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.

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

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 From Wiley’s Q2 Earnings Call

• Daniel Moore (CJS Securities) asked about the details of the Anthropic partnership and content integration. EVP Jay Flynn explained the collaboration enables institutional subscribers to access Wiley content directly within AI tools, serving mainly academic users and supporting safe, authoritative research workflows.
• Daniel Moore (CJS Securities) inquired about the revenue model for the Anthropic deal. Flynn described it as strengthening the value of library subscriptions and serving as a potential upsell, rather than a standalone revenue driver for now.
• Daniel Moore (CJS Securities) questioned the margin impact of Nexus-related AI licensing. CFO Craig Albright clarified that while such deals have lower margins due to partner royalties, the overall effect on company margins is minimal given their size relative to total revenue.
• Daniel Moore (CJS Securities) sought clarification on the timing and impact of increased open access submissions on revenue. CEO Matthew Kissner and Flynn highlighted the six-month lag between submissions and publications, emphasizing confidence in the recurring revenue base.
• Daniel Moore (CJS Securities) asked about ongoing softness in professional publishing and its outlook. Kissner acknowledged the slow summer and indicated that consumer and retail trends are being closely watched for potential longer-term impacts.

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 $41.47, up 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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