McGraw Hill Reports $669.2 Million Revenue, 2.8% Decline in Latest Quarter

McGraw Hill, Inc. reported a revenue of $669.2 million for the three months ended September 30, 2025, a decrease of 2.8% compared to $688.6 million in the same period last year. For the six months ended September 30, 2025, revenue was $1.205 billion, down slightly from $1.212 billion in the prior year. The company's net income for the latest quarter was $105.3 million, a decline of 21.1% from $133.4 million in the previous year, while net income for the six-month period was $105.8 million, down from $124.0 million. The decrease in revenue and profitability was attributed to lower transactional revenue in the K-12 segment, which saw a significant drop due to a smaller market opportunity.

In terms of operational metrics, McGraw Hill's K-12 segment generated $359.1 million in revenue for the third quarter, down 11.2% from the previous year, primarily due to a decrease in transactional revenue. Conversely, the Higher Education segment experienced a 14.0% increase in revenue to $213.0 million, driven by higher adoption of digital products and market share gains. The Global Professional and International segments reported slight declines in revenue, reflecting ongoing strategic shifts and market conditions.

The company has made significant strategic moves, including the completion of its initial public offering (IPO) on July 25, 2025, which raised approximately $385.7 million. The proceeds were used to repay a portion of the A&E Term Loan Facility, resulting in a loss on extinguishment of debt of $16.4 million for the quarter. Additionally, McGraw Hill has focused on enhancing its digital offerings, with a notable increase in recurring revenue from digital subscriptions, which accounted for approximately 67% of total revenue for the six months ended September 30, 2025.

As of September 30, 2025, McGraw Hill reported total assets of $6.045 billion, up from $5.758 billion at the end of the previous fiscal year. The company’s cash and cash equivalents increased to $463.2 million, compared to $389.8 million in March 2025. The total long-term debt decreased to $2.797 billion from $3.165 billion, reflecting the repayment of debt following the IPO. Looking ahead, McGraw Hill anticipates continued growth in its digital learning solutions and expects to leverage its strong market position to enhance profitability, despite the challenges posed by market conditions and competition.