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McGraw Hill, Inc. (MH)
NYSE:MH
Earnings Data
Report Date
Aug 13, 2026Before Open (Confirmed)
Period Ending
2027 (Q1)Consensus EPS Forecast
―Last Year’s EPS
0Same Quarter Last Year
Strong Buy
Based on 10 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized strong execution: higher education outperformance (24% growth), sizable increases in recurring and digital revenue (recurring +14.8%, digital +11%), margin expansion (~100 bps gross margin and adjusted EBITDA margin expansion), robust operating cash flow (+12%) and aggressive debt paydown with raised full-year guidance. Notable challenges include a meaningful K-12 revenue decline (-14.6%), modest international softness (-1.8%), and near-term comparability headwinds for Q4; AI efficiency and some operational initiatives are early in realization. On balance, positive financial momentum, product traction (AI and platform adoption), and capital allocation discipline outweigh the headwinds.Company Guidance
Quarterly Revenue Growth
Total revenue for fiscal Q3 reached $434 million, up 4.2% year-over-year, with fiscal year-to-date revenue up 0.7% versus prior year.
Strong Recurring and Digital Mix
Recurring revenue grew 14.8% year-over-year to $357 million and represented 82% of total revenue; digital revenue increased 11% to $364 million and comprised roughly the mid-80% mix of total revenue.
Higher Education Outperformance
Higher education revenue rose 24% year-over-year to $225 million. Higher-ed recurring revenue grew 33.5% and digital revenue expanded 24.8%. Inclusive Access represents ~60% of higher ed revenue and Evergreen now drives ~70% of higher ed revenue, supporting land-and-expand and retention dynamics.
AI Product Traction and Engagement
AI Reader reached over 1 million higher education students in Q3 and generated 16 million learning interactions (up from 11 million in Q2) for a 27 million total since inception; other AI offerings (ALEKS Calculus, Sharpen Advantage, Teacher Assistant, Writing Assistant, clinical reasoning) are driving pilot wins, platform adoption and expanded use cases.
Profitability and Margin Expansion
Adjusted EBITDA increased 7.7% year-over-year to $136 million in the quarter with an adjusted EBITDA margin of 31.3% (up nearly 100 basis points YoY). Gross profit margin expanded ~100 basis points YoY to 85.3%.
Cash Flow Strength and Debt Reduction
Operating cash flow of $309 million in the quarter (up 12% YoY). Cash on hand $514 million, total liquidity $964 million, revolving credit undrawn. Company prepaid $200 million of term loan principal in the quarter (total YTD prepayments $596 million), generating >$41 million in annualized interest savings and driving net leverage down to 2.9x.
Raised Fiscal Year 2026 Guidance
Company raised full-year fiscal 2026 guidance: total revenue now expected $2.067B–$2.087B; recurring revenue $1.516B–$1.526B; adjusted EBITDA $729M–$739M. Unlevered free cash flow expected to slightly exceed the low end of 50%–100% adjusted EBITDA conversion range.
K-12 Platform Momentum
McGraw Hill Plus district access up 86% YoY and average time spent on the platform up 40% since start of school year; ALEKS Adventure monthly users 4x year-over-year. Early wins in Florida ELA and active California math pilots position K-12 for a larger FY2027 opportunity.
MH Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
MH Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 11, 2026 | $12.34 | $14.31 | +15.96% |
Nov 12, 2025 | $11.37 | $14.09 | +23.92% |
Aug 14, 2025 | $14.13 | $13.31 | -5.80% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does McGraw Hill, Inc. (MH) report earnings?
McGraw Hill, Inc. (MH) is schdueled to report earning on Aug 13, 2026, Before Open (Confirmed).
What is McGraw Hill, Inc. (MH) earnings time?
McGraw Hill, Inc. (MH) earnings time is at Aug 13, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
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What companies are reporting earnings today?
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What is MH EPS forecast?
Currently, no data Available