McGraw Hill (MH) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Nov 13, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-Q for Q2 FY2027, filed Nov 5, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the MH SEC filings page.
McGraw Hill, Inc. (MH) reported $2.1B in revenue over the twelve months to Sep 30, 2026, down 0.7% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 3 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
McGraw Hill’s revenue is nearly flat, while debt falls and cash generation remains much larger than reported profit.
In FY2026, operating cash flow of$331M was937.6% of net income, indicating reported earnings were not the main source of cash. Meanwhile, free cash flow fell57.2% as capital expenditures rose19.4% , meaning reinvestment absorbed more cash even as accounting profit turned positive.
Debt-to-equity fell from 11.3x to 3.5x, indicating balance-sheet repair rather than revenue-led expansion. Yet liabilities still represented
Revenue was up
Financial Health Signals
Scored against operating companies for FY2026. Each of the six dimensions is a percentile rank within that peer group, and the overall is the average of the dimensions that can be computed. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of McGraw Hill, Inc.'s business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
McGraw Hill, Inc. has an operating margin of 13.2%, meaning the company retains $13 of operating profit per $100 of revenue. This strong profitability earns a score of 70/100, reflecting efficient cost management and pricing power. This is down from 14.6% the prior year.
McGraw Hill, Inc.'s revenue grew a modest 0.1% year-over-year to $2.1B. This slow but positive growth earns a score of 42/100.
McGraw Hill, Inc. has elevated debt relative to equity (D/E of 3.53), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 17/100, reflecting increased financial risk.
McGraw Hill, Inc.'s current ratio of 0.77 is below the typical benchmark, resulting in a score of 11/100. This tight liquidity could limit financial flexibility if cash inflows slow.
McGraw Hill, Inc. converts 11.7% of revenue into free cash flow ($246.3M). This strong cash generation earns a score of 79/100.
McGraw Hill, Inc. earns a strong 4.9% return on equity (ROE), meaning it generates $5 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 67/100. This is up from -30.6% the prior year.
McGraw Hill, Inc. scores 0.45, below the 1.81 distress threshold. The score is pulled down most by an accumulated deficit of $1.2B against total assets of $5.5B. This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
McGraw Hill, Inc. passes 7 of 8 computable financial strength tests (1 of the nine could not be computed from available data). All 4 profitability signals pass (positive income, cash flow, and earnings quality), 1 of 2 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, McGraw Hill, Inc. generates $9.38 in operating cash flow ($331.2M OCF vs $35.3M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
McGraw Hill, Inc. earns $1.34 in operating income for every $1 of interest expense ($276.8M vs $207.2M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
Key Financial Metrics
Earnings & Revenue
McGraw Hill, Inc. generated $632.2M in revenue in Q2 2027. This represents a decrease of 5.5% from the same quarter a year earlier. Against the prior quarter it is up 15.0%.
McGraw Hill, Inc.'s EBITDA was $239.4M in Q2 2027, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 4.0% from the same quarter a year earlier. Against the prior quarter it is up 21.0%.
McGraw Hill, Inc. reported $86.4M in net income in Q2 2027. This represents a decrease of 18.0% from the same quarter a year earlier. Against the prior quarter it is up 49.3%.
McGraw Hill, Inc. earned $0.45 per diluted share (EPS) in Q2 2027. This represents a decrease of 21.1% from the same quarter a year earlier. Against the prior quarter it is up 50.0%.
Cash & Balance Sheet
McGraw Hill, Inc. generated $164.1M in free cash flow in Q2 2027, representing cash available after capex. This represents a decrease of 32.7% from the same quarter a year earlier. The change from the prior quarter is not meaningful, because that quarter’s figure was zero or negative.
McGraw Hill, Inc. held $233.0M in cash against $2.5B in long-term debt as of Q2 2027.
Not reported for Q2 2027.
Margins & Returns
McGraw Hill, Inc.'s gross margin was 79.2% in Q2 2027, indicating the percentage of revenue retained after direct costs. This is down 0.1 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.7 percentage points.
McGraw Hill, Inc.'s operating margin was 22.3% in Q2 2027, reflecting core business profitability. This is down 1.1 percentage points from the same quarter a year earlier. Against the prior quarter it is up 1.5 percentage points.
McGraw Hill, Inc.'s net profit margin was 13.7% in Q2 2027, showing the share of revenue converted to profit. This is down 2.1 percentage points from the same quarter a year earlier. Against the prior quarter it is up 3.1 percentage points.
McGraw Hill, Inc.'s quarterly ROE was 9.8% in Q2 2027: one quarter's net income over shareholder equity, not annualized. This is down 3.4 percentage points from the same quarter a year earlier. Against the prior quarter it is up 2.5 percentage points.
Capital Allocation
McGraw Hill, Inc. invested $69.3M in research and development in Q2 2027. This represents a decrease of 0.6% from the same quarter a year earlier. Against the prior quarter it is up 15.7%.
McGraw Hill, Inc. invested $25.4M in capex in Q2 2027, funding long-term assets and infrastructure. This represents an increase of 19.8% from the same quarter a year earlier. Against the prior quarter it is up 6.1%.
Not reported for Q2 2027.
MH Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2710-Q | Q1'2710-Q | Q4'2610-K | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-K | Q3'2510-Q |
|---|---|---|---|---|---|---|---|---|
| Revenue | $632.2M-5.5% | $549.9M+2.6% | $463.7M-2.0% | $434.2M+4.2% | $669.2M-2.8% | $535.7M+2.4% | $473.3M | $416.5M |
| Cost of Revenue | $131.8M-5.3% | $110.7M-10.3% | $74.8M-4.5% | $63.8M-2.2% | $139.1M-9.3% | $123.4M-1.5% | $78.4M | $65.3M |
| Gross Profit | $500.4M-5.6% | $439.2M+6.5% | $388.9M-1.5% | $370.3M+5.4% | $530.1M-1.0% | $412.3M+3.7% | $394.9M | $351.2M |
| R&D Expenses | $69.3M-0.6% | $59.8M-8.6% | $73.6M-15.7% | $67.5M-3.7% | $69.7M+9.7% | $65.5M+3.2% | $87.4M | $70.1M |
| SG&A Expenses | $191.8M-9.1% | $181.6M+11.6% | $197.1M+2.0% | $176.7M+5.7% | $211.1M+8.0% | $162.8M-4.0% | $193.2M | $167.2M |
| Operating Income | $141.1M-9.9% | $114.3M+18.8% | -$6.4M-122.9% | $30.4M+25.8% | $156.5M-12.6% | $96.2M+27.0% | $27.8M | $24.2M |
| EBITDA | $239.4M-4.0% | $197.8M+7.4% | $79.2M-30.7% | $126.1M+10.6% | $249.3M-9.7% | $184.1M+11.8% | $114.3M | $113.9M |
| Interest Expense | $46.3M-17.3% | $45.8M-22.1% | $45.2M-28.9% | $47.4M-31.2% | $55.9M-30.2% | $58.8M-27.3% | $63.5M | $68.9M |
| Income Tax | $6.6Mn/m | $10.7M-71.2% | -$2.5M-102.0% | -$5.0M-160.3% | -$21.1Mn/m | $36.9M+749.2% | $121.1M | $8.2M |
| Net Income | $86.4M-18.0% | $57.9M+11425.9% | -$50.3Mn/m | -$20.2Mn/m | $105.3M-21.1% | $502Kn/m | -$156.9M | -$52.9M |
| EPS (Basic) | $0.45-21.1% | $0.30n/m | -$0.28n/m | -$0.11n/m | $0.57-28.8% | $0.00n/m | -$0.95 | -$0.32 |
| EPS (Diluted) | $0.45-21.1% | $0.30n/m | -$0.28n/m | -$0.11n/m | $0.57-28.8% | $0.00n/m | -$0.95 | -$0.32 |
| Diluted Shares (Avg) | 191M+3.0% | 191M+14.8% | N/A | 191M+14.6% | 186M+11.5% | 167M0.0% | N/A | 167M |
MH Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2710-Q | Q1'2710-Q | Q4'2610-K | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-K | Q3'2510-Q |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $5.7B-5.5% | $5.4B-5.0% | $5.5B-4.7% | $5.6B | $6.0B | $5.7B | $5.8B | N/A |
| Current Assets | $1.2B-15.4% | $888.1M-10.5% | $973.6M-7.5% | $1.1B | $1.4B | $991.8M | $1.1B | N/A |
| Cash & Equivalents | $233.0M-49.7% | $193.6M-21.7% | $253.5M-35.0% | $514.4M-6.3% | $463.2M+11.3% | $247.3M+56.5% | $389.8M | $549.0M |
| Short-Term Investments | $0n/m | $0n/m | $0n/m | $0n/m | $0n/m | $0n/m | $0 | $0 |
| Inventory | $159.4M+19.9% | $183.2M+14.0% | $195.0M+12.1% | $169.7M | $133.0M | $160.7M | $174.0M | N/A |
| Accounts Receivable | $644.8M-3.3% | $377.9M-15.0% | $362.5M+7.1% | $242.3M | $666.8M | $444.7M | $338.4M | N/A |
| Long-Term Investments | $0n/m | $0n/m | $0n/m | $0n/m | $0n/m | $0n/m | $0 | $0 |
| Goodwill | $2.5B-0.5% | $2.5B-1.4% | $2.5B-1.4% | $2.6B0.0% | $2.6B0.0% | $2.6B0.0% | $2.6B | $2.6B |
| Total Liabilities | $4.8B-8.0% | $4.6B-14.7% | $4.8B-13.1% | $4.9B | $5.3B | $5.4B | $5.5B | N/A |
| Current Liabilities | $1.4B-0.3% | $1.1B-4.5% | $1.3B-4.8% | $1.3B | $1.4B | $1.2B | $1.3B | N/A |
| Non-Current Liabilities | $3.4B-10.8% | $3.4B-17.6% | $3.5B-15.8% | $3.6B | $3.8B | $4.2B | $4.1B | N/A |
| Long-Term Debt | $2.5B-10.1% | $2.6B-19.1% | $2.6B-19.1% | $2.6B | $2.8B | $3.2B | $3.2B | N/A |
| Total Equity | $877.1M+10.4% | $788.4M+178.3% | $726.2M+159.1% | $775.3M+77.6% | $794.6M+61.4% | $283.3M-20.9% | $280.2M | $436.5M |
| Retained Earnings | -$1.1Bn/m | -$1.2Bn/m | -$1.2Bn/m | -$1.2B | -$1.2B | -$1.3B | -$1.3B | N/A |
MH Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2710-Q | Q1'2710-Q | Q4'2610-K | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-K | Q3'2510-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $189.5M-28.5% | $601Kn/m | -$146.1Mn/m | $309.0M+12.3% | $265.0M-36.2% | -$96.7Mn/m | -$41.2M | $275.0M |
| Depreciation & Amortization | $98.3M+5.9% | $83.5M-5.0% | $85.6M-1.1% | $95.7M+6.6% | $92.8M-4.5% | $87.9M-1.2% | $86.5M | $89.8M |
| Stock-Based Compensation | $1.7M-94.7% | $3.9Mn/m | N/A | $661Kn/m | $31.1Mn/m | $0 | N/A | $0 |
| Capital Expenditures | $25.4M+19.8% | $23.9M+47.0% | $23.8M-16.2% | $23.6M+73.4% | $21.2M+61.6% | $16.3M+2.3% | $28.4M | $13.6M |
| Free Cash Flow | $164.1M-32.7% | -$23.3Mn/m | -$169.9Mn/m | $285.4M+9.2% | $243.8M-39.4% | -$112.9Mn/m | -$69.6M | $261.4M |
| Investing Cash Flow | -$94.1Mn/m | -$58.3Mn/m | -$66.1Mn/m | -$51.2Mn/m | -$47.5Mn/m | -$39.1Mn/m | -$64.0M | -$35.6M |
| Financing Cash Flow | -$55.8Mn/m | -$3.1Mn/m | -$49.2Mn/m | -$207.3Mn/m | -$969Kn/m | -$7.4Mn/m | -$54.8M | -$105.6M |
Not reported in any period shown, so not listed: Dividends Paid, Share Buybacks.
MH Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2710-Q | Q1'2710-Q | Q4'2610-K | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-K | Q3'2510-Q |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 79.2%-0.1pp | 79.9%+2.9pp | 83.9%+0.4pp | 85.3%+1.0pp | 79.2%+1.5pp | 77.0%+0.9pp | 83.4% | 84.3% |
| Operating Margin | 22.3%-1.1pp | 20.8%+2.8pp | -1.4%-7.2pp | 7.0%+1.2pp | 23.4%-2.6pp | 18.0%+3.5pp | 5.9% | 5.8% |
| Net Margin | 13.7%-2.1pp | 10.5%+10.4pp | -10.8%+22.3pp | -4.7%+8.1pp | 15.7%-3.6pp | 0.1%+1.9pp | -33.1% | -12.7% |
| Return on Equity | 9.8%-3.4pp | 7.3%+7.2pp | -6.9%+49.1pp | -2.6%+9.5pp | 13.3%-13.8pp | 0.2%+2.8pp | -56.0% | -12.1% |
| Return on Assets | 1.5%-0.2pp | 1.1%+1.1pp | -0.9%+1.8pp | -0.4% | 1.7% | 0.0% | -2.7% | N/A |
| Current Ratio | 0.86-0.2x | 0.78-0.1x | 0.770.0x | 0.83 | 1.01 | 0.83 | 0.79 | N/A |
| Debt-to-Equity | 2.87-0.7x | 3.25-7.9x | 3.53-7.8x | 3.36 | 3.52 | 11.17 | 11.29 | N/A |
| Liabilities-to-Equity | 5.51-1.1x | 5.82-13.2x | 6.55-13.0x | 6.28 | 6.61 | 18.99 | 19.55 | N/A |
| Asset Turnover | 0.110.0x | 0.100.0x | 0.080.0x | 0.08 | 0.11 | 0.09 | 0.08 | N/A |
| FCF Margin | 25.9%-10.5pp | -4.2%+16.8pp | -36.6%-21.9pp | 65.7%+3.0pp | 36.4%-22.0pp | -21.1%-17.5pp | -14.7% | 62.8% |
Note: The current ratio is below 1.0 (0.77), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it. Market cap is stated at each company's latest close.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| McGraw Hill, Inc. MH | FY2026 | $2.1B | $35.3M | 1.7% | $2.2B | 48/100 |
| Youdao, Inc. DAO | FY2025 | $845.0M | $15.4M | 1.8% | $2.3B | 27/100 |
| Stride, Inc. LRN | FY2026 | $2.5B | $338.2M | 13.4% | $3.2B | 82/100 |
| Grand Canyon Education, Inc LOPE | FY2025 | $1.1B | $216.2M | 19.5% | $3.1B | 81/100 |
| Covista Inc. CVSA | FY2026 | $2.0B | $251.6M | 12.9% | $3.9B | 63/100 |
| Laureate Education, Inc. LAUR | FY2025 | $1.7B | $281.6M | 16.6% | $4.8B | 62/100 |
Where McGraw Hill, Inc. Ranks
Frequently Asked Questions
McGraw Hill, Inc. (MH) reported $2.1B in total revenue for fiscal year 2026. This represents a 0.1% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
McGraw Hill, Inc. (MH) revenue grew by 0.1% year-over-year, from $2.1B to $2.1B in fiscal year 2026.
Yes, McGraw Hill, Inc. (MH) reported a net income of $73.8M over the trailing 12 months to September 30, 2026. In fiscal year 2026 it reported a net income of $35.3M, with a net profit margin of 1.7%.
McGraw Hill, Inc. (MH) had EBITDA of $638.7M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.
As of fiscal year 2026, McGraw Hill, Inc. (MH) had $253.5M in cash and equivalents against $2.6B in long-term debt.
McGraw Hill, Inc. (MH) had a gross margin of 80.9% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.
McGraw Hill, Inc. (MH) had an operating margin of 13.2% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.
McGraw Hill, Inc. (MH) had a net profit margin of 1.7% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.
McGraw Hill, Inc. (MH) has a return on equity of 4.9% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.
McGraw Hill, Inc. (MH) generated $246.3M in free cash flow during fiscal year 2026. This represents a -57.2% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
McGraw Hill, Inc. (MH) generated $331.2M in operating cash flow during fiscal year 2026, representing cash generated from core business activities.
McGraw Hill, Inc. (MH) had $5.5B in total assets as of fiscal year 2026, including both current and long-term assets.
McGraw Hill, Inc. (MH) invested $84.9M in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
McGraw Hill, Inc. (MH) invested $276.3M in research and development during fiscal year 2026.
McGraw Hill, Inc. (MH) had a current ratio of 0.77 as of fiscal year 2026, which is below 1.0, which may suggest potential liquidity concerns.
McGraw Hill, Inc. (MH) had a debt-to-equity ratio of 3.53 as of fiscal year 2026. We compute it as long-term debt divided by total shareholder equity, where long-term debt is the noncurrent part of the company's borrowings, so debt due within the next twelve months is not counted.
McGraw Hill, Inc. (MH) had a liabilities-to-equity ratio of 6.55 as of fiscal year 2026, which is total liabilities divided by total shareholder equity. Total liabilities counts every obligation on the balance sheet (payables, deposits, insurance reserves and deferred taxes as well as borrowings), so this ratio usually runs well above debt-to-equity.
McGraw Hill, Inc. (MH) had a return on assets of 0.6% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
McGraw Hill, Inc. (MH) trades at 30.1x earnings, its market capitalization divided by $73.8M net income, trailing 12 months to September 30, 2026. The market capitalization is $2.2B as of Nov 13, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
McGraw Hill, Inc. (MH) trades at 1.1x sales, its market capitalization divided by $2.1B revenue, trailing 12 months to September 30, 2026. The market capitalization is $2.2B as of Nov 13, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
McGraw Hill, Inc. (MH) has an Altman Z-Score of 0.45, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
McGraw Hill, Inc. (MH) has a Piotroski F-Score of 7 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
McGraw Hill, Inc. (MH) has an earnings quality ratio of 9.38x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
McGraw Hill, Inc. (MH) has an interest coverage ratio of 1.34x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
McGraw Hill, Inc. (MH) scores 48 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is the average of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.