McGraw Hill, Inc. · NYSE:MH
McGraw Hill — Investor Presentation (August 2025)
41 slides from McGraw Hill's investor presentation, August 2025
Slide 1: Company Overview
Company Overview August 2025 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by McGraw Hill, Inc. (“McGraw Hill” or the “Company”). By accepting and using this presentation, the reader agrees to the terms and conditions set forth in the following paragraphs. The information contained in this presentation is for informational pur
Slide 3: Business Overview
Business Overview
Slide 4: 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 5: Our mission
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. 5
Slide 6: Key metrics at a glance
$2.1B 82% Revenue Digital Revenue (excl. K-12)1 • Trusted, Market-Leading Global Brand with Over 135-Year History • Leveraging Data Science and AI to Drive Innovation and Improve Learner Outcomes 26M ~60M Paid Digital Learners and Users2 Educators • Extensive Scale and Wealth of Data Across Served A
Slide 7: Comprehensive Digital Solutions Drive Highly Predictable Revenue Streams
Comprehensive Digital Solutions Drive Highly Predictable Revenue Streams Paid Digital Users1 Evolution Digital Revenue Mix2 Evolution (%) Re-occurring Revenue Mix⁴ Evolution (%) 3 >2x 26M 82% ~1.7x 69% >2x 65% <40% 31% ~10M FY2015 FY2025 FY2015 FY2025 FY2015 FY2025 (1) Paid Digital Users represent l
Slide 8: 135+ Years of Continued Commitment to Quality and Innovation
135+ Years of Continued Commitment to Quality and Innovation Decades Intellectual Property / Machine Learning and Personalized Insights and Workflow of Trust Content Moat Data Analytics Learning (AI) AI Reader, Scribe Innovation Product Launched New Open GenAI Solutions Reinvented Learning Enterpris
Slide 9: 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 10: 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 $9.3B Growing 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 Gro
Slide 11: Global Salesforce with Extensive Reach
Global Salesforce with Extensive Reach ~550 ~500 ~80 ~360 K-12 Higher Education Global Professional International GTM Professionals GTM Professionals GTM Professionals1 GTM Professionals >100 >80 99% 82% Countries Served Languages of U.S. K-12 districts use of U.S. Higher Education McGraw Hill produ
Slide 12: Our Predictable Growth Algorithm
Our Predictable Growth Algorithm K-12 Higher Education & Professional Other Strategic Levers M&A International New Customers # # Land & Expand / Solutions $5.5B Existing Customers TAM CTE3, Short Opportunity4 New Customers Courses, Global / Solutions Medical Education >105% NDR2 Up-sell & Solutions
Slide 13: Digital Ecosystem
Digital Ecosystem
Slide 14: McGraw Hill's Digital Education Ecosystem
McGraw Hill’s Digital Education Ecosystem Flagship Learning Solutions Pedagogically Proven Learning Experiences Shared Investment Across All Shared Capabilities Markets Enterprise Enabling Services Content & Data 1414
Slide 15: Harnessing the Power of Content and Data
Harnessing the Power of Content and Data with Best-in-Class Product Development and Innovation to Drive Learning Outcomes Improved Learning Outcomes through Personalized Learning Stu de ion nt zat – L ili ea t –U >19B >40% rn >26M er ge Int Annual Learning CAGR McGraw Hill sa Paid Digital Users¹ tU
Slide 16: Recent GenAI Innovation: AI Reader & Scribe
Recent GenAI Innovation: AI Reader & Scribe McGraw Hill’s Holistic Approach to AI AI Reader: Helps students develop a deeper understanding of their course materials AI Capabilities Increases Time on Solution by >30%1 What AI is currently capable of doing Engages with Interactive Quizzes Fosters In-t
Slide 17: K-12 Business Overview
K-12 Business Overview
Slide 18: K-12 at a Glance
K-12 at a Glance Historical Revenue ($ in millions) FY21 – FY25 $ 958 $ 970 Segment Overview CAGR: 14% $ 905 $ 791 • Leading provider of information solutions in U.S. K-12, spanning Core, $ 584 Intervention, and Supplemental solutions – each with distinct value propositions • Personalized and flexi
Slide 19: K-12 Core Purchasing Schedules
K-12 Core Purchasing Schedules $ in millions | FYE 3/31 K-12 Core Market Size Source: Internal company data. The data shown in this image reflects McGraw Hill's best estimates and projections for the K-12 Core Market and has been prepared by McGraw Hill using internal 19 19 assumptions, estimates an
Slide 20: Higher Education Business Overview
Higher Education Business Overview
Slide 21: Higher Education at a Glance
Higher Education at a Glance Historical Revenue ($ in millions) Segment Overview FY21 – FY25 CAGR: 5% $783 $649 $664 $654 $702 • Leading provider of information solutions with high-quality products, GTM scale, and deep customer relationships • Innovative solutions that offer data-driven personalized
Slide 22: Inclusive Access Momentum
Inclusive Access Momentum… …Paired with Innovative Solutions Inclusive Access Net Sales ($M) >3x $398 ~30% CAGR with strong retention and expansion among professors $106 Releases digital product updates directly into pre-built instructor courses Replaces the cycle of textbook editions Provides acces
Slide 23: Global Professional Business Overview
Global Professional Business Overview
Slide 24: Global Professional at a Glance
Global Professional at a Glance Historical Revenue ($ in millions) FY21 – FY25 Segment Overview CAGR: 1% Digital Revenue • Global provider of trusted, high-stakes medical and engineering learning solutions $153 $142 $148 $148 $150 • Subscription-based solutions serving students, professionals, and i
Slide 25: International Business Overview
International Business Overview
Slide 26: International at a Glance
International at a Glance Historical Revenue ($ in millions) Reported FY21 – FY25 CAGR: 6%2 Impact of FX McGraw Hill’s International Segment Has a Truly Global Scale $201 $205 $190 $180 $165 $1 $4 $(7) $2 $(4) Segment Overview • McGraw Hill International sells products and solutions in Higher Ed and
Slide 27: Financial Overview
Financial Overview Vv
Slide 28: Financial Highlights
Financial Highlights • Fast-Growing Digital Business Drives Higher Margins, Re-occurring Revenue Mix, and $727M $1.4B Adjusted Digital Revenue Operating Leverage EBITDA1 (+8% Y/Y) • Predictable Re-occurring Revenue Profile Underpinned by Strong Digital Revenue Growth • Unique Combination of Durable
Slide 29: Attractive Growth Profile Driven by Digital Mix Shift
Attractive Growth Profile Driven by Digital Mix Shift $ in millions | FYE 3/31 Total Revenue Re-occurring Revenue 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
Slide 30: Revenue by Segment
Revenue by Segment $ in millions | FYE 3/31 K-12 Higher Education FY21 – FY25 FY21 – FY25 CAGR: 14% CAGR: 5% $702 $783 $958 $905 $970 $649 $664 $654 $791 $584 FY2021 FY2022¹ FY2023 FY2024 FY2025 FY2021 FY2022¹ FY2023 FY2024 FY2025 % 57% 55% 57% 61% 62% 78% 79% 81% 83% 85% Re-occurring % 43% 42% 43%
Slide 31: Premium Margin Profile
Premium Margin Profile $ in millions | FYE 3/31 Gross Profit¹ Adj. EBITDA2 % Gross % Adj Profit 78% 76% 79% 80% EBITDA 35% 32% 33% 35% • Expanding margin profile driven Margin1 Margin2 by scale and efficient operations % Digital 59% 59% 64% 65% Revenue $1,679 • Continued digital mix $1,540 $1,483 ex
Slide 32: Key Cash Flow Items
Key Cash Flow Items $ in millions Fiscal Year • Highly cash generative business Year Ended March 31, • Academic purchasing cycles and 20221 2023 2024 2025 upfront cash collections drive cash flow timing Net Cash Flow from Operating $206 $257 $236 $646 Activities • Favorable working capital dynamics
Slide 33: Balance Sheet & Liquidity
Balance Sheet & Liquidity $ in millions (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 April 1, 2021 through July 31, 2021 and the successor entity for the period from August 1, 20
Slide 34: 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 35: People
People Vv
Slide 36: Experienced Management Team
Experienced Management Team Simon Allen Bob Sallmann David Cortese Tracey Tiska David Stafford Chief Executive Officer Chief Financial Officer Chief Digital Chief Human General Counsel Information Officer Resources Officer Sean Ryan Michael Ryan Anthony Lorin Scott Grillo Cathy McManus President, Pr
Slide 37: Empowering Learners, Educators and Institutions to Unlock Their Potential
Empowering Learners, Educators and Institutions to Unlock Their Potential at Every Stage of the Learning Journey 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
Slide 38: Appendix
Appendix “ v 7 4 - a } A 4 ie vi | - y~4 t | a) \ : 7 > } N } } oe Pl P aime re ~ yee » 4 4 - » Shes ‘ y. _ SO » -~ / | / a y } 38 ¥ 5
Slide 39: Gross Profit and Gross Margin Reconciliation
Gross Profit and Gross Margin Reconciliation1 $ in millions Fiscal Year Year Ended March 31, 20222 2023 2024 2025 Revenue $1,790 $1,948 $1,960 $2,101 (-) Cost of Sales (394) (465) (420) (422) (excludes Depreciation and Amortization) Gross Profit $1,397 $1,483 $1,540 $1,679 Gross Margin 78.0% 76.1% 7
Slide 40: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $ in millions Fiscal Year Year Ended March 31, 20221 2023 2024 2025 Net Income (Loss) $(619) $(404) $(193) $(86) Interest Expense (Income), Net 217 278 326 293 Income Tax Provision (Benefit) (20) (50) 25 96 Depreciation, Amortization and Product Development Amortizatio
Slide 41: Investor Relations Contacts
McGraw InvestorHill’s Digital Relations Education Ecosystem Contacts investor.relations@mheducation.com Flagship Learning Solutions Danielle Kloeblen Senior Vice President, Finance & Investor Relations Pedagogically Proven Learning Experiences Shared Investment Zack Ajzenman Director, Finance & Inve