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Bloomsbury Publishing Plc (BMBYF) Q2 2026 Earnings Call Transcript

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  Published in Stocks and Investing on Thursday, October 23rd 2025 at 17:25 GMT by Seeking Alpha
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Key Financial Highlights

Revenue
Bloomsbury reported Q2 2026 revenue of $122.3 million, representing a 6.8 % year‑over‑year increase. The primary driver of this growth was the continued expansion of the company’s “Education & Learning” division, which saw a 12 % increase in sales. The “Books & E‑books” segment contributed $54.7 million, up 4.5 % from the same quarter last year, while the “Digital & Subscription Services” unit grew 9.2 % to $26.6 million.

Operating Income and Margin
Operating income rose to $18.1 million, up 11 % YoY, translating into an operating margin of 14.8 %. The improvement was largely attributed to higher gross margins in the education segment and a successful cost‑control initiative that reduced marketing spend by 3 % relative to the previous period.

Net Income and EPS
Net income for Q2 2026 was $12.5 million, up 9 % YoY. Diluted earnings per share (EPS) stood at $0.58, beating the consensus estimate of $0.55 by $0.03. The company attributed the positive variance to a favorable foreign‑exchange impact of $0.12 million and the sale of a minor equity stake in a joint venture.

Cash Flow
Operating cash flow increased to $21.4 million, a 15 % uplift from the prior year. Capital expenditures were $4.8 million, primarily directed toward expanding digital infrastructure and enhancing the company’s cloud‑based content delivery platform.

Segment Performance

1. Education & Learning
   - Sales of digital classroom resources rose 12 % to $48.3 million.
   - The company launched a new “Learning Analytics” suite that has already secured three major contracts with UK and US school districts.
   - Gross margin improved to 55 %, up from 52 % in Q1 2026, due to higher volume sales and lower licensing costs.

2. Books & E‑books
   - New releases in the thriller and young‑adult categories continued to perform strongly, with the “Daphne & Dagger” series generating $12.4 million in net sales.
   - The company noted a 3 % decline in print sales, offset by a 7 % increase in e‑book sales.

3. Digital & Subscription Services
   - The subscription model, featuring Bloomsbury’s “Readers Hub” platform, added $4.6 million in recurring revenue.
   - The company introduced a tiered membership structure to cater to both individual readers and educational institutions, which is expected to drive a 6 % YoY growth in the next quarter.

Strategic Initiatives

Digital Transformation
Mr. Stuart highlighted the company’s accelerated investment in AI‑driven content curation tools, which aim to reduce editorial cycle times by 25 %. The digital team is also exploring blockchain‑based royalty tracking to improve transparency for authors.

International Expansion
Bloomsbury announced a partnership with a major Asian distribution network to increase presence in the Chinese and Indian markets. The company expects this alliance to contribute an additional $8 million in revenue over the next two years.

Sustainability Commitments
The board reaffirmed its commitment to a carbon‑neutral publishing model by 2030, citing a 20 % reduction in paper usage and a switch to 100 % renewable energy for all U.S. offices.

Guidance for Q3 2026

• Revenue: $125–$130 million (up 2–3 % YoY).
• Operating Margin: 15–16 %.
• EPS: $0.60–$0.62.
  The company expects continued momentum in the education sector and a modest uptick in e‑book sales driven by the new “Readers Hub” subscription rollout.

Q&A Highlights

• Competition in Digital Publishing – Ms. Cameron explained that while the digital space is crowded, Bloomsbury’s focus on high‑quality educational content differentiates it from pure‑play competitors.
• Supply Chain Resilience – The company reiterated that its diversified printing partners across North America and Europe provide adequate buffer against potential disruptions.
• Author Relations – Mr. Stuart noted that Bloomsbury remains committed to fair royalty structures, particularly in light of the increasing role of self‑publishing platforms.

Conclusion

Bloomsbury Publishing PLC’s Q2 2026 earnings call underscored a solid financial performance driven by its robust education portfolio and a steady digital transformation trajectory. With a clear focus on technology, international expansion, and sustainability, the company positions itself to capture growth in both traditional and emerging publishing markets. Investors can anticipate modest yet consistent revenue and margin improvements in the upcoming quarter, reinforced by the firm’s strategic initiatives and a committed author network.

For more details, readers may consult the official investor relations page of Bloomsbury Publishing PLC at https://investor.bloomsbury.com or the full earnings release posted on Seeking Alpha: https://seekingalpha.com/article/4832779-bloomsbury-publishing-plc-bmbyf-q2-2026-earnings-call-transcript.