McGraw Hill, Inc. (MH)

Key figures

The last twelve months reported, with the latest price and balance sheet.

Revenue, last twelve months

$2.1B

Revenue growth

0.1%

Net income, last twelve months

$92.7M

Earnings per share

$0.50

Gross margin

81.7%

Operating margin

13.9%

Net margin

4.4%

Free cash flow

$335.9M

Return on equity

11.8%

Market value

$2.6B

Price to earnings

27.4x

Cash

$193.6M

Debt

$2.6B

Debt to equity

3.27

Shares outstanding

191.3M

Financial statements

Revenue, profit and cash flow by fiscal year, each year linked to its annual report.

By quarter

What the company said with its results

From the fiscal first quarter 2027 results, filed 13 August 2026.

• Revenue rose 2.6% to $549.9 million. Total revenue was $549.9 million, up from $535.7 million a year earlier, with Higher Education and K-12 named as the drivers.
• Re-occurring revenue reached 77% of total. Re-occurring revenue was $425.6 million, up from $387.6 million, and 77% of total revenue. Transactional revenue was $124.3 million.
• Digital revenue grew 8.8%. Digital revenue was $353.5 million, up from $325.0 million. The company links this to the strength of its technology-based solutions embedded in learning.
• Net income rose to $57.9 million. GAAP net income was $57.9 million, or $0.30 diluted EPS, against $0.5 million a year earlier. Adjusted diluted EPS was $0.59.
• Higher Education revenue rose 9.6%. Higher Education revenue was $199.8 million, with re-occurring revenue of $182.1 million up 14.1%. Management cited market share, price realization and enrollment.
• Higher Education share gains continue. Management cited about five points of share gained over four fiscal years from traditional competitors, according to MPI.
• K-12 revenue edged up 1.3%. K-12 revenue was $274.4 million, with re-occurring revenue of $196.6 million up 7.1%. Management cited multi-year contracts and ELA and Science capture rates.
• State approvals for ELA and Math. California ELA programs were recommended for approval in July, ahead of the state's vendor list later in 2026. Florida approved the Math program in August, ahead of its fiscal 2028 adoption.
• Global Professional re-occurring growth. Global Professional re-occurring revenue grew 6.3% on medical solutions wins, including AI-driven Clinical Reasoning across osteopathic, physician assistant and nurse practitioner programs.
• AI learning tools reached 7.5 million users. Management said it served more than 7.5 million active users across eight live AI learning tools.
• AI Reader interactions accelerated. AI Reader generated 63 million learning interactions across about 2.6 million students since inception through July 2026, up from about 47 million and 2.2 million in fiscal 2026.
• Evergreen model expanded in Higher Education. Management said the Evergreen delivery model is improving customer experience and retention in Higher Education, and anchors the renewal base.
• Gross margin rose 290 basis points. GAAP gross profit was $439.2 million, a 79.9% margin. Cost of sales fell to $110.7 million from $123.4 million.
• Adjusted EBITDA margin expanded. Adjusted EBITDA was $207.0 million, up from $191.4 million, at a 37.7% margin against 35.7% a year earlier.

Revenue by segment

As the company reports it in the segment note of its annual report.

By business, FY2026

By region, FY2026

Company events

The newest 8-K filings of 14 held.

Every filing

The newest filings with the SEC of 62 held.

Insider trades

Form 4 trades by officers, directors and 10% owners, last 12 months.

Large holders

Schedule 13D and 13G filings by holders of more than 5% of the voting shares.

Short interest

Shares sold short and not yet bought back, on each FINRA settlement date.

Funds that hold it

From each fund's latest Form 13F.

128 funds held it at 30 Jun 2026: 56 added and 37 trimmed in the quarter. The largest:

Peers

Companies in the same industry.

• Thomson Reuters Corporation (TRI): revenue $7.5B, market value $51.7B

What the company does

McGraw Hill provides education solutions for K-12, higher education and professional learning markets, in both digital and print form. The company says it has existed for more than 137 years and has over 100 million active student and educator curriculum licenses worldwide. It sells in more than 100 countries and in more than 80 languages, and its common stock is listed on the NYSE under the symbol MH.

How the business is organised

Global Professional made up approximately 7% and International approximately 9%. K-12 sells to school districts in the United States. Higher Education serves colleges and universities, mainly through distributors and retailers. Global Professional covers medical and engineering content. International sells K-12 and higher education products outside the United States, and these products mostly come from or are adapted from its United States solutions.

What it sells

In K-12, the company provides core, supplemental and intervention curricula, plus Advanced Placement and elective courses. Its Core curriculum runs on ConnectEd, which has supported over 34.2 million lifetime learners. ALEKS, an AI-based math and science product, is used in both K-12 and higher education. McGraw Hill Plus connects data from several digital products into one view of each learner and is in market in 12 states.

In Higher Education, the main products are Connect, ALEKS, Sharpen, SIMnet and print textbooks. Connect has supported over 37.7 million lifetime learners and is offered for most core freshman and sophomore level courses in the United States. Content is organised into three disciplines: Business, Economics and Computing; Science, Engineering and Math; and Humanities, Social Science and Languages.

Global Professional sells subscription products such as AccessMedicine, along with eBooks, print titles, Boards and Beyond, First Aid Forward and Clinical Reasoning. Its publications include Harrison's Principles of Internal Medicine and Perry's Chemical Engineers' Handbook.

How it makes money

Re-occurring Revenue, which comes from digital subscriptions and multi-year print products, was approximately 73% of total revenue in the year. Transactional Revenue was approximately 27%.

K-12 customers sign multi-year contracts, typically five to eight years. State purchasing cycles vary, and California, Florida and Texas have an outsized effect on sales in the years they buy.

In Higher Education, instructors choose the course materials and students then buy them. The company sells through a small number of third-party distributors and retailers and also direct to students through its own e-commerce platform. Approximately 68% of Higher Education revenue came through the Evergreen delivery model, which sends regularly updated digital content into existing courses. Inclusive Access provides course materials on the first day of class.

Revenue follows the academic calendar. The company recorded approximately 25%, 32%, 21% and 22% of revenue in the first, second, third and fourth fiscal quarters.

Who it buys from and sells to

It had approximately 26.7 million paid digital users. It had approximately 1,500 sales professionals worldwide as of 31 March 2026.

International operates in five regions: EMEA, Asia Pacific, India, Latin America and Canada. Mexico is its largest market in Latin America. Approximately 57% of international sales were in currencies other than the United States dollar.

How it competes

The company says it competes on content quality, the effectiveness of its digital products, implementation support, brand, author reputation and customers' history with its products, and to a lesser extent on price. Named competitors include AMBOSS, Amplify, Cengage, Curriculum Associates, Elsevier, Houghton Mifflin Harcourt, Macmillan Learning, Pearson, RELX, Savvas and Wolters Kluwer. It also competes with providers of open educational resources, which may offer similar digital products at lower cost.

The company contracts with hundreds of authors and subject matter experts. Its digital platforms are built by a team of approximately 300 software engineers. It recorded more than 25.6 billion learning interactions across its products, and says it uses this data to improve its AI models.

Content protection and regulation

The company relies on copyrights, trademarks, patents and trade secrets. It has used an outside firm since 2007 to search for illegally posted titles. It is subject to education and privacy rules, including the Elementary and Secondary Education Act, FERPA, COPPA and GDPR.

Its people

McGraw Hill had approximately 4,400 permanent employees in 35 countries. Approximately 250 employees, 6% of the workforce, in Italy, Mexico and Spain are covered by collective bargaining agreements.

*From McGraw Hill's annual report on Form 10-K for the year ended 31 March 2026. [The filing](https://www.sec.gov/Archives/edgar/data/1951070/000195107026000022/mh-20260331.htm)*

From the company's 10-K.