Reported results
- GAAP Revenue $386 million vs. $397 million (-3%); GAAP Operating Income $3 million vs. $31 million; GAAP Diluted EPS $(0.23) vs. $0.22
- Adjusted Operating Income $31 million (-9%); Adjusted EBITDA $68 million (-4%); Adjusted EPS $0.44 (-10%), all at constant currency
- Research segment revenue $293 million, up 4%; Research Publishing up 12% including $13 million from two months of Emerald; Research Adjusted EBITDA $87 million, up 9%, with margin up 130 basis points to 29.6%
- Learning segment revenue $93 million, down 20% at constant currency; Learning Adjusted EBITDA $14 million, down 56% at constant currency
- AI licensing revenue $14 million; Net Debt-to-EBITDA ratio 2.7x at quarter end vs. 1.9x prior year; proforma leverage 2.1x including Emerald synergies
- Acquired Emerald Publishing for approximately $450 million net of cash acquired on June 1, 2026; Company increased dividend for 33rd consecutive year and allocated $33 million to dividends and share repurchases
Guidance
- Fiscal 2027 Organic Revenue Growth: low-to-mid single digit growth (Research: mid-single digit growth)
- Fiscal 2027 Adjusted EBITDA Margin: 26.5% to 27.5%
- Fiscal 2027 Adjusted EPS: $4.60 to $5.05
- Fiscal 2027 Free Cash Flow: $205 million
- Emerald projected to add $78 million to Revenue (11 months of fiscal year) and be accretive to Adjusted EPS by approximately $0.10 and dilutive to Free Cash Flow by $15 million
Notes
Guidance reaffirmed based on key leading indicators. GAAP guidance not provided due to high variability and complexity of restructuring charges, acquisition-related costs, and foreign exchange gains/losses. Emerald acquisition completed June 1, 2026, including ~500 journals, thousands of book titles and case studies, and 500,000 backfile assets. Organic revenue growth excludes Emerald acquisition and currency effects. All other metrics include Emerald addition.
Price and volatility reaction
The stock moved -0.8% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -13.3 vol points across the event (constant-maturity series — not the front-week crush).
| Measure | Value | Basis |
|---|---|---|
| Close before release | 51.05 | 2026-09-02 |
| Close after release | 50.66 | 2026-09-03 |
| Realised move | -0.8% | close to close |
| 30d ATM IV change | -13.3 vol pts | constant-maturity series, not the front expiry |
Source
The figures above come from the earnings release the company filed with the SEC on 2026-09-03 (8-K, Item 2.02). Read the original filing on sec.gov.