Mcgraw Hill, Inc. · NYSE:MH
Mcgraw Hill — Q3 2026 Earnings Presentation
25 slides from Mcgraw Hill's earnings presentation, Feb 11, 2026
Slide 1: Fiscal Q3 2026 Investor Presentation
Fiscal Q3 2026 Investor Presentation February 11, 2026 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: The McGraw Hill Mission
The McGraw Hill Mission Unlocking the potential of each learner at every stage of life. Our vision is to empower every educator to engage their students with personalized learning experiences that enrich the unique ways they learn, teach and grow. At McGraw Hill, we support the evolving needs of edu
Slide 4: The McGraw Hill Value Proposition
The McGraw Hill Value Proposition Trusted, Market-Leading Global Brand that Extensive Global Institutional Sales Model and 01 Spans the Learning Lifecycle 04 Deep Customer Relationships Highly Profitable Resilient Business Model with Highly Defensible 3-Tiered Moat: Trusted IP, 02 Proprietary Learne
Slide 5: We Serve Three Large, Connected, and Attractive Markets Globally
We Serve Three Large, Connected, and Attractive Markets Globally Customers Decision Makers Total TAM: $30B1 Market Dynamics Learning Solutions K-12 • Institution-focused sales District • Market opportunity varies year- Public School Districts by-year based on states like CA, Superintendents $9.3B2 F
Slide 6: Competitive Edge: Leveraging Existing Strengths for Differentiated AI Solutions
Competitive Edge: Leveraging Existing Strengths for Differentiated AI Solutions Unparalleled Domain Expertise Authoritative Content / IP • 20,000 institutional customers in more than 100 • Premium IP from Nobel laureates and leading countries1 experts • Learning-science-based products aligned to cor
Slide 7: Data Moat: Platform Breadth, Data Depth, and Scale
Data Moat: Platform Breadth, Data Depth, and Scale • Learners, Educators, & Decision Makers Organizations and Users • Schools, Districts, & Universities • Alignment to state standards Content Alignment to Learning Objectives • Cross platform synergy for learning topic • Time on page • Understand use
Slide 8: A Deeper Dive into Our Solutions
A Deeper Dive into Our Solutions AI Reader Ask Sharpen Clinical Reasoning 16M 30K 360 Interactions AI Prompts Curated Scripts AI Reader interactions from from September 2025 through to optimize treatment strategies for October 2025 through December 2025 better patient outcomes December 2025 1M+ +120
Slide 9: FY26-Q3 Highlights
FY26-Q3 Highlights $434M $357M • Market share gains and strong business Re-occurring Revenue momentum drive Q3 outperformance +4.2% Y/Y Revenue +14.8% Y/Y • Digital and re-occurring revenue mix enables predictability and margin expansion 85.3% $364M $1,697M Gross Profit RPO1 Digital Revenue Margin P
Slide 10: Total Company FY26-Q3 Revenue
Total Company FY26-Q3 Revenue $ in millions Total Revenue Re-occurring Revenue¹ Digital Revenue +0.7% $1,628 $1,639 +9.1% +8.6% $1,167 $1,070 $1,041 +4.2% +14.8% +11.0% $958 $416 $434 $311 $357 $328 $364 FY25-Q3 FY26-Q3 FY25-YTDQ3 FY26-YTDQ3 FY25-Q3 FY26-Q3 FY25-YTDQ3 FY26-YTDQ3 FY25-Q3 FY26-Q3 FY25
Slide 11: Total Company FY26-Q3 Margin Profile
Total Company FY26-Q3 Margin Profile $ in millions Gross Profit¹ Adj. EBITDA2 +2.2% +3.1% $1,284 $1,313 +5.4% +7.7% $595 $614 $351 $370 $126 $136 FY25-Q3 FY26-Q3 FY25-YTDQ3 FY26-YTDQ3 FY25-Q3 FY26-Q3 FY25-YTDQ3 FY26-YTDQ3 % Gross % Adj. Profit 84.3% 85.3% 78.9% 80.1% EBITDA 30.3% 31.3% 36.6% 37.4% M
Slide 12: McGraw Hill FY26-Q3 Revenue by Segment
McGraw Hill FY26-Q3 Revenue by Segment $ in millions K-12 Higher Education $830 $758 $621 $528 +18.0% +4.3% $182 $225 $150 $128 $490 $511 $438 $517 -1.6% +33.5% $113 $111 $147 $196 FY25-Q3 FY26-Q3 FY25-YTDQ3 FY26-YTDQ3 FY25-Q3 FY26-Q3 FY25-YTDQ3 FY26-YTDQ3 YoY Rev. Growth -14.6% -8.6% YoY Rev. Growt
Slide 13: Consolidated FY26-Q3 Cash Flow Summary
Consolidated FY26-Q3 Cash Flow Summary $ in millions Three Months Ended December 31, Nine Months Ended December 31, FY25-Q3 FY26-Q3 Variance FY25-YTDQ3 FY26-YTDQ3 Variance Net Income (Loss) (53) (20) 33 71 86 15 Adjustments to reconcile net income (loss) to net cash provided by operating activities
Slide 14: Balance Sheet and Liquidity
Balance Sheet and Liquidity Debt Profile: 12/31/2025 ($ in millions) • Cash on hand of $514M; Total committed Senior Secured Term Loan due 2031 $565 liquidity of $964M (cash, revolver & ABL) Revolving Credit Facility due 2029 ($450M)1 - Senior Secured Notes due 2028 828 • Revolving credit facilities
Slide 15: Fiscal Year 2026 - Guidance
Fiscal Year 2026 - Guidance $ in millions FY26 Guidance - Prior1 FY26 Guidance - Updated1 Low High Low High Revenue $2,031 $2,061 $2,067 $2,087 Re-occurring Revenue $1,504 $1,524 $1,516 $1,526 Adjusted EBITDA2 $702 $722 $729 $739 (1) Prior as of November 12, 2025. Updated as of February 11, 2026. (2
Slide 16: 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 17: Appendix / Reconciliations
A Appendix / Reconciliations
Slide 18: Known Core Purchasing Schedules Drives Strong Predictability
Known Core Purchasing Schedules Drives Strong Predictability K-12 Core Market Size Predictable Purchasing Schedules Strong Alignment with Core Subject Pipeline, Well-Positioned to Capitalize on Upcoming Opportunities • TX ELA • TX ELA • FL ELA • FL Math • FL Social • TX Science • FL Science • TX Mat
Slide 19: GAAP Revenue Detail
GAAP Revenue Detail $ in millions Total Revenue Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Ended March 31, 2025 2025 2025 2025 Ended March 31, 2026 2026 2026 2024 Q1 Q2 Q3 Q4 2025 Q1 Q2 Q3 K-12 $ 905 $ 275 $ 405 $ 150 $ 141 $ 970 $ 271
Slide 20: Remaining Performance Obligations (RPO)
Remaining Performance Obligations (RPO) $ in millions March 31, 2025 (FYE) December 31, 2025 Current Non-Current Total Current Non-Current Total RPO by Segment: K-12 $ 457 $ 822 $ 1,280 $ 517 $ 818 $ 1,335 Higher Education 248 50 297 197 56 254 Global Professional 55 7 62 65 7 72 International 31 3
Slide 21: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $ in millions Three Months Ended December 31, Nine Months Ended December 31, FY25-Q3 FY26-Q3 FY25-YTDQ3 FY26-YTDQ3 Net income (loss) $ (53) $ (20) $ 71 $ 86 Interest expense (income), net 69 47 230 162 Income tax provision (benefit) 8 (5) (25) 11 Depreciation, amortiza
Slide 22: 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 nine months ended December 31, 2025 and 2024, represents the pro rata portion of the annual $10.0
Slide 23: Gross Profit and Gross Margin Reconciliation
Gross Profit and Gross Margin Reconciliation1 $ in millions Three Months Ended December 31, Nine Months Ended December 31, FY25-Q3 FY26-Q3 FY25-YTDQ3 FY26-YTDQ3 Revenue $ 416 $ 434 $ 1,628 $ 1,639 (-) Cost of sales (excluding depreciation and amortization) 65 64 344 326 Gross Profit $ 351 $ 370 $ 1,
Slide 24: 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 25: 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