Slide 1: Fiscal Q4 and Fiscal Year 2026 Investor Presentation
Fiscal Q4 and Fiscal Year 2026 Investor Presentation June 11, 2026 1
Slide 2: Today's Presenters
Today’s Presenters Simon Allen Philip Moyer Bob Sallmann Board Chair 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: Accelerating Learning. Unlocking Potential.
Accelerating Learning. Unlocking Potential. 100+ million active educator and learner curriculum licenses across 100+ countries – combining trusted content with AI-driven personalization. Where people and technology come together to transform education. 5
Slide 6: The McGraw Hill Value Proposition
The McGraw Hill Value Proposition Trusted. Innovative. Mission-Driven. 01 Trusted, Market-Leading 02 Highly Defensible 03 Machine Learning & Global Brand 3-Tiered Moat Responsible GenAI Trusted by learners and educators across K-12, Trusted IP, proprietary learner data, and domain Pioneering adaptiv
Slide 7: The McGraw Hill AI Equation
Accelerated Pace of Innovation The McGraw Hill AI Equation AI Reader Learning Coach DELIVERY Teacher Assistant Translation Tool Writing Assistant Clinical Reasoning + DATA Insights Lab* + CONTENT Scribe Content Generation Tool In the past two years we have launched 8 new AI learning tools and plan t
Slide 8: Leveraging Strengths for Differentiated AI Solutions
Leveraging Strengths for Differentiated AI Solutions Authoritative Irreplicable Unparalleled AI-Powered Content & IP Data Assets Domain Expertise Technology • Premium IP from Nobel laureates • Decades of proprietary data • 100M+ active student and • Over 7.5 million users of our new and leading expe
Slide 9: Global Scale, Content Depth, Precision Learning
Global Scale Content Depth Precision Learning Delivering the right question at the right moment. 100M+ 190 25.6B Active Licenses of Titles in Library Terabytes of Data Learning Interactions¹ Students & educators Spanning Mapped to Structured data interactions across 100+ countries 500+ subjects glob
Slide 10: Agentic Curriculum MCP: A Structural Part of the Institutional AI Stack
Agentic Curriculum MCP: A Structural Part of the Institutional AI Stack MODEL CONTEXT PROTOCOL KEY INITIATIVES & ROADMAP Unlocking a Scalable 1 Enterprise Content AI Host MCP Server Data Source Delivery Mode (Claude, ChatGPT, Cursor) (Adapter for Data Source) (Files, Databases, APIs) AI uses Request
Slide 11: AI Coming Soon | Learning Coach
AI Coming Soon | Learning Coach LEARNING COACH Students hit a wall at 11pm on the hardest concepts in a course – and there’s no scalable way for instructors to reach them in that moment. 10 50 20 Titles in Scope Modules in Build SME Reviewers 1. Disciplines Accounting | Management | Marketing | Heal
Slide 12: AI in Motion | ALEKS + AI Reader + Sharpen
AI in Motion | ALEKS + AI Reader + Sharpen ALEKS AI Reader Sharpen 90%+ 57M 4x Students Achieve Interactions Greater Engagement with Study Topic Mastery AI Reader interactions from Activities Inception through May 2026 for Sharpen users vs. non-users Improvement in Math Assessments: 2.4M +47% ~25pt
Slide 13: McGraw Hill: Strengthen, Expand, Grow, Operate Efficiently
McGraw Hill Strengthen Expand Grow Operate Existing Cross-Sell Addressable Efficiently Businesses Opportunities Market 13
Slide 14: 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 15: The complexity of developing human intelligence dwarfs any AI model
The complexity of developing human intelligence exponentially dwarfs any AI model ever invented — which makes the work we do to unlock the potential of each learner the most essential last mile of all. Philip Moyer President, Chief Executive Officer of McGraw Hill, Inc. 15
Slide 16: Empowering Learners & Educators Worldwide
Empowering Learners & Digital-First Learning & Connected. Engaged. Educators Worldwide AI Solutions Always Learning. 16
Slide 17: Financial Overview
Financial Overview
Slide 18: FY-2026 Highlights
$2.1BRevenue FY-2026 Highlights +0.1% Y/Y • FY26 results exceeded guidance $1.5B Re-occurring Revenue $1.4B Digital Revenue • Market share gains and strong business +5.8% Y/Y +5.5% Y/Y momentum • Digital and re-occurring revenue growth 80.9% Gross Profit Margin $1.7B RPO1 • Proprietary data and
Slide 19: Total Company FY26-Q4 Revenue
Total Company FY26-Q4 Revenue $ in millions Total Revenue Re-occurring Revenue¹ Digital Revenue +0.1% +5.8% +5.5% -2.0% -3.5% -2.1% % Re- 82% 81% 69% 73% occurring % Digital 85% 85% 65% 68% Note: Figures presented on a GAAP basis. Amounts may not sum due to rounding. Company fiscal year end is March
Slide 20: Total Company FY26-Q4 Margin Profile
Total Company FY26-Q4 Margin Profile $ in millions Gross Profit¹ Adj. EBITDA2 +1.3% +2.4% -1.5% -0.8% % Gross % Adj. Profit 83.4% 83.9% 79.9% 80.9% EBITDA 27.8% 28.2% 34.6% 35.4% Margin Margin (1) See slide 33 for Gross Profit and Gross Margin Reconciliation. Gross profit is revenue less cost of sal
Slide 21: McGraw Hill FY26-Q4 Revenue by Segment
McGraw Hill FY26-Q4 Revenue by Segment $ in millions K-12 Higher Education +10.1% +2.9% -2.9% -4.9% YoY Rev. Growth -10.4% -8.9% YoY Rev. Growth +1.6% +12.3% % Re-occurring 80% 86% 62% 70% % Re-occurring 90% 84% 85% 84% % Digital 72% 78% 44% 49% % Digital 98% 94% 92% 91% Global Professional Internat
Slide 22: Balance Sheet and Liquidity
Balance Sheet and Liquidity $ in millions Debt Profile: 03/31/2026 ($ in millions) • Cash on hand of $254M; Total committed Senior Secured Term Loan due 2031 $555 liquidity of $704M (cash, revolver & ABL) Revolving Credit Facility due 2029 ($450M)1 — Senior Secured Notes due 2028 828 Senior Secured
Slide 23: Consolidated FY26-Q4 Cash Flow Summary
Consolidated FY26-Q4 Cash Flow Summary $ in millions Three Months Ended March 31, Year Ended March 31, FY25-Q4 FY26-Q4 Variance FY25 FY26 Variance Net Income (Loss) $(157) $(50) $107 $(86) $35 $121 Adjustments to reconcile net income (loss) to net cash provided by operating activities D&A, Provision
Slide 24: Fiscal Year 2027 - Guidance
Fiscal Year 2027 - Guidance $ in millions FY27 Guidance Low High Revenue $2,115 $2,175 Re-occurring Revenue $1,587 $1,627 Adjusted EBITDA1 $750 $790 (1) See slide 35 for definition of Adjusted EBITDA. 24
Slide 25: Medium-Long Range Framework
Medium-Long Range Framework FY2023A FY2024A FY2025A FY2026A Medium-Long Term 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 26: Appendix / Reconciliations
A Appendix / Reconciliations
Slide 27: 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 28: GAAP Revenue Detail
GAAP Revenue Detail $ in millions Total Revenue Fiscal Year Fiscal Year Fiscal Year Fiscal Year FY Ended Fiscal Year Fiscal Year Fiscal Year Fiscal Year FY Ended 2025 2025 2025 2025 March 31, 2026 2026 2026 2026 March 31, Q1 Q2 Q3 Q4 2025 Q1 Q2 Q3 Q4 2026 K-12 $ 275 $ 405 $ 150 $ 141 $ 970 $ 271 $ 3
Slide 29: Remaining Performance Obligations (RPO)
Remaining Performance Obligations (RPO) $ in millions March 31, 2025 March 31, 2026 Current Non-Current Total Current Non-Current Total RPO by Segment: K-12 $ 457 $ 822 $ 1,280 $ 477 $ 772 $ 1,249 Higher Education 248 50 297 269 53 322 Global Professional 55 7 62 58 8 66 International 31 3 33 30 3 3
Slide 30: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $ in millions Three Months Ended March 31, Year Ended March 31, FY25-Q4 FY26-Q4 FY25 FY26 Net income (loss) $ (157) $ (50) $ (86) $ 35 Interest expense (income), net 64 45 293 207 Income tax provision (benefit) 121 (2) 96 8 Depreciation, amortization and product develo
Slide 31: 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 fiscal year ended March 31, 2026, represents the pro rata portion of the annual $10.0 million advisory fee p
Slide 32: Adjusted EBITDA Footnotes (cont'd)
Adjusted EBITDA Footnotes (cont'd) g. For the three months ended March 31, 2026 and 2025, this amount represents (i) foreign currency exchange transaction impact of $(0.1) million and $(0.3) million, respectively, (ii) non-recurring expenses related to strategic initiatives, including marketing, con
Slide 33: Gross Profit and Gross Margin Reconciliation
Gross Profit and Gross Margin Reconciliation1 $ in millions Three Months Ended March 31, Year Ended March 31, FY25-Q4 FY26-Q4 FY25 FY26 Revenue $ 473 $ 464 $ 2,101 $ 2,103 (-) Cost of sales (excluding depreciation and amortization) 78 75 422 401 Gross Profit $ 395 $ 389 $ 1,679 $ 1,702 Gross Margin
Slide 34: 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 35: 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