McGraw Hill, Inc. Reports Fiscal First Quarter 2026 Results (Form 8-K)

McGraw Hill, Inc. Reports Fiscal First Quarter 2026 Results

Investments in personalized learning and digital innovation fueled revenue growth and profitability

Continued momentum across the business as new data-driven and AI solutions roll out and gain traction

Columbus, OH, - August 14, 2025 - McGraw Hill, Inc. (NYSE: MH) ("McGraw Hill" or the "Company"), a leading global provider of information solutions across education from preK-12 through higher education and professional learning, today announced financial results for its fiscal first quarter 2026 ended June 30, 2025.

Fiscal First Quarter 2026 Key Financial Highlights

•Total revenue of $535.7 million, an increase of 2.4% year-over-year.

•Re-occurring revenue of $387.6 million, an increase of 7.1% year-over-year.

•Digital revenue of $325.0 million, an increase of 7.2% year-over-year.

•GAAP gross profit of $412.3 million, an increase of 3.7% year-over-year.

•Remaining performance obligation (RPO) of $1,650.2 million on June 30, 2025.

•Net income (loss) of $0.5 million, compared to $(9.4) million in the prior-year period.

•Adjusted EBITDA(1) of $191.4 million, an increase of 7.2% year-over-year.

"McGraw Hill delivered strong performance in the fiscal first quarter reinforcing our leadership position in the market," said Simon Allen, McGraw Hill Chairman, President and CEO. "Our debut in the public markets was a significant milestone in our company's journey and a testament to our enduring, mission critical business. Through our deep understanding of learning methodologies, our wealth of data and insights, and our responsible and impactful use of artificial intelligence, we are seeing strong demand for McGraw Hill solutions which personalize the learning experience for millions of educators and students around the world."

"Our fiscal first quarter performance reflects McGraw Hill's track record of disciplined execution and profitable growth with results landing at the upper end of the ranges provided in our registration statement filed in July," said Bob Sallmann, McGraw Hill Executive Vice President and Chief Financial Officer. "The proceeds from our IPO have strengthened our balance sheet which we believe will deepen our competitive positioning through growth-oriented investments that leverage our scale ahead of robust market opportunities in fiscal year 2027 and beyond."

Fiscal First Quarter 2026 Business Highlights

•Revenue totaled $535.7 million, an increase of 2.4% year-over-year. The increase was driven primarily by re-occurring and digital revenue growth.

•Market share increased within U.S. higher education along with strong K-12 capture rate amid the predictably smaller fiscal year 2026 market.

•Gross profit margin improved over 90 basis points year-over-year to 77.0%, due to higher margin digital growth.

•Adjusted EBITDA margin(1) expanded over 150 basis points year-over-year to 35.7%, amid ongoing business reinvestment.

•New solutions and capabilities were bolstered through the impactful and responsible use of data science and GenAI to drive efficacy, solve pain points, and fuel continued growth and market expansion.

•Internal efficiencies captured through proprietary AI-powered solutions like Scribe, reducing cost and time to market within select product development.

1

•Performance on pace with historical seasonality with emphasis on first half fiscal year results in alignment with the academic calendar with approximately 60% of revenue and 65% of Adjusted EBITDA(1) typically realized in the first half of the fiscal year.

K-12 Business

•Revenue totaled $270.9 million, a decline of 1.4% year-over-year. The decrease was expected due to the smaller overall market opportunity this fiscal year.

•Re-occurring revenue totaled $183.6 million, an increase of 10.1% year-over-year.

•Capture rates trended favorable with leadership across several state contracts and continued science program strength.

•Positioned for growth in the larger fiscal year 2027 market and beyond having secured review panel recommendation for California math while also conducting a nationwide flagship K-5 core literacy pilot.

Higher Education Business

•Revenue totaled $182.4 million, an increase of 14.1% year-over-year. The increase was driven by share gains, enrollment, and continued demand for digital learning solutions.

•Re-occurring revenue totaled $159.6 million, an increase of 6.8% year-over-year.

•Momentum continued with Inclusive Access land and expand execution amid ongoing innovation.

•First-to-market Evergreen content delivery model gained traction, achieving a 95% acceptance rate among instructors receiving the update.

Global Professional Business

•Revenue totaled $35.2 million, relatively steady year-over-year, as a 3.9% increase in re-occurring revenue was offset by the ongoing strategic exit of non-core solutions.

International Business

•Revenue totaled $51.5 million, a decrease of 11.7% year-over-year, as regional specific contract timing resulted in an 8.7% re-occurring revenue decline amid continued digital transition.

2

Fiscal First Quarter 2026 Financial Highlights

						Three Months Ended June 30,
($ in thousands)						2025						2024
Revenue						$	535,710					$	522,954
Cost of sales (excluding depreciation and amortization)						$	123,384					$	125,290
Operating and administrative expenses						$	241,549					$	246,271
Net income (loss)						$	502					$	(9,447)
Adjusted EBITDA (1)						$	191,416					$	178,594
Net income (loss) margin						0.1		%				(1.8)		%
Adjusted EBITDA Margin (1)						35.7		%				34.2		%
Adjusted net income (loss) (1)						$	292					$	85,944

Fiscal Year 2026 Guidance

The following outlook is forward-looking, based on the Company's current expectations, and actual results may differ materially from what is indicated.

						2026 Outlook
($ in millions)						Low						High
Revenue						$	1,986					$	2,046
Re-occurring Revenue						1,477						1,517
Adjusted EBITDA (1)						663						703

Earnings Conference Call and Webcast

Today, August 14, at 8:30 a.m. (ET), McGraw Hill will hold a conference call via webcast to review its fiscal Q1 2026 results and provide a business update. The webcast will be hosted by Simon Allen, Chairman, President and Chief Executive Officer, and Bob Sallmann, Executive Vice President and Chief Financial Officer, and will conclude with a Q&A period.

To access the live webcast of the conference call or to view a replay, visit the Company's investor relations website at www.investors.mheducation.com

The conference call can also be accessed by registering online at the Event Registration Page-www.registrations.events/direct/Q4I549208070450532247929000, at which time registrants will receive dial-in information as well as a conference ID. Registration can be completed in advance of the conference call.

About McGraw Hill

McGraw Hill (NYSE: MH) is a leading global provider of education solutions for preK-12, higher education and professional learning, supporting the evolving needs of millions of educators and students around the world. We provide trusted, high-quality content and personalized learning experiences that use data, technology and learning science to help students progress towards their goals. Through our commitment to fostering a culture of innovation and belonging, we are dedicated to improving outcomes and access to education for all. We have over 30 offices across North America, Asia, Australia, Europe, the Middle East and South America, and make our learning solutions available in more than 80 languages. The Company's fiscal year is a 52-week period ended March 31. Visit us at mheducation.com or find us on Facebook, Instagram, LinkedIn or X.

3