Mcgraw Hill, Inc. · NYSE:MH
Mcgraw Hill — Q1 2027 Earnings Presentation
31 slides from Mcgraw Hill's earnings presentation, Aug 13, 2026
Slide 1: Fiscal Q1 2027 Investor Presentation
Fiscal Q1 2027 Investor Presentation August 13, 2026 1
Slide 2: Today's Presenters
Today's Presenters Philip Moyer Bob Sallmann President, CEO EVP, CFO 2
Slide 3: Disclaimer
Disclaimer This presentation includes statements that are, or may be deemed to be, “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and
Slide 4: Company Overview
Company Overview
Slide 5: Global Scale
Global Scale Content Depth Precision Learning Delivering the right question at the right moment. TENS OF 100M+ THOUSANDS 190 26B Active Curriculum of Titles in Library Terabytes of Data Learning Interactions¹ Licenses 7.5M+ users of Across 100+ countries & Mapped to Structured data interactions AI l
Slide 6: Higher Education Competitive Position
Higher Education Competitive Position Market Share1 Customer Satisfaction2 McGraw Hill Higher Education 87% Competitors 85% 30%+ 80% 81% 80% 70% ~28% ~27% FY24 FY25 FY26 BRAND CONTENT GTM (1) Refers to the net revenue share as reported by Management Practice Inc (MPI) in the U.S. Higher Education Ma
Slide 7: Science of Reading | Next-Gen Literacy Curriculum
Science of Reading | Next-Gen Literacy Curriculum The Science of Literacy Reading integrates research-backed reading, writing, and knowledge- • First Read • Returning to the Text building into a unified K–12 instructional framework that • Working from the Text develops fluent, critical readers, writ
Slide 8: ROAR: Exclusive Integration of The Only K-12 Research-Backed Dyslexia Screener
ROAR: Exclusive Integration of The Only K-12 Research-Backed Dyslexia Screener Rapid Online Assessment of Reading Strategic Value Revenue Opportunity • Only literacy screener assessing foundational • Connects assessment, instruction, and • 500,000+ learners served reading skills across the full K-12
Slide 9: Global Professional and International Scale & Reach
Global Professional and International Scale & Reach Extending McGraw Hill’s Trusted Content and Learning Platform Across Healthcare and Global Education Markets Global Professional International Medical Education and Global Provider at Scale with Healthcare Are Converging Highly Respected Brand ~4,0
Slide 10: The Human Elements of Teaching are Irreplaceable
Global Education Insights Report The Human Elements of Teaching are Irreplaceable Educators are 81% More Likely Among Educators, Trust to Completely Trust AI Embedded in GenAI Chatbots in Education Platforms than Declined 33% YoY General GenAI Chatbots Nearly 9 in 10 Educators Expect AI Use in Educa
Slide 11: McGraw Hill AI Differentiation
McGraw Hill AI Differentiation 01 Trusted Content Is the 02 One Integrated Solution — 03 Real Learning Requires Real Foundation of Effective AI No Assembly Required Data AI without structure hallucinates. Effective AI in The average school juggles 2,400+ tools and Content alone isn't enough. McGraw
Slide 12: Model Context Protocol: AI That Actually Knows What You're Learning
AI That Actually Knows What You're Learning Our MCP Bridge is the "universal plug" that connects AI agents to McGraw Hill's proprietary, verified curriculum content — in real time. Digital Learning Platform The Universal Plug Model Context Protocol Institution's AI Assistant MCP (ChatGPT, Claude, Co
Slide 13: Building AI that expands the capacity of teachers
Working together, we can build AI that expands the capacity of teachers while preserving the relationships, mentorship and human connection that make learning possible. Philip Moyer President, Chief Executive Officer of McGraw Hill, Inc. 13
Slide 14: Financial Overview
Financial Overview
Slide 15: FY27-Q1 Highlights
$550M Revenue +2.6% Y/Y FY27-Q1 Highlights • Strong Q1 FY2027 ahead of expectations $426M Re-occurring Revenue $354M Digital Revenue +9.8% Y/Y +8.8% Y/Y • Continued market share gains and momentum entering key selling season 79.9% Gross Profit Margin $1.5B RPO1 • Quality digital and re-occurring rev
Slide 16: Total Company FY27-Q1 Revenue
Total Company FY27-Q1 Revenue $ in millions Total Revenue Re-occurring Revenue¹ Digital Revenue +2.6% +9.8% +8.8% % Re- 72% 77% occurring % Digital 61% 64% Note: Figures presented on a GAAP basis. Amounts may not sum due to rounding. Company fiscal year end is March 31st. (1) See slide 30 for Re-occ
Slide 17: Total Company FY27-Q1 Margin Profile
Total Company FY27-Q1 Margin Profile $ in millions Gross Profit¹ Adj. EBITDA2 +6.5% +8.2% % Gross % Adj. Profit 77.0% 79.9% EBITDA 35.7% 37.7% Margin Margin (1) See slide 29 for Gross Profit and Gross Margin Reconciliation. Gross profit is revenue less cost of sales (excluding depreciation and amort
Slide 18: McGraw Hill FY27-Q1 Revenue by Segment
McGraw Hill FY27-Q1 Revenue by Segment $ in millions K-12 Higher Education +7.1% +14.1% YoY Rev. Growth 1.3% YoY Rev. Growth 9.6% % Re-occurring 68% 72% % Re-occurring 87% 91% % Digital 40% 42% % Digital 93% 95% Global Professional International* +6.3% +4.6% YoY Rev. Growth -1.0% YoY Rev. Growth -12
Slide 19: Balance Sheet and Liquidity
Balance Sheet and Liquidity $ in millions Debt Profile: 06/30/2026 ($ in millions) • Cash on hand of $194M; Total committed Senior Secured Term Loan due 2031 $552 liquidity of $644M (cash, revolver & ABL) Revolving Credit Facility due 2029 ($450M)1 — Senior Secured Notes due 2028 828 Senior Secured
Slide 20: Consolidated FY27-Q1 Cash Flow Summary
Consolidated FY27-Q1 Cash Flow Summary $ in millions Three Months Ended June 30, FY26-Q1 FY27-Q1 Variance Net Income (Loss) $1 $58 $57 Adjustments to reconcile net income (loss) to net cash provided by operating activities D&A, Provisions, Impairments and Other 137 140 3 Change in Working Capital (2
Slide 21: Fiscal Year 2027 - Guidance
Fiscal Year 2027 - Guidance $ in millions FY27 Guidance As of August 13, 2026 Low High Revenue $2,115 $2,175 Re-occurring Revenue1 $1,587 $1,627 Adjusted EBITDA1 $750 $790 (1) See slide 30 for definition of Re-occurring revenue. See slide 31 for definition of Adjusted EBITDA. 21
Slide 22: Medium-Long Range Framework
Medium-Long Range Framework Medium-Long Term FY2023A FY2024A FY2025A FY2026A Targets Revenue Growth 8.8% 0.7% 7.2% 0.1% 5%+ Re-occurring Revenue 62.8% 67.1% 69.3% 73.0% 75%+ (% of Total Revenue) Digital Revenue 58.9% 64.0% 64.7% 68.0% 75%+ (% of Total Revenue) Gross Margin1 76.1% 78.6% 79.9% 80.9% 8
Slide 23: Appendix / Reconciliations
A Appendix / Reconciliations
Slide 24: K-12 Core Purchasing Schedules (FY2020 – FY2029E)
K-12 Core Purchasing Schedules (FY2020 – FY2029E) K-12 Core Market Size Predictable Purchasing Schedules Top 3 States (CA, FL, TX) All Other States Strong Alignment with Core Subject Pipeline, Well-Positioned to Capitalize on Upcoming Opportunities FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY
Slide 25: GAAP Revenue Detail
GAAP Revenue Detail $ in millions Total Revenue Fiscal Year Ended Fiscal Year Ended March 31, Fiscal Year 2026 Fiscal Year 2026 Fiscal Year 2026 Fiscal Year 2026 March 31, Fiscal Year 2027 2025 Q1 Q2 Q3 Q4 2026 Q1 K-12 $ 970 $ 271 $ 359 $ 128 $ 126 $ 884 $ 274 Higher Education 783 182 213 225 258 87
Slide 26: Remaining Performance Obligations (RPO)
Remaining Performance Obligations (RPO) $ in millions June 30, 2026 March 31, 2026 Current Non-Current Total Current Non-Current Total RPO by Segment: K-12 $ 477 $ 733 $ 1,211 $ 477 $ 772 $ 1,249 Higher Education 170 47 217 269 53 322 Global Professional 62 7 69 58 8 66 International 20 2 23 30 3 33
Slide 27: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $ in millions Three Months Ended June 30, FY26-Q1 FY27-Q1 Net income (loss) $ 1 $ 58 Interest expense (income), net 59 46 Income tax provision (benefit) 37 11 Depreciation, amortization and product development amortization 88 83 EBITDA $ 184 $ 198 Restructuring and cos
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 formal restructuring initiatives. b. For the three months ended June 30, 2025, represents the pro rata portion of the annual $10.0 million of advi
Slide 29: Gross Profit and Gross Margin Reconciliation
Gross Profit and Gross Margin Reconciliation1 $ in millions Three Months Ended June 30, FY26-Q1 FY27-Q1 Revenue $ 536 $ 550 (-) Cost of sales (excluding depreciation and amortization) 123 111 Gross Profit $ 412 $ 439 Gross Margin 77.0% 79.9% Note: Amounts may not sum due to rounding. (1) Due to the
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