Cengage Learning Hldgs Ii Inc · OTC:CNGO
Cengage Learning Hldgs Ii — Cengage Learning Holdings II — Q2 2026 Earnings Presentation
22 slides from Cengage Learning Hldgs Ii's earnings presentation, Nov 18, 2025
Slide 1: Second Quarter Fiscal Year 2026 Investor Update
Second Quarter Fiscal Year 2026 Investor Update November 18, 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: Q2 Business Update
Q2 Business Update 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. Investing
Slide 6: Financial Update
Financial Update Dean Tilsley, Chief Financial Officer
Slide 7: Financial Highlights
Financial Highlights Strong Growth in Key US HED and Ed2Go businesses dampened by low adoption year for K12 focused segments Quarter Ended September 30 • TTM Adjusted Cash Revenue was up 1% YoY, normalized for non-recurring ∆ Actual ∆ Constant items, reflecting continued strong growth in US HED and
Slide 8: Higher Education
Higher Education US HED Digital first strategy and Institutional sales drives continues revenue and margin growth Q2 Overview HED Q2 Adj Cash Revenue ($M) H1 Adj Cash Revenue ($M) • HED Q2 Adj Cash Revenues up 2.5% YoY and up 2.5% YTD on a normalized 2% 0% basis for the change to a 3rd party partner
Slide 9: Work
Work Accelerating Ed2Go Growth coupled with strong operational leverage driving Revenue growth and Double–Digit Margin Expansion Overview Work • Work Q2 Adj Cash Revenues are up 9% YoY and up 5% YTD with Adj Q2 Adj Cash Revenue ($M) H1 Adj Cash Revenue ($M) Cash EBITDA up 13% YoY for the Qtr and 10%
Slide 10: School
School FY26 YoY performance impacted by low adoption year relative to 2025, updated BIL relationship and funding uncertainty Overview School • 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 Q2 Adj Cash Revenu
Slide 11: English Language Learning (ELL)
English Language Learning (ELL) Challenging YoY comparison due to Exit from MOE deal and no large Adoptions compared to last year Overview ELL Q2 Adj Cash Revenue ($M) H1 Adj Cash Revenue ($M) • ELL Q2 Adjusted Cash Revenues are down 19% YoY and 15% YTD, materially impacted by exit of MOE contract,
Slide 12: Summary of Cash Flows
Summary of Cash Flows Cash flow performance reflects flow SEP YTD SEP YTD through of Cash EBITDA and timing $M FY25 FY26 Change impacts expected to correct in Q3 • Delays in billing due to new SAP Adjusted Cash EBITDA 1 371 343 (28) accounting system which have now been resolved and anticipate stron
Slide 13: Liquidity & Debt
Liquidity & Debt SEP 30, 2024 SEP 30, 2025 Liquidity position remains strong. $M Net Leverage below 3x five consecutive quarters Cash and Cash Equivalents 247 182 • Total liquidity was $378M reflecting lower Available under Revolving Credit Facilities 1 195 196 collections due to SAP implementation,
Slide 14: Q&A
Q&A Ben H. Enables Ethical, Compliant Operations
Slide 15: Appendix
Appendix Rya C. Delivers Job Outcomes Through Skilling Programs
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 eliminating the effects of financing decisions as well as excluding the impact of activities not related to our ongoing operations. Howev
Slide 17: GAAP Results - Condensed Consolidated Statements of Operations
GAAP Results - Condensed Consolidated Statements of Operations Three Months ended Six Months ended September 30, September 30, (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 asse
Slide 18: GAAP Results – Condensed Consolidated Balance Sheet
GAAP Results – Condensed Consolidated Balance Sheet As of As of September 30, March 31, September March 31, (in millions) 2025 2025 Change 30, 2025 2025 Change Assets Liabilities, Contingently Redeemable Convertible Preferred Cash and cash equivalents $ 181.9 $ 256.4 $ (74.5) Stock, and Stockholders
Slide 19: Segment Revenue and Adj GAAP Financial Measures - Three & Six Months Ended
Segment Revenue and Adj GAAP Financial Measures¹ - Three & Six Months Ended Three Months Ended Six Months Ended September 30, Change September 30, Change 2025 2024 $ % 2025 2024 $ % Revenue: Revenue: HED $ 192.3 $ 175.5 $ 16.8 9.6% HED $ 364.5 $ 339.6 $ 24.9 7.3% WORK 103.5 97.0 6.5 6.7% WORK 168.3
Slide 20: Segment Adj Cash Financial Measures - Three & Six Months Ended
Segment Adj Cash Financial Measures¹ - Three & Six Months Ended Three Months Ended Six Months Ended September 30, B / (W) September 30, B / (W) 2025 2024 $ % 2025 2024 $ % Adj Cash Revenue: Adj Cash Revenue: HED $ 303.4 $ 298.2 5.1 1.7% HED $ 403.6 $ 402.4 1.2 0.3% WORK 125.6 115.3 10.3 8.9% WORK 19
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations¹ $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 $
Slide 22: Summary of Cash Flows
Summary of Cash Flows $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 cur
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