MH
McGraw Hill, Inc.17.07
-0.18-1.04%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q3 '26
Reaffirms; details Higher Ed drivers
Q&A largely reaffirmed prepared remarks on Q3 strength and raised FY2026 guidance, but unpacked Higher Ed's 24% growth into 3-4% enrollment tailwind, over 1% pricing, and a 4-point sales return release benefit. New CEO Philip Moyer spotlighted customer visits, AI moat via proprietary learning pathways, and innovation pace. Management flagged Q4 tough comps yet double-digit billings growth from 4-5% share gains. Another $50M debt paydown looms in Q4, with tuck-in M&A funnel active. Success breeds success in Higher Ed. K-12 FY27 optimism intact despite Texas review mechanics; federal policies no impact. Investors eye June FY27 outlook.
Key Stats
Market Cap
3.26BP/E (TTM)
-Basic EPS (TTM)
-0.54Dividend Yield
0%Recent Filings
10-Q
Q3 FY2026 results
McGraw Hill posted Q3 revenue of $434M, up 4% y/y yet down from Q2's $669M peak, driven by Higher Ed's 24% surge to $225M on digital subscriptions while K-12 dipped 15% to $128M from smaller market timing. Operating income climbed 26% y/y to $30M, gross margins expanded on lower print costs, but net loss narrowed to $20M from $53M as interest fell 31% post-IPO debt paydown. Cash swelled to $514M, OCF $477M (9M y/y), FCF $416M (derived), total debt trimmed to $2.7B with full revolver availability. Debt weighs heavy.
8-K
Q3 revenue up 4.2%, guidance raised
McGraw Hill posted Q3 revenue of $434.2M, up 4.2% YoY, fueled by 24.0% Higher Education growth and 14.8% re-occurring revenue surge to $357.5M. Adjusted EBITDA hit $135.9M at 31.3% margin, while $200M term loan prepayments cut net leverage to 2.9x. Philip Moyer succeeds Simon Allen as CEO effective February 9. FY2026 guidance lifted: revenue $2.07B-$2.09B, Adjusted EBITDA $729M-$739M.
8-K
Appoints new CAO
McGraw Hill appointed Brian Van Dam as Chief Accounting Officer and principal accounting officer on January 5, 2026, creating the role to succeed Muhammad Ali Jamal, who remains SVP Controller. Van Dam, ex-Array and Transfix controller, gets $350,000 base, 45% target bonus, and $20,000 sign-on. New hire bolsters accounting leadership.
8-K
CEO succession to Philip Moyer
McGraw Hill announced Simon Allen's retirement as President and CEO effective February 9, 2026, with no disagreements, transitioning to Board Chair. Philip Moyer, ex-Vimeo CEO and Google AI exec, succeeds him with $1.2M base, $1.8M target bonus, $2.5M sign-on, and $8M RSUs tied to stock hurdles. Board expands to 11, adding Moyer and Platinum's Eric Worley. Smooth handoff preserves continuity.
8-K
Further $50M term loan paydown
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