Earnings release
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November 18, 2025 Second Quarter Fiscal Year 2026 Investor Update Exhibit 99.1
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Takeyce W. Designs Quality Content Michael C. Provides English Language Learning Solutions Pooja R. Assures the Quality of Online Education Agenda • Introduction Richard Veith, SVP, Treasurer • Business Update Michael Hansen, Chief Executive Officer • Financial Update Dean Tilsley, Chief Financial Officer • Q & A
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3 Cautionary Note Regarding Forward-Looking Statements • The following slides and related discussion contain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "assess", “believe,” “deliver,” “expect,” ”establish” “may,” “will,” “should,” “could,” “seek,” “strengthen,” “improve,” “increase,” “intend,” “plan,” “estimate,” “project,” “foresee,” “likely,” “focus,” “grow,” “achieve,” “deliver,” “execute,” “gain,” or “anticipate” or similar expressions that concern our strategies, objectives, plans or goals, including but not limited to statements regarding: expectations of our financial results, operations, condition and outlook; our expectations for FY26 and beyond; statements regarding our business and markets; statements regarding our debt and liquidity; as well as other statements that are not strictly historic in nature. • All statements regarding general economic and market conditions, as well as the impact of such economic and market conditions on our business, customers, end markets, results of operation and financial condition and anticipated actions to be taken by management in response to such economic and market conditions,statements regarding the impact of our restructuring initiatives and our new operating model, our liquidity and capital resources and our expected use of cash, the impact of litigation, as well as other statements that are not strictly historic in nature are forward looking. • Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. • Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. • Many factors could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements. You should consider such factors, many of which are outlined in the “Risk Factors” section of our FY25 Annual Report for the fiscal year ended March 31, 2025 and in the “Special Note Regarding Forward-Looking Statements” section of the same report, including, without limitation, risks related to the impact of competition and new technologies, our ability to introduce new products or services, our ability to attract and retain authors, content providers and key employees, our ability to successfully implement our business strategy and our ability to identify, complete and successfully integrate key strategic initiatives (including any acquisitions). Such reports can be accessed at cengagegroup.com/investors. The Company's Quarterly Report for the fiscalquarter ended September 30, 2025 will be posted shortly to the Company's website. We cannot assure you that forward-looking statements will prove to be accurate, as actual actions, results and future events could differ materially from those anticipated or implied by such statements. • Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. • We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. Non-GAAP Financial Measures • To supplement the financial results presented in accordance with generally accepted accounting principles in the U.S. (“GAAP”), we provide non-GAAP financial measures in this presentation, including Adjusted Cash Revenue, Adjusted Cash EBITDA, and Adjusted EBITDA on a quarterly and year to date basis and Unlevered Free Cash Flow and Levered Free Cash Flow on a year-to-date basis. For a detailed description of non-GAAP financial measures see Appendix. • We believe that excluding certain items from our GAAP results allows management to better understand our consolidated financial performance from period to period and better project our future consolidated financial performance as forecasts are developed at a level of detail different from that used to prepare GAAP-based financial measures. Moreover, we believe these non-GAAP financial measures provide our stakeholders with useful information to help them evaluate our operating results by facilitating an enhanced understanding of our operating performance and enabling them to make more meaningful period to period comparisons. There are limitations to the use of the non- GAAP financial measures presented in this report. For example, our non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Other companies, including companies in our industry, may calculate non-GAAP financials differently than we do, limiting the usefulness of those measures for comparative purposes. • The non-GAAP financial measures are not meant to be considered as indicators of performance or as an indicator of liquidity, in isolation from or as a substitute for financial information prepared in accordance with GAAP andshould be read only in conjunction with financial information presented on a GAAP basis. Reconciliations of Adjusted Cash Revenue, Adjusted Cash EBITDA, Adjusted EBITDA, Unlevered Free Cash Flow and Levered Free Cash Flow to, in each case, its most directly comparable GAAP financial measure are presented in the Appendix. • In this presentation, we include growth rates at constant currency to remove the impact of changes in foreign currency exchange rates in addition to actual growth rates. To calculate constant currency basis, the Company converts current period and prior period results from local currency to United States Dollars using standard internal currency exchanges rates. • This presentation may also contain discussions of net sales which represents gross sales less actual returns of products. Basis of Presentation • In the Company’s Quarterly Report for the fiscal quarter ending September 30, 2025, we identified and revised certain immaterial errors, and presentation matters within previously issued condensed consolidated financial statements. All current and comparative periods reflect the revised accounting treatment. Safe Harbor / Forward-Looking Statements
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Michael Hansen, Chief Executive Officer Business Update
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5 Q2 Business Update Investing to capture accelerating demand for Workforce Skills Investment into relevant courses, non-English language courses, improved pipeline conversion, distribution channels, outcomes data, and skills verification driving growth and helping people meet their career aspirations. Key US Higher Ed and ed2go businesses continue to drive strategic growth Overall Q2 financial performance in line with expectations. Digital sales continue to drive growth in US Higher Ed; ed2go accelerating growth with adjusted cash revenues up 32% YoY for the quarter. Scaled education platform powering sustainable growth Modernization efforts, including US Higher Ed Go to Market transformation and transitioning the International and School businesses to digital first, are key to scaling our education platform. Driving simplification Continuing simplification efforts to scale functions across the portfolio. Positioning School and ELL for growth in fiscal 2027/28 large adoption years The updated Big Ideas Learning partnership, and investments into go to market, content and technology positioning the business for success in upcoming large adoption years. Adjusted cash revenue is a non-GAAP financial measure. See Appendix for definition of non-GAAP financial measures
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Dean Tilsley, Chief Financial Officer Financial Update
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7 • TTM Adjusted Cash Revenue was up 1% YoY, normalized for non-recurring items, reflecting continued strong growth in US HED and Work offsetting low adoption year for School and ELL. • TTM Adjusted Cash EBITDA growth of +$33M or 7% YoY normalized for non- recurring items, reflects shift to digital improving Gross Margin profile and cost savings initiatives more than offsetting key investments into AI, Digital and Work • Q2 Adj Cash revenues are up 1.5% YoY and Adj Cash EBITDA up 1% YoY when normalized for the change in LatAm sales model and non-recurring items. • Strong momentum in US HED continues driven by Digital growth, price and Institutional sales • Work segment growth supported by accelerating Ed2go expansion, up 32% YoY, and representing the 12th consecutive qtr of double-digit growth • School and to a lesser extent ELL YoY impacted by low FY26 adoption year and non-recurring one-time deals in FY 2025 • September YTD Adjusted Cash Revenues are flat YoY with Adj Cash EBITDA down 5% YoY normalized for non-recurring items. • HED (0%), +2% YoY normalized for non-recurring items driven by US HED sustained growth in digital and institutional sales plus price. Investments into AI and GTM position the business for strong future performance. • Work (+5%) YoY: Ed2Go continues to be the engine of growth, up 28% YoY, coupled with solid CTE performance offsetting govt induced softness in Infosec and Milady enrollment • School (-10%): low adoption year in FY26 vs $40M in large Florida, Oklahoma and W Virginia adoptions in 2025 • ELL (-15%), flat YoY when normalized for MOE contract exit and large non- recurring international deal. Funding uncertainty is also impacting sales • Balanced capital management with accelerated investments into growth including AI, Digital HED GTM and Work funded by efficiency savings. Financial Highlights Strong Growth in Key US HED and Ed2Go businesses dampened by low adoption year for K12 focused segments 1 Net leverage presented as the ratio of Net Debt to Trailing Twelve Months Adjusted Cash EBITDA as of September 30, 2025. FY25 comparative restated to same basis. Note: Adjusted Cash Revenue and Adjusted Cash EBITDA are non-GAAP financial measures. See Appendix for definition of non-GAAP financial measures and reconciliation to GAAP reporting measures. FY25 FY26 ∆ Actual Rates ∆ Constant Currency HED $298 $303 2% 2% Work $115 $126 9% 9% School $136 $131 (4%) (4%) ELL $50 $41 (19%) (20%) Group Adj Cash Revenue $610 $612 0% 0% Group Adj Cash EBITDA $327 $322 (1%) (2%) Adj Cash EBITDA Margin % 54% 53% (99 bps) (98 bps) Net Leverage1 2.8x 2.8x 0.0x FY25 FY26 ∆ Actual Rates ∆ Constant Currency HED $402 $404 0% 0% Work $183 $191 5% 4% School $206 $185 (10%) (10%) ELL $84 $72 (15%) (15%) Group Adj Cash Revenue $892 $872 (2%) (2%) Group Adj Cash EBITDA $371 $343 (8%) (8%) Adj Cash EBITDA Margin % 42% 39% (226 bps) (227 bps) FY25 FY26 ∆ Actual Rates ∆ Constant Currency HED $734 $752 2% 3% Work $315 $337 7% 7% School $288 $262 (9%) (9%) ELL $170 $140 (17%) (16%) Group Adj Cash Revenue $1,536 $1,522 (1%) (1%) Group Adj Cash EBITDA $492 $511 4% 4% Adj Cash EBITDA Margin % 32% 34% 156 bps 156 bps Quarter Ended September 30 Twelve Months Ended September 30 Six Months Ended September 30
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8 Amounts may not sum due to rounding. Adjusted Cash Revenue and Adjusted Cash EBITDA are non-GAAP financial measures. See Appendix for definition of non-GAAP financial measures. • HED Q2 Adj Cash Revenues up 2.5% YoY and up 2.5% YTD on a normalized basis for the change to a 3rd party partner sales model for LatAm and non-recurring items. On a GAAP basis, revenues are up 9.6% for the Qtr and 7.3% YTD as reported • YTD US HED Adj Cash Revenues are up 4% YoY driven by digital sales growth (+7%), price and improved sell-through for institutional sales. • Institutional Sales over $200M, up >20% and represent 53% of total US HED sales • YTD Gale Adj Cash Revenues are down 13% YoY, with Q2 down only 6.7% v 15% decline in Q1 as we see improvement in renewals following Q1 uncertainty driven by government funding/policy • YTD International Adj Cash Revenues declined 7% YoY, improving from the reported 9% decline in Q1, reflecting the change in sales model for Latin America. Excl Lat Am change, Adj Cash Revenues would have been flat YoY. • HED Q2 Adj Cash EBITDA is flat YoY reflecting flat revenues and investment into AI and GTM to position Segment for sustained growth. Q2 Overview HED $298 $303 FY25 FY26 2% Q2 Adj Cash Revenue ($M) Q2 Adj Cash EBITDA ($M) $202 $203 FY25 FY26 0% Higher Education US HED Digital first strategy and Institutional sales drives continues revenue and margin growth $402 $404 FY25 FY26 0% H1 Adj Cash Revenue ($M) H1 Adj Cash EBITDA ($M) $238 $237 FY25 FY26 0%
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9 Amounts may not sum due to rounding. Adjusted Cash Revenue and Adjusted Cash EBITDA are non-GAAP financial measures. See Appendix for definition of non-GAAP financial measures. • Work Q2 Adj Cash Revenues are up 9% YoY and up 5% YTD with Adj Cash EBITDA up 13% YoY for the Qtr and 10% YTD. On a GAAP basis, revenues are up 6.7% for the Qtr and 6.2% YTD as reported • Ed2Go growth accelerated in Q2 with Adj Cash Revenues up $15M or 32% YoY. Driven by growing demand for workforce skills, investment to improve pipeline conversion and triple digit growth in employer sales channel • CTE had a very strong Q2 with Adj Cash revenues up 7% YoY due to a large sales in Florida. • H1 Infosec and Milady Adj Cash revenues declined 5% YoY, in-line with expectations due to short term government headwinds and immigration policy impacting enrollments. • H1 Adjusted Cash EBITDA growth of $9M or 10% due to revenue growth flowing through to margin and cost reductions related to more efficient operating model. Work $115 $126 FY25 FY26 9% Q2 Adj Cash Revenue ($M) Q2 Adj Cash EBITDA ($M) $64 $72 FY25 FY26 13% Work Accelerating Ed2Go Growth coupled with strong operational leverage driving Revenue growth and Double–Digit Margin Expansion Overview $183 $191 FY25 FY26 5% H1 Adj Cash Revenue ($M) H1 Adj Cash EBITDA ($M) $89 $98 FY25 FY26 10%
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10 Amounts may not sum due to rounding. Adjusted Cash Revenue and Adjusted Cash EBITDA are non-GAAP financial measures. See Appendix for definition of non-GAAP financial measures. • Q2 School Adj Cash Revenue down 4% YoY, and 10% YTD representing a significant improvement from the 22% decline reported in Q1 as the team continues to work hard in this very low adoption year. On a GAAP basis, revenues are down 16.8% for the Qtr and down 15.4% YTD as reported • No large adoptions in H1 26 vs large adoptions in H1 25 from states including Oklahoma, Florida, and W Virginia ($40M in total). Sales team have been focused on open territories and retained strong win rates • Gale adj cash revenues are down 15% YoY, largely in line with expectations due to funding uncertainty creating a soft market for renewals and demand for databases. The B&T bankruptcy also impacted sales • Focus for School segment is position us strongly for large adoption years in fiscal years 2027 and 2028 • H1 Adj Cash EBITDA down 25% versus FY25, improvement from the 61% YoY decline reported in Q1: • The revised BIL partnership sets Cengage up for significant upside in FY27 and FY28 due to large adoption years, but H1 26 reflects updated Royalty payments to BIL and COS not included in H1 25 • Q2 recognized $4M bad debt expense for B&T as we do not expect payment of receivables. • School is largely through its sales year, so YoY comparison will improve as we move into Q3/Q4 plus BIL updated partnership started Q4 2025 Overview School $136 $131 FY25 FY26 -4% Q2 Adj Cash Revenue ($M) Q2 Adj Cash EBITDA ($M) $96 $84 FY25 FY26 -12% School FY26 YoY performance impacted by low adoption year relative to 2025, updated BIL relationship and funding uncertainty $206 $185 FY25 FY26 -10% H1 Adj Cash Revenue ($M) H1 Adj Cash EBITDA ($M) $130 $98 FY25 FY26 -25%
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11 Amounts may not sum due to rounding. Adjusted Cash Revenue and Adjusted Cash EBITDA are non-GAAP financial measures. See Appendix for definition of non-GAAP financial measures. • ELL Q2 Adjusted Cash Revenues are down 19% YoY and 15% YTD, materially impacted by exit of MOE contract, timing of International revenues and lack of large adoptions in US schools. On a GAAP basis, revenues are down 14% for the Qtr and down 11.6% YTD as reported. • Q2 Adjusted Cash Revenues normalized for large $6M PR deal in Q1, 2025 would be a decline of 7% driven by lack of large adoptions in US K12 • H1 Adjusted Cash revenues normalized for MOE exit and timing of large International deals would be down 5% YoY. • H1 Adj Cash EBITDA is down 14% YoY when normalized for the large non- recurring International deal and H1 Adj Cash EBITDA down 7% YoY normalized reflecting the flow through of lower revenue, offset by lower COS and operating expenses Overview ELL $50 $41 FY25 FY26 -19% Q2 Adj Cash Revenue ($M) Q2 Adj Cash EBITDA ($M) $25 $18 FY25 FY26 -25% English Language Learning (ELL) Challenging YoY comparison due to Exit from MOE deal and no large Adoptions compared to last year $84 $72 FY25 FY26 -15% H1 Adj Cash Revenue ($M) H1 Adj Cash EBITDA ($M) $35 $28 FY25 FY26 -20%
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12 Summary of Cash Flows 1. See Appendix for definition of non-GAAP financial measures and reconciliation to GAAP reporting measures. 2. Change in working capital excludes accrued interest payable which is included in net cash interest, excludes operating lease liabilities and excludes the EBITDA impact of the change in deferred revenue and associated costs. 3. Includes net cash merger and acquisition-related payments, operating lease liabilities, other investing and financing activities, and non-operating costs which include restructuring payments, loss on lease buyout, non- core operating costs, net impact of prepub and capex accruals, and FX. Amounts may not sum due to rounding. Cash flow performance reflects flow through of Cash EBITDA and timing impacts expected to correct in Q3 • Delays in billing due to new SAP accounting system which have now been resolved and anticipate strong growth in collections in Q3/4. • Change in revenue mix due to growth in Institutional sales resulting in collection timing shift from Q2 to Q3. • Softer billings for School and ELL. To be partially offset in second half by lower reimbursements to Big Ideas Learning under the new agreement • LFCF change YoY reflects lower Cash EBITDA, higher restructuring costs due to implementing new operating model, higher taxes due to improved profitability offset by lower consulting costs and lower interest payments from margin reduction achieved through November 2024 repricing • Two preferred equity dividend payments made in H1 FY26 vs one in H1 FY25 SEP YTD SEP YTD $M FY25 FY26 Change Adjusted Cash EBITDA1 371 343 (28) Less: Prepublication Costs (39) (38) 0 Less: Capital Expenditures (18) (18) (1) Change in Working Capital2 (191) (210) (19) Unlevered Free Cash Flow1 123 76 (47) Less: Net M&A, leases, non-operating, and other investing/financing3 (50) (44) 6 Less: Net Cash Taxes (6) (11) (4) Less: Net Cash Interest (63) (60) 3 Levered Free Cash Flow1 5 (38) (42) Less: Net debt repayments (8) (8) 0 Less: Equity related transactions / other (14) (29) (14) Net (Decrease) Increase in Cash and Cash Equivalents (18) (75) (57)
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13 Liquidity & Debt 1. As of March 2024 the ABL facility was replaced with a 5 Year $200M Revolving Credit Facility which as of September 2025 had $196M available at the end of the period ($200M commitment less $4M letters of credit issued). 2. The carrying value of Total Debt is presented including the unamortized original issue discount and deferred financing costs of $29.5 million, and $24.6 million as of September 30, 2024, and September 30, 2025 respectively. 3. Adjusted Cash EBITDA is based on actual monthly currency rates. 4. Net leverage presented as the ratio of Net Debt to Last Twelve Months Adjusted Cash EBITDA. Adjusted Cash EBITDA is a non-GAAP financial measure. See Appendix for definition of non-GAAP financial measures and reconciliation to GAAP reporting measures. Liquidity position remains strong. Net Leverage below 3x five consecutive quarters • Total liquidity was $378M reflecting lower collections due to SAP implementation, growth in Institutional sales and softer School/ELL Billings. Anticipate cash build in Q3 as resolution of system impacts and sales timing will materially improve collections. • Net leverage ratio of 2.8x represents improvement in TTM Adj Cash EBITDA as the cost savings programs continue to take hold and enhance the Y/Y profitability. • Cumulative deleveraging over the past 24 months reinforces Cengage’s capacity to navigate macro challenges while executing growth and transformation strategies $M SEP 30, 2024 SEP 30, 2025 Cash and Cash Equivalents 247 182 Available under Revolving Credit Facilities1 195 196 Total Liquidity 442 378 Total Debt2 1,641 1,625 Less: Cash and Cash Equivalents (247) (182) Total Debt, net of Cash and Cash Equivalents 1,394 1,443 Last Twelve Months Adjusted Cash EBITDA3 492 511 Net Leverage4 2.8x 2.8x
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Ben H. Enables Ethical, Compliant Operations Q & A
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Rya C. Delivers Job Outcomes Through Skilling Programs Appendix
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16 Financial measure Description Adjusted EBITDA This measure is defined as net loss before: provision for income taxes; interest income; interest expense; other operating and non-operating income (loss), net; amortization of identifiable intangible assets; depreciation; amortization of capitalized cloud computing implementation costs; operational restructuring and other charges, net; amortization of pre-publication costs; right-of-use asset lease impairment; goodwill impairment; identifiable intangible asset impairment; gain (loss) on early extinguishment of debt, net; merger and acquisition-related costs; non-core other operating expenses; and equity-based compensation expense. Adjusted cash revenue Adjusted cash EBITDA These measures remove the net impact of the deferral of revenue and the non-cash recognition of deferred revenue on sales of all digital products worldwide from the respective non-GAAP measures, as defined above. Adjusted Cash EBITDA also removes the impact of the associated deferred costs of all digital products worldwide. Full payment for digital products is normally collected close to the time of sale whereas revenue from such arrangements is deferred and subsequently recognized ratably over the term of the customer contract. Unlevered Free Cash Flow Adjusted Cash EBITDA less the impact of additions to prepublication costs (or “Prepub”) and less capex, both on an accrual basis, and the change in net working capital calculated on a basis consistent with the derivation of Adjusted Cash EBITDA. Prepub are costs incurred prior to the publication date of a title or release date of a product and represent activities associated with product development including, but not limited to, editorial review and fact verification, graphic art design and layout and the process of conversion from print to digital media or within various formats of digital media. In addition, Prepub includes the cost to procure perpetual rights for the use of content which have been developed by third parties and are to be included in our products. Costs are capitalized when the title is expected to generate probable future economic benefits and are amortized upon publication of the title over its estimated useful life. Levered Free Cash Flow Defined as unlevered free cash flow adjusted for the net cash provided by (used in) M&A, leases, non-operating and other investing and financing, net cash taxes and net cash interest. Definitions: Non-GAAP Financial Measures We believe that certain non-GAAP financial measures provide useful information for evaluating our business performance by eliminating the effects of financing decisions as well as excluding the impact of activities not related to our ongoing operations. However, these measures should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP.
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17 GAAP Results - Condensed Consolidated Statements of Operations (in millions) 2025 2024 2025 2024 Revenues $ 423.6 $ 420.5 $ 757.6 $ 753.8 Cost of revenues, excluding amortization of pre-publication costs and identifiable intangible assets and depreciation stated below 158.9 155.6 300.3 291.0 Amortization of pre-publication costs 17.7 20.6 35.3 40.1 Amortization of identifiable intangible assets 2.3 2.6 4.4 5.1 Total cost of revenues, excluding depreciation stated below 178.9 178.8 340.0 336.2 Selling, general and administrative expenses 129.5 122.6 244.5 247.3 Operational restructuring and other charges, net 12.7 3.9 29.9 14.2 Depreciation 9.2 7.4 17.6 16.2 Amortization of identifiable intangible assets 19.9 21.2 38.8 42.4 Goodwill impairment - 62.2 - 62.2 Total costs and expenses 350.2 396.1 670.8 718.5 Operating income 73.4 24.4 86.8 35.3 Other non-operating income (loss), net 0.8 (2.2) (7.0) (3.0) Interest income 1.1 2.0 3.2 4.4 Interest expense (32.2) (41.3) (64.6) (82.7) Income (loss) before taxes 43.1 (17.1) 18.4 (46.0) (Provision for) benefit from income taxes (6.7) (0.5) (6.6) 0.3 Net income (loss) $ 36.4 $ (17.6) $ 11.8 $ (45.7) Three Months ended September 30, Six Months ended September 30,
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18 GAAP Results – Condensed Consolidated Balance Sheet (in millions) September 30, 2025 March 31, 2025 Change September 30, 2025 March 31, 2025 Change Assets Liabilities, Contingently Redeemable Convertible Preferred Cash and cash equivalents 181.9$ 256.4$ (74.5)$ Stock, and Stockholders' Deficit Accounts receivable, net 465.9 272.5 193.4 Accounts payable and accrued expenses 323.7$ 329.5$ (5.8)$ Inventories 56.6 54.3 2.3 Deferred revenue 446.8 354.5 92.3 Prepaid assets 51.7 38.5 13.2 Current portion of long-term debt 16.4 16.4 - Other current assets 48.9 42.3 6.6 Operating lease liabilities 8.1 7.9 0.2 Total current assets 805.0 664.0 141.0 Other current liabilities 62.6 50.9 11.7 Total current liabilities 857.6 759.2 98.4 Property, equipment and capitalized internal-use software, net 67.2 67.3 (0.1) Pre-publication costs, net 170.1 171.0 (0.9) Long-term debt 1,583.5 1,589.4 (5.9) Author advances 8.0 5.4 2.6 Deferred tax liabilities 26.1 22.2 3.9 Identifiable intangible assets, net 460.2 501.9 (41.7) Non-current operating lease liabilities 48.6 53.3 (4.7) Goodwill, net 866.6 864.8 1.8 Other non-current liabilities 118.0 93.2 24.8 Deferred tax assets 11.9 11.4 0.5 Total liabilities 2,633.8 2,517.3 116.5 Right-of-use lease assets 42.2 49.2 (7.0) Other non-current assets 145.6 139.5 6.1 Contingently redeemable convertible preferred stock: Total assets 2,576.8$ 2,474.5$ 102.3$ Series A Preferred Stock 504.1 504.1 - Stockholders' deficit: Common stock 0.6 0.6 - Additional paid-in capital 1,166.2 1,192.8 (26.6) Accumulated deficit (1,665.6) (1,677.4) 11.8 Accumulated other comprehensive loss (62.3) (62.9) 0.6 Total stockholders' deficit (561.1) (546.9) (14.2) Total liabilities, contingently redeemable convertible preferred stock, and stockholders' deficit 2,576.8$ 2,474.5$ 102.3$ As of As of
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19 Segment Revenue and Adj GAAP Financial Measures¹ - Three & Six Months Ended 1. Adjusted EBITDA is a non-GAAP financial measure. See Appendix for definition of non-GAAP financial measures. New reportable segments effective Q1 FY26 include: Higher Education, Work, School and English Language Learning. Amounts may not sum due to rounding. Prior year amounts have been recast to conform to current year presentation for immaterial transfers due to shifts in management responsibilities and operational models. Three Months Ended September 30, 2025 2024 $ % Revenue: HED 192.3$ 175.5$ 16.8$ 9.6% WORK 103.5 97.0 6.5 6.7% SCHOOL 80.4 96.6 (16.2) (16.8)% ELL 35.8 41.6 (5.8) (14.0)% Corporate Enabling 11.6 9.8 1.8 18.3% Cengage Group 423.6$ 420.5$ 3.1$ 0.7% Adjusted EBITDA: HED 99.8$ 88.7$ 11.1$ 12.5% WORK 50.9 47.4 3.5 7.4% SCHOOL 39.1 58.6 (19.5) (33.2)% ELL 14.0 16.7 (2.7) (16.0)% Corporate Enabling (55.3) (59.6) 4.3 (7.2)% Cengage Group 148.5$ 151.8$ (3.3)$ (2.2)% Change Six Months Ended September 30, 2025 2024 $ % Revenue: HED 364.5$ 339.6$ 24.9$ 7.3% WORK 168.3 158.5 9.8 6.2% SCHOOL 139.1 164.4 (25.3) -15.4% ELL 65.5 74.1 (8.6) -11.6% Corporate Enabling 20.2 17.2 3.0 17.5% Cengage Group 757.6$ 753.8$ 3.9$ 0.5% Adjusted EBITDA: HED 199.5$ 179.2$ 20.3$ 11.3% WORK 74.7 66.4 8.3 12.6% SCHOOL 59.2 92.2 (33.1) (35.9)% ELL 22.5 26.0 (3.5) (13.5)% Corporate Enabling (117.1) (120.8) 3.7 (3.1)% Cengage Group 238.8$ 243.0$ (4.3)$ (1.8)% Change
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20 Segment Adj Cash Financial Measures¹ - Three & Six Months Ended 1. Adjusted Cash Revenue and Adjusted Cash EBITDA are non-GAAP financial measures. See Appendix for definition of non-GAAP financial measures. New reportable segments effective Q1 FY26 include: Higher Education, Work, School and English Language Learning. Amounts may not sum due to rounding. Prior year amounts have been recast to conform to current year presentation for immaterial transfers due to shifts in management responsibilities and operational models. Three Months Ended September 30, 2025 2024 $ % Adj Cash Revenue: HED 303.4$ 298.2$ 5.1 1.7% WORK 125.6 115.3 10.3 8.9% SCHOOL 131.1 136.4 (5.3) (3.9)% ELL 40.6 50.1 (9.5) (19.0)% Corporate Enabling 11.5 9.8 1.8 18.2% Cengage Group 612.2$ 609.8$ 2.4$ 0.4% Adj Cash EBITDA: HED 202.7$ 202.4$ 0.3$ 0.1% WORK 72.4 64.2 8.2 12.8% SCHOOL 84.4 95.6 (11.2) (11.7)% ELL 18.5 24.6 (6.1) (24.9)% Corporate Enabling (55.6) (59.7) 4.1 6.9% Cengage Group 322.4$ 327.1$ (4.8)$ (1.5)% B / (W) Six Months Ended September 30, 2025 2024 $ % Adj Cash Revenue: HED 403.6$ 402.4$ 1.2 0.3% WORK 191.4 183.2 8.2 4.5% SCHOOL 184.8 205.6 (20.7) -10.1% ELL 71.7 83.9 (12.3) -14.6% Corporate Enabling 20.2 17.2 3.0 17.7% Cengage Group 871.7$ 892.2$ (20.5)$ -2.3% Adj Cash EBITDA: HED 236.7$ 237.5$ (0.8)$ -0.3% WORK 97.8 89.1 8.8 9.8% SCHOOL 97.9 129.9 (32.1) -24.7% ELL 27.9 35.0 (7.2) -20.5% Corporate Enabling (117.7) (120.8) 3.1 2.6% Cengage Group 342.6$ 370.8$ (28.2)$ -7.6% B / (W)
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21 Non-GAAP Reconciliations¹ 1. Non-GAAP measures are reported on an actual rates basis. Amounts may not sum due to rounding. $M FY24 FY25 FY26 FY25 FY26 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 TTM TTM GAAP Revenue 327 449 343 385 1,504 333 421 340 385 1,479 334 424 1,482 1,483 Change in deferred revenue (53) 172 (112) 28 34 (51) 189 (115) 40 64 (74) 189 54 40 Adjusted Cash Revenue 274$ 621$ 230$ 413$ 1,538$ 282$ 610$ 226$ 425$ 1,543$ 260$ 612$ 1,536$ 1,522$ Net (loss) income (35) 37 (58) (25) (81) (28) (18) (3) (67) (116) (25) 36 (129) (58) Equity-based compensation expense 1 5 1 1 8 1 2 2 1 6 2 1 5 6 Amortization of capitalized cloud computing implementation costs 1 1 1 2 4 2 2 3 2 8 3 3 6 11 Other operating expenses 3 16 34 11 64 15 6 7 12 39 7 8 65 34 (Loss) gain on early extinguishment of debt, net 1 - - 14 15 - - - - - - - 14 - Right-of-use asset Impairment 3 - - - 3 - - - - - - 3 - 3 Amortization of pre-publication costs 18 23 20 19 79 20 21 20 16 77 18 18 78 72 Operational restructuring and other charges, net 3 5 7 7 22 10 4 2 3 19 17 10 28 32 Depreciation 9 9 9 9 36 9 7 7 8 32 8 9 34 33 Amortization of identifiable intangible assets 24 24 24 24 95 24 24 23 26 97 21 22 95 92 Identifiable intangible asset impairment charges - - - - - - - - 62 62 - - - 62 Goodwill impairment charges - - - - - - 62 - 48 110 - - 62 48 Other operating and non-operating loss (income), net (7) - 4 3 1 1 2 (1) - 2 8 (1) 11 5 Interest income (3) (1) (2) (3) (10) (2) (2) (3) (2) (10) (2) (1) (10) (9) Interest expense 52 45 45 44 186 41 41 40 32 156 32 32 172 138 Provision for (benefit from) income taxes - 2 3 4 11 (1) 1 4 (9) (5) - 7 8 2 Adjusted EBITDA 70 166 88 109 433 91 152 103 134 481 90 148 439 476 Change in deferred revenue and associated deferred costs (48) 157$ (102)$ 26$ 33$ (47)$ 175$ (106)$ 37$ 59$ (70)$ 174$ 53$ 35$ Adjusted Cash EBITDA 22 323$ (14)$ 135$ 466$ 44$ 327$ (3)$ 171$ 539$ 20$ 322$ 492$ 511$
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22 Summary of Cash Flows 1. See Appendix for definition of non-GAAP reporting measures Amounts may not sum due to rounding. $M SEP YTD SEP YTD Change FY25 FY26 Summary of cash flows: Net cash provided by operating activities 64 20 (44) Net cash used in investing activities (60) (58) 2 Net cash used in financing activities (22) (38) (15) Impact on cash and cash equivalents from changes in foreign currency (0) 1 1 Net (Decrease) Increase in Cash and Cash Equivalents (18) (75) (57) Levered free cash flow calculation: Net cash provided by operating activities 64 20 (44) Additions to property, equipment and internal-use software (18) (18) (1) Additions to pre-publication costs (39) (38) 0 Other investing and financing activities (3) (1) 2 Levered Free Cash Flow1 5 (38) (42)