Mcgraw Hill, Inc. · NYSE:MH
Mcgraw Hill — Q2 2026 Earnings Presentation
31 slides from Mcgraw Hill's earnings presentation, Nov 12, 2025
Slide 1: Fiscal Q2 2026 Investor Presentation
Fiscal Q2 2026 Investor Presentation November 12, 2025 1
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
1 Business Overview
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: We Serve Three Large, Connected, and Attractive Markets Globally
We Serve Three Large, Connected, and Attractive Markets Globally K-12 Higher Education Professional Public School Private Undergraduate and Medical Institutional Graduate Districts Schools Graduate Institutions Institutions Libraries Institutions Customers District Medical School Faculty, School Pri
Slide 6: We Serve a Large, Essential Market with Strong Secular Tailwinds
We Serve a Large, Essential Market… …With Strong Secular Tailwinds $5.5B • Highly Resilient and Growing $9.3B End Market $2.9B $30B • Modernization of TAM1 Learning Technology • Demand for Data-Driven, Personalized Learning $12.3B • Need for Equitable Access to K-122 Higher Education3 Global Profess
Slide 7: 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 8: Our Predictable Growth Algorithm
Our Predictable Growth Algorithm Higher Education & Strategic Priorities K-12 Other Strategic Levers Professional Grow & Strengthen Existing Businesses M&A International New Customers Operate Efficiently Land & Expand / Solutions ## New Existing Customers $5.5B CTE3, Short Customers Courses, Global
Slide 9: 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) Recent Innovation Product Innovation Advantage Open AI Reader, Scribe Reinvented Learning Calculus S
Slide 10: Continued Innovation in Market-Leading Digital Learning Solutions
Continued Innovation in Market-Leading Digital Learning Solutions Data Innovation & Insights Market Expansion Content Delivery Innovation TM Currently Available: ALEKS Adventure K-3 Calculus Patent-pending technology New product for Math AI-powered platform that assesses Continuously updates course
Slide 11: Integrating AI with McGraw Hill's Strengths
Integrating AI with McGraw Hill's Strengths Personalized experiences that Trusted Brand adapt to each student’s needs and engage them more fully in High Quality, Proprietary learning Expert-vetted, Technology designed content for effective learning Tools that handle administrative tasks for teachers
Slide 12: Advancing AI Innovation: Four New Solutions
Advancing AI Innovation: Four New Solutions Our AI in Action… AI Reader Advantage: Ask New Sharpen Enterprise solution with AI learning assistant that generates study aids tailored to individual student queries based on their own uploaded study materials, lecture notes, and course slides. Clinical R
Slide 13: Fiscal Q2 2026 Results
2 Fiscal Q2 2026 Results
Slide 14: The McGraw Hill Value Proposition
The McGraw Hill Value Proposition 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 and Wealth of Learner Data 04 Lev
Slide 15: FY26-Q2 Highlights
FY26-Q2 Highlights $669M $422M Re-occurring • Results demonstrate execution, scale and Revenue -2.8% Y/Y Revenue +6.5% Y/Y business model diversity • Strategic reinvestment, operational efficiency and a stronger balance sheet 79.2% $352M $1,914M Gross Profit Margin Digital Revenue • High-quality dig
Slide 16: Total Company FY26-Q2 Revenue
Total Company FY26-Q2 Revenue $ in millions Total Revenue Re-occurring Revenue¹ Digital Revenue -0.5% +6.8% +7.4% -2.8% +6.5% +7.6% % Re- 58% 63% 63% 67% occurring % Digital 48% 53% 52% 56% Note: Amounts may not sum due to rounding. GAAP Basis. Company fiscal year end is March 31st (1) Definition of
Slide 17: Total Company FY26-Q2 Margin Profile
Total Company FY26-Q2 Margin Profile $ in millions Gross Profit¹ Adj. EBITDA2 +1.0% +1.9% -1.0% -1.4% % Gross % Adj. Profit 77.7% 79.2% 77.0% 78.2% EBITDA 42.2% 42.8% 38.7% 39.7% Margin Margin (1) See slide 29 for Gross Profit and Gross Margin Reconciliation. Gross profit is revenue less cost of sal
Slide 18: McGraw Hill FY26-Q2 Revenue by Segment
McGraw Hill FY26-Q2 Revenue by Segment $ in millions K-12 Higher Education +10.2% +6.0% +2.8% +13.8% YoY Rev. Growth -11.2% -7.3% YoY Rev. Growth +14.0% +14.0% % Re-occurring 52% 60% 56% 63% % Re-occurring 76% 76% 84% 81% % Digital 30% 33% 32% 36% % Digital 84% 87% 90% 90% Global Professional Intern
Slide 19: Consolidated FY26-Q2 Cash Flow Summary
Consolidated FY26-Q2 Cash Flow Summary $ in millions Three Months Ended September 30, Six Months Ended September 30, FY25-Q2 FY26-Q2 Variance FY25-YTDQ2 FY26-YTDQ2 Variance Net Income (Loss) 133 105 (28) 124 106 (18) Adjustments to reconcile net income (loss) to net cash provided by operating activi
Slide 20: Balance Sheet and Liquidity
Balance Sheet and Liquidity Debt Profile: 09/30/2025 • Cash on hand of $463M; Total committed ($ in millions) liquidity of $913M (cash, revolver & ABL) Senior Secured Term Loan due 2031 $768 Revolving Credit Facility due 2029 ($450M)1 - • Revolving credit facilities remain undrawn Senior Secured Not
Slide 21: Fiscal Year 2026 - Guidance
Fiscal Year 2026 - Guidance $ in millions FY26 Guidance - Prior FY26 Guidance - Updated As of August 14, 2025 As of November 12, 2025 Low High Low High Revenue $1,986 $2,046 $2,031 $2,061 Re-occurring Revenue $1,477 $1,517 $1,504 $1,524 Adjusted EBITDA1 $663 $703 $702 $722 (1) See slide 31 for a def
Slide 22: Medium-Long Range Framework
Medium-Long Range Framework FY2023A FY2024A FY2025A Medium-Long Term 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 23: Appendix / Reconciliations
A Appendix / Reconciliations
Slide 24: Known Core Purchasing Schedules Drives Strong Predictability
Known Core Purchasing Schedules Drives 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 FY2020 FY2021 FY2022 FY2023 FY2024 FY202
Slide 25: GAAP Revenue Detail
GAAP Revenue Detail $ in millions Total Revenue Fiscal Year Fiscal Year Ended March 31, Fiscal Year 2025 Fiscal Year 2025 Fiscal Year 2025 Fiscal Year 2025 Ended March 31, Fiscal Year 2026 Fiscal Year 2026 2024 Q1 Q2 Q3 Q4 2025 Q1 Q2 K-12 $ 905 $ 275 $ 405 $ 150 $ 141 $ 970 $ 271 $ 359 Higher Educat
Slide 26: Total McGraw Hill: Remaining Performance Obligations (RPO)
Total McGraw Hill: Remaining Performance Obligations (RPO) $ in millions September 30, 2025 March 31, 2025 Current Non-Current Total Current Non-Current Total RPO by Segment: K-12 $ 550 $ 882 $ 1,432 $ 457 $ 822 $ 1,280 Higher Education 316 55 371 248 50 297 Global Professional 54 7 61 55 7 62 Inter
Slide 27: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $ in millions Three Months Ended September 30, Six Months Ended September 30, FY25-Q2 FY26-Q2 FY25-YTDQ2 FY26-YTDQ2 Net income (loss) $ 133 $ 105 $ 124 $ 106 Interest expense (income), net 80 56 161 115 Income tax provision (benefit) (37) (21) (33) 16 Depreciation, amo
Slide 28: Adjusted EBITDA Footnotes
Adjusted EBITDA Footnotes a. Represents severance and other expenses associated with headcount reductions and other cost savings initiated as part of our restructuring initiatives. b. For the three and six months ended September 30, 2025 and 2024, represents the pro rata portion of the annual $10.0
Slide 29: Gross Profit and Gross Margin Reconciliation
Gross Profit and Gross Margin Reconciliation1 $ in millions Three Months Ended September 30, Six Months Ended September 30, FY25-Q2 FY26-Q2 FY25-YTDQ2 FY26-YTDQ2 Revenue $ 689 $ 669 $ 1,212 $ 1,205 (-) Cost of sales (excluding depreciation and amortization) 153 139 279 262 Gross Profit $ 535 $ 530 $
Slide 30: 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 31: 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