McGraw Hill (MH) Registration Filing summary

Company overview and business model

• Leading global provider of information solutions for education, spanning K-12, higher education, and professional learning, with a focus on digital transformation and personalized learning experiences.

• Serves approximately 60 million learners and educators annually in over 100 countries, with 26 million paid digital users in FY2025.

• Offers flagship digital solutions such as ConnectED, ALEKS, Connect, and Access, underpinned by proprietary content and advanced data science.

• Institutional sales model with a global sales force of 1,500 professionals and long-standing customer relationships, including 99% of U.S. public K-12 districts and 82% of U.S. higher education institutions.

• Business model emphasizes recurring digital subscription revenue and multi-year contracts, with a strong focus on technology-enabled innovation and data-driven product development.

Financial performance and metrics

• FY2025 revenue: $2.1 billion (+7% YoY); net loss: $85.8 million (improved from $193.0 million loss in FY2024).

• Adjusted EBITDA for FY2025: $726.8 million (35% margin), up from $656.6 million in FY2024.

• Digital revenue reached $1.4 billion (+8% YoY), representing 65% of total revenue; recurring revenue accounted for 69% of total revenue.

• Annual Net Dollar Retention in Higher Education and Global Professional segments was 110% and 105%, respectively.

• Cash flow from operations in FY2025 was $646.3 million; total debt as of March 31, 2025, was $3.28 billion.

Use of proceeds and capital allocation

• Net proceeds from the IPO will be used to repay a portion of the outstanding borrowings under the A&E Term Loan Facility.

• No proceeds will be received from shares sold by the selling stockholder.

• No current plans to pay dividends; future dividends subject to board discretion and compliance with debt covenants.