Slide 1: Pearson 2025 Full Year Results
Pearson 2025 Full Year Results Friday 27th February 2026 1
Slide 2: Forward-looking statements
Forward-looking statements Except for the historical information contained herein, the There are a number of factors which could cause actual results and matters discussed in this presentation include forward-looking developments to differ materially from those expressed or statements. implied by th
Slide 3: Key takeaways
FULL YEAR RESULTS Key takeaways Confidence in the future Financial and strategic progress Improve in 2026 3
Slide 4: Confidence in the future: mega trends
FULL YEAR RESULTS Confidence in the future Mega trends Demographics Upskilling AI demand 4
Slide 5: Unique Characteristics & Enduring Strengths
FULL YEAR RESULTS Confidence in the future Unique Characteristics & Enduring Strengths Leadership positions ~ 90% Profit Operationally complex physical Long history of operational and digital workflows and print excellence Trust Deeply embedded Proprietary data sets ~10% Profit Digital courseware, e
Slide 6: Delivered on our 2025 priorities
FULL YEAR RESULTS Delivered on our 2025 priorities Financial Enterprise AI Innovation Delivery Growth AI Study Tools 4% Underlying Sales Growth 9 Total Strategic partnerships Students 24x more likely to Adj operating be active 6% profit growth Go Deeper Enhancement readers Financial momentum Free ca
Slide 7: Strategy outline
FULL YEAR RESULTS Strategy outline The World’s Lifelong Learning Company: Why Helping people realise the life they imagine through learning Medium term guidance Driving performance in the core business Mid-single digit underlying sales CAGR What Execution synergies Average margin growth of 40 bps pe
Slide 8: Performance in the core business
FULL YEAR RESULTS Performance in the core business Assessment & English Language Higher Enterprise Learning Virtual Qualifications Learning Education & Skills Learning 2025 milestones Customer wins Inclusive access Enrolment portal Renewals and Global go to market contract wins launched Product inno
Slide 9: Execution synergies
FULL YEAR RESULTS Execution synergies 360 degree Operational Modern Software Strategic Systems & Product Partnerships Development AI-powered execution at scale 9
Slide 10: Operational systems
FULL YEAR RESULTS Operational systems Pearson Systems Unified market Consolidation Simplified Customer AI enabled presence of vendors ecommerce Service operations AI pilots delivering measurable impact 40%+ ~30% ~25% ~40% 130k+ reduction lower reduction reduction customer content editing translati
Slide 11: Branding approach
FULL YEAR RESULTS Branding approach From noise ... 11
Slide 12: Branding approach: to signal
FULL YEAR RESULTS Branding approach … To signal Education framework Work framework 12
Slide 13: Product innovation…
FULL YEAR RESULTS Product innovation… 2023 2024 2025 AI Study Tools Study Prep Digital Language Tutor AI Instructor Tools Communication Coach Teacher Custom Assessment AI Chatbot for English GCSE Exam Assistant Item Bank Generation Smart Lesson Generator Clinical Report Writer Revibe AI foundational
Slide 14: … leading to outcomes
FULL YEAR RESULTS … leading to outcomes Higher Education AI Study Tools Virtual Learning AI Study Tools 5% increase in final scores Available to +3 million students Up to 11% increase in pass rates 24x more likely to be active readers AI Custom Assessment Tool 50% reduction in assessment creation ti
Slide 15: Medium-term growth vector – Enterprise Skilling
FULL YEAR RESULTS Medium-term growth vector – Enterprise Skilling Strategic Partnerships Joint GTM & Innovation Hundreds of $ millions in incremental revenue contracted up to 2030 15
Slide 16: Medium-term growth vector – Early Careers
FULL YEAR RESULTS Medium-term growth vector – Early Careers Early Careers TAM ~$6B Total estimated addressable market across elective and CTE curriculum (“Learn”), college and career readiness platforms (“Explore”), and certifications and licensing exams (“Verify”). 16
Slide 17: Power metrics
FULL YEAR RESULTS Power metrics Enterprise Assessment & Verification Skilling Renewals Growth 'Advanced’ & 'Elite' customers 96% £33m 49 2024: 99% 2024: £36m 2024: 45 2023: 87% 2023: £7m 2023: 47 17
Slide 18: An even stronger 2026
FULL YEAR RESULTS An even stronger 2026 Group Sales* Adjusted Operating Profit £685m Mid-Single Digit UL % £640m £614m £3.6bn £2.9bn £313m 2020 2025 2026 2020 2025 2026 Guidance Guidance *Group sales are headline figures excluding OPM and Strategic Review businesses. CAGR is on an underlying basis e
Slide 19: Financial Review & Outlook
Financial Review & Outlook Copyright 2025 Pearson. All rights reserved. 19
Slide 20: 2025 Financial highlights
FULL YEAR RESULTS 2025 Financial highlights • 4% underlying sales growth Underlying1 Sales Growth Underlying1 Adj. Operating Profit Growth • 6% increase in underlying profit with margin expanding from 16.9% +4% Year-on-year increase to £3,577m +6% Year-on-year increase to £614m to 17.2% (2024: £3,55
Slide 21: Financial progress provides foundation for ongoing confidence
FULL YEAR RESULTS Financial progress provides foundation for ongoing confidence +5% CAGR* Group Sales Group Adjusted excluding OPM and Operating Profit (£m) Strategic Review businesses* (£bn) Group Adjusted Operating Margin (%) 2020 2021 2022 2023 2024 2025 2020 2021 2022 2023 2024 2025 11.3% 10.3%
Slide 22: 2025 Sales
FULL YEAR RESULTS 2025 Sales Headline Underlying £m 2025 20241 growth growth2 Assessment & Qualifications 1,604 1,591 1% 4% Virtual Learning 511 489 4% 8% Higher Education 775 781 (1)% 2% English Language Learning 405 420 (4)% 1% Enterprise Learning & Skills 282 271 4% 6% Total sales 3,577 3,552 1%
Slide 23: 2025 Adjusted operating profit
FULL YEAR RESULTS 2025 Adjusted operating profit Margin Margin Headline Underlying £m 2025 20241 2025 2024 growth growth2 Assessment & Qualifications 361 368 23% 23% (2)% 1% Virtual Learning 81 66 16% 13% 23% 29% Higher Education 93 96 12% 12% (3)% 0% English Language Learning 50 50 12% 12% 0% 16% E
Slide 24: 2025 Statutory operating profit
FULL YEAR RESULTS 2025 Statutory operating profit Headline £m 2025 2024 growth Adjusted operating profit 614 600 Adjusting items (107) (59) Statutory operating profit 507 541 (6)% 24 24
Slide 25: Key cash flow movements
FULL YEAR RESULTS Key cash flow movements £m 2025 2024 YOY change Adjusted Operating Profit 614 600 14 Capex cash (179) (170) (9) Depreciation 186 193 (7) Net capex investment 7 23 (16) Product development cash (285) (284) (1) Amortisation 277 291 (14) Net product development investment (8) 7 (15) W
Slide 26: Cash & balance sheet
FULL YEAR RESULTS Cash & balance sheet Net debt: Adj. Operating cash Operating cash Free cash flow Net debt (£m) ROC EBITDA flow (£m) flow conversion (£m) 2025 1,069 1.3x 11.3% 571 93% 527 2024 853 1.1x 10.5% 662 110% 490 2023 744 1.0x 10.3% 587 102% 387 2022 577 0.8x 8.7% 401 88% 222 2021 350 0.6x
Slide 27: 2026 Group financial expectations
FULL YEAR RESULTS 2026 Group financial expectations Group sales Underlying sales growth Mid-single digit £640m-£685m at FX rates as at the end of 2025 (£:$ 1.35). Adjusted operating Includes lower amortisation £640-685m at £:$ 1.35,following including the 2025 c.£15m product development impairment b
Slide 28: 2026 Group financial expectations
FULL YEAR RESULTS 2026 Group financial expectations Full year Phasing considerations Growth is again H2 weighted, Group Mid-single digit growth but not as markedly as in 2025 Q1 to decline due to the loss of the New Jersey Assessment & Low to mid-single digit growth, driven by new contract and PDRI
Slide 29: Capital allocation – uses of cash
FULL YEAR RESULTS Capital allocation – uses of cash Strong balance sheet - Net debt / EBITDA capped 2x Capex + Product Development spend (£m) Capex and product 518 493 553 1. Invest in the development for organic 468 454 464 business to growth accelerate 2020 2021 2022 2023 2024 2025 growth Focused
Slide 30: Wrap up
Wrap up Copyright 2025 Pearson. All rights reserved. 30
Slide 31: 2026 priorities
FULL YEAR RESULTS 2026 priorities Deliver on financial targets Continue to lead on innovative tech Progress power metrics 31 31 31 31
Slide 32: Key takeaways
FULL YEAR RESULTS Key takeaways Confidence in the future Financial and strategic progress Improve in 2026 32
Slide 33: Appendix
Appendix Copyright 2025 Pearson. All rights reserved. 33
Slide 34: Driving performance in the core business
APPENDIX Driving performance in the core business 2025 milestones 2026 priorities • Pearson Professional Assessment: new contract wins and strong renewals • Maintain strong competitive performance – • US Student Assessment: renewed and extended key renewals and new wins contracts including Maryland
Slide 35: Driving performance in the core business
APPENDIX Driving performance in the core business 2025 milestones 2026 priorities • Established global enterprise sales team and key-account structure • Monetise strategic partnerships Enterprise • Secured strategic partnerships • Strategic account growth Learning & • New contract wins, including UK
Slide 36: Selected data points for reference
APPENDIX Selected data points for reference Pearson Higher Inclusive Professional Virtual Schools No. of virtual Education Access PTE volume Assessment US schools and career US digital growth test enrolments*** programmes subscriptions* volumes** School year 25/26: 41 virtual schools 2025 19% 10.2m
Slide 37: Sales by business – select businesses
APPENDIX Sales by business – select businesses £m 2025 2024 Underlying change* Assessment & Qualifications 1.60 1.59 4% Pearson Professional Assessments 0.66 0.67 1% US Student Assessment 0.38 0.36 2% Clinical Assessment 0.26 0.28 8% UK & International Qualifications 0.30 0.28 9% Higher Education 0.
Slide 38: 2025 Cash Flow Reconciliation
APPENDIX 2025 Cash Flow Reconciliation Purchase/ Product Other net Net addition Property Intangible disposal of Dividends Interest Statutory development gains and Pensions of ROU Adjusted ` charges charges PPE and received received impairment losses assets software Profit before tax + net finance co
Slide 39: Other modelling assumptions
APPENDIX Other modelling assumptions Exchange rates and shares outstanding At 31 Dec 2025 At 31 Dec 2024 Average FY 2025 Average FY 2024 Exchange rates £:$ 1.35 1.25 1.32 1.28 Shares outstanding* Total 635.1 665.6 651.3 673.0 *Excludes ordinary shares purchased by the company and held as treasury sh
Slide 40: Power metrics definitions
APPENDIX Power metrics definitions Metric Definition Renewals Total value of contracts renewed / (total value of contracts (Scope: Pearson Professional Assessment & US Student Assessment) renewed + lost). Contracts renewed include wins and scope increases from existing customers. Growth Average annu
Slide 41: Copyright 2025 Pearson. All rights reserved.
Copyright 2025 Pearson. All rights reserved. 41