and marketing initiatives. Management maintains that learning declines are expected to moderate in the second half, though full-year revenue will be down. The company reaffirmed full-year guidance, including AI revenue modestly ahead of last year, EBITDA margin of 25.5%–26.5%, and free cash flow around $200 million; capex around $77 million; and a leverage trajectory toward materially lower levels by year-end.
Financial strength remains a key pillar: cash and cash equivalents about $67.4 million at quarter-end, total debt of $964.6 million, and net debt of $897.2 million, yielding a trailing twelve-month net debt to EBITDA of ~2.0x. Wiley’s balance sheet is supported by high institutional retention (>99%), a strong subscription model, and a robust AI-driven product roadmap that expands content, platforms, and corporate markets. The investment thesis rests on continued SOP (subscription, open access, and recurring revenue) expansion, accelerating AI licensing and data-feeds, and selective acquisitions to reinforce the science content moat, while maintaining disciplined capital allocation and buybacks.
Strategically, Wiley is advancing a capex-light, open-platform approach to AI integration, deploying Nexus licensing, AI gateway, and Research Exchange to monetize content through AI workflows and enterprise partnerships. In short, the quarter reinforces Wiley’s core strengths in research, the accelerating role of AI as a growth engine, and the disciplined path to margin expansion and deleveraging, with a patient but constructive near-term outlook for the stock.