Sanoma Corporation, Full-Year 2025 Result: Improved adjusted operating profit and free cash flow driven by Learning

Sanoma Corporation, Stock Exchange Release, 11 February 2026 at 8:30 a.m. EET

Sanoma Corporation, Full-Year 2025 Result: Improved adjusted operating profit and free cash flow driven by Learning

This release is a summary of Sanoma’s Full-Year 2025 Result. The complete report is attached to this release and is also available at sanoma.com/en/investors.

Q4 2025

Net sales amounted to EUR 225.8 million (2024: 241.5) with lower net sales in both businesses. In Learning, net sales were lower in Spain ahead of the curriculum renewal upcoming in 2026 and due to phasing between quarters. In Media Finland, the decline in advertising sales was partially offset by continued growth in digital subscription sales. The Group’s comparable net sales development was -7% (2024: -2%).

• Adjusted operating profit amounted to EUR -27.4 million (2024: -27.3). Earnings were relatively stable in both Learning and Media Finland.
• Operating profit amounted to EUR -50.9 million (2024: -46.9). Items affecting comparability (IACs) increased to EUR -15.7 million (2024: -10.6) and mainly consisted of restructuring expenses related to a number of strategic development projects across the Group. Purchase price allocation adjustments and amortisations (PPAs) amounted to EUR 7.8 million (2024: 9.0).
• Adjusted EPS was stable at EUR -0.20 (2024: -0.21).
• EPS was EUR -0.27 (2024: -0.26).
• On 25 November 2025, Sanoma updated its financial targets and aims to deliver high single-digit growth in the Group’s adjusted operating profit in 2026–2030. The Group’s leverage target was adjusted to below 2.5 from the earlier below 3.0. Sanoma also adjusted the wording of selected Alternative Performance Measures. The updated terminology is used in this report.
• On 5 December 2025, Sanoma signed a EUR 220 million syndicated term loan facility.

FY 2025

• Net sales amounted to EUR 1,302.5 million (2024: 1,344.8). In Learning, growth in learning content sales partially mitigated the impact of planned discontinuation of low value distribution contracts in the Netherlands. In Media Finland, lower advertising sales were partially offset by growth in digital subscriptions. The Group’s comparable net sales development was -3% (2024: -2%), being -3% in Learning and -4% in Media Finland.
• Adjusted operating profit improved to EUR 188.2 million (2024: 180.0). Earnings improved in Learning driven by the higher share of learning content sales and a more digital sales mix. In Media Finland, earnings grew slightly with the support of growing digital subscription sales and lower costs.
• Operating profit decreased to EUR 48.6 million (2024: 81.8). In Learning, the decision to not participate in multi-year distribution tenders in the Dutch market led to a EUR 48 million impairment. In Media Finland, impairments and restructuring expenses related to the closure of the printing plant in Tampere amounted to EUR 32 million. As a result, the Group’s IACs increased to EUR -106.3 million (2024: -61.5). PPAs amounted to EUR 33.3 million (2024: 36.7).
• Adjusted EPS improved to EUR 0.57 (2024: 0.46).
• EPS was EUR 0.06 (2024: 0.19).
• Free cash flow improved to EUR 159.7 million (2024: 145.3). The improvement was driven by working capital movements, lower financial expenses and higher earnings.
• Net debt/Adj. EBITDA improved to 1.8 (2024: 2.2), being within the updated target level of below 2.5.
• On 29 April 2025, the Annual General Meeting decided that a dividend of EUR 0.39 per share (2024: 0.37) shall be paid for 2024 in three equal instalments. The first instalment of EUR 0.13 was paid on 9 May, the second instalment of EUR 0.13 on 23 September and the third instalment of EUR 0.13 on 11 November.
• The Board proposes a dividend of EUR 0.42 per share for the year 2025 (2024: 0.39), corresponding to 43% of the free cash flow. The dividend will be paid in three equal instalments in May, September and November.

Outlook for 2026

In 2026, Sanoma expects that the Group’s net sales will be EUR 1.29‒1.34 billion (2025: 1.30) and the Group’s adjusted operating profit will be EUR 205−225 million (2025: 188).

The outlook is based on the following assumptions:

• Demand for learning content will increase, driven by curriculum renewals in some of the Group’s operating markets.
• The advertising market in Finland will be relatively stable.

President and CEO Rob Kolkman:

• Good progress in our key strategic focus areas for 2024–2026
• Board proposes an increasing dividend of EUR 0.42, up by 8% from 2024
• Outlook for 2026 reflects a step change in adjusted operating profit growth driven by Learning
• Solid net sales growth path in 2026–2030, expected to deliver high single-digit organic earnings growth – impact of potential future M&A comes on top

”In 2025, we continued to make good progress in our strategic focus areas of increasing the profitability of Learning and Media Finland and deleveraging the Group’s balance sheet. We also continued to build on the long-term strengths of both businesses. As a result, our adjusted operating profit increased and our free cash flow improved by 10% from the previous year. At the end of 2025, we updated our financial targets. The updated targets reflect our accelerated net sales growth path in 2026–2030, expected to deliver high single-digit organic growth in adjusted operating profit (measured annually using a 3-year CAGR) during the same period.

AI is an important element in enhancing our growth. It has become an increasingly integral part of the way we work in both of our businesses, always with a strong emphasis on its responsible use and human oversight. Across Learning, we see great opportunities for AI to enhance the way we support teachers, students and parents through increasingly personalised learning pathways and resources. A recent example of this is our AI Teacher Assistant that saves teachers’ time by offering support in exercise creation, lesson planning and grading, and that will be rolled out across our operating markets in 2026. In Media Finland, we use AI to increase the depth and breadth of our unique content and introduce smarter, intuitive, interactive, and more personalised products. In news media, we have built our capability to produce a high‑quality stream of basic news in‑house. This enables us to direct more resources to journalism that best serves our readers.

Learning’s adjusted operating profit and margin improved, while net sales declined due to the planned discontinuation of low-value distribution contracts in the Netherlands. In a year with no major curriculum renewals, our total learning content sales increased slightly driven by new product launches and market share gains in the Dutch market. Earnings were further supported by a more digital sales mix and improved cost base from Program Solar, which is now successfully completed and creating significant operating leverage. Together with our increased scale and growth outlook, Learning’s adjusted operating profit margin is expected to improve to clearly above 23% in 2026.

In Media Finland, growth in digital subscription sales continued throughout the year. It was driven by Ruutu+, with its attractive entertainment and sports content, while digital news media subscriptions also developed well. Impacted by a soft market and ending the reselling of a third-party TV channel advertising, our advertising sales decreased. With continued effective cost containment, Media Finland’s adjusted operating profit and margin improved.

The deleveraging of our balance sheet continued in 2025. Our net debt decreased and leverage (net debt / adj. EBITDA) improved to 1.8 (2024: 2.2), being well within the updated target of < 2.5. We also refinanced a key part of our external loan portfolio in December and prolonged the average maturity of our external loans.

The Board proposes a dividend of EUR 0.42 per share (2024: 0.39), corresponding to 43% of the 2025 free cash flow. This proposal reflects our ability to deliver increasing free cash flow and balances the capital use between the dividend, which continues to be an important part of our equity story, continued deleveraging of the balance sheet and investing in future growth. We remain committed to paying an increasing dividend, equal to 40–60% of our annual free cash flow. From 2026 onwards, we are amending the definition of free cash flow to include payments of lease liabilities. This change will enable free cash flow to better reflect the amount of cash available for profit distribution. The Board makes its dividend proposal in euros per share. The updated free cash flow definition does not change this consideration; however, it will be reflected as a higher payout ratio. With the updated free cash flow definition, the payout ratio of the dividend for 2025 is 53%.

We have a unique sustainability profile as learning and media have a positive impact on the lives of millions of people every day. To support the purpose of our businesses, we have set ambitious targets for sustainability aspects in which we have the biggest impact, and we performed well against these targets in 2025. We have enhanced our employee engagement measurement with standardised, benchmark-enabled questions, establishing a new baseline for future comparison and strengthening the quality of insight. Our engagement score of 62% is close to the European benchmark of 65%. Our climate work was awarded by a status on the CDP Climate A list in December 2025 as the only learning company globally. This recognition by CDP honours our ambitious climate targets as well as robust actions and climate risk management.

Our Outlook for 2026 indicates a significantly improving adjusted operating profit compared to 2025. We expect the demand for learning content to increase, driven by curriculum renewals in some of our operating markets, and the adjusted operating profit to grow strongly, with the corresponding margin improving to clearly above 23% as indicated earlier. In Media Finland, we expect the digital transformation to continue, with relatively stable net sales and adjusted operating profit.

Looking ahead, the accelerated growth outlook of both Learning and Media Finland is expected to deliver high single-digit organic growth in adjusted operating profit (measured annually using a 3-year CAGR) for the Group in the coming years. In Learning, we have multiple levers to drive growth and value-creation: continued organic growth with our best-in-class learning content, opportunities in shaping the evolution of K12 education towards personalised learning, embracing AI, and value-creating and strategically focused M&A. In Media Finland, we are continuing and accelerating our successful digital transformation. In addition, growth in high margin advertising sales is expected following the opening of the gambling market mid-2027.

I would like to extend my warmest thanks to all Sanoma employees for their excellent work in delivering these good results, and for their strong commitment and passion in supporting our customers. We are in a great position to leverage the exciting growth opportunities across our business, deliver increasing adjusted operating profit and free cash flow and create value for all our stakeholders. I am looking forward to a successful 2026.”

Key indicators

1) Excluding IACs
2) Excluding IACs and purchase price allocation adjustments and amortisations (PPAs)
3) Advances received included in the formula of equity ratio were EUR 178.5 million in FY 2025 (2024: 162.5).
4) The adjusted EBITDA used in this ratio is the12-month rolling adjusted EBITDA, where acquired operations are included and divested operations excluded, and where programming rights and prepublication rights have been raised above EBITDA on the basis of cash flow.
5) 2025 is a proposal of the Board of Directors to the AGM.

The IFRS-based subtotal EBIT has been changed to operating profit with no change in the definition.

Dividend proposal

On 31 December 2025, Sanoma Corporation’s distributable funds were EUR 309 million, of which profit for the year made up EUR 36 million. Including the fund for non-restricted equity of EUR 210 million, the distributable funds amounted to EUR 519 million.

The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.42 per share shall be paid for the year 2025 in three equal instalments:

• The first instalment of EUR 0.14 per share shall be paid to a shareholder who is registered in the shareholders’ register of the company maintained by Euroclear Finland Ltd on the dividend record date 11 May 2026. The payment date for this instalment is 19 May 2026.
• The second instalment of EUR 0.14 per share shall be paid to a shareholder who is registered in the shareholders’ register of the company maintained by Euroclear Finland Ltd on the dividend record date 15 September 2026. The payment date for this instalment is 22 September 2026.
• The third instalment of EUR 0.14 per share shall be paid to a shareholder who is registered in the shareholders’ register of the company maintained by Euroclear Finland Ltd on the dividend record date 3 November 2026. The payment date for this instalment is 10 November 2026.

The amount left in equity shall be EUR 450 million.

According to its dividend policy, Sanoma aims to pay an increasing dividend, equal to 40–60% of the annual free cash flow. When proposing a dividend to the AGM, the Board of Directors looks at the general macro-economic environment, Sanoma’s current and target capital structure, Sanoma’s future business plans and investment needs, as well as both the previous year’s cash flows and expected future cash flows affecting capital structure.

Analyst and investor conference

An analyst and investor conference will be held in English by the President and CEO Rob Kolkman and CFO Alex Green today at 11:00 a.m. EET at Sanomatalo, Flik Studio Eliel, 1st floor, Töölönlahdenkatu 2, Helsinki.

The conference can be followed as a live webcast at https://sanoma.events.inderes.com/q4-2025.

Management presentation is followed by a Q&A session. Questions can be placed through the webcast chat function or by phone. To ask questions by phone, the participant is required to register at https://events.inderes.com/sanoma/q4-2025/dial-in. After the registration you will receive the phone number and conference ID to access the conference. If you wish to ask a question, please press *5 on your telephone keypad to enter the queue.

An on-demand replay of the webcast will be available shortly after the conference at www.sanoma.com/en/investors.

Interview opportunities for media by Teams or by phone are available after the conference. Media representatives are asked to book interviews via email at ir@sanoma.com.

Additional information

Kaisa Uurasmaa, Head of Investor Relations and Sustainability, tel. +358 40 560 5601

Sanoma

Sanoma is an innovative and agile learning and media company impacting the lives of millions every day. Across Europe, we support teachers and students with best-in-class learning content and solutions to help all students reach their potential. We combine pedagogical expertise with quality content and innovative educational technologies to help shape the future of K12 education.

Our Finnish media provide independent journalism and engaging entertainment also for generations to come. Our unique cross-media position offers the widest reach and tailored marketing solutions for our business partners.
We have a clear organic growth pathway in K12 education and aim to accelerate growth through value-creating M&A. Across our business, we are responsibly harnessing the opportunities of AI, always emphasising human oversight. Our Sustainability Strategy is designed to maximise our positive ‘brainprint’ on society and to minimise our environmental footprint. We are committed to the UN Sustainable Development Goals and signatory to the UN Global Compact.

Today, we operate across Europe and employ close to 5,000 professionals. In 2025, our net sales amounted to approx. 1.3bn€ and our adjusted operating profit margin was 14.4%. Sanoma shares are listed on Nasdaq Helsinki. More information is available at sanoma.com.

Attachment

• Full-Year 2025 Result