McGraw Hill, Inc.
McGraw Hill, Inc. is an education content and digital learning company serving K-12, higher education, and professional end markets. It sells curriculum, digital subscriptions, and assessment-oriented learning solutions, with a growing mix of recurring revenue from subscription-based products and a large U.S. base supplemented by international distribution.
Fiscal year 2026 · change from previous year
Development 2024–2026
Business
Share of revenueCurriculum, digital learning, and assessment products sold to school systems and districts.
Textbooks, digital courseware, and direct-to-student learning solutions for colleges and universities.
Subscription-based medical and engineering learning solutions for students and professionals.
Adapted K-12 and higher education solutions sold outside the United States through global distribution.
In-transit sales adjustments and corporate allocations not assigned to a reportable segment.
Products
Reported · share of revenue- Digital68.2 %
- Print31.8 %
Source: 10-K FY2026, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
McGraw Hill sells primarily to education institutions, school districts, universities, students, and professional learners. Its K-12 business is driven by state and district purchasing cycles, while higher education includes institutional buyers, online retailers, and direct-to-student e-commerce. The professional segment serves medical and engineering learners and institutions that value high-stakes, subscription-based content and exam preparation tools.
State and district buyers purchase curriculum and digital learning solutions on multi-year cycles for classroom adoption.
Colleges, universities, online retailers, and direct-to-student channels buy textbooks and digital courseware for courses.
Medical schools, students, and residents buy AccessMedicine and other subscription tools for high-stakes learning.
Engineers and professional learners buy reference and exam-prep content for credentialing and continuing education.
Schools and institutions outside the U.S. buy adapted print and digital solutions through global distribution.
Strategy
McGraw Hill is shifting its business mix toward digital learning solutions and recurring subscription revenue, which management says improves predictability and customer retention. It is also investing in product development, platform enhancements, and selective acquisitions to broaden content coverage, especially in medical education. Cash generation, disciplined spending, and working-capital improvement from the print-to-digital transition are central to the strategy.
Recurring subscriptions improve predictability, retention, and lifetime customer value.
Medical content is a high-value niche with strong institutional usage and renewal potential.
Leveraging content across products improves return on development spend and margins.
Geography
Q4/2025The United States is the company’s largest market and the main source of segment revenue, especially in K-12, higher education, and professional learning. International business spans more than 100 countries and 80 languages, using a broad distribution network to sell adapted U.S.-origin content. Geography matters because K-12 purchasing is tied to local and state adoption cycles, while international demand is more fragmented across markets and contract structures.
Share of the revenue the company reports by geography.
Risks
The business is exposed to education spending cycles, adoption timing, and the shift from print to digital, which can create uneven quarterly results and execution risk. It also faces content obsolescence, pricing pressure, and the need to keep investing in platforms and curriculum updates to remain relevant. International operations add complexity because purchasing behavior, funding mechanisms, and contract structures differ by market.
- Seasonality and adoption-cycle volatilityImpact: HighLikelihood: Medium
Education purchases are concentrated around academic calendars and state/district adoption windows.
Exposure: K-12 and higher education revenue timing
- Print-to-digital transition executionImpact: HighLikelihood: Low
Revenue mix is shifting toward subscriptions, but print still contributes meaningful transactional revenue.
Exposure - Inflation in operating and fulfillment costsImpact: MediumLikelihood: High
Paper, freight, labor, and logistics inflation can compress margins if not offset by pricing.
Exposure: Print and fulfillment-heavy operations
- International market complexityImpact: MediumLikelihood: Low
Different funding mechanisms, purchasing behaviors, and contract structures make forecasting harder.
Exposure: International segment
Accounting
Judgemental itemsSubscription, print, and contract-based education sales may recognize revenue at different times.
Impact: Affects quarterly revenue timing and deferred revenue balances
Textbook and educational product returns can reduce net revenue after initial shipment.
Impact: Affects net sales and reserve estimates
External preparation costs are amortized over one to six years, influencing operating expense timing.
Impact: Affects EBITDA and operating income trends
Acquisitions and changing market conditions require periodic recoverability testing.
Impact: Could create non-cash charges if asset values decline
Academic-calendar demand and front-loaded investment spending distort interim comparisons.
Impact: Impacts cash flow and quarterly margin comparability
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Last updated: 24/09/2026