Pearson Q1 2025 Trading Update (Unaudited)
Higher Education ha mostrato una solida crescita delle vendite del 6%, trainata dagli strumenti di studio basati sull'IA e dalla monetizzazione efficace del prodotto Channels. Crescite significative includono il 22% in Inclusive Access e il 4% negli abbonamenti digitali negli Stati Uniti.
Altri segmenti hanno avuto risultati diversi: Assessment & Qualifications +1%, Enterprise Learning & Skills +1%, mentre Virtual Learning è calato del 4% e English Language Learning del 6%.
L'azienda ha lanciato un programma di riacquisto azionario da £350 milioni con £65 milioni acquistati fino al 30 aprile 2025. Pearson ha ricevuto il pieno recupero del pagamento di Aiuti di Stato da £0,1 miliardi.
I cambiamenti nella gestione comprendono Dave Treat che assume la guida delle operazioni digitali e tecnologiche, mentre la CIO Marykay Wells è uscita dall'azienda. La società conferma la sua prospettiva a medio termine di una crescita delle vendite a tasso annuo composto a una cifra media e una conversione del flusso di cassa libero tra il 90 e il 100%.
Higher Education mostró un fuerte rendimiento con un crecimiento de ventas del 6%, impulsado por herramientas de estudio basadas en IA y una monetización exitosa del producto Channels. El crecimiento notable incluye un 22% en Inclusive Access y un 4% en suscripciones digitales en EE. UU.
Otros segmentos tuvieron resultados variados: Assessment & Qualifications aumentó un 1%, Enterprise Learning & Skills un 1%, mientras que Virtual Learning disminuyó un 4% y English Language Learning bajó un 6%.
La compañía lanzó un programa de recompra de acciones de £350 millones con £65 millones comprados hasta el 30 de abril de 2025. Pearson recibió la recuperación completa del pago de ayudas estatales de £0,1 mil millones.
Los cambios en la dirección incluyen a Dave Treat asumiendo el liderazgo de operaciones digitales y tecnológicas, mientras que la CIO Marykay Wells salió de la empresa. La compañía mantiene su perspectiva a medio plazo de un crecimiento anual compuesto de las ventas de un dígito medio y una conversión de flujo de caja libre del 90 al 100%.
Higher Education 부문은 AI 학습 도구와 성공적인 Channels 제품 수익화에 힘입어 6% 매출 성장을 기록했습니다. 특히 Inclusive Access는 22%, 미국 디지털 구독은 4% 성장했습니다.
다른 부문은 차이가 있었는데, Assessment & Qualifications 1% 증가, Enterprise Learning & Skills 1% 증가, 반면 Virtual Learning은 4% 감소, English Language Learning은 6% 감소했습니다.
회사는 3억 5천만 파운드 규모의 자사주 매입 프로그램을 시작했으며, 2025년 4월 30일까지 6,500만 파운드를 매입했습니다. Pearson은 1억 파운드 규모의 국가 보조금 지급을 전액 회수했습니다.
경영진 변화로는 Dave Treat가 디지털 및 기술 운영을 맡게 되었고, CIO Marykay Wells는 퇴사했습니다. 회사는 중기 전망으로 연평균 중간 단위 매출 성장률과 90~100%의 자유 현금 흐름 전환율을 유지하고 있습니다.
Higher Education a affiché une forte croissance des ventes de 6 %, portée par des outils d'étude basés sur l'IA et une monétisation réussie du produit Channels. Croissances notables : 22 % pour Inclusive Access et 4 % pour les abonnements numériques aux États-Unis.
Les autres segments ont eu des performances variées : Assessment & Qualifications en hausse de 1 %, Enterprise Learning & Skills +1 %, tandis que Virtual Learning a diminué de 4 % et English Language Learning de 6 %.
L'entreprise a lancé un programme de rachat d'actions de 350 millions de livres, avec 65 millions de livres rachetées jusqu'au 30 avril 2025. Pearson a récupéré intégralement le paiement des aides d'État de 0,1 milliard de livres.
Parmi les changements de direction, Dave Treat prend la tête des opérations digitales et technologiques, tandis que la CIO Marykay Wells a quitté l'entreprise. La société maintient ses perspectives à moyen terme avec une croissance annuelle moyenne des ventes à un chiffre médian et une conversion du flux de trésorerie disponible entre 90 et 100 %.
Higher Education zeigte eine starke Performance mit 6 % Umsatzwachstum, angetrieben durch KI-gestützte Lernwerkzeuge und erfolgreiche Monetarisierung des Channels-Produkts. Bemerkenswertes Wachstum umfasst 22 % bei Inclusive Access und 4 % bei US-Digitalabonnements.
Andere Segmente entwickelten sich unterschiedlich: Assessment & Qualifications +1 %, Enterprise Learning & Skills +1 %, während Virtual Learning um 4 % und English Language Learning um 6 % zurückgingen.
Das Unternehmen startete ein Aktienrückkaufprogramm in Höhe von £350 Mio., von dem bis zum 30. April 2025 Aktien im Wert von £65 Mio. zurückgekauft wurden. Pearson erhielt die vollständige Rückzahlung der staatlichen Beihilfe in Höhe von £0,1 Mrd.
Im Management gab es Veränderungen: Dave Treat übernahm die Leitung der digitalen und technologischen Betriebsbereiche, während CIO Marykay Wells das Unternehmen verließ. Das Unternehmen bestätigt seine mittelfristige Prognose eines mittleren einstelligen Umsatzwachstums (CAGR) und einer freien Cashflow-Konversion von 90-100 %.
- Higher Education segment shows strong 6% growth with successful AI implementation
- £350m share buyback program launched, demonstrating confidence in financial position
- Full £0.1bn State Aid recovery received
- Strong financial position with low leverage and solid liquidity
- Positive enrollment trends with 5% increase in Spring semester
- New strategic partnerships secured with Microsoft and AWS
- Virtual Learning sales declined 4% due to previous partner school losses
- English Language Learning sales decreased 6%
- Overall modest 1% growth in Q1, with stronger performance delayed to H2
- PTE business expected to decline in 2025 due to election impacts on immigration rates
Insights
Pearson posted modest 1% Q1 growth with mixed segment performance, maintained 2025 guidance, and progressed on a £350m share buyback, signaling steady financial execution.
Pearson's Q1 2025 trading update reveals underlying group sales growth of 1%, which aligns with company expectations for their smallest quarter. The performance across business segments shows notable variation, with Higher Education standing out at +6% growth, while Virtual Learning (-4%) and English Language Learning (-6%) declined as anticipated.
The Higher Education segment's strong performance was driven by successful AI tool implementation and monetization of their Channels product, resulting in impressive 22% growth in Inclusive Access and 4% growth in US digital subscriptions. This segment demonstrates how targeted innovation can drive revenue growth.
Pearson's financial position appears solid, evidenced by the £350m share buyback program (with £65m already executed) and the full recovery of the £0.1bn State Aid payment. The company maintains its 2025 guidance with expectations for accelerated growth in H2, projecting low single-digit sales growth in H1 followed by stronger performance later in the year.
Looking beyond 2025, management has reiterated their medium-term targets of mid-single digit underlying sales growth CAGR, sustained margin improvement averaging 40 basis points annually, and strong free cash conversion in the 90-100% range. These metrics suggest continued confidence in their strategic execution despite acknowledging "heightened uncertainties around the global economy."
The segment-specific outlook provides clear explanations for the expected second-half improvements, including new contract timing, academic calendar factors, and enterprise solution partnerships. The 5% enrollment increase in Virtual Learning (Spring semester, same-school basis) is a positive leading indicator despite the segment's overall decline.
Pearson's strategic AI integration is driving Higher Education growth (+6%) while transforming offerings across segments, positioning them well in the evolving education landscape.
Pearson's Q1 results showcase how AI integration is reshaping their educational offerings and driving segment performance. The Higher Education division's 6% growth demonstrates successful implementation of AI-enhanced study tools for students and educators. This segment's digital transition continues to accelerate with 22% growth in Inclusive Access adoption, reflecting the industry shift toward embedded digital course materials.
The company's international expansion strategy leverages AI for efficiency, with 25 AI-translated titles made available for Spring semester courses, enabling faster and more cost-effective global reach. Similarly, the recent launch of the AI-powered Smart Lesson Generator and Digital Language Tutor in their English Language Learning segment shows commitment to technology-enhanced learning despite the segment's temporary 6% decline.
Pearson's enterprise learning strategy is gaining momentum through strategic partnerships with Microsoft and AWS announced in the quarter, alongside new contract wins with the UK Ministry of Defence for apprenticeship courses and T Levels in Health and Science. These developments align with industry trends toward workforce development and employer-aligned credentials.
The leadership reorganization in technology, with CTO Dave Treat assuming expanded responsibilities over the digital and technology operations alongside his innovation role, signals a strategic prioritization of AI integration and cross-segment technology collaboration. This organizational change should accelerate Pearson's ability to scale AI offerings and enhance innovation across business units.
The Clinical Assessment growth within the Assessment & Qualifications segment demonstrates continued demand for specialized educational assessment tools, with further product releases planned later this year. The company's redefined brand launch "to embrace the future of learning" reinforces their strategic positioning at the intersection of education and technology.
Pearson on track to deliver 2025 guidance1 with expected Q1 result and momentum building for the second half
Highlights
- Underlying Group sales up
1% , with growth expected to accelerate in the second half of the year - All business units performing in line with expectations; strong start for Higher Education with underlying sales up
6% - Good progress against our 2025 strategic priorities, including:
- Expanding professional learning capabilities with our new Pearson Skilling Suite (link here)
- Continuing to lead on the application of innovative technologies, with the launch of an AI-powered Smart Lesson Generator (link here)
- New contract wins in Enterprise Learning & Skills; including with
UK Ministry of Defence (link here) - Launch of redefined Pearson brand to embrace the future of learning (link here)
£350m share buyback programme launched and progressing;£0.1b n State Aid recovery received in full
Omar Abbosh, Pearson's Chief Executive, said:
"We continue to make good progress against our strategy, supporting our medium term growth outlook. We are confident of delivering on our expectations for the year given our clear path to achieving stronger growth in the second half, whilst we recognise the heightened uncertainties around the global economy.
Financial and operating performance in our smallest quarter was in line with our plans and we continue to build AI enhanced offerings across the business and make progress on our Enterprise initiatives."
Underlying Group sales growth of
- Assessment & Qualifications sales were up
1% . Pearson VUE declined slightly, with growth expected to be weighted to H2 driven by the timing of new contracts and the test prep business building during the year, supported by the recent launch of the Pearson Skilling Suite programme. Clinical Assessment grew due to the continued traction of our products in the market, with further new product releases planned this year, and digital product growth. US Student Assessment saw a small decline due to changes in programme services and timing of delivery.UK & International Qualifications sales benefitted from International growth. - Virtual Learning sales decreased
4% , in line with guidance, reflecting the impact of previous partner school losses and timing of funding upsides in the prior period. 2024/25 academic year enrolments increased by5% in the Spring semester on a same school basis, with positive retention trends. - Higher Education sales were up
6% benefitting from the continued innovation and roll out of AI study tools for students and educators and the ongoing successful monetisation of the Channels product. In the quarter, there was growth of22% in Inclusive Access and4% in US digital subscriptions. In our International business, 25 AI translated titles were made available for Spring semester courses, expanding the reach of Pearson learning experiences faster and more efficiently. - English Language Learning sales decreased
6% , in line with guidance. Institutional declined due to a strong comparator period in Q1 2024, and we expect performance to improve in Q2 and beyond. Pearson Test of English (PTE) performed well against a tough market backdrop and despite a decline in volumes we grew the business. We continue to lead on the application of innovative technologies with the recent launch of AI-powered Smart Lesson Generator and Digital Language Tutor. - Enterprise Learning & Skills sales were up
1% . Vocational Qualifications delivered a solid performance with new contract wins supporting pipeline growth, including apprenticeship courses with theUK Ministry of Defence and T Levels in Health and Science. Enterprise Solutions announced strategic partnerships with Microsoft and AWS in the quarter as we build momentum in our Enterprise approach and related sales capability.
On track to achieve 2025 guidance and medium term outlook unchanged
- We expect sales growth and adjusted operating profit in line with market expectations1 for 2025. We expect low single-digit sales growth in H1 with stronger growth in H2. We outline our previously issued 2025 guidance later in this release.
- Beyond 2025, Pearson is positioned to deliver a mid-single digit underlying sales growth CAGR, sustained margin improvement that will equate to an average increase of 40 basis points per annum and strong free cash conversion2, in the region of
90% to100% , on average, across the period.
Strong financial position
- Pearson's financial position remains strong, with low leverage and strong liquidity.
- The
£0.1b n previously paid in relation to State Aid was recovered in full during Q1 2025. - In March 2025 we commenced our
£350m share buyback programme, with£65m purchased up to 30th April 2025.
Executive Change
- Dave Treat, Pearson's Chief Technology Officer, has assumed leadership of the company's digital and technology operation alongside his current architectural and innovation responsibilities, effective 7th April 2025. Dave joined Pearson last July and will play a crucial role in scaling Pearson's AI offerings, bolstering our innovation pipeline, and driving collaboration across different business units.
- Marykay Wells, who led the Digital and Technology team as Chief Information Officer, decided to leave Pearson, effective 4th April 2025. We want to thank Marykay for her work on our technology foundations and capabilities.
Financial summary
Sales | Q1 2025 Underlying growth |
Assessment & Qualifications | 1 % |
Virtual Learning | (4) % |
Higher Education | 6 % |
English Language Learning | (6) % |
Enterprise Learning & Skills | 1 % |
Total | 1 % |
Throughout this announcement growth rates are stated on an underlying basis unless otherwise stated. Underlying growth rates exclude |
2025 guidance summary
Underlying
| Group | In line with market expectations1. We expect low single-digit sales growth |
Assessment & | Sales to grow low to mid-single digit. Growth will be H2 weighted with new | |
Virtual Learning | Sales to decline in H1 given the final impact of previous school losses and | |
Higher | Sales growth in 2025 will be higher than in 2024 as we build on the | |
English | Sales growth will moderate given the likely impacts of elections on | |
Enterprise | Sales to grow high single digit with Vocational Qualifications seeing solid | |
Group | Adjusted | In line with market expectations1. |
Interest | Adjusted net finance costs of c. | |
Tax rate | We expect the effective tax rate on adjusted profit before tax to be | |
Cash flow | We expect a free cash flow conversion2 of 90 | |
FX | Every 1c movement in GBP:USD rate equates to approximately | |
12025 consensus on the Pearson website dated 27th January 2025; underlying sales growth | |
2Free cash flow conversion calculated as free cash flow divided by adjusted earnings. |
Contacts
Investor Relations | Alex Shore Steph Crinnegan | +44 (0) 7720 947 853 +44 (0) 7780 555 351 |
Gemma Terry Brennan Matthews | +44 (0) 7841 363 216 +1 (332) 238-8785 | |
Media Teneo Pearson |
Ed Cropley Laura Ewart |
+44 (0) 7492 949 346 +44 (0) 7798 846 805 |
About Pearson
At Pearson, our purpose is simple: to help people realise the life they imagine through learning. We believe that every learning opportunity is a chance for a personal breakthrough. That's why our Pearson employees are committed to creating vibrant and enriching learning experiences designed for real-life impact. We are the world's lifelong learning company, serving customers with digital content, assessments, qualifications, and data. For us, learning isn't just what we do. It's who we are. Visit us at pearsonplc.com.
Notes
Forward looking statements: Except for the historical information contained herein, the matters discussed in this statement include forward-looking statements. In particular, all statements that express forecasts, expectations and projections with respect to future matters, including trends in results of operations, margins, growth rates, overall market trends, the impact of interest or exchange rates, the availability of financing, anticipated cost savings and synergies and the execution of Pearson's strategy, are forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will occur in future. They are based on numerous assumptions regarding Pearson's present and future business strategies and the environment in which it will operate in the future. There are a number of factors which could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including a number of factors outside Pearson's control. These include international, national and local conditions, as well as competition. They also include other risks detailed from time to time in Pearson's publicly-filed documents and you are advised to read, in particular, the risk factors set out in Pearson's latest annual report and accounts, which can be found on its website (www.pearsonplc.com). Any forward-looking statements speak only as of the date they are made, and Pearson gives no undertaking to update forward-looking statements to reflect any changes in its expectations with regard thereto or any changes to events, conditions or circumstances on which any such statement is based. Readers are cautioned not to place undue reliance on such forward-looking statements.
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SOURCE Pearson
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