Mcgraw Hill, Inc. · NYSE:MH
Mcgraw Hill — Q1 2026 Earnings Presentation
40 slides from Mcgraw Hill's earnings presentation, Aug 14, 2025
Slide 1: Fiscal Q1 2026 Investor Presentation
Fiscal Q1 2026 Investor Presentation August 14, 2025
Slide 2: Disclaimer
Disclaimer This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements c
Slide 3: Business Overview
Business Overview Vv
Slide 4: Our mission is to support the evolving needs of educators and learners
Our mission is to support the evolving needs of educators and learners around the world with trusted, high-quality content and digital solutions that use data and learning science to adapt to each student as they progress towards their goals. 4
Slide 5: A Global Leader in Information Solutions for Education
A Global Leader in Information Solutions for Education McGraw Hill is a Vertical Information Solutions Leader ✓ Data Moat ✓ Enriched Analytics and Insights ✓ Re-occurring Revenue Profile ✓ Predictable and Visible Revenue ✓ Premium Margin Profile Market Real Insurance & Financial End Healthcare Educa
Slide 6: 135+ Years of Continued Commitment to Quality and Innovation
135+ Years of Continued Commitment to Quality and Innovation Decades Intellectual Property / Machine Learning and Data Personalized Insights and Workflow of Trust Content Moat Analytics Learning (AI) Product Innovation AI Reader, Scribe Launched New Open GenAI Solutions Reinvented Learning Enterpris
Slide 7: Expanding Digital and Re-occurring Revenue
Expanding Digital and Re-occurring Revenue Paid Digital Users1 Evolution Digital Revenue Mix2 Evolution (%) Re-occurring Revenue Mix⁴ Evolution (%) 3 >2x ~1.7x >2x 65% 31% (1) Paid Digital Users represents the learners or educators who purchased a license to gain access to one of our many digital so
Slide 8: Note: Elsevier is owned by RELX
8 • Note: Elsevier is owned by RELX.
Slide 9: We Serve a Large, Essential Market
We Serve a Large, Essential Market… …With Strong Secular Tailwinds $5.5B • Highly Resilient and Growing $9.3B End Market $2.9B $30B TAM1 • Modernization of Learning Technology $12.3B • Demand for Data-Driven, Personalized Learning K-122 Higher Education3 Global Professional International Numerous Gr
Slide 10: Our Predictable Growth Algorithm
Our Predictable Growth Algorithm K-12 Higher Education & Professional Other Strategic Levers M&A International New Customers ## Land & Expand / Solutions $5.5B Existing Customers TAM CTE3, Short Courses, Opportunity4 New Customers Global Medical / Solutions >105% NDR2 Education Solutions Up-sell & C
Slide 11: Established Market-Leading Digital Learning Solutions
Established Market-Leading Digital Learning Solutions >30M Lifetime Learners >64M Lifetime Learners >34M Lifetime Learners In 94% of U.S. Medical Schools Market leading digital solution for Personalized learning Market leading digital learning Interactive digital K-12 supporting teachers with soluti
Slide 12: Harnessing the Power of Content and Data with Best-in-Class Product
Harnessing the Power of Content and Data with Best-in-Class Product Development and Innovation to Drive Learning Outcomes Improved Learning Outcomes through Personalized Learning Stu de n nt atio – z ili Le Ut ar >26M >19B >40% e– ne r In ag Paid Digital Users¹ Annual Learning CAGR McGraw Hill t Us
Slide 13: Recent GenAI Innovation: AI Reader & Scribe
Recent GenAI Innovation: AI Reader & Scribe McGraw Hill’s Holistic Approach to AI AI Reader: Simplifies concepts with instant explanations and interactive quizzes AI Capabilities Increases Time on Solution by >30%1 What AI is currently capable of doing Engages with Interactive Quizzes Simplifies Com
Slide 14: Fiscal Year 2025
Fiscal Year 2025 $2.1B 82% Revenue Digital • Trusted, Market-Leading Global Brand with Over Revenue (excl. K-12)1 135-Year History • Leveraging Data Science and AI to Drive Innovation and Improve Learner Outcomes • Extensive Scale and Wealth of Data Across the 26M ~60M Paid Digital Learners and Educ
Slide 15: Strategic Focus and Financial Trends
2 Strategic Focus and Financial Trends
Slide 16: Strategic Priorities Provide a Consistent Foundation for the Future
Strategic Priorities Provide a Consistent Foundation for the Future Strategic Priorities FY 2025 Execution Grow & strengthen • Increase market share and product innovation across the business existing businesses Operate efficiently • Leverage Scribe to aid in content generation Expand addressable •
Slide 17: Annual Revenue Summary
Annual Revenue Summary $ in millions | FYE 3/31 Total Revenue Re-occurring Revenue2 Digital Revenue ~8% ~11% ~10% FY21 – FY25 CAGR FY21 – FY25 CAGR FY21 – FY25 CAGR $ 2,101 $ 1,948 $ 1,960 $ 1,790 $ 1,545 $1,457 $ 1,359 $1,315 $ 1,255 $1,223 $ 1,147 $1,102 $ 1,053 $953 $927 1 FY21 FY22 FY23 FY24 FY2
Slide 18: Annual Margin Summary
Annual Margin Summary $ in millions | FYE 3/31 Gross Profit¹ Adj. EBITDA2 $1,679 $1,540 $1,483 $1,397 $727 $634 $657 $618 3 3 FY22 FY23 FY24 FY25 FY22 FY23 FY24 FY25 % Gross % Adj Profit 78% 76% 79% 80% EBITDA 35% 32% 33% 35% Margin1 Margin2 (1) See slide 38 for Gross Profit and Gross Margin Reconci
Slide 19: Annual Revenue by Segment
Annual Revenue by Segment $ in millions | FYE 3/31 K-12 Higher Education FY21 – FY25 FY21 – FY25 CAGR: 14% CAGR: 5% $958 $905 $970 $783 $791 $649 $664 $654 $702 $584 FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 Re-occurring % 57% 55% 57% 61% 62% 78% 79% 81% 83% 85% Digital % 43% 42% 43% 47% 44%
Slide 20: Medium-Long Range Framework
Medium-Long Range Framework Medium-Long Term FY2023A FY2024A FY2025A Targets Revenue Growth 8.8% 0.7% 7.2% 5%+ Re-occurring Revenue 62.8% 67.1% 69.3% 75%+ (% of Total Revenue) Digital Revenue 58.9% 64.0% 64.7% 75%+ (% of Total Revenue) Gross Margin1 76.1% 78.6% 79.9% 82%+ Adjusted 31.7% 33.5% 34.6%
Slide 21: Investment Highlights
Investment Highlights 01 Trusted, Market-Leading Global Brand with Deep Expertise in Learning Science 02 Leading Suite of Digital Solutions Across the Entire Learning Continuum 03 Agile Content Model Supported by High-Quality, Proprietary Digital Content 04 Leveraging Data Science, Machine Learning,
Slide 22: Fiscal Q1 Results
Fiscal Q1 Results Vv
Slide 23: Fiscal Q1 2026 Highlights
Fiscal Q1 2026 Highlights • Sustained momentum and market share gains amid the predictably smaller fiscal $536M $388M Revenue Re-occurring year 2026 market +2.4% Y/Y Revenue +7.1% Y/Y • Market leadership driven by high-quality re- occurring and digital revenue growth • Expanded profitability while c
Slide 24: Total Company FY26-Q1 Revenue
Total Company FY26-Q1 Revenue $ in millions Total Revenue Re-occurring Revenue1 Digital Revenue +2.4% +7.1% +7.2% $523 $536 $388 $325 $362 $303 FY25-Q1 FY26-Q1 FY25-Q1 FY26-Q1 FY25-Q1 FY26-Q1 % Re- 69% 72% occurring % Digital 58% 61% 24 Note: Amounts may not sum due to rounding. GAAP Basis. Company
Slide 25: Total Company FY26-Q1 Margin Profile
Total Company FY26-Q1 Margin Profile $ in millions Gross Profit¹ Adj. EBITDA2 +3.7% +7.2% $398 $412 $191 $179 FY25-Q1 FY26-Q1 FY25-Q1 FY26-Q1 % Gross Profit 76% 77% % Adj. EBITDA 34% 36% Margin Margin (1) See slide 38 for Gross Profit and Gross Margin Reconciliation. Gross profit is revenue less cos
Slide 26: McGraw Hill FY26-Q1 Revenue by Segment
McGraw Hill FY26-Q1 Revenue by Segment $ in millions K-12 Higher Education -1.4% +14.1% $275 $271 $182 $160 +6.8% +10.1% $149 $160 $167 $184 FY25-Q1 FY26-Q1 FY25-Q1 FY26-Q1 % Re-occurring 61% 68% % Re-occurring 93% 87% % Digital 36% 40% % Digital 96% 93% % Digital % Digital Global Professional Inter
Slide 27: Consolidated FY26-Q1 Cash Flow Summary
Consolidated FY26-Q1 Cash Flow Summary $ in millions Three Months Ended June 30 FY26-Q1 FY25-Q1 Variance TTM Net Income (Loss) 1 (9) 10 (76) Adjustments to reconcile net income (loss) to net cash provided by operating activities: D&A, Provisions, Impairments, and Other 137 142 (5) 523 Change in Work
Slide 28: Balance Sheet and Liquidity
Balance Sheet and Liquidity Debt Profile: 6/30/25 ($ in Millions) • Cash on hand of $247M; Total committed Senior Secured Term Loan due 2031 $1,157 liquidity of $697M (cash, revolver & ABL) Revolving Credit Facility due 2029 ($450M)1 - Senior Secured Notes due 2028 828 • Revolving credit facilities
Slide 29: FY26 – Guidance
FY26 – Guidance $ in millions FY26 Guidance1 Low High Revenue $1,986 $2,046 Re-occurring Revenue $1,477 $1,517 Adjusted EBITDA2 $663 $703 (1) Guidance as of August 14, 2025 (2) See slide 39 for a definition of Adj. EBITDA. 29
Slide 30: Appendix / Reconciliations
A Appendix / Reconciliations
Slide 31: K-12 Core Purchasing Schedules Drive Strong Predictability
K-12 Core Purchasing Schedules Drive Strong Predictability K-12 Core Market Size Predictable Purchasing Schedules All Other States Top 3 States (CA, FL, TX) Strong Alignment with Core Subject Pipeline, Well-Positioned to Capitalize on Upcoming Opportunities FY2020A FY2021A FY2022A FY2023A FY2024A FY
Slide 32: GAAP Revenue Detail
GAAP Revenue Detail $ in millions Note: Amounts may not sum due to rounding. 32
Slide 33: Total McGraw Hill: Remaining Performance Obligations (RPO)
Total McGraw Hill: Remaining Performance Obligations (RPO) $ in millions Note: Amounts may not sum due to rounding. 33
Slide 34: Adjusted EBITDA Reconciliation – Three Months Ended June 30
Adjusted EBITDA Reconciliation – Three Months Ended June 30 $ in millions Note: Amounts may not sum due to rounding. 34
Slide 35: Adjusted EBITDA Footnotes – Three Months Ended June 30
Adjusted EBITDA Footnotes – Three Months Ended June 30 a. Represents severance and other expenses associated with headcount reductions and other cost savings initiated as part of our formal restructuring initiatives. b. For the three months ended June 30, 2025 and 2024, represents $2.5 million of ad
Slide 36: Adjusted EBITDA Reconciliation – Fiscal Years Ended March 31
Adjusted EBITDA Reconciliation – Fiscal Years Ended March 31 $ in millions | FYE 3/31 Note: Amounts may not sum due to rounding. (1) Results for FY2022 represent the sum of the reported results of the predecessor entity, prior to giving effect to the acquisition by Platinum, for the period from Apri
Slide 37: Adjusted EBITDA Footnotes – Fiscal Years Ended March 31
Adjusted EBITDA Footnotes – Fiscal Years Ended March 31 a. Represents severance and other expenses associated with headcount reductions and other cost savings initiated as part of our formal restructuring initiatives. b. Represents the effects of the application of purchase accounting associated wit
Slide 38: Gross Profit and Gross Margin Reconciliation
Gross Profit and Gross Margin Reconciliation1 $ in millions Three Months Ended June 30 Fiscal Years Ended March 31 Note: Amounts may not sum due to rounding. (1) Due to the inherent subjectivity in the classification of costs between cost of sales and operating and administrative expenses across our
Slide 39: Terms: Re-occurring Revenue, Transactional Revenue and RPO
Terms: Re-occurring Revenue, Transactional Revenue and RPO Re-occurring Revenue includes revenue from offerings that are generally sold as digital subscriptions and multi-year print products. Revenue from digital subscriptions, which are paid for at the time of sale or shortly thereafter, is recogni
Slide 40: Terms: EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
Terms: EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are presented because our management uses them to assess our performance. We believe they reflect the underlying trends and indicators of our business and allow management to focus on the mos