Q2 2026 McGraw Hill Inc Earnings Call Transcript
Key Points
- Fiscal second-quarter results exceeded expectations with revenue reaching $669 million, marking the second-best performance for this quarter in a decade.
- Re-occurring revenue grew 6.5% year-over-year to $422 million, highlighting the strength of McGraw Hill Inc (MH)'s subscription-based model.
- Digital revenue increased 7.6% year-over-year to $352 million, representing 53% of total revenue, driven by market share gains and value-based pricing.
- Higher education business delivered exceptional results with a 14% revenue increase year-over-year and digital revenue growth of 18.4%.
- Adjusted EBITDA reached $286 million in Q2, yielding a margin of 43%, up 60 basis points year-over-year, reflecting strong operating leverage and an expanding digital mix.
- Total revenue declined 2.8% year-over-year due to the anticipated smaller K-12 market opportunity.
- International revenue decreased 8.8% year-over-year to $50 million in Q2, with declines in Canada and timing issues in Spain.
- K-12 revenue was down 11.2% year-over-year due to a smaller market opportunity and lapping of exceptional capture rates in the prior year.
- Global professional revenue remained flat year-over-year, indicating challenges in non-strategic print exits.
- Concerns about future enrollment trends in higher education due to demographic shifts, although McGraw Hill Inc (MH) remains optimistic about its market share gains.
Good morning, and welcome to the McGraw Hill, Inc fiscal second-quarter 2026 earnings conference call for the quarter ended September 30, 2025. (Operator Instructions) As a reminder, today's call is being recorded and a written transcript will be made available in the Events & Presentations section of the company's Investor Relations website. A webcast replay of today's call will also be made available on the company's Investor Relations website. Following the prepared remarks, we will open the call for questions.
I would now like to turn the call over to your host, Danielle Kloeblen, Treasurer and Senior Vice President, Investor Relations. Please go ahead, Danielle.
Good morning, everyone. Welcome to McGraw Hill's fiscal second-quarter 2026 results. Joining me today are Simon Allen, Chairman, President and Chief Executive Officer, and Bob Sallmann, Executive Vice President, and Chief Financial Officer.
During this call, we will be making forward
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