Short answer
McGraw Hill, Inc. (MH) filed its fiscal 2026 10-K annual report with the SEC on Jun 11, 2026. It reported revenue of $2.1B (+0.1% year over year) and net income of $35M.
- Top risk flagged: Regulatory/legal risk: Unsettled US copyright law on use of proprietary content to train generative AI; ongoing lawsuits over fair use impacting product pricing and demand
FY2026 key financial metrics · XBRL
- Revenue
- $2.1B
- +0.1% YoY
- Net income
- $35M
- +141.1% YoY
- Operating margin
- 13.2%
- −1.4 pp YoY
- Gross margin
- 80.9%
- +1.0 pp YoY
- EPS (diluted)
- $0.19
- +136.5% YoY
- ROE
- 4.9%
- +35.5 pp YoY
- Operating cash flow
- $331M
- −48.8% YoY
Source: XBRL data from the McGraw Hill, Inc. (MH) FY2026 10-K on SEC EDGAR. USD.
McGraw Hill, Inc. FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: Global education solutions provider leveraging proprietary content, software, and AI-driven personalized learning experiences across K-12, higher education, professional markets
- New products emphasized: AI Reader generative AI tool for interactive reading; McGraw Hill Plus patent-pending personalized workflow platform; Clinical Reasoning platform launched 2026 with AI patient simulations
- Strategic shift: Increased focus on AI-powered digital personalization and Evergreen continuous content updates; growth in K-12 McGraw Hill Plus rollout & Higher Ed micro-credentialing (SIMskills Badges)
- Quantitative metric: 4,400 employees globally; 26.7 million paid digital users FY2026 (up from 26.2 million FY2025); 25.6 billion learning interactions FY2026; digital revenue 68% of total
- Noteworthy fact: Completed IPO in July 2025 issuing 24.4 million shares; turned profitable FY2026 with net income $35.3 million vs prior losses; expanded Global Professional with Clinical Reasoning platform
Management Discussion & Analysis
- Revenue $2.103B, flat YoY (+$1.5M, +0.1%) with segment mix shifts: Higher Education up 12.3% to $879M, K-12 down 8.9% to $884.5M
- Operating income $276.8M vs $306.8M (-9.8%), net income $35.3M vs loss of $85.8M, operating margin approx. 13.2% vs 14.6%
- Best segment Higher Education revenue +$96.3M (12.3%), Adjusted EBITDA $389.8M (+11.1%); Worst segment K-12 revenue -$86.0M (-8.9%), Adjusted EBITDA $285.0M (-6.7%)
- Cash flow from operations $331.2M down from $646.3M; capex $84.9M up from $71.1M; IPO proceeds $392.9M used for $605.6M debt repayment; repurchased $39.9M unsecured notes
- Management highlights investments in AI-driven personalized learning, sales force expansion (1,500 reps), evolving revenue mix to digital/subscription with 73% recurring revenue in 2026; risks include macroeconomic uncertainties, international market volatility, and impacts from shifting education budgets and curriculum cycles
Risk Factors
- Regulatory/legal risk: Unsettled US copyright law on use of proprietary content to train generative AI; ongoing lawsuits over fair use impacting product pricing and demand
- Geopolitical/macroeconomic risk: Military conflict in the Middle East contributing to global economic uncertainty affecting growth and pricing pressure
- Operational/supply chain risk: Paper raw material shortages and price increases pressuring costs for K-12 print/digital bundled products
- Competitive/market disruption risk: Competition from generative AI tools like ChatGPT enabling low-cost creation of instructional materials threatening sales and pricing
- Financial/structural risk: Large indebtedness of $2,632.3M with variable interest rate exposure; 100 bps SOFR increase raises annual interest expense by $5.5M
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