McGraw Hill, Inc. reported a revenue increase of 2.6% for the three months ended June 30, 2026, reaching $549.9 million compared to $535.7 million in the same period last year. The company's net income rose significantly to $57.9 million, a substantial increase from just $0.5 million in the prior year. This growth in profitability was supported by a reduction in cost of sales, which decreased by 10.3% to $110.7 million, contributing to a gross profit of $439.2 million, up 6.5% from the previous year.
The company experienced notable changes in its operational metrics, with Adjusted EBITDA increasing to $207.0 million from $191.4 million year-over-year. The K-12 segment generated $274.4 million in revenue, a 1.3% increase, while the Higher Education segment saw a more pronounced growth of 9.6%, reaching $199.8 million. However, the International segment faced challenges, with revenue declining by 12.1% to $45.2 million, attributed to lower enrollments and shipment delays.
In terms of strategic developments, McGraw Hill has been focusing on enhancing its digital offerings, which now represent a significant portion of its revenue. The company reported that approximately 77% of its total revenue for the quarter came from re-occurring revenue sources, primarily driven by digital subscriptions. The company also noted an increase in its employee headcount, reflecting its commitment to expanding its workforce to support growth initiatives.
Looking ahead, McGraw Hill anticipates continued growth driven by its digital transformation and strategic investments in product development. The company is optimistic about its ability to leverage its extensive educational data and technology to enhance learning experiences. However, it remains cautious about potential market risks, including competition and economic conditions that could impact future performance. The company is committed to maintaining its financial health and operational efficiency as it navigates these challenges.
About McGraw Hill, Inc.
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