McGraw Hill, Inc. Exceeds Fiscal Year 2026 Guidance Driven by Re-Occurring Revenue Growth and Delivers Positive Net Income (Form 8-K)

McGraw Hill, Inc. Exceeds Fiscal Year 2026 Guidance Driven by Re-Occurring Revenue Growth and Delivers Positive Net Income

Fiscal Year 2027 Positioned for Revenue Growth and Accelerating Profitability

COLUMBUS, Ohio-(BUSINESS WIRE)- June 11, 2026-McGraw Hill, Inc. (NYSE: MH) ("McGraw Hill" or the "Company"), a leading global provider of education solutions for preK-12, higher education and professional learning, today announced financial results for the fiscal fourth quarter 2026 and year-end March 31, 2026.

Key Fiscal Year 2026 Financial Highlights

•Total revenue of $2,102.8 million, an increase of 0.1% year-over-year, driven by strong Higher Education execution, offsetting the anticipated smaller K-12 market opportunity driven by procurement cycles.

•Re-occurring revenue of $1,541.0 million, an increase of 5.8% year-over-year, representing more than 73% of total revenue.

•Digital revenue of $1,433.6 million, an increase of 5.5% year-over-year amid accelerating student and instructor engagement.

•Remaining performance obligation (RPO) of $1,671.4 million as of March 31, 2026 demonstrating predictability and visibility into future revenue growth.

•GAAP gross profit of $1,701.6 million, representing a GAAP gross profit margin of 80.9%, an increase of over 100 basis points versus prior year.

•GAAP net income (loss) of $35.3 million, compared to $(85.8) million in the prior-year period.

•Adjusted EBITDA(1) of $744.3 million, representing an Adjusted EBITDA margin(1) of 35.4%, an increase of nearly 80 basis points versus prior year.

•Reduction of gross debt by $645.6 million, including $50.0 million in the fiscal fourth quarter, at the beginning of the seasonal cash trough.

"McGraw Hill's growth in fiscal year 2026 underscores the strength of our strategy, the speed of our innovation and the depth of trust that we have from the education community," said Philip Moyer, President and Chief Executive Officer of the Company and a member of the Company's Board of Directors. "This past year, we released more new curriculum offerings and learning tools than during any time in our history, reached record engagement levels, and achieved a new high-water mark for customer satisfaction. We have achieved over 7.5 million users of our new AI personalized learning tools and now have an existing base of more than 100 million active student and educator curriculum licenses in over 100 countries. With over 25 billion learning interactions and 190 terabytes of data across our platforms, we are delivering a new generation of precision learning at a global scale that few can match. Equally exciting, we are preparing to pilot our new Agentic AI version of our precision education model, and we intend to be a leader in creating a vibrant 'cloud' knowledge offering in the world of education and learning. Our momentum in fiscal year 2026 positions us well to accelerate growth and expand margins in fiscal year 2027 and beyond."

"Fiscal year 2026 was a transformative year for McGraw Hill-marked by our initial public offering and the growth of our Company, notwithstanding a smaller K-12 market opportunity, expanding profitability and significant debt reduction," said Bob Sallmann, McGraw Hill's Executive Vice President and Chief Financial Officer. "Our disciplined execution delivered results above guidance across revenue, re-occurring revenue and Adjusted EBITDA while strengthening our balance sheet and cash generation. With $646 million in gross debt reduction, we have increased our financial flexibility and expanded margins while simultaneously investing in the business to position the Company for sustained long-term growth. As we enter fiscal year 2027, our focus remains on growth acceleration, operating efficiency and employing a balanced approach to capital allocation as we continue to reduce gross debt, grow the business and strengthen returns."

Fiscal Year 2026 Strategic Highlights

•Served over 100 million active student and educator curriculum licenses across more than 100 countries.

•Supported tens of thousands of course titles across more than 500 subjects.

•Captured approximately 25.6 billion learning interactions(2), generating proprietary insights that power precision learning and real-time personalized instruction.

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•Over 7.5 million users of AI-enabled learning tools with 8 new tools launched over the past two years.

•AI Reader generated approximately 57 million learning interactions across approximately 2.4 million students since inception through May, accelerating from approximately 47 million interactions and approximately 2.2 million students in fiscal year 2026.

•Continued expansion of Evergreen delivery model, which is improving the customer experience and contributing to a record high Spring semester net promotor score for Higher Education.

•Launched critical new ELA curriculum that covers grades K-12 and aligns with the Science of Reading.

•Piloting a new Agentic AI tool that will make our precision education experience accessible as a trusted AI Agent for both education and non-education customers.

Fourth Quarter and Fiscal Year 2026 Financial Highlights

						Three Months Ended March 31,												Year Ended March 31,
($ in thousands)						2026						2025						2026						2025
						(unaudited)
Revenue						$	463,722					$	473,262					$	2,102,781					$	2,101,299
Cost of sales (excluding depreciation and amortization)						$	74,834					$	78,393					$	401,139					$	422,294
Operating and administrative expenses						$	282,023					$	292,535					$	1,080,250					$	1,066,496
Net income (loss)						$	(50,267)					$	(156,867)					$	35,320					$	(85,839)
Adjusted EBITDA (1)						$	130,575					$	131,651					$	744,264					$	726,790
Net income (loss) margin						(10.8)		%				(33.1)		%				1.7		%				(4.1)		%
Adjusted EBITDA Margin (1)						28.2		%				27.8		%				35.4		%				34.6		%
Adjusted net income (loss) (1)						$	61,167					$	(328,084)					$	375,459					$	202,350

Fiscal Fourth Quarter Consolidated Financial Highlights

•Total revenue of $463.7 million, a decrease of 2.0% year-over-year, reflecting a smaller K-12 market opportunity, partially offset by strong Higher Education performance.

•Re-occurring revenue of $373.5 million, a decrease of 3.5% year-over-year.

•Digital revenue of $392.7 million, a decrease of 2.1% year-over-year.

•GAAP gross profit of $388.9 million, representing a GAAP gross profit margin of 83.9%, an increase of nearly 50 basis points versus prior year.

•GAAP net income (loss) of $(50.3) million, compared to $(156.9) million in the prior-year period.

•Adjusted EBITDA(1) of $130.6 million, representing an Adjusted EBITDA margin(1) of 28.2%, an increase of nearly 40 basis points versus prior year.

Fiscal Fourth Quarter and Full Year Segment Highlights

Higher Education

•Record high market share achieved, according to MPI.

•Fiscal Year 2026 revenue totaled $879.0 million, an increase of 12.3% year-over-year, while fiscal fourth quarter revenue grew 1.6% year-over-year supported by share gains, pricing favorability and beneficial enrollment trends.

•Fiscal Year 2026 re-occurring revenue totaled $734.4 million, an increase of 10.1% year-over-year, despite a 4.9% year-over-year decline in the fiscal fourth quarter due to mix.

•Net dollar retention of 114.0% driven by inclusive access upsell and cross-sell opportunities.

•Evergreen delivery model continues to scale, representing 68% of Higher Education revenue.

K-12

•Performance exceeded expectations despite the smaller expected K-12 market opportunity driven by procurement cycles.

•Fiscal Year 2026 revenue totaled $884.5 million, down 8.9% year-over-year and 10.4% in fiscal fourth quarter given the cyclical market comparison and higher capture rates last year.

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•Fiscal Year 2026 re-occurring revenue totaled $619.7 million, an increase of 2.9% year-over-year, despite a 2.9% decline in the fiscal fourth quarter, on strong market capture and robust prior year sales.

•Early 2026-2027 selling season indicators support fiscal year 2027 as the start of a multi-year market expansion opportunity, with trends that vary by market.

•Well-positioned for multi-year growth via nationwide Science of Reading refresh, with strong early momentum from our Emerge, Summit, and Soar curriculum.

Global Professional and International

•Global Professional delivered 4.0% digital growth in fiscal year 2026, driven by AI-powered medical solutions built on a foundation of trusted content.

•International revenue declined 7.3% in fiscal year 2026, with market headwinds giving way to new commercial opportunities in key markets and ALEKS Calculus expanding globally.

Fiscal Year 2027 Guidance

The following fiscal year 2027 guidance is forward-looking, and is based on the Company's current expectations. Actual results may differ materially from what is indicated below.

						Fiscal Year 2027 Guidance
						As of June 11, 2026
($ in millions)						Low						High
Revenue						$	2,115					$	2,175
Re-occurring Revenue						1,587						1,627
Adjusted EBITDA (1)						750						790

Share Repurchase Plan

On June 2, 2026, our Board of Directors approved a share repurchase plan whereby, from time to time, the Company may repurchase up to $50 million of the Company's common stock.

Earnings Conference Call and Webcast

Today, June 11, 2026, at 8:30 a.m. ET, McGraw Hill will host a conference call via webcast to review fiscal year 2026 fourth quarter and full year results and provide a business update. The webcast will be hosted by Simon Allen, Chair of the Board of Directors, Philip Moyer, President and Chief Executive Officer, and Bob Sallmann, Executive Vice President and Chief Financial Officer, and will conclude with a question-and-answer session.

To access the live webcast or to view a replay, visit the Company's investor relations website at https://investors.mheducation.com/

The live question and answer portion of the call can be accessed by registering online at the Event Registration Page: https://events.q4inc.com/analyst/158045632?pwd=nJ0KYL1q at which time registrants will receive dial-in information as well as a conference ID. Registration can be completed in advance of the conference call.

About McGraw Hill

McGraw Hill (NYSE: MH) is a leading global provider of education solutions for preK-12, higher education and professional learning, supporting the evolving needs of millions of educators and students around the world. We provide trusted, high-quality content and personalized learning experiences that use data, technology and learning science to help students progress towards their goals. Through our commitment to fostering a culture of innovation and belonging, we are dedicated to improving outcomes and access to education for all. We have over 30 offices across North America, Asia, Australia, Europe, the Middle East and South America, and make our learning solutions available in more than 80 languages. The Company's fiscal year is the 52-week period ended March 31. Visit us at mheducation.com or find us on Facebook, Instagram, LinkedIn or X.

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