McGraw Hill (MH) BMO Capital Technology and Innovation Leaders Conference summary

Reach and positioning

• 138-year history; content reaches over 80% of U.S. school districts and higher ed institutions, and roughly 90% of medical schools.

• More than 100 million curriculum licenses worldwide; AI tools have about 7.5 million users.

• Educator trust, regulated classroom content and professional-educator workflows were presented as competitive strengths.

AI products and monetization

• ALEKS uses about 25 questions to identify students’ math skills and guide teachers in grouping learners and assigning activities.

• MCP agentic interface announced about five months before the conference; Copilot and Claude for Teachers integrations announced in the prior two weeks, alongside a UCSF relationship for medical content.

• AI applications are in pilots with dozens of organizations, with paying customers in some cases; potential models include a 5%-10% curriculum uplift and token-based fees for medical content.

• Additional AI tools are intended to increase revenue per curriculum license and expand the addressable market and access to content globally.

Recent performance and visibility

• Higher ed delivered its 41st consecutive quarter of share growth and more than 38% EBITDA margin; margins and share continued to expand against IPO targets.

• K-12 contract structures provided 75% visibility into the second half of the year discussed at the conference; contracts commonly run 5-10 years.

• Higher ed is 84% digital, with 114% net retention and more than 44% EBITDA margin, according to conference remarks.