Cengage Learning Hldgs Ii Inc · OTC:CNGO
Cengage Learning Hldgs Ii — Cengage Learning Holdings II — Q1 2027 Earnings Presentation
21 slides from Cengage Learning Hldgs Ii's earnings presentation, Aug 14, 2026
Slide 1: First Quarter Fiscal Year 2027 Investor Update
First Quarter Fiscal Year 2027 Investor Update August 5, 2026 1
Slide 2: Agenda
Agenda • Introduction • Ed Ditmire, SVP Investor Relations • Business Update • Michael Hansen, Chief Executive Officer • Financial Update • Dean Tilsley, Chief Financial Officer • Q&A Jessica G. Empowers Educators to Embrace Digital Learning Rya C. Delivers Job Outcomes Through Skilling Programs Mic
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 provision s of the U.S. Private Securities Litigation Reform Act of 1995. Forward-loo
Slide 4: Business Update
Business Update Michael Hansen Chief Executive Officer 4
Slide 5: Q1 Business Update
Q1 Business Update Q1 ‘27 Revenue Down Modestly (-2%) in Seasonally Light Period: Mixed YoY segment dynamics - HED saw lower revenues on lower print products, School and ELL declines driven by delay in adoptions and select deals, but with double-digit growth in Work Improved Operating Model Delivers
Slide 6: Financial Update
Financial Update Dean Tilsley Chief Financial Officer 6
Slide 7: Financial Highlights
Financial Highlights Q1 ‘27 Delivers Solid Increase in Adjusted EBITDA, TTM Results Combine Growth with Margin Expansion • Q1 ’27 revenue saw a 2% decline (-$5M) YoY, in lighter seasonal period Quarter Ended June 30 • Double-digit growth in primary growth area, Work Segment, with ∆ Actual ∆ Constant
Slide 8: Higher Education
Higher Education YoY Decline in Seasonally Lighter Period Principally Due to Expected Roll-Off of Print Product Sales Overview HED • Q1 HED Revenues -5% YoY. North America HED, which represents Q1 Revenue ($M) the majority of the segment revenue, was responsible for the HED segment decline in the qu
Slide 9: Work
Work Exceptional Ed2Go Growth and Improved CTE Performance Delivering Solid Top-Line Growth Overview Work Q1 Revenue ($M) • Q1 Work Revenues 14% (+$10M) YoY, driven by broad-based growth across the portfolio and benefits from strategic investments. +14% • Ed2Go revenues increased 31%, driven by cont
Slide 10: School
School Q1 ‘27 EBITDA Increase Despite Adverse Revenue Headwinds Tied to State Adoption Timing Overview School Q1 Revenue ($M) • Q1 School Revenues -2% (-$1M) YoY. Segment decrease YoY reflects lower US K12 Revenue, mostly offset by higher Gale -2% Thorndike and Int’l Revenues. $59 $58 • US K12 Reven
Slide 11: English Language Learning (ELL)
English Language Learning (ELL) Q1 ‘27 EBITDA Improvement Driven by Cost Reduction, Despite Quiet Period for One-Time Sales Overview ELL • Q1 Revenue decrease of -20% (-$6M), with most of the decline in Q1 Revenue ($M) the larger International ELL business from a few large print deals delaying into
Slide 12: Summary of Cash Flows
Summary of Cash Flows $M JUN YTD JUN YTD Change • Q1 experiences seasonal increase FY26 FY27 in Working Capital. Increase in working capital reflects seasonality Summary of cash flows: in sales and collections combined Net cash used by operating activities (59) (76) (17) with year-end bonus payments
Slide 13: Liquidity & Debt
Liquidity & Debt Q1 FY26 Q1 FY27 $M Strong balance sheet with increased liquidity and lower net leverage YoY Cash and Cash Equivalents 147 235 • Total liquidity increased to $431M (+ 1 Available under Revolving Credit Facilities 196 195 $88M YoY), reflecting higher cash and cash equivalent balances,
Slide 14: Q&A
Q&A Ben H. Enables Ethical, Compliant Operations Takeyce W. Designs Quality Pooja R. Content Assures the Quality of Online Education 14
Slide 15: Appendix
Appendix Abbey K. Connects Skill Learners Mamadou T. to Opportunity Listens to Our Customers to Advance Casey R. Our Products Connects Educators with the Right Tools for Success 15
Slide 16: 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 elimin ating the effects of financing decisions as well as excluding the impact of activities not related to our ongoing operations. Howe
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations¹ Non-GAAP Reconciliations $M FY25 FY26 FY27 FY26 FY27 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 TTM TTM Revenue $ 331 $ 413 $ 337 $ 379 $ 1,460 $ 334 $ 416 $ 362 $ 405 $ 1,517 $ 329 $ 1,463 $ 1,512 Net (loss) income (27) (21) (4) (69) (121) (22) 34 23 50 85 (11) (115) 96 Equity-based
Slide 18: GAAP Results – Condensed Consolidated Balance Sheet
GAAP Results – Condensed Consolidated Balance Sheet (in millions) As of As of June 30, March 31, June 30, March 31, 2026 2026 Change 2026 2026 Change Assets Liabilities, Contingently Redeemable Convertible Preferred Cash and cash equivalents 235 366 (131) Stock, and Stockholders' Deficit Accounts re
Slide 19: GAAP Results - Condensed Consolidated Statements of Operations
GAAP Results - Condensed Consolidated Statements of Operations (in millions) Period ended June 30, 2026 2025 Revenue $ 329 $ 334 Costs of revenue, excluding depreciation: Cost of revenue 126 141 Amortization of pre-publication costs 18 18 Amortization of intangible assets 2 2 Total costs of revenues
Slide 20: Segment Revenue and Adj. EBITDA Financial Measures
Segment Revenue and Adj. EBITDA Financial Measures¹ (in millions) Three Months Ended June 30, Change 2026 2025 $ % Revenue: HED 161 170 (9) (5)% WORK 77 67 10 14% SCHOOL 58 59 (1) (2)% ELL 24 30 (6) (20)% Corporate Enabling 9 9 0 5% Total Cengage $ 329 $ 334 $ (6) (2)% Adjusted EBITDA: HED 89 99 (10
Slide 21: GAAP Results - Summary of Cash Flows
GAAP Results - Summary of Cash Flows (in millions) Three Months Ended June 30, x 2026 2025 Change Net (loss) Income $ (11) $ (22) $ 11 Adjustments to reconcile net (loss) income to net cash provided by operating activities Depreciation, amortization, provisions, impairments & other 63 59 5 Change in
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