McGraw Hill Reports Strong FY2026 Results, Beats Guidance

Education
Education
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IPO:
Jul 24, 2025
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MISCELLANEOUS PUBLISHING

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McGraw Hill Exceeds Fiscal Year 2026 Guidance with Strong Recurring Revenue Growth

COLUMBUS, Ohio - McGraw Hill, Inc. (NYSE: MH), a prominent global provider of education solutions, reported its financial results for the fourth quarter and fiscal year ended March 31, 2026. The company exceeded its fiscal year 2026 financial guidance, driven by resilient recurring revenue streams and disciplined operational execution.

Financial Highlights:

  • Total revenue for fiscal year 2026 reached $2.1 billion, a 0.1% increase year-over-year.
  • Recurring revenue grew 5.8% to $1.54 billion, now accounting for more than 73% of total revenue.
  • Adjusted EBITDA for the year was $744.3 million, with an Adjusted EBITDA margin of 35.4%, up nearly 80 basis points.
  • The company achieved a net income of $35.3 million for the full fiscal year, a significant improvement from the prior-year loss of $85.8 million.
  • Gross debt was reduced by $645.6 million during the year, enhancing financial flexibility.

Operational and Strategic Updates:

  • McGraw Hill served over 100 million active student and educator curriculum licenses globally.
  • The company reported 7.5 million users of its AI-enabled learning tools.
  • Higher Education revenue saw 12.3% year-over-year growth, bolstered by new market share and pricing favorability.
  • The Board of Directors approved a share repurchase plan of up to $50 million.

Looking ahead, McGraw Hill remains focused on accelerating growth and expanding margins for fiscal year 2027, with revenue guidance set between $2.115 billion and $2.175 billion.

About McGraw Hill, Inc.

McGraw Hill is a leading global provider of information solutions for education across K-12 to higher education, and through professional learning. We harness the power of content, data-driven insights, and learning science to deliver personalized learning experiences and drive positive outcomes throughout the entire learning lifecycle. We believe that we have positively impacted hundreds of millions of learners and educators with our personalized learning solutions to support learning at scale worldwide. On an annual basis, we serve approximately 60 million learners and educators. We believe McGraw Hill is one of the most trusted and recognized education brands in the world. Based on the results of a third-party survey that we commissioned in the fiscal year ended March 31, 2025, we believe that, in the United States, on average, 89% of K-12, higher education and medical school students, faculty and administrators would consider McGraw Hill for their classes. Understanding how learning happens is critical to building effective learning solutions, like ALEKS, which has leveraged data science and machine learning to enhance learning outcomes for over 25 years. Over the last decade, we have invested more than $2.0 billion in developing a suite of market leading digital learning solutions. We utilize our data analytics capabilities to generate continuous feedback loops that drive product and go-to-market innovation, which allows us to simplify workflows while creating meaningful learning experiences that are tailored to the needs of each learner. At McGraw Hill, we recognize that the integrity of educational content is of utmost importance, especially as generative AI becomes more integrated into the learning process. With the proliferation of AI-generated generic content, the risks of inaccurate and low-quality information are heightened, which is why our proprietary content is rigorously researched and designed to meet the highest quality standards. We aim to offer vetted content and data-driven learning solutions that educators and learners can trust. With approximately 1,500 sales professionals worldwide as of March 31, 2025, we believe our global sales force is one of the largest in the education sector, underpinning our ability to serve learners, educators and professionals at scale across the learning lifecycle.

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