Executive Summary

Adjusted results strengthened despite GAAP tax effects: Adjusted Revenue +1% CC to $404.6M, Adjusted Operating Margin +280 bps to 14.2%, Adjusted EBITDA +4% to $93.9M, and Adjusted EPS +39% to $0.84; GAAP diluted EPS was ($0.43) due to valuation allowance and sale-related charges .
Research drove the quarter: revenue +5% CC to $268M, Adjusted EBITDA margin up 180 bps to 32.7%, aided by open access, solutions and a $9M AI licensing expansion; excluding AI, Research grew +2% CC in Q3 and YTD .
Learning was seasonally soft: revenue down 6% YoY to $137M (Academic -10% CC, Professional -1% CC), yet margin expanded to 35.4%; prior-year tough comp included a $6M license renewal .
Guidance reaffirmed, margin outlook raised: FY25 tracking to high end for EBITDA margin (23–24%) and EPS ($3.25–$3.60); FY26 Adjusted EBITDA margin target raised to 25%+ with cash flow target reaffirmed at $200M .
Near-term catalysts: strong Q4 expected in Research on favorable renewals and demand indicators, expanding AI licensing pipeline (tech, pharma, industrial), and continued cost-structure rationalization supporting multi-year margin expansion .

What Went Well and What Went Wrong

What Went Well

Research momentum and recurring revenue strength: “Our recurring revenue Research business has not only proven to be resilient across economic cycles but poised for continued expansion” — Matthew Kissner, CEO . Q3 Research revenue +5% CC; margin +180 bps .
AI licensing traction: Expanded content licensing project added $9M in Q3; YTD AI revenue $30M, with new vertical-specific recurring agreements initiated and active pipelines in tech, pharma, and industrials .
Margin expansion and outlook: Adjusted Operating Margin +280 bps; Adjusted EBITDA margin +50 bps; FY26 margin target raised to 25%+ on structural cost actions and operating efficiency initiatives .

What Went Wrong

Learning softness: Revenue down 6% YoY (Academic -10% CC) on seasonal fluctuations, tough prior-year licensing comp, and retail channel pressures; Adjusted EBITDA -5% albeit margin improvement .
GAAP EPS loss: Diluted EPS ($0.43), primarily from non-cash US valuation allowance tied to divested businesses, additional Wiley Edge sale loss, and restructuring charges .
Corporate unallocated costs: Adjusted corporate expenses rose on an EBITDA basis due to enterprise modernization and consulting tied to cost reengineering (although D&A declined) .

Financial Results

Consolidated Results (oldest → newest)

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Revenue, net ($M)	$460.7	$403.8	$426.6	$404.6
Operating Margin (GAAP)	-10.1%	7.2%	15.0%	12.8%
GAAP Diluted EPS ($)	($2.08)	($0.03)	$0.74	($0.43)
Adjusted Revenue ($M)	$402.5	$389.6	$423.4	$404.6
Adjusted Operating Income ($M)	$46.0	$35.4	$68.8	$57.4
Adjusted Operating Margin	11.4%	9.1%	16.3%	14.2%
Adjusted EBITDA ($M)	$91.5	$72.6	$105.5	$93.9
Adjusted EBITDA Margin	22.7%	18.6%	24.9%	23.2%
Adjusted EPS ($)	$0.59	$0.47	$0.97	$0.84

Notes: “Adjusted” excludes divested/held-for-sale businesses, FX and specified items per company reconciliation .

Segment Breakdown (Q3 2025)

Segment	Revenue ($M)	YoY Reported	YoY CC	Adjusted EBITDA ($M)	Adj. EBITDA Margin
Research Publishing	$225.9	+4%	+5%	—	—
Research Solutions	$41.7	+5%	+6%	—	—
Research Total	$267.5	+4%	+5%	$87.6	32.7%
Learning Academic	$78.8	-10%	-9%	—	—
Learning Professional	$58.3	-1%	-1%	—	—
Learning Total	$137.1	-6%	-6%	$48.5	35.4%

KPIs and Balance Sheet/Cash

KPI	Q3 2025 / YTD
Research submissions ↑18% YTD; output ↑8% YTD
AI licensing revenue: $9M in Q3; $30M YTD
Net Debt/EBITDA (TTM) 2.0
Cash from Operations (YTD) $52.3M
Free Cash Flow less Product Dev. (YTD) ($1.15)M
Dividends + Buybacks (YTD) $93M; buybacks $35M
Quarterly dividend declared $0.3525/share; annual $1.41

Guidance Changes

Metric	Period	Previous Guidance (Q2’25)	Current Guidance (Q3’25)	Change
Adjusted Revenue ($B)	FY25	$1.650–$1.690	$1.650–$1.690; tracking mid-range	Maintained
Adjusted EBITDA ($M)	FY25	$385–$410	$385–$410; mid-range	Maintained
Adjusted EBITDA Margin	FY25	23–24%	23–24%; trending high end	Raised within range emphasis
Adjusted EPS ($)	FY25	$3.25–$3.60	$3.25–$3.60; trending high end	Raised within range emphasis
Free Cash Flow ($M)	FY25	≈$125	≈$125; reaffirmed	Maintained
Adjusted EBITDA Margin	FY26	24–25%	25%+ (raised)	Raised

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1’25)	Previous Mentions (Q2’25)	Current Period (Q3’25)	Trend
AI/technology initiatives	Executed $21M GenAI rights project; stage-2 recurring model vision	Pipeline in tech/pharma; 25% of colleagues report productivity gains; featured by Salesforce	$9M Q3 expansion; $30M YTD; vertical-specific recurring agreements emerging	Expanding monetization; moving to recurring verticals
Research publishing demand	Submissions/output growth; OA/institutional models	Modest growth; renewals underway	Open access strong; CY25 renewals ~80% complete with encouraging trends	Strengthening into Q4
Regional trends	Global diversification; mature + growth markets	India ONOS approved	India ONOS signed; Brazil transformational agreement; APAC 45% output	Structural TAM expansion
Cost structure/margins	$130M cost program; reinvestment	Ongoing optimization; margin gains	Corporate shared services rationalization; FY26 margin target raised	Multi-year uplift
Regulatory/macro	Geopolitical/funding uncertainty acknowledged	—	US federal funding exposure limited; low single-digit potential impact; confidence maintained	Monitored; limited risk near term
Product performance (Learning)	AI-driven licensing; courseware growth; ex-AI Academic -1%	Strong courseware; high margin; tough Q4 AI comp ahead	Seasonally soft; margin up; expecting courseware lift in Q4; other licensing to mitigate	Mixed but improving margin profile

Management Commentary

“We continue to deliver disciplined growth and material margin expansion as we capitalize on the global demand for scientific research and responsible AI model development.” — Matthew Kissner, CEO .
On FY26 margin target increase: “We are rationalizing our cost structure largely in corporate shared services…100+ bps improvement we expect as a result of the actions we're taking.” — Christopher Caridi, Interim CFO .
On AI licensing strategy: “Licensing represents a core business activity…models should be trained on trusted, authoritative content such as Wiley’s while protecting the rights of authors.” — Management remarks .
On India ONOS: A multiyear national agreement expands access to ~6,300 institutions and ~18 million researchers, unifying the research ecosystem and expanding recurring revenue .

Q&A Highlights

Margin outlook drivers: Structural cost rationalization in corporate shared services, seeking “permanent margin improvement,” benchmarking against peers (e.g., Springer Nature) to identify savings opportunities .
AI revenue mix: Confirmation that the $9M incremental AI licensing was entirely in Q3 and recognized in Research, while prior agreements impacted Learning .
Learning trajectory: Management expects positive courseware impact and additional licensing in Q4, though a tough AI comp from prior year will pressure reported growth; aiming for improved Learning margins into FY26 .
Capital allocation: YTD buybacks of ~$35M with assessment of pace in FY26 given improving free cash flow; dividend yield >3.5% maintained .
US funding risk: Direct US federal funding is a single-digit share of Wiley’s output; diversified funding and multiyear agreements support resilience .

Estimates Context

S&P Global/Capital IQ quarterly consensus for EPS, revenue, and EBITDA was unavailable at the time of this report due to data access limits. As a result, we cannot quantify beats/misses versus Wall Street consensus for Q3 2025. Values retrieved from S&P Global were unavailable at the time of request.

Key Takeaways for Investors

Research-led compounding growth with expanding recurring revenue base and favorable renewals underpins a strong Q4 setup; watch for upside in Research Solutions and open access throughput .
Bold margin narrative: FY25 tracking to the high end for EBITDA margin and EPS and FY26 margin target raised to 25%+, driven by corporate cost reengineering and workflow automation — a multi-year re-rating catalyst .
AI monetization evolving: Phase-1 training deals ($30M YTD) gave way to Phase-2 vertical-specific recurring agreements with pharma/industrial; near-term revenue is lumpy, but medium-term ARR potential grows .
Learning is mixed but margin-accretive: Despite Q3 top-line softness, Learning margin expanded to 35.4%; expect courseware and licensing to mitigate tough comps in Q4 .
Cash and returns: FY25 FCF ≈$125M reaffirmed; dividend maintained and buybacks opportunistic amid leverage ~2.0x; improved FY26 cash conversion projected .
Risk monitor: US funding debate likely low single-digit direct impact; diversified geography/funding and multi-year contracts dampen volatility .
Trading implication: Near-term focus on Q4 print and FY26 guidance in June; positive skew if Research renewals/throughput and AI verticals land, with upside to margin trajectory amid structural costs actions .

Citations: All figures and statements are sourced from Wiley’s Q3 FY2025 Form 8-K press release and supplementary tables, Q3 FY2025 earnings call transcripts, prior Q1/Q2 FY2025 disclosures, and related press releases .

JOHN WILEY & SONS, INC. (WLY)·Q3 2025 Earnings Summary