McGraw Hill (MH) Company presentation summary

Business overview and strategy

• Operates as a global leader in information solutions for education, serving K-12, higher education, and professional markets with a focus on digital transformation and data-driven personalized learning.

• Mission centers on supporting educators and learners worldwide with adaptive, high-quality content and digital solutions.

• Maintains a strong brand with over 135 years of history, leveraging data science and AI to drive innovation and improve learner outcomes.

• Institutional sales model and long-standing customer relationships underpin a highly profitable business with strong cash flow.

• Global reach includes 100+ countries and 80+ languages, with a salesforce of over 1,400 professionals.

Financial performance and growth

• FY2026 revenue reached $2.1B, with 0.1% year-over-year growth and strong market share gains.

• Digital revenue grew 5.5% to $1.4B, and re-occurring revenue increased 5.8% to $1.5B, now representing 73% of total revenue.

• Gross profit margin expanded to 80.9%, and adjusted EBITDA margin rose to 35.4%.

• Net debt/adjusted EBITDA improved to 3.2x, reflecting enhanced balance sheet strength.

• Medium- to long-term targets include 5%+ annual revenue growth, 75%+ digital and re-occurring revenue mix, and 37%+ adjusted EBITDA margin.

Digital transformation and innovation

• Over 100M active licenses and 25.6B learning interactions in FY2026, with digital solutions spanning 500+ subjects.

• AI-powered tools like AI Reader and Scribe enhance engagement and automate content creation, driving improved learning outcomes.

• Integrated digital ecosystem offers adaptive, personalized learning experiences and seamless educator workflows.

• Digital revenue mix has more than doubled since FY2015, now exceeding 68% of total revenue.

• Ongoing investment in product development and technology infrastructure supports scalability and innovation.