Executive Summary
John Wiley & Sons (WLY) reported Q1 FY2025 GAAP revenue of $403.8 million and adjusted EBITDA of $73.1 million, delivering an adjusted EBITDA margin of 18.6%. Despite a GAAP net loss of $1.44 million, adjusted metrics conveyed improving operating profitability as Wiley continues to reaccelerate its two operating segments—Research and Learning—and execute on a two-pronged AI strategy. Revenue rose 3% in Research and 14% in Learning in the quarter, helped by a $17 million contribution from GenAI content rights and a broader AI licensing momentum (a $21 million licensing project, with $17 million recognized in Q1; the remainder to be realized later in the year). Management reaffirmed full-year guidance and stressed ongoing value-creation efforts: completed divestitures, the $130 million run-rate reduction program (with $40 million actionable in Q1 and an expected $120 million realized by end-FY2025, and approximately $60 million of the run-rate savings reinvested annually). Wiley also highlighted an improving culture and rising colleague engagement as a key driver of execution. Looking ahead, Wiley expects 2%-4% revenue growth for the full year, with adjusted EBITDA in the $385–$410 million range (margin 23%–24%), adjusted EPS of $3.25–$3.60, and free cash flow near $125 million. Management emphasized AI-enabled growth as a strategic priority, while continuing to monetize the existing, high-quality content—and to modernize systems to sustain margin expansion.
Key Performance Indicators
QoQ: -13.80% | YoY:-10.47%
QoQ: -15.12% | YoY:-4.17%
QoQ: -63.69% | YoY:28.98%
QoQ: -105.68% | YoY:98.44%
QoQ: -105.74% | YoY:98.42%
Key Insights
Revenue: $403.81 million (Q1 FY2025); YoY -10.5%, QoQ -13.8%. Gross Profit: $281.66 million; Gross Margin 69.75%; YoY -4.17%, QoQ -15.12%. Adjusted EBITDA: $73.06 million; Margin 18.6%; YoY +22%, QoQ +? (not disclosed). Operating Income: $28.97 million; Margin 7.17%; YoY +28.98%, QoQ -63.69%. Net Income: -$1.436 million; Net Margin -0.36%; YoY +98.44%, QoQ -105.68%. EPS (GAAP): -$0.0264; YoY +98.42%, QoQ -105.74%. Free Cash Flow: -$105.22 million; Operating Cash Flow: -$88.71 million; Capital Ex...
Financial Highlights
Revenue: $403.81 million (Q1 FY2025); YoY -10.5%, QoQ -13.8%. Gross Profit: $281.66 million; Gross Margin 69.75%; YoY -4.17%, QoQ -15.12%. Adjusted EBITDA: $73.06 million; Margin 18.6%; YoY +22%, QoQ +? (not disclosed). Operating Income: $28.97 million; Margin 7.17%; YoY +28.98%, QoQ -63.69%. Net Income: -$1.436 million; Net Margin -0.36%; YoY +98.44%, QoQ -105.68%. EPS (GAAP): -$0.0264; YoY +98.42%, QoQ -105.74%. Free Cash Flow: -$105.22 million; Operating Cash Flow: -$88.71 million; Capital Expenditures: -$16.51 million; Cash and cash equivalents end of period: $89.41 million. Net Debt: $945.29 million; Total Debt: $1,027.83 million. Balance sheet: Total assets $2.652 billion; Total liabilities $1.938 billion; Total stockholders’ equity $0.714 billion. Dividends and share repurchases: $32.0 million spent in Q1 (296k shares @ $42.34).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
403.81M |
-10.47% |
-13.80% |
| Gross Profit |
281.66M |
-4.17% |
-15.12% |
| Operating Income |
28.97M |
28.98% |
-63.69% |
| Net Income |
-1.44M |
98.44% |
-105.68% |
| EPS |
-0.03 |
98.42% |
-105.74% |
Key Financial Ratios
operatingProfitMargin
7.17%
operatingCashFlowPerShare
$-1.63
freeCashFlowPerShare
$-1.94
dividendPayoutRatio
-1336%
priceEarningsRatio
-452.04
Management Commentary
Management commentary highlights: (1) Strategy and AI momentum: 'we will continue to be relentless in our execution as we publish more high value content to meet global demand, move decisively on AI growth opportunities' (Matt Kissner). (2) Value creation and cost-savings progress: 'we actioned the remaining $40 million of the $130 million savings plan... anticipate realizing $120 million of that by the end of fiscal 2025 for an incremental in-year savings benefit of $60 million' (Christina Van Tassell). (3) Research recovery and pipeline signals: 'Submissions grew by 18% in Q1; output growth up 6%... 22% of journals with increased impact factor; research end-to-end platform on track for a 2026 launch' (Jay Flynn). (4) AI licensing and monetization approach: 'quality of Wiley content is attractive for AI model builders; we are selective and pursue partnerships that meet licensing principles' (Jay Flynn).
We've essentially executed our full value creation plan ahead of schedule. Our culture today is far more energized, motivated and engaged.
— Matt Kissner
We actioned the remaining $40 million of the $130 million savings plan. The executed savings were largely in our corporate functions... anticipate realizing $120 million of that by the end of fiscal 2025 for an incremental in-year savings benefit of $60 million.
— Christina Van Tassell
Forward Guidance
Guidance reaffirmed: full-year revenue $1.65–$1.69 billion (2%–4% growth), adjusted EBITDA $385–$410 million (4%–11% growth; margin 23%–24%), adjusted EPS $3.25–$3.60 (17%–29% growth), and free cash flow approximately $125 million. Capex guidance remains at $130 million for the year. Wiley emphasizes two near-term AI deals already executed (one in Q4 and one in H1), with a framework for recurring licensing later as models and applications mature. The achievability rests on continued recovery in Research, resilience in Learning (including GenAI-driven courseware), and the ability to monetize AI content on a recurring basis without cannibalizing core businesses. Key monitorables include: cadence of research submissions translating into sustainable published articles, the pace and scale of AI licensing partnerships, progression of cost savings realization (targeting roughly $120 million in FY2025 and ongoing margin benefits), and working capital dynamics driving FCF in H2.