Wiley (WLY) Q3 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, March 5, 2026 astatine 10:37 AM CST 35 min read

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March 5, 2026 astatine 10 a.m. ET

• Interim CEO and Chair — Matthew Kissner

• Chief Financial Officer — Craig Albright

• EVP, General Manager, Research — Jay Flynn

• SVP, Investor Relations — Brian Campbell

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Matthew Kissner: Thank you, Brian. Hello, everyone, and invited to our fiscal Q3 net update. Before I get to our show and progress, I privation to admit our terms amid AI fears crossed the market. The information is we bash not stock those aforesaid fears. Quite the opposite. We could not beryllium much assured successful our presumption successful the AI system fixed our proprietary contented advantage, wide moat successful adjacent reappraisal research, and unparalleled concern ecosystem. The ongoing accidental is twofold. AI is expected to greatly accelerate technological find and probe publishing output, and our enriched information and AI solutions are foundational for firm R&D, AI models, and applications. I volition sermon this successful much item aboriginal successful our call.

The 3rd 4th was afloat successful enactment with our stated expectations. Revenue show was impacted by an unfavorable comparable successful research, which we called retired successful the 2nd quarter, and brushed marketplace conditions successful learning. We proceed to accelerate successful each large areas of focus. Research publishing continues to outpace the marketplace with planetary output up 11%, gross up 4% excluding AI revenue, and dependable maturation successful our multiyear renewals. In AI and information services, we announced caller leadership, launched our objective result assessments concern with IQVIA, and aft 4th close, executed a strategical multiyear concern with Open Evidence to present trusted probe astatine the constituent of aesculapian care.

We besides secured a caller AI exemplary grooming customer, our archetypal extracurricular the U.S., and realized $7,000,000 of AI revenue. We are rapidly advancing our exertion translation initiatives with the announcement of a multiyear managed services concern with Virtusa. We besides proceed to present firm disbursal savings, connected an adjusted EBITDA basis, down 21% successful the quarter, oregon $9,000,000 versus anterior year. We proceed to present worldly borderline enlargement and currency travel maturation with adjusted operating borderline of 280 ground points, adjusted EBITDA up 250 ground points, and operating currency travel astir doubling to $103,000,000. And we are returning much currency to shareholders, with repurchases doubling successful Q3 to $70,000,000 twelvemonth to day arsenic portion of a $100,000,000 full-year target.

We person returned $120,000,000 successful dividends and repurchases successful conscionable 9 months, a 37% summation implicit anterior year. Let america crook to however we are executing connected our fiscal 2026 commitments. Our archetypal nonsubjective is to pb successful research. It has been a robust twelvemonth for research, with gross up 4% astatine changeless currency and adjusted EBITDA up 6%. We proceed to outpace the marketplace successful submissions and output of 26–11%. Strong request is evident crossed each regions. We person present migrated implicit 80% of journals to our competitively advantaged Research Exchange platform.