Q4 2025 John Wiley & Sons Inc Earnings Call

Operator: Good morning and welcome to Wiley's fourth quarter and fiscal 2025 earnings call. As a reminder, this conference is being recorded. All lines have been placed on mute to prevent any background noise.

Good morning, and welcome to wireless fourth quarter and fiscal 'twenty 25 earnings call. As a reminder, this conference is being recorded all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and ask a recession. If you would like to you.

Operator: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press star 1 again. Thank you.

I ask a question during this time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question Press Star one again, thank you.

Brian Campbell: At this time, I'd like to introduce Wiley's Vice President of Investor Relations, Brian Campbell. Please go ahead. Thank you all for joining us.

Speaker Change: At this time I'd like to introduce a wild as vice President of Investor Relations, Brian Campbell. Please go ahead.

Speaker Change: Thank you all for joining us on the call with me or Matt Kissner, why these president and CEO, Christopher Caridi interim CFO and Joe Flynn Executive Vice President and General manager of research and learning.

Brian Campbell: On the call with me are Matt Kissner, Wiley's President and CEO, Christopher Caridi, Interim CFO, and Jay Flynn, Executive Vice President and General Manager of Research and Learning. Note that our comments and responses reflect management's views as of today and will include forward-looking statements. Actual results may differ materially from those statements.

Note that our comments and responses reflect management's views as of today and will include forward looking statements actual results may differ materially from those statements.

Brian Campbell: The company does not undertake any obligation to update them to reflect subsequent events. Also, Wiley provides non-gap measures as a supplement to evaluate underlying operating profitability and performance trends. These measures do not have standardized meanings prescribed by USGAP and therefore may not be comparable to similar measures used by other companies. nor should they be viewed as alternatives to measures under GAAP.

Company does not undertake any obligation to update them to reflect subsequent events also Wiley provides non-GAAP measures as a supplement to evaluate underlying operating profitability and performance trends.

These measures do not have standardized meanings prescribed by U S. GAAP and therefore may not be comparable to similar measures used by other companies.

Nor should they be viewed as alternatives to measures under GAAP.

Brian Campbell: Unless otherwise noted, we will refer to non-GAAP metrics on the call, and variances are on a year-over-year basis and will exclude divested assets and the impact of current Additional information is included in our filings with the SEC.

Unless otherwise noted we will refer to non-GAAP metrics on the call and variances are on a year over year basis, and will exclude divested assets and the impact of currency.

Additional information is included in our filings with the SEC a copy of this presentation and transcript will be available on our Investor relations website at investors that Wiley Dot com.

Brian Campbell: A copy of this presentation and transcript will be available on our investor relations website at investors.wiley.com.

Matthew Kissner: I'll now turn the call over to Matt Kissner. Thank you, Brian, and good morning everyone. Welcome to our fourth quarter and full year earnings review.

Matt Kissner: Now I'll turn the call over to Matt Kissner.

Matt Kissner: Thank you, Brian and good morning, everyone welcome to our fourth quarter and full year earnings review.

Matthew Kissner: 18 months ago, we set out on a multi-year journey to become a stronger and more profitable Wiley to move decisively on our core structure and unlock growth in our core business. Today, I'm pleased to report another year of meaningful progress. We've met or exceeded our financial commitments, drove growth in our core while delivering material margin expansion, and capitalized on emerging market opportunities in the corporate sector through AI licensing, data analytics, and knowledge service. It's really quite a story. One of America's great legacy companies now standing at the forefront of scientific advancement and responsible AI development.

Speaker Change: 18 months ago, we set out on a multi year journey to become a stronger and more profitable Wiley to move decisively on our cost structure and unlock growth in our core businesses.

Speaker Change: Today I'm pleased to report another year of meaningful progress, we've met or exceeded our financial commitments drove growth in our core while delivering material margin expansion and capitalized on emerging market opportunities in the corporate sector through AI licensing data.

Speaker Change: Analytics and knowledge services.

Speaker Change: It's really quite a story one of America's great legacy companies now standing at the forefront of scientific advancement.

Matt Kissner: And responsible AI development.

Matthew Kissner: Wiley began in 1807 as a print shop at Lower Manhattan. Today, we're a global company supporting the development of the European Space Agency's AI model for Earth observation. We're partnering with the American Cancer Society to disseminate cancer breakthrough. multinational pharma companies to revolutionize drug discovery and the world's largest tech companies to help train and develop AI models and interfaces.

Matt Kissner: While we began the <unk> seven as a print shop in lower Manhattan.

Matt Kissner: Today, we're a global company supporting the development of the European Space Agency's AI model for Earth observation, we are partnering with the American cancer Society to disseminate cancer breakthroughs bolting.

Matt Kissner: Multinational pharma companies to revolutionize drug discovery.

Matt Kissner: The world's largest tech companies to help train and develop AI models and interfaces.

Matthew Kissner: All to say we have commenced another exciting chapter in our 218-year history.

Matt Kissner: All to say we have commenced another exciting chapter in a 218 year history.

Matthew Kissner: What makes Wiley compelling over the long term? Market demand has remained consistent over time as it correlates with ever-increasing global R&D spend. At the same time, publishing remains essential for career enablement and acclaim. Wiley is recognized as a wide moat business with a leading market position and must have content and brand. We deliver resilient, compounding growth in global markets that have remained stable through economic downturns. Around half of our revenue is recurring and over 80% is from digital products and services. We are an AI beneficiary with content that is well-suited for both training and inference.

Matt Kissner: What makes wildly compelling over the long term.

Matt Kissner: Market demand has remained consistent over time as it correlates with ever increasing global R&D spend at the same time publishing remains essential for career enabled them in a claim.

Matt Kissner: While he is recognized as a wide moat business with a leading market position and must have content and brands.

Matt Kissner: We deliver resilient compounding growth in global markets that have remained stable through economic downturns.

Matt Kissner: Around half of our revenue is recurring and over 80% is from digital products and services.

Matt Kissner: We are an AI beneficiary with content that is well suited for both training and inference. This gives us an expanding avenue into the massive corporate market and finally, our financial characteristics remained strong with healthy margins and cash generation low leverage.

Matthew Kissner: This gives us an expanding avenue into the massive corporate market. And finally, our financial characteristics remain strong with healthy margins in cash generation, low leverage, and ample liquidity.

Matt Kissner: And ample liquidity.

Matthew Kissner: Let's recap the main headlines for Fiscal 25. We delivered revenue growth and margin improvement in both segments. We drove steady growth in our recurring revenue models and strong growth in open access driven by the global demand to public. We secured a third major customer for LLM model training and see demand accelerating for vertical-specific subscription models. We delivered total AI licensing revenue of $40 million this year. We drove a 300 basis point improvement in our adjusted operating margin and 120 basis point improvement in our adjusted EBITDA margin. Margin expansion remains a multi-year strategic focus for us.

Matt Kissner: Let's recap the main headlines for fiscal 'twenty five.

Matt Kissner: We delivered revenue growth and margin improvement in both segments.

Matt Kissner: We drove steady growth in our recurring revenue models and strong growth in open access driven by the global demand to publish.

Matt Kissner: We secured a third major customer for L. A model training and see demand accelerating for vertical specific subscription models.

Matt Kissner: We delivered total AI licensing revenue of $40 million this year.

Matt Kissner: We drove a 300 basis point improvement in our adjusted operating margin and 120 basis point improvement in our adjusted EBITDA margin margin expansion remains a multiyear strategic focus for us.

Matthew Kissner: Free cash flow is up 10% to $126 million, and we've reaffirmed our $200 million target for fiscal 26. In addition to allocating capital to high return growth opportunities, we increased share repurchases by 34% to $60 million and are currently paying a 3.5% dividend.

Matt Kissner: Free cash flow was up 10% to $126 million and we've reaffirmed our $200 million target for fiscal 2006.

Matt Kissner: In addition to allocating capital to high return growth opportunities, we increased share repurchases by 34% to $60 million and are currently paying a three 5% dividend.

Matthew Kissner: Finally, after the year closed, we secured cash proceeds of $120 million related to our university services divestiture, which will be used to further reduce debt and interest expenses. Chris will walk through our numbers in more detail, but I want to quickly showcase our performance this year. We delivered meaningful growth across all key metrics, and we expect to do the same in fiscal 26.

Matt Kissner: Finally, after the year closed we secured cash proceeds of $120 million related to our University services divestiture, which will be used to further reduce debt and interest expense.

Matt Kissner: Chris will walk through our numbers in more detail, but I want to quickly showcase our performance. This year, we delivered meaningful growth across all key metrics and we expect to do the same in fiscal 'twenty six.

Matthew Kissner: It's a simple refrain, do what you say. As with last year, we made several commitments for you to hold us. The first was to meet our stated financial goals, and we did that. For the second year in a row, we exceeded our EPS guidance range. We finished at the top end for EBITDA margin, achieved on revenue and cash flow, and reaffirmed or lifted our fiscal 26 targets, which we first set down in January of 2024. The second goal was to expand our margins in cash. As noted, the team continues to execute and deliver on this overarching objective.

Matt Kissner: It's a simple refrain do what you say.

Matt Kissner: As with last year, we made several commitments for you to hold us to the first was to meet our stated financial goals and we did that.

Matt Kissner: For the second year in a row, we exceeded our EPS guidance range. We finished at the top end for EBITDA margin achieved on revenue and cash flow and reaffirmed all lifted off fiscal 'twenty six targets, which we first set down in January of 2024.

Matt Kissner: The second goal was to expand our margins and cash flow as noted the team continues to execute and deliver on this overarching objective.

Matthew Kissner: Third was to drive recovery and growth in research, and we accomplished that across all key areas, including publishing, licensing, and solution. For example, we achieved a 19% submissions growth rate and 8% output growth in fiscal 25. Research also delivered margin growth this year.

Matt Kissner: Third was to drive recovery and growth in research and we accomplished that across all key areas, including publishing licensing and solutions. For example, we achieved a 19% submissions growth rate and 8% output growth in physical 25 research also.

Matt Kissner: <unk> margin growth this year.

Matthew Kissner: Finally, we made a commitment to move decisively on AI opportunities. It's been a remarkable year of progress in this area as the market continues to rapidly evolve. A year ago we were trying to understand the opportunity. Today we count some of the largest companies in the world as AI customers and are partnering on an array of use cases and applications.

Matt Kissner: Finally, we made a commitment to move decisively on AI opportunities. It's been a remarkable year of progress in this area as the market continues to rapidly evolve a year ago, we were trying to understand the opportunities today, we count some of the largest companies in the world is AI customer.

Matt Kissner: <unk> and our partnering on an array of use cases and applications.

Matthew Kissner: Let me briefly recap the year in research. Our recurring revenue models saw solid growth driven by increased output and the enduring strength of our brand. Remember that much of our volume growth goes to supporting and increasing the value of our multi-year agreements.

Matt Kissner: Let me briefly recap the year and research.

Matt Kissner: Recurring revenue model saw solid growth driven by increased output and the enduring strength of our brands remember that much of a volume growth goes to supporting an increasing the value of our multi year agreements. We had a very good renewal season across all regions, which gives us visibility.

Matthew Kissner: We had a very good renewal season across all regions, which gives us visibility through calendar year 25. As a reminder, around two-thirds of research revenue is recurring. Open Access continues to see double-digit growth. Our advanced journal franchise continues to be especially noteworthy. We made a concerted effort to invest in its expansion and its paying off, particularly for our multi-discipline, open-access-only journal, Advanced Science. Its growth has been spectacular, driven by a rising impact factor and broad and expanding We continue to see strong demand to publish across key markets.

Matt Kissner: Through calendar year 'twenty five as a reminder, around two thirds of research revenue is recurring.

Matt Kissner: Open access continues to see double digit growth our advanced journal franchise continues to be especially noteworthy we made a concerted effort to invest in its expansion and it's paying off particularly for a multi disciplined open access only journal advanced science.

Matt Kissner: Its growth has been spectacular driven by a rising impact factor and broad and expanding readership.

Matt Kissner: We continue to see strong demand to publish across key markets. As a reminder, Wiley research is geographically very well distributed and powered by many different funding sources submissions were up in both emerging and well established markets with strong.

Matthew Kissner: As a reminder, Wiley Research is geographically very well distributed and powered by many different funding sources. Submissions were up in both emerging and well-established markets, with strong double-digit growth in India and China, double-digit growth in the UK, France, Italy, Brazil, and Canada, and high single-digit growth in Japan and the U.S. High growth markets continue to show strong momentum.

Matt Kissner: Double digit growth in India, and China double digit growth in the U K, France, Italy, Brazil, and Canada and high single digit growth in Japan, and the U S.

Matt Kissner: High growth markets continue to show strong momentum this year, we executed landmark multiyear agreements in India, and Brazil that expand access to thousands of institutions and millions of researchers.

Matthew Kissner: This year we executed landmark multi-year agreements in India and Brazil that expand access to thousands of institutions and millions of researchers. Both of these country-wide agreements serve strategic purposes that go beyond near-term financial benefits. They stand to increase the global supply of quality research. China continues to be a very strong growth market for us and the number one source of published research worldwide.

Matt Kissner: Both of these country wide agreement served strategic purposes that go beyond near term financial benefits.

Matt Kissner: They stand to increase the global supply of quality research.

Matt Kissner: And it continues to be a very strong growth market for us and the number one source of published research worldwide.

Matthew Kissner: Investment in R&D, innovation, and publishing is a way for countries to compete and rise in the global economy, and these national governments continue to ramp up their efforts.

Matt Kissner: Investment in R&D innovation, and publishing is a wafer countries to compete and rise in the global economy and these national governments continue to ramp up their efforts.

Matthew Kissner: As noted, we're excited by all the work we're doing in the corporate R&D and AI space. I'll talk more about this in a bit.

Matt Kissner: As noted we're excited by all the work we're doing in the corporate R&D and AI space I'll talk more about this in a bit.

Matthew Kissner: And finally, Wiley has become a thought leader in everything from responsible AI development and research integrity to accessibility in underserved regions. On the topic of responsible AI, we recently released New Author Guidelines on How to Utilize AI Tools in Manuscript Development While Preserving Authentic Voice and Safeguarding Intellectual Property. Wiley also announced the release of Explanations, a landmark study of 5,000 researchers that explores AI use and applications across the research process.

Matt Kissner: And finally Wiley has become a thought leader and everything from responsible AI development and research integrity to accessibility and underserved regions.

Matt Kissner: On the topic of responsible AI, we recently released.

Matt Kissner: New offer guidelines on how to utilize AI tools and manuscript development, while preserving authentic voice and safeguarding intellectual property.

Matt Kissner: While they also announced the release of explanations a landmark study of 5000, researchers that explodes AI use in applications across the research process.

Matthew Kissner: We've become a primary voice on research integrity and now sponsor a PhD position at Leiden University to study research fraud and produce insights for the research community. On accessibility, we launched a pilot program that supports authors across 33 countries in Latin America to publish research in Wiley's Gold Open Access Portfolio. Discounts are applied in direct relationship to the purchasing power of each participating country. It's all designed to cultivate the research community in underserved areas and bring new, cutting-edge research into the global community.

Matt Kissner: We've become a primary voice on research integrity, and now sponsor a Phd position at Leiden University study research fraud and produced insights for the research community on.

Matt Kissner: Unacceptability, we launched a pilot program that supports authors across 33 countries in Latin America to publish research and wireless gold open access portfolio.

Matt Kissner: Discounts are applied in direct relationship to the purchasing power of each participating country.

Matt Kissner: It's all designed to cultivate the research community and underserved areas and bring new cutting edge research into the global community.

Matthew Kissner: Let's shift to learning, where we delivered another year of revenue and margin growth. AI licensing generated $29 million in learning revenue compared to $23 million in the prior year, driven by demand for academic and professional backlisted content. Our inclusive access model, where the cost of digital course content is added to the students' tuition and fees, and our STEM courseware product, remain growth engines. In professional and reference, book title signings were up 16% in areas like business, leadership and nursing, which will drive financial benefit in fiscal 26 and beyond. We renewed our prestigious book publishing partnership with the IEEE, the world's largest technical society.

Matt Kissner: Let's shift to learn it where we delivered another year of revenue and margin growth.

Matt Kissner: Licensing generated $29 million in learning revenue compared to 23 million in the prior year driven by demand for academic and professional back listed content, our inclusive access model, where the cost of digital course content is added to the students' tuition and fees.

Matt Kissner: And our stem courseware product remained growth engines.

Matt Kissner: In professional and reference book titled Signings were up 16% in areas like business leadership in nursing, which will drive financial benefits in fiscal 'twenty six and beyond.

Matt Kissner: We renewed our prestige as book publishing partnership with the eye Triple leave the world's largest technical society.

Matthew Kissner: Finally, assessments benefited from strong pricing power in a soft market environment.

Matt Kissner: Finally assessments benefited from strong pricing power in a soft market environment.

Matthew Kissner: The team has recently launched our WorkSmart tool that combines personality models with training sessions on employee engagement and team development. Both research and learning demonstrated organic growth and margin improvement even as we continue to invest in high-return initiatives.

Matt Kissner: The team has recently launched our work smart tool that combines personality models with training sessions on employee engagement and team development.

Matt Kissner: Both research and learning demonstrated organic growth and margin improvement even as we continued to invest in high return initiatives Chris.

Christopher Caridi: Chris will walk through our financial performance in more detail. We are proud of our multi-year journey, and we're working toward accelerating our progress.

Matt Kissner: Chris will walk through our financial performance in more detail.

Matt Kissner: We are proud of our multi year journey, and we're working toward accelerating our progress.

Christopher Caridi: I stepped into the role in October of 2023, and I found an exceptionally talented and connected group of colleagues that were eager to put the past behind them. Collectively, we set out to simplify our goals and weld them to financial outcomes. Our aim was to act decisively, get leaner, and strategically reallocate resources to where we have a unique right to win. A year and a half later, our work is paying off, both in our financial performance and our employee engagement score. We matter exceeded guidance in both fiscal 24 and 25. We raised our fiscal 26 adjusted EBITDA margin target range by 150 basis.

Matt Kissner: I stepped into the role in October of 2023, and I found an exceptionally talented and connected group of colleagues that were eager to put the past behind them.

Matt Kissner: Collectively we set out to simplify our goals and well them to financial outcomes.

Matt Kissner: Our aim was to act decisively get leaner and strict T generally reallocate resources to where we have a unique right to win.

Matt Kissner: A year and a half later all work is paying off both in our financial performance and our employee engagement scores.

Matt Kissner: We met or exceeded guidance in both fiscal 'twenty, four and 'twenty five.

Matt Kissner: We raised our fiscal 2006, adjusted EBITA margin target range by 150 basis points and reaffirmed our free cash flow target of $200 million up from $114 million in fiscal 2024.

Christopher Caridi: and reaffirmed our free cash flow target of $200 million, up from $114 million in fiscal 2024. We've since recorded over $60 million in AI licensing revenue and executed multiple vertical-specific projects with corporate partners. We completed all divestitures and recently secured cash proceeds for university service. We drove significant cost savings with additional opportunities identified. In fact, we returned a combined $259 million in dividends and share repurchases in fiscal 24 and 25. And finally, we saw a marked elevation in employee engagement and satisfaction scores.

Matt Kissner: We've since recorded over 60 million in AI licensing revenue and executed multiple vertical specific projects with corporate partners.

Matt Kissner: We completed all divestitures and recently secured cash proceeds for University services.

Matt Kissner: We drove significant cost savings with additional opportunities identified.

Matt Kissner: In fact, we returned a combined $259 million in dividends and share repurchases in fiscal 'twenty, four and 'twenty five.

Matt Kissner: And finally, we saw a marked elevation in employee engagement and satisfaction scores.

Christopher Caridi: Hats off to the people that continue to make it all happen, our global colleagues. We are not slowing down. One of the more interesting developments over the past year is the acceleration of the corporate opportunity. corporate makes up about 10% of our revenue base, notably journal subscriptions, databases, and services. Over time, we expect this to materially expand as we extend further into the corporate R&D value chain. The big trend, of course, is AI. AI revenue totaled about $40 million for the year. During the quarter, we executed an $18 million licensing agreement with a new multinational tech customer for a learning with 9 million realized in this most recent quarter and 9 million expected in Q1.

Matt Kissner: It's off to the people that continue to make it all happen our global colleagues, we are not slowing down.

Matt Kissner: One of the more interesting developments over the past year is the acceleration of the corporate opportunity.

Matt Kissner: Corporate makes up about 10% of our revenue base, notably journal subscriptions databases and services.

Matt Kissner: Overtime, we expect this to materially expand as we extend further into the corporate R&D value chain.

Matt Kissner: The big trend of course is AI.

Matt Kissner: Revenue totaled about $40 million for the year.

Matt Kissner: During the quarter, we executed an $18 million of licensing agreement with a new multinational tech customer for our learning content.

Matt Kissner: With $9 million realized in this most recent quarter at $9 million expected in Q1.

Christopher Caridi: That said, the trading market is rapidly evolving from a few substantial pre-training engagements to a broader array of smaller, fine-tuning projects where AI developers require more specialized content. We also saw a second half acceleration in the broader vertical specific market. R&D intensive corporations are increasingly using AI powered content and tools to speed up product development, identify breakthroughs and reduce cycle This is where Wiley comes in. Our expansive content and data catalogs can be embedded into vertical specific AI models and applications in technology, healthcare, information services, industrials, and others to improve efficacy and impact. In addition, we are partnering with AI developers to advance the researcher and learner experience.

Matt Kissner: That said the trading market is rapidly evolving from a few substantial pre training engagement tool.

Matt Kissner: To a broader array of smaller fine tuning projects, where AI developers require more specialized content.

Matt Kissner: We also saw a second half acceleration in the broader vertical specific market.

Matt Kissner: R&D intensive corporations are increasingly using AI powered content and tools to speed up product development identify breakthroughs and reduced cycle times.

Matt Kissner: This is weird wildly comes in.

Matt Kissner: Our expansive content and data catalogs can be embedded into vertical specific AI models and applications in technology healthcare information services, industrials and others to improve efficacy and impact.

Matt Kissner: In addition, we are partnering with AI developers to advance the researcher in learner experience.

Christopher Caridi: In the past few months, we've executed partnerships with Amazon Web Services on scientific research, Perplexity on AI answer engines and learning, multiple pharmaceutical companies for drug discovery, a multinational chemical company for pattern recognition, and in support of a space agency's AI tool for Earth observation. Revenue for vertical-specific applications totaled $1 million in this first year, all of it recurring, but it's early days and some of these are more like pilot. Long-term, you can start to imagine the number of potential use cases and customers around the world. Organizations leveraging AI to conduct high-value R&D need to ground their solutions in the high-quality, trusted knowledge that Wiley provides.

Matt Kissner: In the past few months, we've executed partnerships with Amazon Web services on scientific research.

Matt Kissner: <unk> city on AI answer engines learning multiple pharmaceutical companies for drug discovery.

Matt Kissner: The National Chemical company for pattern recognition and in support of the space Agency's AI tool for Earth observation.

Matt Kissner: Revenue for vertical specific applications totaled $1 million in this first year all of it recurring but it's early days and some of these are more like pilots.

Matt Kissner: Long term you can start to imagine the number of potential use cases and customers around the world.

Matt Kissner: The organization is leveraging AI to can talk to high value R&D needs of ground their solutions and the high quality trusted knowledge that Wiley provides.

Christopher Caridi: As a first mover, we continue to learn from these partners and them from us. In the case of Perplexity, Wiley is collaborating with this innovator on the latest AI development and gaining valuable insights on how learners interact with our content in this form while enabling us to test new business models. In addition to AI, we are bringing our capabilities deeper into organizations with science analytics. Of particular note is our spectral data program, which continues to grow by double digits. Wiley has one of the most comprehensive spectral database collections in the world, allowing chemists and other researchers to identify molecular compounds to reach better conclusions faster.

Matt Kissner: As a first mover, we continue to learn from these partners and them from us.

Matt Kissner: In the case of Perplexity wildly is collaborating with this innovator on the latest AI development and gaining valuable insights on how learners interact with our content in this form wall, enabling us to test new business models.

Matt Kissner: In addition to AI, we are bringing our capabilities deeper into organizations with science analytics.

Matt Kissner: Of particular note is our spectral data program, which continues to grow by double digits.

Speaker Change: Wiley has one of the most comprehensive spectral database collections in the world, allowing chemists and other researchers to identify molecular compounds to reach better conclusions faster.

Christopher Caridi: Wiley also continues to provide knowledge hubs, advertising, and recruiting services for R&D-centric companies, particularly in healthcare. Corporate is a burgeoning market for us, and we're going to cap it.

Speaker Change: Wiley also continues to provide knowledge hubs advertising and recruiting services for R&D centric companies, particularly in health care.

Speaker Change: Corporate is a burgeoning market for us and we're going to capitalize.

Christopher Caridi: Of course, we need to acknowledge the uncertainty out there, be it policy swings, tariffs, An Uncertain Economic Climate and Other Unknowns. But from what we know today, we remain confident in our continued resilience and growth.

Speaker Change: Of course, we need to acknowledge the uncertainty out there be it policy swings tariffs and uncertain economic climate and other unknowns.

Speaker Change: But from what we know today, we remain confident in our continued resilience and growth.

Christopher Caridi: to refresh. Our content is must-have for institutions. Researchers must be published for career advancement, and publishing remains essential to assess research outcomes. Research is truly a global ecosystem, enjoying strong geographic and funding diversity. It is not dependent on any one market. While there may be some noise in the U.S., other key markets are investing heavily in R&D, innovation, and publishing outcomes. We have a large recurring revenue. as noted. We've talked about the ongoing demand to publish and our strong pipeline of submission. Our content and data are in demand for AI development. The academic side of our business is steady and counter-cyclical over time.

Speaker Change: To refresh.

Speaker Change: Our content is must have for institutions researchers must be published for career advancement and publishing remains essential to assess research outcomes.

Speaker Change: Research is truly a global ecosystem enjoying strong geographic and funding diversity.

Speaker Change: It is not dependent on any one market.

Speaker Change: While there may be some noise in the U S. Other key markets are investing heavily in R&D innovation and publishing output.

Speaker Change: We have a large recurring revenue base as noted.

Speaker Change: We've talked about the ongoing demand to publish and a strong pipeline of submissions.

Speaker Change: Our content and data are in demand for AI development.

Speaker Change: The academic side of our business is steady and counter cyclical over time.

Christopher Caridi: Professional title signings were up over the past two years. and we continue to aggressively tackle our core structure while keeping a tight lid on our expenses.

Speaker Change: Professional titled signings were up over the past two years.

Speaker Change: And we continue to aggressively tackle our cost structure, while keeping a tight lid on our expenses.

Christopher Caridi: Perhaps most importantly, being relevant for 218 years demonstrates that Wiley plays the long game. That's what we're doing right now. We will not be distracted from delivering on our strategic objectives.

Speaker Change: Perhaps most importantly, being relevant for 218 years demonstrates that Wiley plays the long game.

Speaker Change: That's what we're doing right now we will not be distracted from delivering on our strategic objectives.

Christopher Caridi: I'll now pass the call to Chris. Thank you, Matt. And good morning, everyone. I want to commend all my Wiley colleagues for our performance and profitability improvements over the past 18 months. As Matt noted, we still have work to do, but the team has made important material strides. As always, we are passionate about meeting our commitments and earning your trust as shareholders. Margin expansion has been a focal point for us.

Chris: I'll now pass the call to Chris.

Chris: Thank you, Matt and good morning, everyone.

Chris: I want to commend all my Wiley colleagues for our performance and profitability improvements over the past 18 months.

Chris: As Matt noted, we still have work to do but the team has made important material strides.

Chris: As always we are passionate about meeting our commitments and earning your trust to shareholders margin expansion, that's been a focal point for us.

Christopher Caridi: We took certain actions across the company in Q4, which led to a restructuring charge of $12 million. Our current efficiency programs are focused on our corporate line, notably technology. We continue to make good headway there and are ramping up our efforts in Fiscal 26, even as we deliver improvements to our enterprise systems and roll out our new research publishing platform. We are targeting a substantial reduction in our technology costs over time by streamlining the tech organization with a focus on our location footprint and partnerships with external providers, rationalizing our application landscape, and capitalizing on emerging AI-driven software development tools.

Chris: We took certain actions across the company in Q4, which led to a restructuring charge of $12 million.

Chris: Our current efficiency programs are focused on our corporate line, notably technology.

Chris: We continue to make good headway, there and are ramping up our efforts in fiscal 'twenty six given as we deliver improvements to our enterprise systems and rollout our new research publishing platform.

Chris: We are targeting a substantial reduction in our technology costs over time by streamlining the tech organization with a focus on our location footprint.

Chris: Through partnerships with external providers.

Chris: <unk>, our application landscape and capitalizing on emerging AI driven software development tools.

Christopher Caridi: We are confident that our technology transformation program will lead to improved delivery and innovation at lower cost. We are also focused on other corporate services. including operations, finance, human resources, and legal. We continue to evaluate the efficiency of our corporate processes and look for ways to drive further improvement. Corporate expenses were down 10% in Q4 and 4% in FY25, although, as expected, the unallocated portion rose modestly this year, mainly due to enterprise modernization. We expect corporate expenses to come down in fiscal 26. While we're rationalizing certain areas of spend, we continue to invest in our journal portfolio expansion, research publishing platform, and AI opportunities.

Chris: We're confident that our technology transformation program will lead to improved delivery and innovation at lower cost.

Chris: We are also focused on other corporate services, including operations finance human resources and legal.

Chris: Continue to evaluate the efficiency of our corporate processes and look for ways to drive further improvements our corporate expenses were down 10% in Q4 and 4% in fiscal year 'twenty five although as expected the unallocated portion rose modestly this year, mainly due to enterprise modernization.

Chris: We expect corporate expenses to come down in fiscal 2006.

Chris: While we're rationalizing certain areas of spend we continue to invest in our journal portfolio expansion research publishing platform and AI opportunities. We're also evaluating product profitability across our portfolio and we will take action as necessary.

Christopher Caridi: We're also evaluating product profitability across our portfolio, and we'll take action as necessary. Our multi-stage research platform launch continues, with over 1,400 journals now in our new submission system and over 700 on our peer review system. Our work will continue in earnest through the calendar year, but will be an ongoing initiative as we add new functionality and features. As discussed, the platform will improve publishing cycle times, expand capacity, and reduce our cost per article.

Chris: Our multi stage research platform launch continues with over 1400 journals now on our new submission system and over 700 on our peer review system.

Chris: Our work will continue in earnest through the calendar year, but will be an ongoing initiative as we add new functionality and features.

Chris: As discussed the platform will improve publishing cycle times expand capacity and reduce our cost per article.

Christopher Caridi: Finally, we are implementing prudent expense measures near term as we navigate this period of uncertainty. Given all this work, we expect to deliver significant adjusted EBITDA margin improvement over time, in addition to the progress we've made to date.

Chris: Finally, we are implementing prudent expense measures near term as we navigate this period of uncertainty.

Chris: Given all this work we expect to deliver significant adjusted EBITDA margin improvement over time.

Chris: In addition to the progress we've made state.

Christopher Caridi: Let me touch on our Q4 results. Adjusted revenue was essentially flat with research growth and AI licensing offset by a $23 million rights project in the prior year. As noted, the most current AI licensing agreement in learning is valued at $18 million. with nine million recognized this quarter and nine million next. If you back out AI revenue from both years, learning would be up 4%. We continue to drive improvements in Adjusted Operating Income up 15% and EPS up 14%. adjusted EBITDA was flat due to revenue performance, although our margin rose slightly to 28.4%. For the full year, adjusted revenue was up 3% driven by research and academic growth and AI licensing, offsetting some pressure on professional due to retail channel software.

Chris: Let me touch on our Q4 results.

Chris: Adjusted revenue was essentially flat with research growth and AI licensing offset by a $23 million rights project in the prior year.

Chris: As noted the <unk>.

Chris: Most current AI licensing agreement and learning is valued at $18 million with 9 million recognized this quarter and 9 million next quarter.

Chris: If you back out AI revenue from both years learning would be up 4%.

Chris: We've continued to drive improvements in adjusted operating income up 15% and EPS up 14%.

Chris: Adjusted EBITDA was flat due to revenue performance, although our margin rose slightly to 28, 4%.

Chris: For the full year adjusted revenue was up 3% driven by research and academic growth and AI licensing.

Chris: Offsetting some pressure in professional due to retail channel softness.

Christopher Caridi: Adjusted Operating Income, Adjusted EPS, and Adjusted EBITDA were up 29%, 31%, and 8%. As noted, we delivered a 24% adjusted EBITDA margin for the year.

Chris: Adjusted operating income adjusted EPS, and adjusted EBITDA were up 29%, 31% and 8%.

Chris: As noted we delivered a 24% adjusted EBITA margin for the year.

Christopher Caridi: Turning to our research segment, fourth quarter and full year revenue increased 3% from growth in both our recurring revenue models and open access programs. and new AI licensing revenue. saw some softness in ancillary and print products, including back files and digital art. These are more discretionary. As of April, we've completed 99% of our calendar year 25 journal renewals. and are seeing good growth overall. We will commence our calendar year 26 renewal discussions in the late fall time frame.

Chris: Turning to our research segment fourth quarter and full year revenue increased 3% from growth in both our recurring revenue models and open access programs.

Chris: And new AI licensing revenue.

Chris: We saw some softness in ancillary and paired products, including backed files and digital archives.

Chris: More discretionary in nature.

Chris: As of April we've completed 99% of our calendar year twenty-five journal renewals.

Chris: And are seeing good growth overall.

Chris: We will commence our calendar year 'twenty six renewal discussions in the late fall timeframe.

Christopher Caridi: Importantly, our publishing pipeline remains robust and well-dispersed. 45% of global output from AIPAC. 30% EMEA. 20% North America and 5% from the rest of the world. Research solutions return to growth this year, up 2%, driven by databases and content solutions for corporations. offset by softness and recruitment. Adjusted EBITDA for research increased 4% for the quarter and 5% for the year, reflecting revenue growth and cost savings, partially offset by investments in growth and productivity emissions. Our full year margin improved by 30 basis points. 32.1% In summary for research, we are pleased with our Fiscal 25 performance, operating improvements, and investment.

Chris: Importantly.

Chris: Our publishing pipeline remains robust and well dispersed.

Chris: With 45% of global output from APAC.

Chris: 30% EMEA.

Chris: 20% North America.

Chris: 5% from the rest of the world.

Chris: Research solutions returned to growth this year up 2% driven by databases and content solutions for corporations.

Chris: Set by softness in recruitment.

Chris: Adjusted EBITDA for research increased 4% for the quarter and 5% for the year.

Chris: Reflecting revenue growth and cost savings, partially offset by investments in growth and productivity initiatives.

Chris: Our full year margin improved by 30 basis points to 32, 1%.

Chris: In summary for research we are pleased with our fiscal 'twenty five performance operating improvements and investments.

Christopher Caridi: On to our learning segment. Q4 revenue declined 5% due to the large AI agreement in the prior year and retail channel softness in professional public. For the year, revenue rose 2%, driven by AI licensing and steady market conditions in academic, notably student enrollment, the shift to inclusive access, and growth in digital content and course We continue to deliver robust growth and new title signings across the science, technology, medicine, and professional field.

Chris: Onto our learning segment.

Chris: Q4 revenue declined 5% due to the large AI agreement in the prior year and retail channel softness in professional publishing.

Chris: For the year revenue rose 2%.

Chris: By AI licensing and steady market conditions, and academic notably student enrollment.

Chris: Shifting to inclusive access and growth in digital content and courseware.

Chris: We continue to deliver robust growth in new title signings across the science technology Medicine, and professional fields, which are expected to contribute to our financial performance in 2006 and beyond.

Christopher Caridi: which are expected to contribute to our financial performance in 26 and beyond. Adjusted EBITDA for the learning segment declined 6% this quarter, reflecting revenue performance. but rose 9% for the year. Our margin expansion initiatives and learning deliver 250 basis points of improvement in fiscal 25, resulting in an adjusted EBITDA margin of 37.4%.

Chris: Adjusted EBITDA for the learning segment declined 6% this quarter.

Chris: Collecting revenue performance, but rose 9% for the year.

Chris: Our margin expansion initiatives and learning deliver 250 basis points of improvement in fiscal 'twenty five.

Chris: <unk> and an adjusted EBITA margin of 37, 4%.

Christopher Caridi: Since fiscal 23, we have improved our EBITDA margin and learning by an astounding 850 basis all without sacrificing growth. In summary, we continue to be pleased with the growth, profit contribution, and cash generation of this business, and continue to invest where we see specific opportunities.

Chris: Since fiscal 'twenty three.

Chris: We have improved our EBITA margin and learning by an astounding 850 basis points.

Chris: All without sacrificing growth.

Chris: In summary, we continue to be pleased with the growth profit contribution and cash generation of this business and continue to invest where we see specific opportunities.

Christopher Caridi: Let's discuss our current financial position and return to shareholder. Cash from operations was down modestly in fiscal 25. This decline reflects spend on cloud-based solutions related to our targeted enterprise monetization work, which largely occurred in the second half of the fiscal year. This spend is capitalized and amortized, like cap. but reported in this section of the cash flow statement. Without this shift, cash from operations would have been higher due to adjusted EBITDA and favorable working capital movements. Free cash flow rose 10% to $126 billion due to lower capital. Note, combining CapEx and cloud-based solution spend, we outlaid comparable amounts in Fiscal 25 and Fiscal 24.

Chris: Let's discuss our current financial position and return to shareholders.

Chris: Cash from operations was down modestly in fiscal 'twenty five.

Chris: This decline reflects spend on cloud based solutions related to our targeted enterprise modernization work, which largely occurred in the second half of the fiscal year.

Chris: This spend is capitalized and amortized like Capex, but reported in this section of the cash flow statement.

Chris: Without this shift cash from operations would have been higher due to adjusted EBITA and favorable working capital movements.

Chris: Free cash flow rose, 10% to 126 billion due to lower Capex.

Chris: Combining capex and cloud based solution spend.

Chris: Outlaid comparable amounts in fiscal 'twenty five in fiscal 'twenty four.

Christopher Caridi: We remain confident in achieving our free cash flow target of $200 million in Fiscal 2020. Dividends and share repurchases totaled $137 million, up from $122 million in the prior year. Approximately 60 million was used to acquire nearly 1.4 million shares. Our current dividend yield is around 3.5%.

Chris: We remain confident in achieving our free cash flow target of $200 million in fiscal 'twenty six.

Chris: Dividends and share repurchases totaled $137 million.

Chris: Up from $122 million in the prior year.

Chris: Approximately $60 million was used to acquire nearly one 4 million shares.

Chris: Our current dividend yield is around three 5%.

Christopher Caridi: After the year closed, we received $120 million of cash proceeds for the University Services business, which we will use to further reduce our debt. This will save us approximately $5 million in cash interest payments per year. Finally, our net debt to EBITDA ratio was 1.8 at the end of April, compared to 1.7 in the prior year period.

Chris: After the year closed we received $120 million of cash proceeds for the University services business, which we will use to further reduce our debt.

Chris: This will save us approximately $5 million in cash interest payments per year.

Chris: Finally, our net debt to EBITDA ratio was one eight at the end of April compared to $1 seven in the prior year period.

Christopher Caridi: This is before we deployed the divestiture process.

Chris: <unk> redeployed the divestiture proceeds.

Christopher Caridi: Let me turn to growth drivers behind our outlook. As a reminder, our calendar year 25 renewal season was favorable. Our publishing pipeline remains strong, and the higher education market is steady. We continue to do good work on the professional side with new title signings and publishing and product improvements in the.

Chris: Let me turn to growth drivers behind our outlook.

Chris: As a reminder, our calendar year 'twenty five renewal season was favorable.

Chris: Our publishing pipeline remains strong and the higher education market is steady.

Chris: We continue to do good work on the professional side with new title signings in publishing and product improvements and assessments.

Christopher Caridi: Her commitments for this year are simple. First, deliver profitable revenue growth in an uncertain economy. Second, materially expand margins and cash Third, drive continued momentum in the corporate market through AI, analytics, and service.

Chris: Commitments for this year are simple.

Chris: First deliver profitable revenue growth in an uncertain economy.

Chris: Second materially expand margins and cash flow.

Chris: Third drive continued momentum in the corporate market to AI analytics and surfaces.

Christopher Caridi: turning to our fiscal year outlook. Revenue growth is expected to be in a range of low to mid-single digits. Our growth outlook includes the adverse year-over-year impact of $40 million of AI licensing revenue in fiscal 25. We do anticipate additional AI revenue this year. but not enough to be comparable to the prior year at this stage. We're raising our adjusted EBITDA margin outlook again to a range of 25.5% to 26.5%. This is up from our initial target of 24 to 25%. and up from our fiscal 24 actual of 22.8%. Adjusted EPS is expected to be in the range of $3.90 to $4.35.

Chris: Turning to our fiscal year outlook.

Chris: Revenue growth is expected to be in a range of low to mid single digits.

Chris: Our growth outlook includes the adverse year over year impact of $40 million of AI licensing revenue in fiscal 'twenty five.

Chris: We do anticipate additional AI revenue this year.

Chris: But not enough to be comparable to the prior year at this stage.

Chris: We're raising our adjusted EBITDA margin outlook again to a range of 25, 5% to 26, 5%.

Chris: This is up from our initial target of 24% to 25%.

Chris: And up from our fiscal 'twenty four actual of 22, 8%.

Chris: Adjusted EPS is expected to be in the range of $3 90.

Chris: To $4 35.

Christopher Caridi: up from $3.64 in fiscal 25 and $2.78 in fiscal 24. This is driven by expected growth in adjusted operating income from revenue growth and cost. Finally, free cash flow is expected to be approximately $200 million, driven by expected EBITDA growth, lower restructuring payments, and favorable working capital. CapEx is expected to be comparable to this year's total of $77 million.

Chris: Up from $3.64 in fiscal 'twenty five.

Chris: And $2 78 in fiscal 'twenty four.

Chris: This was driven by expected growth in adjusted operating income from revenue growth and cost savings.

Chris: Finally free cash flow is expected to be approximately $200 million driven.

Chris: Driven by expected EBITDA growth lower restructuring payments and favorable working capital.

Chris: Capex is expected to be comparable to this year's total of $77 million.

Christopher Caridi: One comment on quarterly phase. in Q1. we will have an unfavorable year-over-year comparison of $17 million related to prior year AI projects. We do expect some offset from new AI revenue, namely $9 million related to the agreement signed in Q4. But Q1 reported revenue is still expected to be down modestly, reflecting this comparison issue. As always, it's far more relevant to look at us on a full year.

Chris: One comment on quarterly phasing.

Chris: In Q1.

Chris: We will have an unfavorable year over year comparison of $17 million related to prior year AI projects.

Chris: We do expect some offset from new AI revenue, namely $9 million related to the agreement signed in Q4.

Chris: But Q1 reported revenue is still expected to be down modestly, reflecting this comparison issue.

Chris: As always it is far more relevant to look at us on a full year basis.

Matthew Kissner: I'll pass the call back to Matt. Thank you, Chris.

Matt Kissner: I'll pass the call back to Matt.

Speaker Change: Thank you Chris let.

Matthew Kissner: Let me recap our key takeaways before opening the floor to questions. Wiley has consistently served as a safe haven, delivering resilient compounding growth across economic cycles. This is due to our must-have content and data, Recurring Business Model. good geographic diversity and strong finance. In addition, we are well ahead in tackling our cost structure and continuously improving our fundamentals. We are now a clear beneficiary in AI development across multiple sectors. AI licensing and partnership is another avenue for us into the ever-expanding corporate opportunity. Execution and discipline are now core strengths of ours, as is evident in our continuously expanding margins and cash.

Speaker Change: Let me recap our key takeaways before opening the floor to questions.

Speaker Change: Wiley has consistently served as a safe haven, delivering resilient compounding growth across economic cycles.

Speaker Change: This is due to our must have content and data recurring business models.

Speaker Change: Good geographic diversity and strong financials and.

Speaker Change: In addition, we are well ahead in tackling our cost structure and continuously improving our fundamentals.

Speaker Change: We are now a clear beneficiary NII development across multiple sectors.

Speaker Change: Licensing and partnership is another avenue for us into the ever expanding corporate opportunity.

Speaker Change: Execution and discipline are now core strengths of ours as is evident in our continuously expanding margins and cash flow.

Matthew Kissner: We remain balanced on capital allocation as we invest in high-return initiatives in research and return cash to shareholders through dividends and re-purchase. And based on what we know today and the momentum we're seeing in our leading indicators, we feel confident in our stated fiscal 26 growth outlook for revenue margins in cash.

Speaker Change: We remain balanced on capital allocation as we invest in high return initiatives and research and return cash to shareholders through dividends and repurchases.

Speaker Change: And based on what we know today and the momentum we're seeing in our leading indicators, we feel confident in our stated fiscal 'twenty six growth outlook for revenue margins and cash flow.

Matthew Kissner: I want to thank all of you for joining us today. We will continue to work hard to reward your trust and confidence. Thank you to our wonderful colleagues for their drive and determination to generate lasting value for our customers, partners, and shareholders. As I said a year ago, nothing unites us more than being on a winning team. and that is what we are and what we will continue to be.

Speaker Change: I want to thank all of you for joining us today.

Speaker Change: We will continue to work hard to reward your trust and confidence. Thank you to all wonderful colleagues for their drive and determination to generate lasting value for our customers partners and shareholders.

Speaker Change: As I said, a year ago, nothing unites us more than being on a winning team.

Speaker Change: And that is what we are and what we will continue to be.

Operator: I'll open the floor to questions. At this time, I would like to remind everyone in order to ask a question, please press star then the number one on your telephone keypad. We will pause for just a moment to compile the Q&A roster.

Speaker Change: I'll open the floor to questions.

Speaker Change: At this time I would like to remind everyone in order to ask a question. Please press Star then the number one on your telephone keypad, we will pause for just a moment to compile the Q&A roster.

Daniel Moore: Our first question comes from the line of Daniel Moore with CJS Securities. Your line is open. Thank you.

Speaker Change: Our first question comes from the line of Daniel Moore with CJS Securities. Your line is open.

Matthew Kissner: Good morning, Matt. Good morning, Chris. Congrats on the strong progress in 2025 and appreciate the comments on fees. Maybe start with, obviously, the 26 revenue guidance, low to mid-single-digit growth, including the tough AI comp and 40 million licensing. Yeah, I guess it sounds like you expect some additional AI revenue, including the 9 million, but a little bit lower. You know, just talk about the outlook for sort of organic growth. xxAI. And, you know, the likely I guess the what would cause you to get a little bit closer to the higher end of the range mid single digit, what would be, you know, the impact of the factors that might cause come in toward the lower end, you know.

Daniel Moore: Thank you good morning, Matt Good morning, Chris Congrats on the strong progress.

Speaker Change: And I appreciate the comments on phasing.

Daniel Moore: Maybe start with.

Daniel Moore: Obviously, the 26 revenue guidance low to mid single digit growth, including the tough comp of $40 million licensing.

Daniel Moore: Yeah, I guess it sounds like you expect some additionally, ive revenue, including the $9 million, but a little bit lower.

Daniel Moore: You know just talk about the outlook for sort of organic growth X X AI.

Daniel Moore: And the likely I guess the.

Daniel Moore: What would cause you to get a little bit closer to the higher end of the range mid single digit what would be the impact of the factors that might cause you to come in towards the lower end.

Christopher Caridi: Relative risks, upside, downside. Thanks, Dan. First of all, quick comment. You know, AI is still a very rapidly evolving market. So it's certainly not as predictable as we'd like to see. So that's why we You know, we don't really bake it into our numbers.

Daniel Moore: Any risks relative risks upside downside would be super helpful.

Dan: Thanks, Dan.

Speaker Change: First of all a quick comment you know AI is still a very rapidly evolving market. So it's certainly not as predictable as we'd like to see so that's why we.

Daniel Moore: We don't really bake it into our numbers, but let me ask Chris to talk about our thinking around organic growth.

Christopher Caridi: But let me ask Chris to talk about our thinking around organic growth. Yes. Thanks. Thanks, Dan. The drivers that we saw this year we largely see continuing next year. Open access revenues have been strong throughout fiscal 25, and the submissions and acceptances that we're yielding are continuing in the fashion that we saw in 25. So we expect 26 to benefit from that as well. Additionally, as we've mentioned, our TA and subs revenue, we have some line of sight relative to the calendar 25 renewals, which were good, and we expect to realize that as well. on the learning side.

Chris: Yes, thanks, Thanks, Tim.

Speaker Change: The drivers that we saw this year, we largely see continuing next year.

Speaker Change: Open access revenues.

Speaker Change: <unk> been strong throughout fiscal 'twenty five.

Speaker Change: The submissions and acceptances that we're yielding.

Speaker Change: Continuing in the fashion that we saw in 'twenty five.

Daniel Moore: So we expect 26 to benefit from that as well.

Daniel Moore: Additionally, as we've mentioned.

Daniel Moore: Ta and subs revenue, we have some line of sight relative to the calendar 'twenty five renewals, which were good and we expect to realize that as well on.

Daniel Moore: On the learning side.

Christopher Caridi: We have seen in Fiscal 25 strong growth in our inclusive access as well as courseware, and we see that continuing into Fiscal 26 as well.

Daniel Moore: We are.

Daniel Moore: <unk> seen in fiscal 'twenty five straw.

Daniel Moore: Strong growth in our inclusive access as well as courseware and we see that continuing into fiscal 2006 as well.

James Flynn: Jay, do you want to quickly comment on the visibility you have into 25 revenue, particularly in research? I mean, sorry, 26 revenue, not 25, calendar year 25. Of course, there you go. So, yeah, Dan, we, as you know, we have a calendar year subscription model that splits over two fiscal. So I have really good visibility into CUI 25. We had a great renewal year this year for calendar 25. And, you know, as Matt indicated in our prepared remarks, you know, our submissions were up 19% in the year. So that gives us a sense of what the journal article pipeline looks like.

Jay: Jay do you want to quickly comment on the visibility you have into 25 revenue, particularly in research.

Jay: I mean, sorry, 26 revenue in that 'twenty calendar year 'twenty of course.

Dan: There you go so yes, Dan.

Dan: We as you know we have a calendar year subscription model that splits over two fiscal so I have really good visibility and to see why 25, we had a great renewal year this year.

Dan: For calendar 'twenty fives and <unk>.

Dan: As Matt indicated in our prepared remarks, our submissions were up.

Dan: 19%.

Dan: So that gives us a sense on what the journal article pipeline looks like and it gives us a great deal of confidence in the.

James Flynn: And it gives us a great deal of confidence in the sort of May to December period of our current fiscal year, fiscal year 26. You know, the outlook for calendar 26 renewal is something that we're very dialed into. And we're, our sales team, I just met with them this past week in Texas, met with the institutional sales teams and leaders. And, you know, they're raring to go for calendar 26 as well. So we have decent visibility and are feeling optimistic to guide the numbers that Chris and Matt have already shared.

Dan: Sort of May to December period of our current fiscal year fiscal year 'twenty.

Dan: In the.

Dan: The outlook for for calendar 'twenty six renewals.

Dan: Something that we're very dialed into and where our sales team I just met with them this past week and Texas.

Dan: And that would be institutional sales teams and leaders and.

Dan: They're raring to go for for calendar 'twenty six as well.

Dan: Decent visibility and are feeling optimistic to guide to numbers of Chris and Matt have already sure.

Matthew Kissner: very helpful. And, and, um, you know, the recurring revenue you mentioned, you know, several partnerships that are, uh, developing, um, you know, mostly sort of beta testing at this point. I just, just confirming, I think you said it was around a million this year. Um, any sense for what that contribution might look like either 26 or beyond, or, you know, beyond that this. Yeah, let me comment and then Jay can give you a little more color. It's a really, it's a kind of a really nascent emerging market, where corporations are fine tuning their proprietary AI models with our data, and they want the most current, most accurate data.

Dan: Very helpful.

Dan: The recurring revenue you mentioned several partnerships that are developing.

Dan: Mostly sort of beta testing at this point and just just confirming I think you said it was around a million this year any sense for what that contribution might look like either 26 or beyond or beyond at this stage.

Speaker Change: Yes, let me comment and then Jay can give you a little more color.

Speaker Change: It's kind of a really nascent emerging market, where corporations are fine tuning.

Dan: Their proprietary AI models with our data and they want the most current most accurate data.

James Flynn: So we're really running a series of pilots, but getting a lot of interest as to how rapidly that's going to develop. Again, you know, it's very, very early days. But we are we I do think kind of that's the future of where the puck is going with AI, at least relative to our business. Jay, do you want to maybe fill in some color on that? Yeah, absolutely. First, let's just lead with the headline that the million dollars isn't the ceiling. It's the start of a shift towards AI monetization models that look a lot more like traditional SaaS or subscription.

Dan: So we are really running a series of pilots, but getting a lot of interest.

Dan: As to how rapidly that's going to develop again.

Speaker Change: Very very early days, but we are I do think kind of thats the future of where the puck is going with AI at least relative to our business. Jay do you want to maybe fill in some color on that.

Jay: Yeah, absolutely first let's just lead with the headline that the million dollars isn't a ceiling. It's the start of a shift towards.

Dan: And monetization models that look a lot more like a traditional SaaS or subscription.

James Flynn: They're high margin, they're recurring, they're deeply embedded, as Matt said, into the R&D workflow. So it's an early stage figure, based on these new utility based licensing models. The key features there, Dan, have to do with access to APIs and the need for, as Matt said, corporate, sorry, R&D-intensive corporates to get access to the most current high-quality content to help them achieve their business goals. So we announced a number of partnerships this year, both with tech companies and AI-native companies like AWS, Perplexity, and we've gone to our corporate customers and essentially upsold them on AI-friendly packages that will play in their new AI research environment.

Dan: They're high margin recurring they are deeply embedded as Matt said into the R&D workflows. So it's an early stage figure based on these new utility based licensing model.

Dan: The key features there Dan has to do with access to Apis and the need for as Matt said corporate or sorry, R&D intensive corporates to get access to the most current high quality content to help them achieve their business goals. So we are we announced a number of partnerships this year.

Dan: Here, both with tech companies in AI native companies like AWS perplexity.

Dan: And we've gone through our existing corporate customers and essentially up sell them on AI friendly packages that will play in their new AI research environment. So feeling really good about what we've learned I just want to reemphasize math point you know when we started doing these deals we gave ourselves the goal of not only tried to.

Matthew Kissner: So feeling really good about what we've learned. I just want to re-emphasize Matt's point. When we started doing these deals, we gave ourselves a goal of not only trying to maximize the value of our backlist, but also trying to learn where, as Matt put it, the puck was going in AI. And I couldn't be prouder of the work the team's done.

Dan: Maximize the value of our backlist, but also trying to learn where that whereas Matt put it the puck was going Nai and I couldnt be proud of the work the team has done.

James Flynn: We've learned a lot, and I think it's going to be an exciting 20...

Dan: We've learned a lot and I think it's going to be an exciting 26.

James Flynn: super helpful. We've touched on this before, but our article submissions, you know, continue to be exceptionally strong up 19% while output is up eight. I know there's not a direct formula between the two or relation, but maybe just talk about whether or not those would expect those growth rates would expect to converge at all over time. doors. So As we've talked about before, a lot of the growth in submissions continues to prop up the value of the subscription. And so when we look at submission growth, you look at it by geography and you map that to the various business models that are in place in each geography.

Dan: Super helpful. We've touched on this before but.

Dan: Article submissions.

Dan: <unk> continued to be exceptionally strong up 19% while output is up eight.

Speaker Change: I know, there's not a direct formula between the two of relationships, but maybe just talk about whether or not those would you expect those growth rates, we'd expect to converge at all over time from your perspective.

Speaker Change: Yeah.

Speaker Change: So.

Speaker Change: As we've talked about before a lot of the growth in submissions continues to prop up the value of the subscription revenue.

Speaker Change: And so when we look at submission growth you look at it by geography, and you've mapped out to the various business models that are in place in each geography.

Matthew Kissner: The open access landscape that Wiley used to refer to as the P times Q landscape represents about half our output, and the other half is still published under a traditional subscription license. And so, you know, what happens over time is that both revenue and conversion from submissions to acceptances will smooth, but we'd like to keep driving submission volume because that's the thing that is going to continue to provide an ongoing stream of value both to our subscribers, of course, to our authors who publish with us, but also for those stakeholders who want to see us continuing to publish every paper in their country open access.

Speaker Change: Open access landscape.

Speaker Change: Why are they used to refer to as the P times Q landscape.

Speaker Change: Represents about half of our output and the other half is still.

Speaker Change: Published under a traditional subscription license and so.

Speaker Change: What what happens over time is that.

Speaker Change: Both revenue and <unk>.

Speaker Change: The conversion from submissions two acceptances will smooth, but we'd like to keep driving submission volume because that's the <unk>.

Speaker Change: The thing that is going to continue to provide.

Speaker Change: An ongoing stream of value to our subscribers of course to our authors who published with US but also for those stakeholders, who want to see us continuing to publish every paper in their country open access. So there's always about a six to eight months lag time between submission and publication.

James Flynn: So there's always about a six to eight month lag time between submissions and publications. There's never a great correlation between submissions and output in any given calendar year, but we'd love to see those trends all continuing to climb. And hats off to the marketing team and the publishing teams who drove those submission results this year, as well as drove the article output results.

Speaker Change: And.

Speaker Change: There is never a great correlation between submissions and output in any given calendar year, but we'd love to see those trends all continuing to climb and hats off to the marketing team and the publishing teams who drove those submission results this year as well as drove the Arctic off our results.

Speaker Change: Super helpful. You alluded to this but clearly this is an extraordinary time.

Matthew Kissner: You alluded to this, you know, clearly this is an extraordinary time and it's kind of the general macro and funding environment. Just talk about what planning and budgeting, obviously, you know, calendar 25 in really great shape. Just talk about what planning and budgeting looks like right now, your visibility and confidence and being able to kind of forecast compared to maybe prior periods of disruption.

Speaker Change: The general macro and funding environment.

Speaker Change: Can you just talk about what planning and budgeting obviously.

Speaker Change: Calendar 'twenty five in really great shape, just talking about with planning and budgeting looks like right now your visibility and confidence in being able to kind of forecast.

Speaker Change: Compared to maybe prior periods of disruption with it you know.

Speaker Change: <unk> or any others that you can think of that might be a corollary.

Matthew Kissner: Yeah, let me comment, Dan, and then ask Jay again to add some color, you know, obviously, we're watching the external environment carefully in the US, of course, but We want to you know, our internal indicators still are very strong. And the other is Jay and I had a focus group with a number of our leading sales folks at the meeting he talked about last week, we had our global sales force together, and we just wanted to get their read read on the market, the US sales. And, you know, what we're hearing back is there's a lot of confusion and uncertainty, but, you know, nothing yet that would cause us undue concern.

Speaker Change: Yes, let me comment Dan and then ask Jay again to add some color you know obviously, we're watching the external environment carefully.

Speaker Change: In the U S of course, but.

Speaker Change: One is our internal indicators still very strong.

Speaker Change: And the other is Jay and I had a focus group with a number of our leading sales folks at the meeting he talked about last week, we had our global sales force together and we just wanted to get their red read on the market. The U S sales folks.

Speaker Change: What we're hearing back is theres, a lot of confusion and uncertainty but.

Speaker Change: Nothing yet that would cause us undue concern that being said, we're obviously watching it very very carefully and Jay is organizing a number of actions to be prepared.

James Flynn: That being said, we're obviously watching it very, very, very carefully. And Jay is organizing, you know, a number of actions to be prepared and maybe even, you know, take advantage of some volatility in the environment.

Speaker Change: And maybe even take advantage of some volatility in the environment of so Jay maybe you want to add a little color.

James Flynn: So, Jay, maybe you want to add a little color. Sure, absolutely. I mean, look, given the uncertain environment, especially what we see in terms of science funding in the US, but also, you know, just the general state of affairs these days, it makes sense for us to approach 26, I think, with a balanced mix of discipline and flexibility. And so, you know, our guidance reflects that. A measured view of the macro environment, headwinds from geopolitical risks, we've baked that in, policy volatility, global funding trends, it's all baked in, in education and in research. And, you know, that said, our business is globally diversified.

Speaker Change: Sure absolutely I mean look given the uncertain environment, especially.

Speaker Change: What we see in terms of science funding in the U S. But also.

Speaker Change: The general State of Affairs. These days it makes sense for us to approach 26.

Speaker Change: I think with a balanced mix of discipline and flexibility and so our.

Speaker Change: Our guidance reflects that a measured view of the macro environment.

Speaker Change: Headwinds from geopolitical risks, we baked that in policy volatility global funding trends, it's all baked in and education and research that said our business is globally diversified.

James Flynn: You know, half the revenue comes from outside the United States, so much of the portfolio is digital and recurring with multi-year contracts. That gives us a really strong base to plan from. And so we've made a lot of progress on the cost alignment, the margin expansion, simplification of the platform, the operations. That gives us more levers to pull if the environment shifts. And I think we're preparing for that. And as Matt and Chris have already indicated, the discipline around margin expansion remains constant. It remains a robust strategy, no matter what, in the face of any kind of uncertainty on the revenue side.

Speaker Change: No.

Speaker Change: Half of revenue comes from outside the United States.

Speaker Change: How much of that portfolio is digital and recurring with with multiyear contracts that gives us a really strong base to plan for them and so we've made a lot of progress on the cost alignment the margin expansion simplification of the platform. The operations that gives us more levers to pull if the environment shifts and I think we're preparing for that and as Matt and Chris.

Speaker Change: <unk> already indicated.

Speaker Change: The discipline around margin expansion remains constant remains a robust strategy no matter what.

Speaker Change: In the face of any kind of uncertainty on the revenue side. So we're actively modeling the stuff. We're looking at R&D budget scenarios as Matt talked about we're planning with the sales teams to try to go where our customers are support then if there.

James Flynn: So we're actively modeling this stuff. We're looking at R&D budget scenarios, as Matt talked about. We're planning with the sales teams to try to go where our customers are, support them if they're in need of support. We're looking at corporate R&D spending trajectories too as a way of providing new avenues for growth. AI is obviously a new avenue for growth. And clearly on the learning side, monitoring things like enrollment. So across the board, I think we're going into this eyes wide open, prepared. And I think you'll get updates from us regularly throughout the year on how we're viewing.

Speaker Change: Need of support.

Speaker Change: We're looking at corporate R&D spending trajectory as to as a way of.

Speaker Change: Providing new avenues for growth AI is obviously, a new avenue for growth and clearly on the learning side monitoring things like enrollment so.

Speaker Change: Across the board I think we're going into this eyes wide open prepared and and I think youll.

Speaker Change: Get updates from us regularly throughout the year on how we're viewing things.

Daniel Moore: All right, super helpful.

Speaker Change: Alright Super helpful. Last for me, obviously, congrats on the 120 million collection from University services divestment.

Daniel Moore: Last for me, obviously, congrats on the $120 million collection from University Services Divest. you know, a big deal that shouldn't go unnoticed, pro-forma leverage down to about a turn and a half, at least based on the. you know, Six Outlook, and another $200 million of free cash coming this year. You've been more aggressive returning cash to shareholders.

Speaker Change: As you know a big deal it shouldn't go unnoticed pro forma leverage down to about a turn and a half at least based on the 20 <unk>.

Speaker Change: Six outlook.

Speaker Change: And another $200 million of free cash coming this year, you've been more aggressive returning cash to shareholders is that the game plan going forward would you delever further from here or.

Christopher Caridi: Is that the game plan going forward? the rest of the I'm I'm Thanks, Dan. We, as you noted, we returned pretty much our entire free cash flow this year to shareholders between dividends and share buybacks. That's not a formula that we would see going forward. We will return to what we would view as a more mixed approach where we still maintain the ability to invest in the business and take advantage of opportunities as we see them. But having said that, returning to shareholders is a key component of what we look to do with our free cash flow, and we will continue to have a measured approach.

Speaker Change: Likely it would be more aggressive with buybacks, especially where the stock is trading today and thanks for all the color.

Speaker Change: Thanks, Dan.

Speaker Change: We as you noted we returned pretty much our entire free cash flow this year to shareholders between dividends and share buybacks.

Speaker Change: That's that's not a formula that we would see going forward, we will return to what we would view as a more mixed approach where we still.

Speaker Change: Maintain the ability to invest in the business.

Speaker Change: The advantage of opportunities as we see them.

Speaker Change: But having said that.

Speaker Change: Returning to shareholders is a key component of what we look to do with our.

Speaker Change: Free cash flow and we will continue to have a measured approach.

Operator: $60 million, I would not say is a benchmark that we would necessarily look to meet. It's opportunistic, but we would do it again if we saw prices in the ranges that they were previous. All right, they'll circle back, and then they follow up. Thank you, Dan. Again, if you would like to ask a question, press star 1 on your telephone keypad.

Speaker Change: $60 million I would not say as a.

Speaker Change: A benchmark that we would necessarily.

Speaker Change: Look to meet its opportunistic, but we would do it again, if we saw.

Speaker Change: Prices in the ranges that they were previously.

Speaker Change: Alright, I will circle back.

Speaker Change: And then they follow ups. Thank you again.

Dan: Thank you Dan.

Speaker Change: Again, if you would like to ask a question press star one on your telephone keypad.

Matthew Kissner: I will turn the call back over to Mr. Kissner for closing remarks. Well, thanks everyone for joining us. We look forward to sharing more on our next earnings call, which will be in September.

Speaker Change: I will turn the call back over to Mr. Kisner for closing remarks.

Speaker Change: Well, thanks, everyone for joining us we look forward to sharing more on our next earnings call, which will be in September have a great summer. Thank you.

Operator: Have a great summer. Thank you.

Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

Speaker Change: Ladies and gentlemen that concludes today's call. Thank you all for joining you may now disconnect.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Yeah.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Yeah.