John Wiley & Sons, Inc. delivered QQ1 2026 results that show a meaningful top-line decline against a backdrop of robust gross margins and a still-healthy balance sheet. Consolidated revenue came in at $396.8 million, down 15.3% YoY and 1.93% QoQ, while gross profit reached $274.3 million for a gross margin of approximately 69.1%. Despite softer revenue, operating income was $34.0 million and EBITDA stood at $65.2 million, supporting an EBITDA margin of about 16.4% and an operating margin near 8.6%. Net income was $11.7 million with basic and diluted EPS of $0.22. The quarter was marked by pressure on the top line and a negative free cash flow (FCF) result, driven predominantly by working capital movements and a sizable non-cash expense footprint, even as management reinforces a resilient, high-margin core with substantial deferred revenue visibility.
From a liquidity and balance-sheet perspective, Wiley maintains a strong asset base and manageable leverage, with cash and cash equivalents of $81.9 million and total debt of $923.98 million, yielding net debt of $842.13 million. Total assets stood at $2.524 billion against total liabilities of $1.791 billion and stockholders’ equity of $733.1 million. Opex structure remains elevated, and free cash flow remained negative at approximately $(97.0) million for the quarter, reflecting working-capital dynamics and investment in growth/operational initiatives. The near-term outlook hinges on stabilizing revenue trends, sustaining margins, and improving working capital efficiency, given the absence of explicit forward-looking guidance in the supplied data.