Earnings release
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1 Third Quarter Fiscal Year 2026 Investor Update [February 19, 2026] Exhibit 99.1
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2 Michael C. Provides English Language Learning Solutions Rya C. Delivers Job Outcomes Through Skilling Programs Jessica G. Empowers Educators to Embrace Digital Learning 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. 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 and should 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 consolidated financial statements for the fiscal year end March 31, 2025, we identified and revised certain immaterial errors, and presentation matters within previously issued consolidated financial statements. All current and comparative periods reflect the revised accounting treatment. Safe Harbor / Forward-Looking Statements
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4 Michael Hansen Chief Executive Officer Business Update
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5 Adjusted Cash Revenue and Adjusted Cash EBITDA are a non-GAAP financial measures. See Appendix for definition of non-GAAP financial measures Workforce-Aligned Learning & New Partnerships: Cengage is strengthening its positioning in education-to-employment with new partnerships, products, and course offerings centered on gaining employable skills and career readiness. Strong Financial Momentum: December QTD Adjusted Cash Revenue up 10% and Adjusted Cash EBITDA up $21M over prior year driven by solid performance in Higher Education and Work segments. Unified Cengage Brand: We have simplified our brand architecture unifying all go to market strategies under the Cengage brand to strengthen global presence and clarity. Expansion of AI-Driven Capabilities: We are accelerating innovation across MindTap, Student Assistant and Instructor Assistant to improve usability and streamlined instructor workflows. Q3 Business Update
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6 Dean Tilsley Chief Financial Officer Financial Update
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7 • TTM Adjusted Cash Revenue was up 3% YoY, driven by the Key HED and Work segments offsetting low adoption year for School. • TTM Adjusted Cash EBITDA up $29M or 6% YoY, representing a 71% flow through of Adj Cash Revenue growth into Adj Cash EBITDA. Improved operating leverage from shift to digital and new operating model driving savings, which more than offset key investments into AI, Digital and Work. • Q3 Adj Cash Revenues are up $22M or 10% YoY and Adj Cash EBITDA up $21M YoY, switching the Qtr from a loss in FY25 to profit in FY26. • Implementation of new operating model improves operating leverage with more revenue growth flowing to Adj Cash EBITDA • Strong momentum in US HED with Adj Cash revenues up 20% YoY for the Qtr driven by growth in digital and institutional sales plus pricing • Work segment growth driven by Ed2go, up 24% YoY • School segment growth due to the positive early renewals for Gale plus overall stronger database sales • December YTD Adjusted Cash Revenues are flat YoY with Q3 growth reversing H1 decline. Adj Cash EBITDA up 1% YoY normalized for non-recurring items. • HED +3% YoY: 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 +4% YoY: Ed2Go continues to be the engine of growth, up 26% YoY, coupled with solid CTE performance offsetting govt induced softness in Infosec and Milady enrollment • School -6% YoY: Low adoption year for US K12 market and known softness within Gale K12 due to federal funding headwinds. • ELL -10% YoY: down 5% when normalized for non-repeating Caribbean DoE deal due to low adoption year in US K12 • Operating expenses down $4.3m or 2% YoY for the Qtr and flat on a TTM basis with savings offsetting, investments, merit and higher performance compensation • 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 driving Q3 growth of 10% for Adj Cash Revenue, coupled with new operating model shifts Adj Cash EBITDA to positive v negative in Q3, 25 1 Net leverage presented as the ratio of Net Debt to Trailing Twelve Months Adjusted Cash EBITDA as of December 31, 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 $82 $94 14% 14% Work $65 $69 6% 6% School $40 $47 17% 17% ELL $30 $30 1% (3%) Group Adj Cash Revenue $223 $245 10% 10% Group Adj Cash EBITDA -$3 $18 724% 646% Adj Cash EBITDA Margin % -1% 7% 878 bps 868 bps Net Leverage1 2.7x 2.5x 0.1x FY25 FY26 ∆ Actual Rates ∆ Constant Currency HED $478 $492 3% 3% Work $247 $258 4% 4% School $248 $232 (6%) (6%) ELL $113 $102 (10%) (11%) Group Adj Cash Revenue $1,109 $1,110 0% 0% Group Adj Cash EBITDA $369 $362 (2%) (2%) Adj Cash EBITDA Margin % 33% 33% (68 bps) (68 bps) FY25 FY26 ∆ Actual Rates ∆ Constant Currency HED $715 $750 5% 5% Work $317 $339 7% 7% School $290 $269 (7%) (7%) ELL $138 $141 2% 2% Group Adj Cash Revenue $1,489 $1,530 3% 3% Group Adj Cash EBITDA $503 $532 6% 6% Adj Cash EBITDA Margin % 34% 35% 98 bps 97 bps Quarter Ended December 31 Twelve Months Ended December 31 Nine Months Ended December 31
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8 Overview HED Higher Education US HED Digital first strategy and Institutional sales drives continues revenue and margin growth 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 Q3 Adj Cash Revenues up 15% YoY and up 3% YTD. On a GAAP basis, revenues are up 9% for the Qtr and 8% YTD. • Q3 US HED Adj cash revenues are up 20% and up 10% on a TTM basis driven by digital sales growth, price and improved sell-through for institutional sales • Institutional Sales at circa $250M, up >20% YoY and now represent 56% of total US HED sales, up from 48% same period last year • Q3 Gale NA HED Adj Cash revenues were up 8% YoY, reversing a H1 decline as we see improvement in renewals and growing demand for content following H1 uncertainty driven by government funding/policy. • Q3 International Adj Cash Revenues were up 5% YoY, as this business stabilizes helped by GTM improvements implemented for key markets, reversing a reported H1 decline • HED Q3 Adj Cash EBITDA is up 39% YoY due to improvements in GM related to switch to digital sales and implementation of new operating model. $82 $94 FY25 FY26 +15% Q3 Adj Cash Revenue ($M) Q3 Adj Cash EBITDA ($M) $14 $20 FY25 FY26 +39% $478 $492 FY25 FY26 3% YTD Adj Cash Revenue ($M) YTD Adj Cash EBITDA ($M) $252 $259 FY25 FY26 3%
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9 Overview Work Work Accelerating Ed2Go Growth coupled with strong operational leverage driving Revenue and EBITDA growth 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. $65 $69 FY25 FY26 6% Q3 Adj Cash Revenue ($M) Q3 Adj Cash EBITDA ($M) $24 $24 FY25 FY26 2% $247 $258 FY25 FY26 4% YTD Adj Cash Revenue ($M) YTD Adj Cash EBITDA ($M) $114 $122 FY25 FY26 7% • Work Q3 Adj Cash Revenues are up 6% YoY and up 4% YTD with Adj Cash EBITDA up 2% YoY for the Qtr and up 7% YTD reflecting investments into Ed2Go growth. On a GAAP basis, revenues are up 10% for the Qtr and 7% YTD as reported. • Ed2Go accelerated growth continues with Q3 Adj Cash Revenues up $6M or 24% YoY. Q3 is traditionally the lowest sales period for this business but growing demand for workforce skills, investment to improve pipeline conversion and triple digit growth in our emerging employer sales channel continue. YTD Adj Cash Revenues are up 26% YoY • CTE had a strong Q3 with Adj Cash Revenues up 14% YoY due to improved sales in Florida. YTD Adj Cash Revenues are up 2% YoY • Infosec and Milady Adj Cash Revenues declined 26% for the Qtr and 15% YoY as short term government headwinds continue to impact enrollment • YTD Adjusted Cash EBITDA growth of $8M or 7% due to revenue growth and implementation of new operating model reducing costs.
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10 Overview School School FY26 YoY performance impacted by low adoption year with strong quarter driven by early renewals in GALE K12 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. $40 $47 FY25 FY26 17% Q3 Adj Cash Revenue ($M) Q3 Adj Cash EBITDA ($M) $10 $16 FY25 FY26 64% $248 $232 FY25 FY26 -6% YTD Adj Cash Revenue ($M) YTD Adj Cash EBITDA ($M) $140 $113 FY25 FY26 -19% • Q3 School Adj Cash Revenue up 17% YoY, reflecting early renewals for Gale K12 and focused sales efforts by the K12 sales teams. YTD Adj Cash Revenues are down 6% representing the low adoption year. On a GAAP basis, revenues are down 4% for the Qtr and down 11% YTD as reported. • No large adoptions in YTD 26 vs $40M in large adoptions in 2025 for Oklahoma, Florida, and W Virginia. Sales team has been focused on open territories and focusing on the large adoption years for 27 and 28 • Timing related renewals in Gale K12 have help drive strong Qtr performance, but also seeing return of demand for content following a challenging H1 • YTD Adj Cash EBITDA down 19% versus FY25, which reflects an improvement from the 25% YoY decline reported in Q2. • Cengage is well positioned for upcoming large adoption years in FY27 and FY28 due to the revised BIL partnership, but YTD 26 reflects low adoption year and updated royalty payments to BIL, not included in 25 • School is largely through its sales year, with focus on 2027. YoY comparison will improve as we move into Q4, which includes like for like BIL comparison due to timing of updated partnership in Q4 2025
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11 Overview ELL English Language Learning (ELL) Challenging YoY comparison due to exit from MOE deal and no large adoptions compared to last year 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. $30 $30 FY25 FY26 1% Q3 Adj Cash Revenue ($M) Q3 Adj Cash EBITDA ($M) $8 $11 FY25 FY26 35% $113 $102 FY25 FY26 -10% YTD Adj Cash Revenue ($M) YTD Adj Cash EBITDA ($M) $43 $39 FY25 FY26 -10% • ELL Q3 Adjusted Cash Revenues are up 1% YoY and down 10% YTD, materially impacted by one significant non- recurring item Caribbean DOE deal, and low adoption year for US K12. On a GAAP basis, revenues are flat for the Qtr and down 8% YTD as reported. • Q3 Adjusted Cash Revenues are up 1% due to growth in LATAM • YTD Adjusted Cash revenues down 10% from prior year due to low adoption year in US K12, normalized for non-repeating Caribbean DoE deal would be down 5% from prior year • Q3 Adj Cash EBITDA is up $2.7M or 35% YoY, YTD Adj Cash EBITDA is down $4M or 10% YoY with cost savings helping offset most of the revenue decline.
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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, and FX. Amounts may not sum due to rounding. • Improvements in working capital reflect strong collections in Q3 as we get past the invoicing issues experienced in H1 due to the new ERP implemented last April plus growth in institutional sales and lower reimbursements to Big Ideas Learning. • The $10M improvement in LFCF reflects the working capital improvements plus lower interest payments from the repricing in November 2024. • Note: This past January, we successfully repriced our term loan lowering our borrowing costs by 50 basis points which we expect this will result in approximately $8M of annual interest savings • Equity related transactions includes an additional Qtr of preferred equity dividends payment relative to prior year DEC YTD DEC YTD $M FY25 FY26 Change Adjusted Cash EBITDA 1 369 362 (7) Less: Prepublication Costs (56) (58) (1) Less: Capital Expenditures (26) (31) (5) Change in Working Capital2 (36) (20) 16 Unlevered Free Cash Flow 1 250 253 3 Less: Net M&A, leases, non-operating, and other investing/financing3 (70) (73) (2) Less: Net Cash Taxes (9) (15) (6) Less: Net Cash Interest (104) (88) 16 Levered Free Cash Flow 1 67 78 10 Plus: Proceeds from issuance of convertible preferred shares 0 0 (0) Less: Net debt repayments (8) (12) (4) Less: Equity related transactions / other (30) (43) (13) Net (Decrease) Increase in Cash and Cash Equivalents 29 22 (7)
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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 December 2025 had $195M 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 $28.0 million, and $23.5 million as of December 31, 2024, and December 31, 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 is strong and Net Leverage improves 0.2x to 2.5x reflecting Cengage's continued commitment to deleveraging • Total liquidity was $474M reflecting positive cash flow from working capital improvements and lower interest payments. This position will continue to strengthen in Q4 as cash collections build and restructuring costs decline • Net leverage ratio of 2.5x is 0.2x lower than a year ago and represents improve ment in TTM Adj Cash EBITDA as the cost savings programs continue to take hold and enhance the YoY profitability • Cumulative deleveraging over the past 24 months reinforces Cengage’s capacity to navigate macro challenges while executing growth and transformation strategies $M DEC 31, 2024 DEC 31, 2025 Cash and Cash Equivalents 294 279 Available under Revolving Credit Facilities1 195 195 Total Liquidity 489 474 Total Debt2 1,637 1,620 Less: Cash and Cash Equivalents (294) (279) Total Debt, net of Cash and Cash Equivalents 1,343 1,342 Last Twelve Months Adjusted Cash EBITDA3 503 530 Net Leverage4 2.7x 2.5x
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14 Takeyce W. Designs Quality Content Ben H. Enables Ethical, Compliant Operations Pooja R. Assures the Quality of Online Education Q & A
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15 Abbey K. Connects Skill Learners to Opportunity Jason S. Creates Easy to Use Learning Products Casey R. Connects Educators with the Right Tools for Success 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 $ 360.0 $ 337.0 $ 1,110.8 $ 1,084.9 Cost of revenues, excluding amortization of pre-publication costs and identifiable intangible assets and depreciation stated below 127.7 130.9 428.0 421.6 Amortization of pre-publication costs 18.0 20.4 53.3 60.5 Amortization of identifiable intangible assets 2.2 2.1 6.6 7.2 Total cost of revenues, excluding depreciation stated below 147.9 153.4 487.9 489.3 Selling, general and administrative expenses, excluding depreciation stated below 126.5 115.2 363.5 356.2 Operational restructuring and other charges, net 3.6 2.1 33.5 16.3 Depreciation 8.4 7.5 26.0 23.7 Amortization of identifiable intangible assets 19.5 21.1 58.3 63.5 Goodwill impairment charges - - - 62.2 Total costs and expenses 305.9 299.3 969.2 1,011.2 Operating income 54.1 37.7 141.6 73.7 Loss on early extinguishment of debt, net - (0.4) - (0.4) Other non-operating (loss) income, net (1.2) 0.7 (8.2) (2.3) Interest income 2.0 3.2 5.7 8.0 Interest expense (31.7) (40.4) (96.3) (123.1) Income (loss) before taxes 23.2 0.8 42.8 (44.1) Provision for income taxes (2.3) (4.0) (8.9) (3.7) Net income (loss) $ 20.9 $ (3.2) $ 33.9 $ (47.8) Three Months ended December 31, Nine Months ended December 31,
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18 GAAP Results – Condensed Consolidated Balance Sheet (in millions) December 31, 2025 March 31, 2025 Change December 31, 2025 March 31, 2025 Change Assets Liabilities, Contingently Redeemable Convertible Preferred Cash and cash equivalents 278.7$ 256.4$ 22.3$ Stock, and Stockholders' Deficit Accounts receivable, net 275.0 272.5 2.5 Accounts payable and accrued expenses 318.6$ 329.6$ (11.0)$ Inventories 57.3 54.3 3.0 Deferred revenue 340.0 353.5 (13.5) Prepaid assets 45.9 38.6 7.3 Current portion of long-term debt 16.4 16.4 - Other current assets 43.8 44.4 (0.6) Operating lease liabilities 8.8 7.9 0.9 Total current assets 700.7 666.2 34.5 Other current liabilities 54.4 50.9 3.5 Total current liabilities 738.2 758.3 (20.1) Property, equipment and capitalized internal-use software, net 71.8 67.3 4.5 Pre-publication costs, net 171.0 171.0 - Long-term debt 1,580.5 1,589.4 (8.9) Author advances 7.8 5.4 2.4 Deferred tax liabilities 25.6 22.2 3.4 Identifiable intangible assets, net 439.2 501.9 (62.7) Non-current operating lease liabilities 47.3 53.3 (6.0) Goodwill, net 866.7 864.8 1.9 Other non-current liabilities 105.2 93.3 11.9 Deferred tax assets 12.0 11.4 0.6 Total liabilities 2,496.8 2,516.5 (19.7) Right-of-use lease assets 42.1 49.2 (7.1) Other non-current assets 139.0 138.6 0.4 Contingently redeemable convertible preferred stock: Total assets 2,450.3$ 2,475.8$ (25.5)$ Series A Preferred Stock 504.1 504.1 - Stockholder's deficit: Common stock 0.6 0.6 - Additional paid-in capital 1,153.0 1,192.8 (39.8) Accumulated deficit (1,642.5) (1,676.4) 33.9 Accumulated other comprehensive loss (61.7) (61.8) 0.1 Total stockholders' deficit (550.6) (544.8) (5.8) Total liabilities, contingently redeemable convertible preferred stock, and stockholders' deficit 2,450.3$ 2,475.8$ (25.5)$ As of As of
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19 Segment Revenue and Adj GAAP Financial Measures¹ - Three & Nine 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 December 31, 2025 2024 $ % Revenue: HED 193.6$ 176.4$ 17.2$ 9.8% WORK 77.3 70.5 6.8 9.7% SCHOOL 52.5 54.7 (2.2) (4.0)% ELL 31.2 30.2 1.0 3.4% Corporate Enabling 5.4 5.2 0.2 3.6% Cengage Group 360.0$ 337.0$ 23.0$ 6.8% Adjusted EBITDA: HED 112.6$ 101.8$ 10.8$ 10.6% WORK 31.5 29.0 2.5 8.7% SCHOOL 20.4 23.2 (2.8) (12.1)% ELL 11.3 7.9 3.4 43.4% Corporate Enabling (53.0) (59.0) 6.0 (10.2)% Cengage Group 122.8$ 102.9$ 19.9$ 19.4% Change Nine Months Ended December 31, 2025 2024 $ % Revenue: HED 551.0$ 511.9$ 39.2$ 7.6% WORK 243.5 227.8 15.7 6.9% SCHOOL 194.0 219.1 (25.1) (11.5)% ELL 96.7 103.7 (7.0) (6.7)% Corporate Enabling 25.6 22.4 3.2 14.3% Cengage Group 1,110.8$ 1,084.9$ 25.8$ 2.4% Adjusted EBITDA: HED 312.5$ 282.7$ 29.8$ 10.5% WORK 106.8 96.3 10.5 10.9% SCHOOL 81.1 113.7 (32.6) (28.7)% ELL 33.8 34.0 (0.3) (0.8)% Corporate Enabling (171.8) (180.0) 8.2 (4.5)% Cengage Group 362.4$ 346.7$ 15.7$ 4.5% Change
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20 Segment Adj Cash Financial Measures¹ - Three & Nine 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 December 31, 2025 2024 $ % Adj Cash Revenue: HED 93.6$ 81.9$ 11.7 14.3% WORK 69.3 65.4 3.9 5.9% SCHOOL 46.8 39.9 6.9 17.2% ELL 30.4 30.2 0.2 0.8% Corporate Enabling 5.3 5.2 0.1 1.8% Cengage Group 245.3$ 222.5$ 22.8$ 10.2% Adj Cash EBITDA: HED 20.0$ 14.4$ 5.6$ 38.9% WORK 24.4 24.0 0.4 1.7% SCHOOL 15.7 9.6 6.1 64.0% ELL 10.8 8.0 2.8 34.8% Corporate Enabling (52.6) (58.9) 6.3 10.7% Cengage Group 18.3$ (2.9)$ 21.2$ 724.0% B / (W) Nine Months Ended December 31, 2025 2024 $ % Adj Cash Revenue: HED 492.2$ 478.0$ 14.2 3.0% WORK 258.5 247.4 11.1 4.5% SCHOOL 231.9 247.5 (15.6) -6.3% ELL 102.1 113.5 (11.4) -10.0% Corporate Enabling 25.5 22.4 3.1 14.0% Cengage Group 1,110.2$ 1,108.7$ 1.5$ 0.1% Adj Cash EBITDA: HED 259.3$ 251.5$ 7.9$ 3.1% WORK 122.6 114.2 8.4 7.4% SCHOOL 112.9 139.9 (27.0) -19.3% ELL 38.7 43.0 (4.4) -10.2% Corporate Enabling (171.8) (179.9) 8.1 4.5% Cengage Group 361.6$ 368.7$ (7.0)$ -1.9% 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. Non-GAAP Reconciliations $M FY24 FY25 FY26 FY25 FY26 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 TTM TTM GAAP Revenue 327 449 343 352 1,471 331 417 337 380 1,465 332 419 360 1,437 1,491 Change in deferred revenue (53) 172 (112) 28 34 (51) 189 (115) 40 64 (74) 189 (115) 51 39 Adjusted Cash Revenue 274$ 621$ 230$ 380$ 1,505$ 280$ 606$ 223$ 420$ 1,529$ 257$ 608$ 245$ 1,489$ 1,530$ Net (loss) income (35) 37 (58) (22) (78) (27) (17) (3) (68) (115) (24) 37 21 (70) (34) Equity-based compensation expense 1 5 1 1 8 1 2 2 1 6 2 1 1 6 6 Amortization of capitalized cloud computing implementation costs 1 1 1 2 5 2 2 3 3 10 4 4 5 9 17 Other operating expenses 3 16 34 11 64 15 6 7 12 39 7 8 10 39 37 (Loss) gain on early extinguishment of debt, net 1 - - 14 15 - - - - - - - - 15 - 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 18 79 70 Operational restructuring and other charges, net 3 5 7 7 22 10 4 2 3 19 17 10 4 23 34 Depreciation 9 9 9 9 36 9 7 7 8 32 8 9 9 33 35 Amortization of identifiable intangible assets 24 24 24 24 95 24 24 23 26 97 21 22 22 94 91 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 - (2) 1 2 (1) - 2 8 (1) 1 3 7 Interest income (3) (1) (2) (4) (11) (3) (2) (3) (3) (10) (2) (2) (2) (12) (8) Interest expense 52 45 45 44 186 41 41 40 32 156 32 32 32 167 129 Provision for (benefit from) income taxes - 2 3 4 11 (1) 1 4 (9) (5) - 7 2 8 - Adjusted EBITDA 70 167 88 109 433 92 152 103 134 481 90 149 123 455 496 Change in deferred revenue and associated deferred costs (48) 157$ (102)$ 26$ 33$ (47)$ 175$ (106)$ 37$ 59$ (70)$ 174$ (104)$ 48$ 36$ Adjusted Cash EBITDA 22 323$ (14)$ 135$ 466$ 44$ 327$ (3)$ 171$ 539$ 21$ 323$ 18$ 503$ 532$
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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 DEC YTD DEC YTD Change FY25 FY26 Summary of cash flows: Net cash provided by operating activities 158 173 15 Net cash used in investing activities (91) (96) (5) Net cash used in financing activities (37) (56) (20) Impact on cash and cash equivalents from changes in foreign currency (2) 1 2 Net (Decrease) Increase in Cash and Cash Equivalents 29 22 (7) Levered free cash flow calculation: Net cash provided by operating activities 158 173 15 Additions to property, equipment and internal-use software (26) (31) (5) Additions to pre-publication costs (56) (58) (1) Other investing and financing activities (8) (7) 2 Levered Free Cash Flow 1 67 78 10