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NEW YORK - McGraw Hill, Inc. (NYSE:MH) reported first-quarter fiscal 2026 results that exceeded revenue expectations on Thursday, with total revenue reaching $535.7 million, up 2.4% year-over-year, driven by strong digital and recurring revenue growth.
The company’s shares slipped 0.21% in after hours trading following the announcement.
The education solutions provider reported breakeven earnings per share for the quarter ended June 30, 2025, compared to a loss of $0.06 per share in the same period last year. Revenue growth was fueled by a 7.2% increase in digital revenue, which reached $325 million, and a 7.1% rise in recurring revenue to $387.6 million.
McGraw Hill’s Higher Education segment was the standout performer, with revenue increasing 14.1% year-over-year to $182.4 million, driven by market share gains and growing demand for digital learning solutions. The company’s K-12 business saw a slight decline of 1.4% to $270.9 million, which the company attributed to a smaller overall market opportunity this fiscal year.
"McGraw Hill delivered strong performance in the fiscal first quarter reinforcing our leadership position in the market," said Simon Allen, McGraw Hill Chairman, President and CEO. "Through our deep understanding of learning methodologies, our wealth of data and insights, and our responsible and impactful use of artificial intelligence, we are seeing strong demand for McGraw Hill solutions."
The company’s adjusted EBITDA rose 7.2% to $191.4 million, with margins expanding by over 150 basis points to 35.7%. Gross profit margin improved by more than 90 basis points to 77.0%, which the company attributed to higher-margin digital growth.
For fiscal year 2026, McGraw Hill reaffirmed its outlook, projecting revenue between $1.99 billion and $2.05 billion, with adjusted EBITDA expected to range from $663 million to $703 million.
The company highlighted its continued investments in personalized learning and digital innovation, including the use of AI-powered solutions like Scribe, which has reduced costs and time to market for product development.
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