McGraw Hill is a leading global education provider serving K-12, higher education, and professional learning markets with proprietary content, software, and data-driven solutions. The company completed its IPO in July 2025 and generated revenue of $2,102.8 million in fiscal 2026 with net income of $35.3 million. Key developments include the launch of McGraw Hill Plus for personalized learning pathways, expansion of the Evergreen content delivery model (68% of Higher Education revenue), and investments in AI-driven tools like AI Reader to enhance digital learning experiences across over 100 million active licenses globally.
Segment Performance
K-12 segment comprised 42% of revenue in fiscal 2026 versus 46% in fiscal 2025; Higher Education grew to 42% of revenue in fiscal 2026 from 37% in fiscal 2025, with approximately 68% of Higher Education revenue derived through the Evergreen delivery model. Global Professional maintained 7% of revenue in both periods. International segment declined to 9% of revenue in fiscal 2026 from 10% in fiscal 2025. Total company revenue increased modestly to $2,102.8 million in fiscal 2026 from $2,101.3 million in fiscal 2025, with Adjusted EBITDA growing to $744.3 million from $726.8 million.
Forward Guidance
Forward-looking statements identified but no specific quantitative guidance provided. Document states: "Our expectations, beliefs and projections are expressed in good faith, and we believe there is a reasonable basis for them, however; we caution you that forward-looking statements are not guarantees of future performance." Company notes focus on continuing to scale McGraw Hill Plus across other subjects and states, expansion in international markets, and development of new solutions in medical education and career/technical education, but provides no numerical targets or specific timelines for achievement.
Key Risk Factors
+136.5%
EPS (Diluted)
$0.19
+136.5%
Total Liabilities
$4.76B
-13.1%
Stockholders' Equity
$726.2M
+159.1%
Primary risks include: (1) competition from free or inexpensive products and AI-driven disruption of education markets; (2) dependence on federal, state, and local education funding and potential policy changes including reorganization of the U.S. Department of Education; (3) reliance on customer acquisition through multi-year contracts and high seasonality affecting order patterns and payment schedules; (4) cybersecurity threats, data privacy compliance, and risks related to AI/machine learning integration; (5) international operations exposure including currency fluctuations, tariffs, and varied regulatory environments across 100+ countries; and (6) substantial indebtedness and leverage constraints on financial flexibility.
