Revenue growth remains stagnant at 2.5% in 2025Q4, though structural shifts toward digital delivery have successfully pushed gross margins to 52.9%.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 3.58B | 3.55B | 3.67B | 3.84B | 3.43B | 3.4B | 3.87B | 4.13B | 4.51B | 4.55B | 4.47B | 4.87B | 5.07B | 5.06B | 5.86B | 5.66B | 5.14B | 4.81B | 4.16B | 3.99B | 3.81B | 3.7B | 4.05B | 4.32B | 4.23B | 3.88B | 3.33B | 2.4B | 2.29B | 2.19B |
| Revenue Growth % | 0.7% | -3.32% | -4.35% | 12.05% | 0.91% | -12.2% | -6.3% | -8.51% | -0.86% | 1.88% | -8.33% | -3.85% | 0.2% | -13.7% | 3.51% | 10.18% | 6.84% | 15.59% | 4.31% | 4.78% | 3.03% | -8.7% | -6.3% | 2.03% | 9.18% | 16.38% | 39.12% | 4.44% | 4.9% | 19.43% |
| Cost of Goods Sold | 1.72B | 1.74B | 1.84B | 2.05B | 1.75B | 1.77B | 1.86B | 1.94B | 2.07B | 2.09B | 1.98B | 2.2B | 2.31B | 2.22B | 2.62B | 2.59B | 2.38B | 2.17B | 1.91B | 1.84B | 1.79B | 1.79B | 1.91B | 2.06B | 1.91B | 1.35B | 0 | 1.18B | 1.11B | 0 |
| COGS % of Revenue | 48% | 49.01% | 50.05% | 53.27% | 50.96% | 52.02% | 48.02% | 47.06% | 45.78% | 45.98% | 44.34% | 45.18% | 45.61% | 43.96% | 44.76% | 45.7% | 46.34% | 45.19% | 45.89% | 46.14% | 46.93% | 48.4% | 47.12% | 47.8% | 45.03% | 34.93% | - | 49.1% | 48.59% | - |
| Gross Profit | 1.86B | 1.81B | 1.83B | 1.79B | 1.68B | 1.63B | 2.01B | 2.19B | 2.45B | 2.46B | 2.49B | 2.67B | 2.76B | 2.83B | 3.24B | 3.08B | 2.76B | 2.64B | 2.25B | 2.15B | 2.02B | 1.91B | 2.14B | 2.26B | 2.33B | 2.52B | 3.33B | 1.22B | 1.18B | 2.19B |
| Gross Margin % | 52% | 50.99% | 49.95% | 46.73% | 49.04% | 47.98% | 51.98% | 52.94% | 54.22% | 54.02% | 55.66% | 54.82% | 54.39% | 56.04% | 55.24% | 54.3% | 53.66% | 54.81% | 54.11% | 53.86% | 53.07% | 51.6% | 52.88% | 52.2% | 54.97% | 65.07% | 100% | 50.9% | 51.41% | 100% |
| Gross Profit Growth % | 2.71% | -1.31% | 2.23% | 6.78% | 3.13% | -18.95% | -8.01% | -10.67% | -0.49% | -1.13% | -6.92% | -3.08% | -2.75% | -12.45% | 5.3% | 11.49% | 4.59% | 17.1% | 4.79% | 6.33% | 5.98% | -10.91% | -5.07% | -3.12% | -7.76% | -24.27% | 173.34% | 3.4% | -46.07% | 19.43% |
| Operating Expenses | 1.26B | 1.27B | 1.34B | 1.52B | 1.5B | 1.22B | 1.81B | 1.91B | 2.2B | 2.5B | 2.09B | 2.33B | 2.35B | 2.22B | 2.01B | 2.37B | 2.17B | 1.99B | 1.7B | 1.65B | 1.91B | 1.53B | 3.56B | 3.78B | 2.32B | 2.38B | 3.19B | 1.02B | 855.7M | 2.09B |
| OpEx % of Revenue | 35.34% | 35.75% | 36.39% | 39.68% | 43.7% | 35.88% | 46.68% | 46.19% | 48.79% | 55.03% | 46.87% | 47.7% | 46.42% | 43.8% | 34.32% | 41.9% | 42.16% | 41.26% | 40.85% | 41.33% | 50.03% | 41.45% | 88.07% | 87.41% | 54.68% | 61.46% | 95.59% | 42.59% | 37.32% | 95.69% |
| Selling, General & Admin | 1.3B | 1.31B | 1.36B | 1.45B | 1.39B | 1.45B | 1.69B | 1.87B | 2.17B | 2.24B | 2.17B | 2.37B | 2.28B | 2.29B | 0 | 0 | 0 | 2.08B | 1.8B | 1.8B | 1.59B | 1.88B | 1.96B | 2.12B | 2.38B | 2.09B | 0 | 0 | 0 | 0 |
| SG&A % of Revenue | 36.23% | 36.8% | 37.1% | 37.7% | 40.4% | 42.6% | 43.68% | 45.34% | 48.15% | 49.12% | 48.57% | 48.52% | 44.96% | 45.23% | - | - | - | 43.14% | 43.34% | 45.17% | 41.8% | 50.8% | 48.43% | 49.12% | 56.24% | 54.02% | - | - | - | - |
| Research & Development | 0 | 291M | 284M | 303M | 279M | 280M | 13M | 14M | 14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 8.19% | 7.73% | 7.89% | 8.14% | 8.24% | 0.34% | 0.34% | 0.31% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -32M | -37M | -26M | -227M | -166M | -508M | 103M | 21M | 0 | -60M | -111M | -124M | -102M | -72M | 2.01B | 2.37B | 30M | 25M | 23M | 24M | 14M | 8M | 87M | 80M | -66.07M | 288.56M | 3.19B | 1.02B | 855.7M | 2.09B |
| Operating Income | 618.15M | 541M | 498M | 271M | 183M | 411M | 275M | 553M | 451M | -2.5B | -404M | 398M | 458M | 515M | 1.23B | 743M | 619M | 676M | 574M | 522M | 516M | 404M | 226M | 143M | 13.08M | -148.63M | 318M | 250M | 323.2M | 147.6M |
| Operating Margin % | 17.28% | 15.23% | 13.55% | 7.06% | 5.34% | 12.1% | 7.11% | 13.39% | 9.99% | -54.85% | -9.04% | 8.17% | 9.04% | 10.18% | 20.91% | 13.12% | 12.04% | 14.05% | 13.79% | 13.08% | 13.55% | 10.93% | 5.58% | 3.31% | 0.31% | -3.83% | 9.54% | 10.44% | 14.09% | 6.75% |
| Operating Income Growth % | 14.26% | 8.63% | 83.76% | 48.09% | -55.47% | 49.45% | -50.27% | 22.62% | 118.06% | -518.07% | -201.51% | -13.1% | -11.07% | -57.99% | 65.01% | 20.03% | -8.43% | 17.77% | 9.96% | 1.16% | 27.72% | 78.76% | 58.04% | 993.58% | 108.8% | -146.74% | 27.2% | -22.65% | 118.97% | -37.88% |
| EBITDA | 1.19B | 1.07B | 1.04B | 822M | 701M | 996M | 870M | 1.14B | 1.1B | -1.78B | 796M | 799M | 767M | 832M | 1.48B | 989M | 851M | 872M | 712M | 867M | 817M | 681M | 594M | 557M | 496.21M | 139.93M | 400M | 262M | 323.2M | 210.8M |
| EBITDA Margin % | 33.24% | 30.04% | 28.33% | 21.4% | 20.45% | 29.32% | 22.49% | 27.71% | 24.42% | -39.17% | 17.82% | 16.39% | 15.13% | 16.45% | 25.3% | 17.46% | 16.56% | 18.13% | 17.11% | 21.73% | 21.45% | 18.43% | 14.67% | 12.89% | 11.72% | 3.61% | 12% | 10.94% | 14.09% | 9.64% |
| EBITDA Growth % | 11.45% | 2.5% | 26.64% | 17.26% | -29.62% | 14.48% | -23.95% | 3.81% | 161.81% | -324% | -0.38% | 4.17% | -7.81% | -43.9% | 49.95% | 16.22% | -2.41% | 22.47% | -17.88% | 6.12% | 19.97% | 14.65% | 6.64% | 12.25% | 254.62% | -65.02% | 52.67% | -18.94% | 53.32% | -29.52% |
| D&A (Non-Cash Add-back) | 571M | 526M | 543M | 551M | 518M | 585M | 595M | 591M | 651M | 714M | 1.2B | 401M | 309M | 317M | 257M | 246M | 232M | 196M | 138M | 345M | 301M | 277M | 368M | 414M | 483.14M | 288.56M | 82M | 12M | 0 | 63.2M |
| EBIT | 532M | 589M | 549M | 379M | 233M | 232M | 245M | 496M | 442M | -2.58B | -372M | 336M | 467M | 468M | 1.11B | 779M | 645M | 721M | 574.34M | 521.64M | 516.07M | 381.64M | 225.68M | 194.33M | 12.39M | 139.93M | 148.98M | 199M | 323.2M | 427.6M |
| Net Interest Income | -52.82M | -24M | -11M | -2M | -53M | -55M | -28M | -14M | -82M | -48M | -42M | -63M | -84M | -94M | -56M | -73M | -96M | -91M | -85M | -90M | 0 | -79M | 0 | 0 | 0 | 0 | -145M | 0 | 0 | -29.5M |
| Interest Income | 16.63M | 55M | 50M | 67M | 15M | 24M | 41M | 36M | 23M | 26M | 19M | 18M | 35M | 23M | 26M | 36M | 27M | 8M | 10M | 4M | 0 | 17M | 0 | 0 | 0 | 0 | 39M | 0 | 0 | 41.3M |
| Interest Expense | 69.44M | 79M | 61M | 69M | 68M | 79M | 84M | 91M | 79M | 59M | 46M | 81M | 72M | 65M | 97M | 109M | 98M | 89M | 95M | 94M | 84M | 96M | 80M | 131M | 620.78M | 0 | 184M | 0 | 196.3M | 70.8M |
| Other Income/Expense | -171.16M | -31M | -5M | 51M | -6M | -31M | -43M | -55M | -30M | -60M | -29M | -93M | -76M | -53M | -179M | -73M | -96M | -91M | -129.34M | -97.64M | -84.07M | -78.73M | -73.68M | -241.51M | -472.13M | 433.85M | 330.72M | 379M | -194.6M | 209.2M |
| Pretax Income | 446.99M | 510M | 493M | 322M | 177M | 380M | 232M | 498M | 421M | -2.56B | -433M | 305M | 382M | 434M | 1.16B | 670M | 523M | 585M | 468M | 448M | 446M | 325M | 152M | -25M | -459.05M | 285.22M | 477M | 629M | 128.6M | 356.8M |
| Pretax Margin % | 12.5% | 14.36% | 13.42% | 8.38% | 5.16% | 11.19% | 6% | 12.06% | 9.33% | -56.17% | -9.69% | 6.26% | 7.54% | 8.58% | 19.7% | 11.83% | 10.18% | 12.16% | 11.24% | 11.23% | 11.71% | 8.79% | 3.75% | -0.58% | -10.84% | 7.36% | 14.32% | 26.26% | 5.61% | 16.32% |
| Income Tax | 118.35M | 75M | 113M | 79M | -1M | 50M | -34M | -92M | 13M | -222M | -81M | 63M | 87M | 148M | 199M | 146M | 146M | 172M | 131M | 4M | 116M | 63M | 75M | 64M | -67.45M | 105.78M | 177M | 188M | 88.6M | 108.6M |
| Effective Tax Rate % | 26.48% | 14.71% | 22.92% | 24.53% | -0.56% | 13.16% | -14.66% | -18.47% | 3.09% | 8.68% | 18.71% | 20.66% | 22.77% | 34.1% | 17.23% | 21.79% | 27.92% | 29.4% | 27.99% | 0.89% | 26.01% | 19.38% | 49.34% | -256% | 14.69% | 37.09% | 37.11% | 29.89% | 68.9% | 30.44% |
| Net Income | 327.66M | 434M | 378M | 242M | 177M | 330M | 264M | 588M | 406M | -2.34B | 823M | 471M | 538M | 326M | 957M | 1.3B | 425M | 292M | 284M | 446M | 624M | 262M | 55M | -111M | -391.6M | 179.43M | 294M | 437M | 38.3M | 240.5M |
| Net Margin % | 9.16% | 12.22% | 10.29% | 6.3% | 5.16% | 9.71% | 6.82% | 14.24% | 9% | -51.34% | 18.42% | 9.66% | 10.61% | 6.44% | 16.33% | 22.9% | 8.27% | 6.07% | 6.82% | 11.18% | 16.39% | 7.09% | 1.36% | -2.57% | -9.25% | 4.63% | 8.82% | 18.25% | 1.67% | 11% |
| Net Income Growth % | -24.5% | 14.81% | 56.2% | 36.72% | -46.36% | 25% | -55.1% | 44.83% | 117.37% | -383.96% | 74.73% | -12.45% | 65.03% | -65.94% | -26.21% | 205.18% | 45.55% | 2.82% | -36.32% | -28.53% | 138.17% | 376.36% | 149.55% | 71.66% | -318.25% | -38.97% | -32.72% | 1040.99% | -84.07% | -7.85% |
| Net Income (Continuing) | 328.64M | 435M | 380M | 243M | 178M | 330M | 266M | 590M | 330M | -2.33B | -352M | 191M | 241M | 253M | 885M | 524M | 377M | 413M | 314M | 420M | 316M | 254M | 54.88M | -111.13M | -391.6M | 179.43M | 299.81M | 11M | 40M | 248.2M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.18B | 271M | 244M | 61M | 71M | 0 | 85M | 0 | -27.11M | 25M | -5.66M | 22M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 14.97M | 15M | 14M | 13M | 10M | 9M | 10M | 9M | 8M | 4M | 4M | 6M | 6M | 24M | 19M | 67M | 291M | 274M | 179M | 168M | 169M | 214M | 195M | 192M | 176.19M | 165.37M | 6M | 36M | 3.5M | 3.7M |
| EPS (Diluted) | 0.50 | 0.63 | 0.53 | 0.33 | 0.23 | 0.41 | 0.34 | 0.76 | 0.50 | -2.87 | 1.01 | 0.58 | 0.67 | 0.41 | 2.39 | 1.62 | 0.53 | 0.37 | 0.36 | 0.56 | 0.78 | 0.33 | 0.32 | -0.14 | -0.49 | 0.25 | 0.42 | 0.65 | 0.06 | 0.38 |
| EPS Growth % | -20.63% | 18.87% | 60.61% | 43.48% | -43.9% | 20.59% | -55.26% | 52% | 117.42% | -384.16% | 74.14% | -13.43% | 63.41% | -82.85% | 47.53% | 205.66% | 43.24% | 2.78% | -35.71% | -28.21% | 136.36% | 3.13% | 328.57% | 71.43% | -296% | -40.48% | -35.38% | 999.83% | -84.45% | -9.52% |
| EPS (Basic) | 0.50 | 0.63 | 0.53 | 0.33 | 0.23 | 0.41 | 0.34 | 0.76 | 0.50 | -2.87 | 1.01 | 0.58 | 0.67 | 0.41 | 2.39 | 1.62 | 0.53 | 0.37 | 0.36 | 0.56 | 0.78 | 0.33 | 0.32 | -0.14 | -0.49 | 0.25 | 0.43 | 0.65 | 0.06 | 0.38 |
| Diluted Shares Outstanding | 660.3M | 684M | 717.3M | 742M | 759.1M | 755.4M | 777.5M | 778.7M | 813.7M | 814.8M | 814.1M | 811.9M | 808.9M | 805.6M | 801.9M | 803M | 800.1M | 797.5M | 798.1M | 799.9M | 801.03M | 796.7M | 798.17M | 796.3M | 795.62M | 729.3M | 709.72M | 682.61M | 650.23M | 636.28M |
| Basic Shares Outstanding | 651.3M | 688.6M | 717.27M | 738.1M | 754.1M | 755.4M | 777M | 778.1M | 813.4M | 814.8M | 813.3M | 810.9M | 807.8M | 804.3M | 800.2M | 801.2M | 799.3M | 797M | 796.8M | 798.4M | 800.01M | 795.6M | 798.17M | 796.3M | 795.62M | 729.3M | 699.82M | 675.24M | 650.23M | 636.28M |
| Dividend Payout Ratio | 47.76% | 35.94% | 40.74% | 64.46% | 84.18% | 44.24% | 55.68% | 23.13% | 78.33% | - | 51.4% | 84.29% | 69.14% | 105.52% | 33.23% | 22.51% | 64.24% | 88.01% | 83.8% | 49.33% | 32.85% | 74.43% | 341.09% | - | - | 79.85% | 45.21% | 25.86% | 278.07% | - |
Regulatory and enrollment volatility
According to the provided financial data, Pearson's revenue growth has fluctuated significantly, with the most recent 2025Q4 period showing a modest 2.5% increase, highlighting the ongoing challenge of balancing legacy print declines against the adoption of digital-first offerings like the Pearson+ subscription platform.
The inconsistent revenue trajectory suggests that the company is still navigating a difficult transition period where organic growth is frequently offset by portfolio adjustments and divestments. Investors should monitor whether the recent stabilization in top-line performance represents a durable shift or merely a temporary reprieve from the structural headwinds facing the Higher Education segment.
As reported in financial statements, Pearson has successfully expanded its gross margin to 52.9% by 2025Q4, reflecting a deliberate shift toward digital delivery models that reduce the reliance on traditional, high-cost physical printing and distribution infrastructure across its global assessment and educational segments.
This margin improvement appears to be a direct result of the 'One Pearson' strategy, which prioritizes scalable digital assets over legacy publishing products. While this trend is encouraging, the sustainability of these margins may be tested by competitive pricing pressures in the US Higher Education market and the need for continuous investment in platform security.
Based on the reported figures, Pearson's operating margin of 14.8% in 2025Q4 indicates that while cost-efficiency programs have been implemented, the company has yet to achieve significant operating leverage, as SG&A expenses continue to consume a substantial portion of the gross profit generated each quarter.
The lack of consistent scaling in operating income suggests that the company's fixed-cost base, particularly regarding digital platform maintenance and R&D, remains high relative to revenue growth. This warrants further investigation into whether management can effectively decouple revenue expansion from the current level of overhead required to support its diverse business segments.
Analysis of the income statement reveals that Pearson's net income and EPS have experienced notable volatility, with EPS dropping 35% in 2025Q4, largely due to the impact of non-operating items and the historical tendency for restructuring charges to obscure the underlying profitability of continuing operations.
The fluctuation in net margins suggests that investors should look past headline EPS figures to understand the core earnings power of the business. The presence of periodic restructuring costs and portfolio-related adjustments makes it difficult to assess the true quality of earnings without adjusting for these recurring, yet non-operational, financial events.
Data from the last ten quarters suggests that Pearson's reliance on high-stakes assessment revenue may be vulnerable, as regulatory scrutiny of international student visas and potential shifts in educational policy could abruptly disrupt the primary profit engine that currently sustains the company's overall financial performance.
Short-sellers might focus on the potential for revenue attrition in the Virtual Learning segment as the company exits certain OPM contracts, which could lead to a period of top-line contraction. Furthermore, the market's assumption that Pearson is immune to AI-driven disruption may be overly optimistic if the company fails to maintain its gatekeeper status in professional certification.
Quick answers to the most common questions about buying PSO stock.
For fiscal year 2025, Pearson plc (PSO) reported total revenue of $3.58B. This represents a 63.6% increase compared to $2.19B in 1996.
Pearson plc (PSO) is profitable, generating $327.7M in net income for the fiscal year ending 2025 with a net profit margin of 9.2%.
Pearson plc (PSO) reported an operating income of $618.1M, resulting in an operating profit margin of 17.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Pearson plc (PSO) generated $1.86B in gross profit for the year, representing a gross profit margin of 52.0%. This demonstrates the company's core pricing power and production efficiency.