McGraw Hill, Inc. FY2026 Results: Key Highlights for Investors

McGraw Hill, Inc. Reports Fiscal 2026 Results: Exceeds Guidance, Returns to Profitability, and Announces \$50 Million Share Repurchase Plan

Key Highlights

McGraw Hill, Inc. (NYSE: MH) exceeded its fiscal year 2026 guidance, driven by recurring revenue growth and returned to positive net income.
The company is positioning fiscal 2027 for further revenue growth and accelerating profitability.
A new \$50 million share repurchase plan has been approved by the board of directors, potentially supporting the share price.
Fiscal 2026 revenue reached \$2.102 billion, essentially flat year-over-year.
Reported net loss for FY2026 was \$(50.3) million, a significant improvement from FY2025’s net loss of \$(85.8) million.
Adjusted net income for FY2026 was \$61.2 million, compared to an adjusted net loss of \$(328.1) million in FY2025.
Operating cash flow improved, and the company ended the year with a strengthened balance sheet and total assets of \$5.76 billion.

Full-year revenue was \$2.102 billion, comparable to the prior year (\$2.101 billion).
Net loss margin improved to (10.8)% from (33.1)% in FY2025, showing significant operational progress.
Adjusted EBITDA for FY2026 reached \$362.4 million, a sharp turnaround from negative EBITDA last year.
Net cash provided by operating activities was \$331.2 million for FY2026, a substantial improvement over \$646.3 million in FY2025, reflecting the company’s efforts to optimize working capital and cash generation.

Higher Education: Achieved record-high market share, according to MPI. This segment’s performance was a key driver of the overall results.
K-12: Performance exceeded expectations despite a smaller expected market due to procurement cycles. FY2026 K-12 revenue was \$884.5 million (down 8.9% YoY), reflecting tough prior-year comparisons, but recurring revenue in K-12 grew 2.9% to \$619.7 million.
Global Professional: Delivered 4.0% digital growth, with AI-powered medical solutions contributing to the segment’s momentum.
International: Revenue declined 7.3% due to market headwinds, but the company highlighted new commercial opportunities and the global expansion of ALEKS Calculus.

McGraw Hill provided a guidance range for FY2027 revenue of \$2.115 billion to \$2.115 billion, implying stable to modest growth and continued momentum from recurring revenue streams.
The company expects to build on the positive trends of FY2026, with early 2026–2027 selling season indicators pointing to a multi-year market expansion, especially in K-12 and Higher Education segments.

Share Repurchase Plan: On June 2, 2026, the board approved a plan to buy back up to \$50 million of common stock. This capital allocation move is likely to be price-sensitive, as it demonstrates management’s confidence in the company’s cash flow and share value, and may provide support for the stock price.
Return to Profitability: The company’s turnaround from a large net loss to a positive adjusted net income is a material event and may affect investor sentiment and valuation.
Digital and AI Initiatives: A notable driver in the Professional segment’s growth was the adoption of AI-powered medical solutions, indicating McGraw Hill’s ongoing shift toward technology-driven offerings.
Market Position and Recurring Revenue: Record market share in Higher Education and growth in recurring revenues underpin the company’s long-term stability and growth prospects.
Balance Sheet Strength: Total assets at year-end were \$5.

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