Cengage Learning Hldgs Ii Inc · OTC:CNGO
Cengage Learning Hldgs Ii — Cengage Learning Holdings II — Q1 2026 Earnings Presentation
25 slides from Cengage Learning Hldgs Ii's earnings presentation, Aug 14, 2025
Slide 1: First Quarter Fiscal Year 2026 Investor Update
First Quarter Fiscal Year 2026 Investor Update August 14, 2025
Slide 2: Agenda
Agenda • Introduction Richard Veith, SVP, Treasurer • Business Update Michael Hansen, Chief Executive Officer • Financial Update Dean Tilsley, Chief Financial Officer Pooja R. Assures the Quality of Online Education Takeyce W. • Q&A Designs Quality Content Michael C. Provides English Language Learni
Slide 3: Safe Harbor / Forward-Looking Statements
Safe Harbor / Forward-Looking Statements 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-look
Slide 4: Business Update
Business Update Michael Hansen, Chief Executive Officer
Slide 5: Q1 Business Update - Highlights
Q1 Business Update - Highlights Positioned for Future Growth Completed re-segmentation into four distinct operating units aligned with how our customers engage with us, enabling sharper focus on decision making and execution. Strong TTM Adj Cash EBITDA Growth Cengage Group continues to grow EBITDA u
Slide 6: Building the AI Operating System for Education
Building the AI Operating System for Education • Student Assistant: Scaling to more than 100 Higher Ed titles this fall; more than 1 million students will have access to this vital tool. Insights Assistant • Lexile Leveler & Content Studio: Delivering value to K-12 New educators and learners. Studen
Slide 7: Financial Update
Financial Update Dean Tilsley, Chief Financial Officer
Slide 8: Financial Highlights Quarter Ended June 30
Financial Highlights Quarter Ended June 30 • Strong underlying growth momentum - TTM Adjusted Cash Revenues Quarter Ended June 30 $1.52B, +2% Adjusted Cash Revenue and +10% Adj Cash EBITDA ∆ Actual ∆ Constant normalized for non-recurring items FY25 FY26 Rates Currency • TTM growth driven by key HED
Slide 9: Higher Education
Higher Education Digital transition and institutional channel sales to drive enhanced revenue growth and margin expansion Q1 Overview HED Q1 Adj Cash Revenue ($M) • US HED Q1 Cash Revenues +7% YoY, normalized for large renewal and SRR adjustment in Q1 25 -4% o Underlying Q1 inclusive Access/Cengage
Slide 10: Work
Work Strong demand for career related skills, improved sales channels coupled with investment position Work for continued strong Revenue and EBITDA growth Q1 Overview Work Q1 Adj Cash Revenue ($M) • Q1 Ed2Go delivered $6M or 24% YoY Cash Revenue growth driven by -3% strong demand, triple digit growt
Slide 11: School
School School set for full year growth and very strong FY27 and FY28 adoption years despite challenging Q1 YoY comparison Q1 Overview School • Q1 School Cash Revenue YoY comparison is challenged due to: Q1 Adj Cash Revenue ($M) o Timing of 2 very large deals totaling $13M in Q1 FY25. o $5M of Q1 bil
Slide 12: English Language Learning (ELL)
English Language Learning (ELL) Challenging YoY comparison for Q1 due to change in large International contracts but now focused for stronger sustainable growth in key markets Q1 Overview ELL Q1 Adj Cash Revenue ($M) • ELL Adj Cash Revenues impacted by exit from the MOE contract which had no materia
Slide 13: Summary of Cash Flows
Summary of Cash Flows JUN YTD JUN YTD $M FY25 FY26 Change Cengage delivered a stronger cash flow Adjusted Cash EBITDA 1 39 15 (24) performance in Q1 FY26, reflecting operational discipline, timing benefits, and continued progress on deleveraging. Less: Prepublication Costs (15) (15) 0 Less: Capital
Slide 14: Liquidity & Debt
Liquidity & Debt Cengage’s Q1 FY26 financial position $M JUN 30, 2024 JUN 30, 2025 reflects disciplined capital management, continued deleveraging, Cash and Cash Equivalents 133 147 and meaningful improvements in Available under Revolving Credit Facilities 1 188 196 liquidity. • Total liquidity reac
Slide 15: Q&A
Q&A Ben H. Enables Ethical, Compliant Operations
Slide 16: Appendix
Appendix Rya C. Delivers Job Outcomes Through Skilling Programs
Slide 17: Definitions: Non-GAAP Financial Measures
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. Howev
Slide 18: GAAP Results - Condensed Consolidated Statements of Operations
GAAP Results - Condensed Consolidated Statements of Operations Three Months ended June 30, (in millions) 2025 2024 Revenues $ 333.0 $ 332.3 Cost of revenues, excluding amortization of pre-publication costs and identifiable intangible assets and depreciation stated below 141.3 135.4 Amortization of p
Slide 19: GAAP Results - Condensed Consolidated Balance Sheet
GAAP Results – Condensed Consolidated Balance Sheet As of As of June 30, March 31, March 31, (in millions) 2025 2025 Change June 30, 2025 2025 Change Assets Liabilities, Contingently Redeemable Convertible Preferred Cash and cash equivalents $ 147.3 $ 256.4 $ (109.1) Stock, and Stockholders' Deficit
Slide 20: Non-GAAP Financial Measures - Three Months Ended
Non-GAAP Financial Measures¹ - Three Months Ended Three Months Ended June 30, Change 2025 2024 $ % Adjusted EBITDA: HED $ 99.0 $ 89.8 $ 9.2 10.2% WORK 23.8 18.9 4.9 25.9% SCHOOL 20.1 33.5 (13.4) (40.0)% ELL 8.5 9.3 (0.8) (8.6)% Corporate Enabling (61.9) (61.1) (0.8) 1.3% Cengage Group $ 89.5 $ 90.4
Slide 21: Non-GAAP Cash Financial Measures - Three Months Ended
Non-GAAP Cash Financial Measures¹ - Three Months Ended Three Months Ended June 30, B / (W) 2025 2024 $ % Adj Cash Revenue: HED 94.8 99.2 (4.4) (4.5)% WORK 65.7 67.6 (1.8) (2.7)% SCHOOL 53.8 69.2 (15.4) (22.3)% ELL 31.0 33.8 (2.7) (8.1)% Corporate Enabling 8.7 7.4 1.3 17.0% Cengage Group $ 254.0 $ 27
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations¹ $M FY24 FY25 FY26 FY25 FY26 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 TTM TTM GAAP Revenue 326 428 365 384 1,503 332 407 356 383 1,478 333 1,509 1,479 Change in deferred revenue (55) 143 (83) 29 35 (55) 157 (80) 41 63 (79) 34 39 Adjusted Cash Revenue $ 271 $ 571 $ 282 $ 413 $ 1,537
Slide 23: Summary of Cash Flows
Summary of Cash Flows $M JUN YTD JUN YTD Change FY25 FY26 Summary of cash flows: Net cash used by operating activities (95) (59) 36 Net cash used in investing activities (32) (32) (0) Net cash used in financing activities (4) (19) (15) Impact on cash and cash equivalents from changes in foreign curr
Slide 24: Prior Period Segments / Adjusted Cash Revenue FY23-FY25
Adjusted Cash Revenue FY23-FY25 Adj Cash Revenue ($M) FY23 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 FY25 US Higher Ed 597 613 76 233 117 232 658 International Higher Ed 114 104 20 32 21 29 102 Prior Period Segments/ Secondary 184 197 51 107 13 5 177 Cengage Academic 895 915 148 372 151 266 937 Reporting
Slide 25: Prior Period Segments / Adjusted Cash EBITDA FY23-FY25
Adjusted Cash EBITDA FY23-FY25 Adj Cash EBITDA ($M) FY23 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 FY25 US Higher Ed 227 243 3 136 32 129 301 Prior Period Segments/ International Higher Ed 33 24 3 12 5 11 32 Secondary 99 113 33 81 1 (4) 111 Cengage Academic 359 380 39 229 38 137 444 Reporting Cengage Wor
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