0000107140-26-000012
SEC filingJohn Wiley & Sons reported Q3 2026 net revenue of $410.0 million, representing a 1.3% year-over-year increase from $404.6 million in Q3 2025. Operating income improved significantly to $62.8 million from $51.8 million in the prior year quarter, driven by cost management and restructuring initiatives. Net income was $29.7 million, a substantial improvement from a net loss of $23.0 million in Q3 2025. The company generated $103.3 million in operating cash flow during the quarter. Key performance drivers included growth in the Research segment (revenue up 2.5% YoY to $274.1 million) and improved operating margins across both Research and Learning segments. The company maintained a strong liquidity position with $95.1 million in cash and cash equivalents and $485.2 million in available credit lines.
John Wiley & Sons delivered solid Q3 2026 results with net revenue of $410.0 million, representing a 1.3% increase from $404.6 million in Q3 2025. Operating income showed significant improvement, rising 21.1% to $62.8 million from $51.8 million in the prior year quarter. Net income was $29.7 million, a substantial recovery from the net loss of $23.0 million reported in Q3 2025. The company's effective tax rate was 33.1% for the quarter. Basic earnings per share were $0.57 compared to a loss of $0.43 per share in the prior year period. The company's restructuring initiatives contributed to improved profitability, with restructuring and related charges totaling $7.1 million in Q3 2026, up from $5.6 million in Q3 2025.
Revenue growth was driven primarily by the Research segment, which increased 2.5% year-over-year to $274.1 million. Within Research, Research Publishing revenue was $233.4 million (up 3.3% YoY) and Research Solutions revenue was $40.7 million (down 2.4% YoY). The Learning segment revenue declined slightly to $135.9 million (down 0.8% YoY), with Academic revenue of $80.1 million (up 1.7% YoY) and Professional revenue of $55.8 million (down 4.3% YoY). The company completed divestitures of its Wiley Edge, CrossKnowledge, and University Services businesses, which contributed to the elimination of the Held for Sale or Sold segment. Revenue recognition patterns showed that the majority of Research revenue (88% from Research Publishing) is recognized over time through multiyear arrangements, while Learning revenue has a mix of point-in-time and over-time recognition.
Gross margin improved to 73.7% in Q3 2026 from 73.4% in Q3 2025, with gross profit increasing to $302.2 million from $296.9 million. Operating margin expanded significantly to 15.3% from 12.8% in the prior year quarter. Cost of sales was $107.8 million (26.3% of revenue), while operating and administrative expenses were $219.1 million (53.4% of revenue). The company's restructuring program, which began in fiscal year 2023 and was expanded in fiscal year 2024, contributed to cost optimization. Amortization of intangible assets was $13.3 million. Segment-level adjusted operating income showed Research at $67.7 million and Learning at $38.3 million, with allocated corporate expenses of $67.4 million.
The company generated $103.3 million in operating cash flow during Q3 2026, with net income of $29.7 million adjusted for non-cash items including depreciation and amortization of $56.5 million, amortization of intangible assets of $13.3 million, and stock-based compensation of $16.8 million. Investing activities used $45.6 million, primarily for additions to technology, property and equipment ($38.0 million) and product development spending ($9.8 million). Financing activities used $140.0 million, including debt repayments of $698.9 million offset by borrowings of $700.0 million, treasury share purchases of $70.0 million, and dividend payments of $56.3 million. The balance sheet shows total assets of $2.56 billion, with current assets of $411.3 million including cash and equivalents of $95.1 million. Total debt was $807.5 million, with shareholders' equity of $750.0 million.
The company continues to execute its global restructuring program aimed at enhancing profitability and optimizing cost structure. Management noted the completion of divestitures and focus on core Research and Learning segments. The company maintains compliance with debt covenants under its Amended and Restated Credit Agreement, with a consolidated net leverage ratio requirement. Market risks include exposure to interest rate fluctuations (a 1% change in rates on $357.8 million of unhedged variable rate debt would affect net income by approximately $2.7 million annually) and foreign exchange volatility. The company is evaluating the impact of recent accounting standards updates but does not anticipate material effects on financial statements. No specific quantitative guidance was provided for future periods in the filing.