The earnings call presented a mixed outlook for Cengage Group, with significant growth and innovation in segments like Higher Education and Work, driven by AI and strategic initiatives. However, these positives were balanced by declines in adjusted cash revenue and challenges in the School and English Language Learning segments, leading to a neutral overall sentiment.

Company Guidance -

Q2 2026

In the first quarter of fiscal year 2026, Cengage Group reported adjusted cash revenue of $254 million, representing an 8% year-over-year decline, primarily due to a nonrecurring revenue stream in fiscal year 2025 and a low adoption year in their School segment. When normalized, revenue was down just 2%. The company's adjusted cash EBITDA was $15 million, down 61% from the previous year, mainly due to lower revenue and higher cost of sales linked to an enhanced partnership with Big Ideas Learning. The Higher Education and Work segments contributed 70% to adjusted cash revenues, with the U.S. Higher Ed segment showing a 7% increase in cash revenues year-over-year, driven by a 19% rise in institutional sales and an 8% increase in digital sales. The Work segment saw a 24% revenue growth, marked by strong demand in job-aligned skills and triple-digit growth in employer sales through Ed2Go. Despite a challenging quarter for the School segment due to timing issues and the off-cycle adoption year, Cengage remains optimistic about future growth, supported by strategic content investments and market positioning for upcoming adoption cycles. The English Language Learning segment saw an 8% revenue decline due to the exit from a low-margin contract, though normalized revenues grew 8% on a trailing 12-month basis. The company improved its cash flow by $36 million and reduced its first-quarter cash burn to $109 million, enhancing its liquidity to $343 million, with a net leverage ratio of 2.9x. Cengage expects fiscal year 2026 to continue its trajectory of revenue and EBITDA growth, as it enters its main sales season with a strong pipeline and execution strategy.

Resegmentation and New Operating Model

Cengage Group completed the resegmentation into four distinct units: Higher Education, Work, School, and English Language Learning, along with implementing a new global operating model to enhance innovation and operational efficiency.

AI-Powered Tools and Innovations

The company is embedding AI into products, scaling the AI-powered student assistant to over 100 higher ed titles, and expanding AI tools in the Work segment, enhancing learning experiences and internal efficiencies.

Growth in Higher Education Segment

U.S. Higher Education showed growth with institutional sales up 19% year-over-year and digital sales up 8% year-over-year, with institutional revenues reaching $333 million.

Strong Performance in Work Segment

Ed2Go delivered 24% revenue growth, marking the 11th consecutive quarter of double-digit growth driven by strong demand and improvements in enrollment productivity.

Improved Cash Flow and Liquidity

Free cash flow improved by $36 million year-over-year with total liquidity increasing to $343 million, driven by lower cash burn and improved working capital performance.

Cengage Learning Holdings II (CNGO) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

CNGO Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 06, 2025	2026 (Q2)	- / -	-0.438	―	―	―
Aug 14, 2025	2026 (Q1)	- / -0.39	-0.458	15.07% (+0.07)
Jun 05, 2025	2025 (Q4)	- / -1.08	-0.406	-167.24% (-0.68)
Feb 06, 2025	2025 (Q3)	- / 0.15	-0.672	122.62% (+0.82)
Nov 07, 2024	2025 (Q2)	- / -0.44	0.35	-225.14% (-0.79)
Aug 08, 2024	2025 (Q1)	- / -0.46	-0.567	19.22% (+0.11)
Jun 06, 2024	2024 (Q4)	- / -0.41	-0.191	-112.57% (-0.22)
Feb 08, 2024	2024 (Q3)	- / -0.67	-0.095	-607.37% (-0.58)
Nov 09, 2023	2024 (Q2)	- / 0.35	0.265	32.08% (+0.08)
Aug 10, 2023	2024 (Q1)	- / -0.57	-0.624	9.13% (+0.06)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

CNGO Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Aug 14, 2025	$23.50	$23.50	0.00%
Jun 05, 2025	$20.75	$23.50	+13.25%
Feb 06, 2025	$19.50	$20.75	+6.41%
Nov 07, 2024	$17.75	$19.50	+9.86%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

FAQ

When does Cengage Learning Holdings II Inc (CNGO) report earnings?

Cengage Learning Holdings II Inc (CNGO) is schdueled to report earning on Nov 06, 2025, TBA (Confirmed).

What is Cengage Learning Holdings II Inc (CNGO) earnings time?

Cengage Learning Holdings II Inc (CNGO) earnings time is at Nov 06, 2025, TBA (Confirmed).

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