Wiley delivered a resilient Q2 2025 despite a challenging year-over-year backdrop driven by divestitures and legacy revenue swings. Reported revenue of $426.6 million declined 13.4% YoY but rose 5.6% QoQ, while Adjusted EBITDA expanded 14% to $106.0 million and achieved a quarterly margin of 24.9%, up from 22.7% in the prior-year period. The margin uplift reflects ongoing efficiencies and selective reinvestment in growth initiatives, with Learning leading the top-line growth (+7% reported; +5% ex AI) and Research contributing modestly (+1%). Management underscored AI investments and a disciplined, multi-year margin expansion program, signaling a shift toward sustainable profitability as AI-enabled workflows, content tooling, and licensing opportunities scale.
Key catalysts highlighted on the call include: (i) AI productivity, publishing innovation, and licensing applications—supported by a material licensing pipeline (to date, $44 million in licensing revenue realized year-to-date) and a growing internal AI tooling and data catalog; (ii) a strong growth trajectory in Learning, driven by zyBooks, inclusive access, and front-list title expansion, with signings at the strongest pace in years; and (iii) India’s One Nation, One Subscription program, which could broaden institutional access across 6,000+ Indian research institutions and bolster long-dated demand. Wiley also reiterated its full-year guidance, targeting revenue of $1.65–$1.69 billion, Adjusted EBITDA of $385–$410 million, and Adjusted EPS of $3.25–$3.60, accompanied by an expected free cash flow of roughly $125 million.
While near-term free cash flow was negative in the first half (free cash flow of about -$23.6 million and operating cash flow of -$5.28 million, reflecting working capital timing), Wiley sees improving cash generation in H2 as journal renewals re-accelerate and cost-savings initiatives compound. The company maintains a disciplined capital allocation stance, balancing debt reduction with growth investments and shareholder returns. Overall, the setup combines near-term volatility with a clear long-term path to margin expansion and sustainable cash generation as AI-enabled products and recurring revenue models mature.