McGraw Hill, Inc. (MH) FY2026 10-K Annual Report
McGraw Hill, Inc. (MH) 10-K annual report for fiscal year 2026, filed with SEC EDGAR on Jun 11, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
McGraw Hill, Inc. FY2026 10-K Analysis
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
McGraw Hill, Inc. FY2026 Key Financial MetricsXBRL
Revenue
$2.1B
▲ +0.1% YoY
Net Income
$35M
▲ +141.1% YoY
Gross Margin
80.9%
▲ +102bp YoY
Operating Margin
13.2%
▼ -144bp YoY
Net Margin
1.7%
▲ +576bp YoY
ROE
4.9%
▲ +3549bp YoY
Total Assets
$5.5B
▼ -4.7% YoY
EPS (Diluted)
$0.19
▲ +136.5% YoY
Operating Cash Flow
$331M
▼ -48.8% YoY
Source: XBRL data from McGraw Hill, Inc. FY2026 10-K filing on SEC EDGAR. All figures in USD.
Get deeper insights on McGraw Hill, Inc.
Access full AI analysis, insider trading data, fund holdings, and cross-signal detection on SignalX.