John Wiley & Sons, Inc. delivered a solid margin performance in Q2 2025 amid a meaningful top-line decline. Reported revenue of $426.6 million declined 13.4% year over year, yet gross margin expanded to 74.9% from 68.4% in the prior-year period, aided by a favorable product mix and ongoing cost discipline. Operating income reached $64.1 million with a 15.0% EBITDA margin, driving a strong year-over-year earnings acceleration: net income of $40.5 million and basic/diluted EPS of $0.75/$0.74, up from a negative year-ago result as certain non-operating items swung to a positive earnings outcome.
Despite earnings strength, Wiley faces liquidity and leverage headwinds. Free cash flow was negative at $23.6 million and net operating cash flow was negative by $5.28 million, driven by a substantial working capital outflow of roughly $107 million and related cash outflows. The balance sheet shows total debt of $1.067 billion and net debt of about $992 million, with a current ratio of 0.66 and a quick ratio of 0.61, underscoring near-term liquidity pressure even as the company preserves a strong balance sheet total assets of $2.609 billion and stockholders’ equity of $755 million. Management commentary to the extent disclosed typically emphasizes progression toward higher-margin revenues in Education Services and digital offerings, though formal forward guidance is not included in the provided data. Investors should monitor working capital dynamics, capital allocation, and the trajectory of the Education Services segment as potential sources of earnings expansion.