John Wiley & Sons (WLYB) delivered a Q4 2024 set of results that showcased a resilient cash-generation engine amid signs of revenue headwinds. Revenue for the quarter was $468.461 million, down 10.96% year-over-year but up 1.68% quarter-over-quarter, reflecting a challenging calendar year base versus the prior year alongside a sequential acceleration in activity. Gross margin remained robust at 70.84% (gross profit of $331.852 million), though down modestly versus the prior-year period, signaling continued mix benefits from recurring revenue streams alongside ongoing investment in higher-margin digital offerings.
Operating income totaled $79.790 million with an operating margin of 17.03%, marking a strong QoQ expansion (up ~59.1%) despite a softer YoY trajectory. Net income for the quarter was $25.265 million, with basic and diluted EPS of $0.46, representing a substantial QoQ improvement but a pronounced YoY deterioration (-63.0% in net income, -62.6% in EPS). Free cash flow was healthy at $155.136 million, supported by $183.286 million of cash flow from operating activities and capital expenditure of $28.15 million. The balance sheet shows a cautious liquidity position (current ratio 0.52, quick ratio 0.49) but with durable leverage metrics (total debt $897.4 million, net debt $814.0 million) and a sizeable deferred revenue balance: current deferred revenue of $483.778 million and non-current deferred revenue of $14.818 million, implying strong revenue visibility ahead.
Overall, the quarter underscores Wiley’s durable cash-generation profile and a profitable, asset-light core with meaningful deferred revenue that supports near-term visibility. The key questions for investors revolve around sustaining top-line growth in a slower publishing cycle, expanding high-margin digital offerings, and improving return metrics while managing leverage amid a moderate liquidity backdrop.