Logo

PSO

Pearson plc

PSO

Pearson plc • NYSE
$13.17 ▲ 1.00% (+0.13)
Market Cap $8.74 B
52w High $17.90
52w Low $12.85
Dividend Yield 0.30%
P/E 15.31
Volume 371.65K
Outstanding Shares 663.52M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2025 $1.722B ▼ $639M ▲ $164M ▼ 9.524% ▼ $0.25 ▼ $294M ▼
Q4-2024 $1.798B ▲ $610M ▼ $277M ▲ 15.406% ▲ $0.4 ▲ $819M ▲
Q2-2024 $1.754B ▼ $660M ▲ $157M ▼ 8.951% ▼ $0.23 ▼ $296M ▼
Q4-2023 $1.795B ▼ $649M ▼ $192M ▲ 10.696% ▲ $0.28 ▲ $576M ▲
Q2-2023 $1.879B $688M $186M 9.899% $0.26 $540M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2025 $347M ▼ $6.225B ▼ $2.62B ▼ $3.589B ▼
Q4-2024 $543M ▲ $6.892B ▲ $2.839B ▼ $4.038B ▲
Q2-2024 $332M ▲ $6.709B ▼ $2.898B ▲ $3.796B ▼
Q4-2023 $312M ▼ $6.727B ▼ $2.739B ▲ $3.974B ▼
Q2-2023 $355M $6.882B $2.694B $4.175B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2025 $164M ▼ $192M ▼ $-24M ▲ $-329M ▼ $347M ▲ $178M ▼
Q4-2024 $353M ▲ $552M ▲ $-50M ▲ $-277M ▼ $211M ▲ $446M ▲
Q2-2024 $157M ▼ $75M ▼ $-81M ▲ $36M ▲ $20M ▲ $57M ▼
Q4-2023 $192M ▲ $822M ▲ $-367M ▼ $-499M ▼ $-348M ▼ $459M ▲
Q2-2023 $186M $23M $-254M $49M $86M $-40M

Five-Year Company Overview

Income Statement

Income Statement Pearson’s profits have been moving in the right direction even though sales have been a bit soft recently. Revenue grew after the pandemic but has edged down over the last couple of years, suggesting a business that is stable rather than strongly expanding. The more encouraging sign is margin improvement: operating profit and net income have risen clearly over time, pointing to better cost control, a richer digital mix, and fewer restructuring drags. Earnings per share have followed the same upward path, showing that the company is turning a largely flat top line into steadily better bottom-line performance. The main risk is that if revenue continues to stagnate or slip, there is only so much more efficiency the company can squeeze out before it starts to bite into growth initiatives.

Balance Sheet

Balance Sheet Pearson’s balance sheet looks solid and gradually de-risking. Total assets are fairly stable, indicating no aggressive balance-sheet expansion. Debt levels have been gently reduced over several years, easing financial leverage and interest burden. Equity has held up well, suggesting the company has not been eroding its capital base to generate earnings. Cash on hand is reasonable but not excessive, having come down from earlier, more conservative levels, then ticking back up more recently. Overall, the company appears financially sound, with a moderate and improving leverage profile, but not sitting on a huge cash cushion for large, risky bets.

Cash Flow

Cash Flow Cash generation has improved meaningfully. Operating cash flow has strengthened over time, and free cash flow has grown from modest levels to a healthier, more consistent stream. Capital spending is relatively contained, which helps free cash flow, though it also means Pearson must rely more on software, partnerships, and internal development than on large physical investments. The trend suggests the business is better at converting earnings into cash, providing more flexibility for dividends, buybacks, and continued digital investment. The key watchpoint is whether this stronger cash profile can be sustained if revenue growth remains subdued or if the company needs to step up investment in new technologies.

Competitive Edge

Competitive Edge Pearson sits in a strong but evolving position. Its long history in education gives it three major advantages: a very large and trusted content library, deep relationships with schools, universities, and governments, and a well-known global brand. These create high switching costs and give Pearson a powerful distribution base for its digital offerings. Its digital platforms benefit from network effects: the more students and instructors use them, the better the data and the more personalized the learning experience. However, competition is intense. Traditional rivals, new ed-tech players, low-cost or open educational resources, and changing institutional budgets all put pressure on pricing and adoption. Pearson’s moat is real but must be actively maintained as education continues moving online and toward more flexible, skills-based learning.

Innovation and R&D

Innovation and R&D Pearson is clearly leaning into AI and digital platforms as its main innovation engine. Products like Pearson+, MyLab, and Mastering are shifting the business away from static textbooks toward interactive, adaptive learning experiences. The company is embedding AI tutors, personalized study plans, and tools for instructors directly into its platforms, aiming to make learning more engaging and outcomes-focused. Partnerships with major tech firms like Google, Microsoft, and AWS should accelerate this shift by providing access to advanced AI models and cloud infrastructure. Beyond academic education, Pearson is pushing into lifelong learning and workforce skills through testing, certifications, and enterprise solutions, which could open more durable, recurring revenue streams. The main risks are execution and adoption: integrating AI in a way that regulators, institutions, and learners trust, while managing the decline of legacy print products and navigating areas like online program management that are under strategic review.

Summary

Pearson looks like a legacy education company that is steadily cleaning up its finances while leaning hard into a digital and AI-driven future. Profitability and cash flow have improved even as revenue has been more sideways, helped by cost discipline and a more digital mix. The balance sheet is sound, with gradually lower debt and stable equity, giving the company room to invest without appearing stretched. Strategically, Pearson’s deep content library, long-standing institutional relationships, and strong brand form a real competitive base for its AI-enabled platforms and subscription offerings. At the same time, the shift from textbooks to digital and from degrees to lifelong skills remains a work in progress and brings meaningful execution and competitive risk. Key things to watch include sustained cash generation, the growth of digital subscriptions and workforce solutions, and how effectively Pearson turns its AI partnerships and technology roadmap into durable, differentiated learning experiences.

NEWS

November 20, 2025 · 2:33 PM UTC

CORRECTING and REPLACING Dickey's Teams Up with Drew Pearson for Cowboy Alumni Event

Read more

November 19, 2025 · 1:07 PM UTC

Dickey's Teams Up with Drew Pearson for Cowboy Alumni Event

Read more

November 19, 2025 · 9:00 AM UTC

Fintech Welcomes Joel Pearson as CRO to Lead Revenue Strategy and Market Growth

Read more

November 18, 2025 · 3:05 PM UTC

Pearson Launches AI-Powered Communication Coach to Transform Everyday Work into Continuous Learning

Read more

November 9, 2025 · 6:06 AM UTC

Real Estate Expert Marilyn Pearson Adams Shares Three Things You Should Know Before Visiting Spring Hill, FL in HelloNation

Read more