Wiley Reports Q3 Revenue Drop, Adjusted Profit Rise

By Tamara Parker • Thursday, March 06 15:14 • Permanent Link

Wiley (NYSE: WLY) has reported its results for the third quarter ended January 31, 2025. The reported revenue for the quarter was $405 million, a decrease from $461 million due to foregone revenue from divested businesses. However, the adjusted revenue, excluding divestitures, increased by 1.2% at constant currency, with research revenue growing by 5.2% at constant currency.

The operating income for the third quarter was $52 million, significantly up from the previous period's loss of $46 million. Adjusted operating income increased by 27%, with the margin up by 280 basis points. Earnings per share (EPS) improved by $1.65 to ($0.43), and adjusted EPS increased by 39%, while adjusted EBITDA rose by 4%.

Year-to-date, the reported revenue was $1,235 million, compared to $1,405 million in the previous period, primarily due to foregone revenue from divested businesses. However, the adjusted revenue, excluding divestitures, increased by 3.5% at constant currency.

The year-to-date operating income was $145 million, a significant improvement from the previous period's loss of $17 million. The adjusted operating income increased by 38%, with the margin up by 330 basis points. The EPS for the year-to-date period was $0.29, compared to a loss of $4.10 in the prior year, and the adjusted EPS increased by 43%. Additionally, adjusted EBITDA increased by 12%, cash from operations improved by 115% to $52 million, and free cash flow increased by $44 million.

In terms of specific business segments, the research revenue of $268 million was up 4% as reported and 5% at constant currency, driven by growth in open access, solutions, and AI licensing. Adjusted EBITDA for the research segment increased by 11% as reported and 12% at constant currency, with the adjusted EBITDA margin for the quarter rising to 32.7% from 30.9% in the prior year period.

However, the learning segment faced challenges, with revenue of $137 million down by 6% as reported and at constant currency. The decline was attributed to a $6 million licensing renewal in the prior year and softness in academic performance. Adjusted EBITDA for the learning segment was down 5% as reported and at constant currency, with the margin rising to 35.4% from 35.1% in the prior year.

Today the company's shares have moved 15.6% to a price of $43.83. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.