McGraw Hill, Inc.

McGraw Hill announced on Thursday that it prepaid another $50M of principal on its term loan, further reducing leverage. Since its July 2025 IPO, the company has paid down $659M of term-loan principal, and total debt reduction across its term loan and 2029 senior unsecured notes has reached $699M over the same period. The company said the paydown supports its 2.0x-2.5x net leverage target while preserving flexibility to invest in growth.

McGraw Hill, Inc. has acquired Teachally, an AI platform for K-12 curriculum development, to accelerate product development and expand AI tools for educators. The acquisition will enable McGraw Hill to bring curriculum to market faster in the U.S. and internationally, and offer new AI-powered solutions that help teachers save time, simplify lesson planning, and customize McGraw Hill's trusted content to their classroom needs. Teachally, co-founded by Daniel Bernstein and Rushil Makkar, provides tools for creating, localizing, and translating standards-aligned instructional materials. McGraw Hill will integrate these capabilities into its K-12 portfolio, shortening development cycles and embedding time-saving AI into existing classroom tools. Terms of the transaction were not disclosed.

McGraw Hill reported first quarter fiscal 2027 results that exceeded expectations, with revenue up 2.6% year-over-year to $550 million and adjusted EBITDA of $207 million, a margin of 37.7%. Recurring revenue grew 9.8% to $426 million, representing 77% of total revenue, while net income was $58 million. The company reaffirmed its full-year guidance across all metrics, citing strong momentum in higher education, K-12 literacy adoptions, and AI-driven tools. CEO Philip Moyer highlighted the launch of a new dyslexia screening integration with Stanford University and early success of the Emerge, Summit, and Soar literacy programs, with capture rates above the 25% to 30% target range. CFO Bob Sallmann noted that gross debt was reduced by $646 million in fiscal 2026 and that Moody's upgraded the company's credit ratings in July.

A bullish thesis on McGraw Hill, Inc. posted on r/ValueInvesting highlights the company's transformation into an AI-enabled education platform. The company reported fiscal Q4 FY2026 revenue of $463.7 million, beating expectations of $441.2 million, and adjusted EPS of $0.31, significantly above the $0.15 estimate. Recurring revenue rose 5.8% to $1.54 billion, now over 73% of total sales, while digital revenue grew 5.5% to $1.43 billion. Adjusted EBITDA reached $744.3 million with margins expanding to 35.4%, and net income turned positive at $35.3 million compared to a prior-year loss of $85.8 million. The company also highlighted over 100 million student and educator licenses, 7.5 million users engaging with AI-enabled tools, and a newly authorized $50 million share repurchase program.

McGraw Hill CEO and President Philip D. Moyer purchased 22,421 shares of the company in an open-market transaction on June 15, 2026, according to an SEC filing. The purchase, valued at $249,322 based on a weighted average price of $11.12 per share, increased his direct holdings by 4.5% to 516,768 shares, representing approximately 0.3% of the company. The buy comes after McGraw Hill shares fell 43% over the past year and follows a fiscal fourth-quarter earnings report that saw net income of $35.32 million miss Wall Street's consensus estimate of about $57 million, despite revenue of $2.10 billion topping expectations. Moyer, who became CEO six months ago, had not previously made any open-market purchases, and the transaction involved only direct ownership with no indirect holdings or derivative exercises.