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MH

McGraw Hill, Inc.

MH

McGraw Hill, Inc. • NYSE
$17.55 ▲ 2.45% (+0.42)
Market Cap $3.35 B
52w High $18.00
52w Low $10.70
Dividend Yield 0%
P/E -32.5
Volume 302.59K
Outstanding Shares 191.00M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2026 $669.187M ▲ $373.585M ▲ $105.284M ▲ 15.733% ▲ $0.55 ▲ $200.97M ▲
Q1-2026 $535.71M ▲ $316.101M ▼ $502K ▲ 0.094% ▲ $0.003 ▲ $184.079M ▲
Q4-2025 $473.262M ▲ $367.097M ▲ $-156.867M ▼ -33.146% ▼ $-0.82 ▼ $158.989M ▲
Q3-2025 $416.493M ▼ $327.081M ▲ $-52.928M ▼ -12.708% ▼ $-0.28 ▼ $101.145M ▼
Q1-2025 $522.954M $321.884M $-9.447M -1.806% $-0.05 $164.66M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2026 $463.187M ▲ $6.045B ▲ $5.251B ▼ $794.592M ▲
Q1-2026 $247.331M ▼ $5.661B ▼ $5.378B ▼ $283.261M ▲
Q4-2025 $389.83M ▼ $5.758B ▼ $5.478B ▼ $280.244M ▼
Q3-2025 $548.984M ▲ $5.968B ▲ $5.531B ▲ $436.47M ▲
Q4-2024 $203.618M $5.808B $5.439B $368.754M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2026 $105.284M ▲ $264.983M ▲ $-47.483M ▼ $-969K ▲ $215.856M ▲ $243.788M ▲
Q1-2026 $502K ▲ $-96.652M ▼ $-39.071M ▲ $-7.384M ▲ $-142.499M ▲ $-135.723M ▼
Q4-2025 $-156.867M ▼ $-41.185M ▼ $-63.965M ▼ $-54.778M ▼ $-159.154M ▼ $-99.15M ▼
Q1-2025 $-9.447M ▲ $-2.895M ▲ $-34.891M ▲ $-8.241M ▲ $-45.599M ▲ $-37.786M ▲
Q4-2024 $-145.856M $-101.185M $-40.667M $-8.435M $-149.892M $-141.852M

Five-Year Company Overview

Income Statement

Income Statement Revenue has been on a gentle but steady upward path over the last few years, with a clear shift toward higher-margin digital products. Profitability has improved meaningfully: the company has moved from operating losses to operating profits, and underlying earnings before interest and non‑cash items have climbed each year. That said, the business is still reporting net losses, which suggests that interest costs, amortization, and other below‑the‑line items are still weighing on the bottom line. The direction of travel is positive—better margins and smaller losses—but the turnaround is not yet fully complete at the net income level.

Balance Sheet

Balance Sheet The balance sheet shows a company carrying a heavy debt load relative to its equity. Total assets have edged down over time, and the equity cushion has shrunk, leaving a fairly thin buffer against shocks. Cash on hand has improved recently but remains modest compared with the overall size of the business and its borrowings. The picture is of a highly leveraged company that has limited room for financial missteps and is sensitive to interest costs and refinancing conditions, even as its operations strengthen.

Cash Flow

Cash Flow Despite accounting losses, the business is generating solid and improving cash from operations. Operating cash flow has grown significantly in the most recent period, and after funding a fairly steady level of investment in product development and technology, free cash flow has turned clearly positive. This suggests the core business is now self‑funding and increasingly capable of supporting its debt and ongoing investments. The key question is whether this stronger cash performance can be sustained through economic cycles and educational budget swings.

Competitive Edge

Competitive Edge McGraw Hill has a deeply entrenched position in education, backed by a long‑standing brand, trusted content, and tight integration with school and university systems. Its digital platforms—particularly Connect and ALEKS—create high switching costs for institutions and instructors, who would face real disruption in changing providers. The company also benefits from a vast trove of learning data, which is hard for new entrants to replicate and strengthens its adaptive learning technology over time. Competition from other large publishers and from low‑cost or open alternatives remains real, but McGraw Hill’s scale, data advantages, and platform “stickiness” give it a durable edge in many of its core markets.

Innovation and R&D

Innovation and R&D The company is leaning heavily into digital innovation, with adaptive learning, AI‑driven personalization, and data analytics at the center of its strategy. Platforms like ALEKS and SmartBook are designed to tailor learning paths for each student, while integrations with learning management systems make McGraw Hill’s tools part of the everyday workflow for educators. Recent acquisitions in differentiated instruction, career and technical education, and healthcare education broaden its reach into faster‑growing and higher‑value segments. The opportunity is significant, but so is the execution challenge: the company needs to keep its technology current, integrate acquisitions smoothly, and prove that its AI‑focused investments translate into better outcomes and durable revenue growth.

Summary

McGraw Hill is a mature education company in the middle of a large digital transformation. On the positive side, revenue is slowly rising, margins have improved, operating profits have emerged, and cash generation has strengthened, all supported by a strong competitive moat in digital courseware and adaptive learning. On the risk side, the company still posts net losses, carries substantial debt on a relatively thin equity base, and faces ongoing competitive and technological pressures. As it comes to public markets via a SPAC route, the key issues to watch are the sustainability of its improved cash flows, the pace at which net losses narrow, and its ability to manage leverage while continuing to invest in innovation and growth areas such as AI‑driven learning and workforce‑oriented education.

NEWS

November 17, 2025 · 8:53 AM UTC

New GenAI Assistants Add Personalized Experiences and Support to McGraw Hill's K-12 Programs

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November 14, 2025 · 7:30 AM UTC

McGraw Hill Announces Participation in Upcoming Investor Conferences

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November 12, 2025 · 7:20 AM UTC

McGraw Hill, Inc. Reports Fiscal Second Quarter 2026 Results

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November 3, 2025 · 9:01 AM UTC

Nominations Open for the 2026 McGraw Hill Pathfinder Award Honoring Innovative Educators

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October 22, 2025 · 8:57 AM UTC

McGraw Hill Introduces New AI-Powered Tools within Medical Education Solutions

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