McGraw Hill (MH) Registration Filing summary

Company overview and business model

• Leading global provider of information solutions for education, serving K-12, higher education, and professional markets with digital and print products.

• Serves approximately 60 million learners and educators annually in over 100 countries and 80 languages.

• Offers flagship digital solutions such as ConnectED, ALEKS, Connect, and Access, with a focus on adaptive, data-driven, and personalized learning experiences.

• Business model emphasizes recurring digital subscription revenue and multi-year print contracts, with a strong institutional sales force and long-standing customer relationships.

• Invested over $2.0 billion in digital learning solutions over the past decade, leveraging proprietary content and learning science.

Financial performance and metrics

• FY2025 revenue: $2.1 billion (+7.2% YoY); net loss: $85.8 million (improved from $193.0 million loss in FY2024).

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

• Digital revenue: $1.4 billion (+8% YoY), representing 65% of total revenue.

• Recurring revenue: $1.5 billion (+11% YoY), 69% of total revenue.

• Annual Net Dollar Retention: 110% in Higher Education, 105% in Global Professional.

• Cash flow from operations FY2025: $646.3 million; cash and equivalents at year-end: $389.8 million.

• Total debt as of March 31, 2025: $3.28 billion; recent refinancing reduced interest expense.

Use of proceeds and capital allocation

• Net proceeds of ~$466.6 million from IPO (at $20.50/share midpoint) to repay a portion of the A&E Term Loan Facility.

• Post-offering, expected to have ~$642.9 million outstanding under the A&E Term Loan Facility.

• No current plans to pay dividends; focus on debt reduction and reinvestment in technology and growth initiatives.