Wiley (WLY) Q1 Fiscal 2027 Earnings Call: Research Growth, AI Pipeline and Reaffirmed Outlook
Source Tradingkey
Key Takeaways
- Wiley’s Q1 fiscal 2027 performance was in line with management’s plan, despite a $29 million year-over-year headwind from prior-year AI licensing revenue.
- Research revenue rose 4% to $293 million. Research publishing increased 12%, including $13 million from Emerald; excluding Emerald, publishing grew about 6%.
- Wiley generated $14 million of AI revenue, comprising $10.5 million from model training and $3.5 million of recurring revenue. Another $14 million is contracted for recognition across Q2 and Q3.
- Learning revenue fell 20% to $93 million amid prior-year AI licensing comparisons, weaker professional demand and print pressure. Excluding the AI comparison, the segment declined just under 10%.
- Research adjusted EBITDA increased 9% to $87 million, while margin expanded 130 basis points to 29.6%, supported by organic cost savings and Emerald.
- Management reaffirmed its full-year outlook, including low- to mid-single-digit organic revenue growth, a 26.5% to 27.5% adjusted EBITDA margin and adjusted EPS of $4.60 to $5.05.
Core Financial Data
| Metric | Q1 Fiscal 2027 | Year-over-year change / context |
|---|---|---|
| Research revenue | $293 million | Up 4% |
| Research publishing revenue | — | Up 12%; about 6% excluding Emerald |
| Research solutions revenue | — | Down 30%, mainly due to the prior-year AI licensing comparison |
| Research adjusted EBITDA | $87 million | Up 9% |
| Research adjusted EBITDA margin | 29.6% | Up 130 basis points |
| Learning revenue | $93 million | Down 20% |
| Learning adjusted EBITDA | $14 million | Margin of 15.1%, versus 27.4% a year earlier |
| AI revenue | $14 million | $10.5 million from model training and $3.5 million recurring |
| Adjusted EBITDA | — | Down 4% |
| Adjusted EPS | — | Down 10% |
| GAAP EPS | Loss of $0.23 | Compared with earnings of $0.22 a year earlier |
| Corporate expenses, adjusted EBITDA basis | $33 million | Down $8 million, or 19% |
| Free cash flow | Use of $70 million | Improved by $30 million from a $100 million use a year earlier |
| Net debt to EBITDA | 2.7x | Pro forma 2.1x including Emerald synergies |
Business and Operating Performance
Research publishing and Open Access
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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