WLY Q1 Deep Dive: AI Licensing Momentum and Mixed Academic Publishing Performance

September 05, 2025 at 01:31 AM EDT

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Academic publishing company John Wiley & Sons (NYSE: WLY) posted $396.8 million of revenue in Q2 CY2025, down 1.7% year on year. Its GAAP profit of $0.22 per share increased from -$0.03 in the same quarter last year.

Is now the time to buy WLY? Find out in our full research report (it’s free).

Wiley (WLY) Q2 CY2025 Highlights:

Revenue: $396.8 million (1.7% year-on-year decline)
Adjusted EBITDA: $70.45 million (17.8% margin, 3% year-on-year decline)
Operating Margin: 8.6%, in line with the same quarter last year
Market Capitalization: $2.05 billion

StockStory’s Take

Wiley's first quarter was met with a negative market reaction, reflecting investor concerns despite the company delivering results generally in line with Wall Street expectations. Management highlighted that AI licensing and open access publishing were bright spots, but traditional professional publishing faced headwinds, particularly in consumer and retail channels. CEO Matthew Kissner pointed to a "landmark $20 million AI licensing project," and noted that recurring revenue streams from research journals continued to underpin the company's stability. CFO Craig Albright acknowledged the impact of seasonal and one-time factors, such as a tough comparison to last year and temporary consulting expenses, which contributed to muted profit growth.

Looking ahead, Wiley's management is focused on expanding its AI partnerships and driving operational improvements to support margin expansion. The company believes that continued growth in AI licensing and open access submissions will be critical, while also calling out potential risks in professional publishing tied to consumer demand. Kissner stated, “AI is a transformative opportunity, and we're moving decisively to capitalize,” while also cautioning that the evolving economic climate could affect certain segments. The company aims to leverage its content across a broader set of industry verticals, with early-stage recurring revenue in AI subscription models and a strategic push into the corporate R&D market.

Key Insights from Management’s Remarks

Management attributed Q1 performance to robust AI licensing, strong open access growth, and operational discipline, while acknowledging professional publishing softness and temporary cost pressures.

AI licensing revenue surge: Wiley executed a $20 million AI licensing deal, including content from other publishers, reflecting its strategy to aggregate scholarly content for training large language models. This project marked a significant step in expanding Wiley’s reach in the AI market and drove strong growth in the research segment.
Open access submissions momentum: The company saw double-digit growth in article submissions and output, with flagship open access journals like Advanced Science reporting revenue growth of nearly 50% year-over-year. July was a record month for open access submissions, signaling sustained demand.
Operational platform rollout: Wiley migrated 1,000 journals to its new AI-powered research publishing platform, streamlining workflows and reducing production costs. The company highlighted a 70% reduction in problematic citations and a 30% improvement in article referral conversions due to these technology upgrades.
Professional publishing challenges: Management noted ongoing softness in professional publishing, particularly in consumer and retail channels. They are monitoring whether this trend reflects broader economic conditions or temporary market fluctuations.
CFO transition and capital returns: The appointment of Craig Albright as CFO coincided with a 25% increase in share repurchase authorization and the thirty-second consecutive annual dividend increase, underscoring ongoing commitments to shareholder returns and financial discipline.

Drivers of Future Performance

Wiley expects growth to be driven by expanding AI partnerships, open access journal momentum, and cost management, while monitoring risks in consumer-facing segments.

AI and content integration: Management believes continued demand for AI licensing and integration of Wiley’s content into platforms like Anthropic’s Claude will underpin future growth. The company is piloting AI subscription inference models in multiple verticals, targeting recurring revenue streams as the market matures.
Open access and recurring revenue: Strong growth in open access submissions and renewals is expected to drive recurring revenue, with management pointing to a six-month backlog and robust library subscription renewals. This positions the research segment for sustained performance despite quarterly volatility.
Professional publishing headwinds: The company is watching for prolonged softness in professional publishing tied to consumer and retail trends. Management cautioned that this segment is most exposed to broader economic conditions, and any persistent weakness could pressure overall revenue growth.

Catalysts in Upcoming Quarters

Going forward, the StockStory team will monitor (1) the pace of AI licensing and integration into new platforms such as Anthropic’s Claude, (2) sustained growth in open access submissions and recurring journal revenue, and (3) stabilization or improvement in professional publishing and consumer channels. Effective cost management and execution of technology upgrades will also be key signposts for Wiley’s longer-term trajectory.

Wiley currently trades at $38.25, down from $39.80 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).

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