Wiley’s first quarter of 2025 saw revenue decline year over year, yet the company managed to surpass Wall Street’s expectations on both sales and profit. Management attributed the outcome to continued expansion in digital offerings and growth in recurring revenue streams, particularly in Open Access publishing and AI-related licensing. CEO Matt Kissner highlighted that, despite market headwinds, the company “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 services.”
Is now the time to buy WLY? Find out in our full research report (it’s free).
Wiley (WLY) Q1 CY2025 Highlights:
- Revenue: $442.6 million vs analyst estimates of $435 million (5.5% year-on-year decline, 1.7% beat)
- EPS (GAAP): $1.25 vs analyst estimates of $1.07 (16.8% beat)
- Adjusted EBITDA: $125.6 million vs analyst estimates of $125.3 million (28.4% margin, in line)
- Operating Margin: 20.1%, up from 16.7% in the same quarter last year
- Market Capitalization: $2.37 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Wiley’s Q1 Earnings Call
- Daniel Moore (CJS Securities) asked about organic growth drivers excluding AI, and CFO Christopher Caridi explained that strong recurring revenue, robust submissions, and successful renewals underpinned growth expectations for the year.
- Daniel Moore (CJS Securities) inquired about the outlook for corporate AI partnerships, and CEO Matt Kissner emphasized that while current contributions are modest, the company sees long-term potential as the market matures.
- Daniel Moore (CJS Securities) questioned whether the gap between submission growth and output growth in academic publishing would narrow, and EVP Jay Flynn noted that submission growth supports subscription value, but conversion rates fluctuate by market and model.
- Daniel Moore (CJS Securities) asked about visibility and budgeting amid macroeconomic uncertainty, and Flynn said the company is modeling various scenarios, leveraging the global, digital, and recurring nature of its business to remain flexible.
- Daniel Moore (CJS Securities) sought clarity on capital allocation priorities following the university services divestiture, and Kissner responded that the company will balance shareholder returns with reinvestment, maintaining an opportunistic approach to buybacks.
Catalysts in Upcoming Quarters
In the upcoming quarters, our team will focus on (1) the pace and scale of new AI licensing agreements and subscription-based digital offerings, (2) the sustainability of recurring revenue from academic renewals and international expansion, and (3) effective execution of cost-reduction programs in technology and corporate services. Developments in corporate R&D partnerships and further product launches will also be key markers of Wiley’s progress.
Wiley currently trades at $43.90, up from $40.75 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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