McGraw Hill (MH) BofA Securities Leveraged Finance Conference 2025 summary

Digital transformation and AI integration

• Nearly two-thirds of business is now delivered digitally, up from one-third a decade ago, with rapid acceleration in digital content and platform delivery.

• AI and machine learning are being leveraged to enable personalized learning and reduce administrative burdens for educators.

• Ongoing and future investments focus on AI for personalized learning, operational efficiency, and content creation cost reduction.

• Recent product launches include an educator assistant for lesson planning and a writing assistant to support student essay development.

• AI-driven tools are designed to foster productive struggle, guiding students without simply providing answers.

Competitive positioning and market share

• Brand strength, proprietary platforms, and a vast data set from 25 million digital users are key differentiators.

• Market share in higher education has grown from 21% to 30% over the past decade, with recent acceleration driven by platform innovation and strong educator relationships.

• The Evergreen platform eliminates traditional edition cycles, providing real-time content updates and supporting further share gains.

• Inclusive Access sales grew 30% year over year, now representing about half of higher education revenue, with high sell-through and retention rates.

• Expansion in Inclusive Access is ongoing, with a land-and-expand approach across universities and departments.

Product and subject area focus

• Strongest categories include business, economics, computing, and social sciences, with new digital offerings in science and calculus.

• AI tools have enabled a 50% faster time to market and significant cost reductions in content development, exemplified by the rapid launch of a new calculus program.

• Comprehensive offerings in core K-12 subjects and new supplemental products, such as ALEKS Adventure and McGraw Hill Plus, support growth in both core and intervention markets.