McGraw Hill Financials
This page shows McGraw Hill (MH) financial statements, including the 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).
Financial Health Signals
Based on FY2026 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of McGraw Hill'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 has an operating margin of 13.2%, meaning the company retains $13 of operating profit per $100 of revenue. This results in a moderate score of 50/100, indicating healthy but not exceptional operating efficiency. This is down from 14.6% the prior year.
McGraw Hill's revenue grew a modest 0.1% year-over-year to $2.1B. This slow but positive growth earns a score of 39/100.
McGraw Hill has a moderate D/E ratio of 3.53. This balance of debt and equity financing earns a leverage score of 30/100.
McGraw Hill's current ratio of 0.77 is below the typical benchmark, resulting in a score of 10/100. This tight liquidity could limit financial flexibility if cash inflows slow.
McGraw Hill has a free cash flow margin of 11.7%, earning a moderate score of 64/100. The company generates positive cash flow after capital investments, but with room for improvement.
McGraw Hill generates a 4.9% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 0/100. This is up from -30.6% the prior year.
McGraw Hill scores 0.41, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($1.9B) relative to total liabilities ($4.8B). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
McGraw Hill passes 7 of 9 financial strength tests. 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 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.
Key Financial Metrics
Earnings & Revenue
McGraw Hill generated $2.1B in revenue in fiscal year 2026. This represents an increase of 0.1% from the prior year.
McGraw Hill's EBITDA was $638.7M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 4.6% from the prior year.
McGraw Hill reported $35.3M in net income in fiscal year 2026. This represents an increase of 141.1% from the prior year.
McGraw Hill earned $0.19 per diluted share (EPS) in fiscal year 2026. This represents an increase of 136.5% from the prior year.
Cash & Balance Sheet
McGraw Hill generated $246.3M in free cash flow in fiscal year 2026, representing cash available after capex. This represents a decrease of 57.2% from the prior year.
McGraw Hill held $253.5M in cash against $2.6B in long-term debt as of fiscal year 2026.
McGraw Hill had 191M shares outstanding in fiscal year 2026.
Margins & Returns
McGraw Hill's gross margin was 80.9% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is up 1.0 percentage points from the prior year.
McGraw Hill's operating margin was 13.2% in fiscal year 2026, reflecting core business profitability. This is down 1.4 percentage points from the prior year.
McGraw Hill's net profit margin was 1.7% in fiscal year 2026, showing the share of revenue converted to profit. This is up 5.8 percentage points from the prior year.
McGraw Hill's ROE was 4.9% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is up 35.5 percentage points from the prior year.
Capital Allocation
McGraw Hill invested $276.3M in research and development in fiscal year 2026. This represents a decrease of 2.9% from the prior year.
McGraw Hill invested $84.9M in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents an increase of 19.4% from the prior year.
MH Income Statement
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $463.7M+6.8% | $434.2M-35.1% | $669.2M+24.9% | $535.7M+13.2% | $473.3M+13.6% | $416.5M-39.5% | $688.6M+31.7% | $523.0M |
| Cost of Revenue | $74.8M+17.2% | $63.8M-54.1% | $139.1M+12.7% | $123.4M+57.4% | $78.4M+20.1% | $65.3M-57.5% | $153.4M+22.4% | $125.3M |
| Gross Profit | $388.9M+5.0% | $370.3M-30.1% | $530.1M+28.6% | $412.3M+4.4% | $394.9M+12.4% | $351.2M-34.4% | $535.2M+34.6% | $397.7M |
| R&D Expenses | $73.6M+9.1% | $67.5M-3.1% | $69.7M+6.4% | $65.5M-25.1% | $87.4M+24.6% | $70.1M+10.5% | $63.5M+0.1% | $63.5M |
| SG&A Expenses | $95.5M+9.8% | $86.9M-21.8% | $111.1M+47.4% | $75.4M-15.1% | $88.9M+9.3% | $81.3M-10.6% | $91.0M+8.3% | $84.0M |
| Operating Income | -$6.4M-120.9% | $30.4M-80.6% | $156.5M+62.7% | $96.2M+246.5% | $27.8M+15.0% | $24.2M-86.5% | $179.1M+136.3% | $75.8M |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | -$2.5M+50.1% | -$5.0M+76.5% | -$21.1M-157.0% | $36.9M-69.5% | $121.1M+1374.9% | $8.2M+122.1% | -$37.2M-954.3% | $4.4M |
| Net Income | -$50.3M-148.9% | -$20.2M-119.2% | $105.3M+20872.9% | $502K+100.3% | -$156.9M-196.4% | -$52.9M-139.7% | $133.4M+1512.1% | -$9.4M |
| EPS (Diluted) | N/A | $-0.11-119.3% | $0.57 | $0.00 | N/A | $-0.32-140.0% | $0.80+1433.3% | $-0.06 |
MH Balance Sheet
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $5.5B-2.8% | $5.6B-6.6% | $6.0B+6.8% | $5.7B-1.7% | $5.8B | N/A | N/A | N/A |
| Current Assets | $973.6M-8.9% | $1.1B-25.0% | $1.4B+43.6% | $991.8M-5.8% | $1.1B | N/A | N/A | N/A |
| Cash & Equivalents | $253.5M-50.7% | $514.4M+11.1% | $463.2M+87.3% | $247.3M-36.6% | $389.8M-29.0% | $549.0M+32.0% | $416.0M+163.2% | $158.0M |
| Inventory | $195.0M+14.9% | $169.7M+27.6% | $133.0M-17.3% | $160.7M-7.6% | $174.0M | N/A | N/A | N/A |
| Accounts Receivable | $362.5M+49.6% | $242.3M-63.7% | $666.8M+49.9% | $444.7M+31.4% | $338.4M | N/A | N/A | N/A |
| Goodwill | $2.5B-1.4% | $2.6B0.0% | $2.6B0.0% | $2.6B0.0% | $2.6B0.0% | $2.6B0.0% | $2.6B0.0% | $2.6B |
| Total Liabilities | $4.8B-2.2% | $4.9B-7.3% | $5.3B-2.4% | $5.4B-1.8% | $5.5B | N/A | N/A | N/A |
| Current Liabilities | $1.3B-1.2% | $1.3B-9.1% | $1.4B+17.6% | $1.2B-9.9% | $1.3B | N/A | N/A | N/A |
| Long-Term Debt | $2.6B-1.7% | $2.6B-6.8% | $2.8B-11.6% | $3.2B0.0% | $3.2B | N/A | N/A | N/A |
| Total Equity | $726.2M-6.3% | $775.3M-2.4% | $794.6M+180.5% | $283.3M+1.1% | $280.2M-35.8% | $436.5M-11.4% | $492.5M+37.5% | $358.1M |
| Retained Earnings | -$1.2B-4.2% | -$1.2B-1.7% | -$1.2B+8.2% | -$1.3B0.0% | -$1.3B | N/A | N/A | N/A |
MH Cash Flow Statement
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$146.1M-147.3% | $309.0M+16.6% | $265.0M+374.2% | -$96.7M-134.7% | -$41.2M-115.0% | $275.0M-33.8% | $415.4M+14447.4% | -$2.9M |
| Capital Expenditures | $23.8M+1.1% | $23.6M+11.2% | $21.2M+30.2% | $16.3M-42.7% | $28.4M+109.3% | $13.6M+3.6% | $13.1M-17.6% | $15.9M |
| Free Cash Flow | -$169.9M-159.5% | $285.4M+17.1% | $243.8M+315.9% | -$112.9M-62.2% | -$69.6M-126.6% | $261.4M-35.0% | $402.2M+2238.0% | -$18.8M |
| Investing Cash Flow | -$66.1M-29.3% | -$51.2M-7.8% | -$47.5M-21.5% | -$39.1M+38.9% | -$64.0M-79.6% | -$35.6M-9.3% | -$32.6M+6.6% | -$34.9M |
| Financing Cash Flow | -$49.2M+76.3% | -$207.3M-21294.1% | -$969K+86.9% | -$7.4M+86.5% | -$54.8M+48.1% | -$105.6M+16.2% | -$126.1M-1429.6% | -$8.2M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
MH Financial Ratios
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 83.9%-1.4pp | 85.3%+6.1pp | 79.2%+2.2pp | 77.0%-6.5pp | 83.4%-0.9pp | 84.3%+6.6pp | 77.7%+1.7pp | 76.0% |
| Operating Margin | -1.4%-8.4pp | 7.0%-16.4pp | 23.4%+5.4pp | 18.0%+12.1pp | 5.9%+0.1pp | 5.8%-20.2pp | 26.0%+11.5pp | 14.5% |
| Net Margin | -10.8%-6.2pp | -4.7%-20.4pp | 15.7%+15.6pp | 0.1%+33.2pp | -33.1%-20.4pp | -12.7%-32.1pp | 19.4%+21.2pp | -1.8% |
| Return on Equity | -6.9%-4.3pp | -2.6%-15.9pp | 13.3%+13.1pp | 0.2%+56.2pp | -56.0%-43.8pp | -12.1%-39.2pp | 27.1%+29.7pp | -2.6% |
| Return on Assets | -0.9%-0.6pp | -0.4%-2.1pp | 1.7%+1.7pp | 0.0%+2.7pp | -2.7% | N/A | N/A | N/A |
| Current Ratio | 0.77-0.1 | 0.83-0.2 | 1.01+0.2 | 0.83+0.0 | 0.79 | N/A | N/A | N/A |
| Debt-to-Equity | 3.53+0.2 | 3.36-0.2 | 3.52-7.7 | 11.17-0.1 | 11.29 | N/A | N/A | N/A |
| FCF Margin | -36.6%-102.4pp | 65.7%+29.3pp | 36.4%+57.5pp | -21.1%-6.4pp | -14.7%-77.5pp | 62.8%+4.3pp | 58.4%+62.0pp | -3.6% |
Note: The current ratio is below 1.0 (0.77), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Frequently Asked Questions
What is McGraw Hill's annual revenue?
McGraw Hill (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.
How fast is McGraw Hill's revenue growing?
McGraw Hill (MH) revenue grew by 0.1% year-over-year, from $2.1B to $2.1B in fiscal year 2026.
Is McGraw Hill profitable?
Yes, McGraw Hill (MH) reported a net income of $35.3M in fiscal year 2026, with a net profit margin of 1.7%.
What is McGraw Hill's EBITDA?
McGraw Hill (MH) had EBITDA of $638.7M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does McGraw Hill have?
As of fiscal year 2026, McGraw Hill (MH) had $253.5M in cash and equivalents against $2.6B in long-term debt.
What is McGraw Hill's gross margin?
McGraw Hill (MH) had a gross margin of 80.9% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.
What is McGraw Hill's operating margin?
McGraw Hill (MH) had an operating margin of 13.2% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.
What is McGraw Hill's net profit margin?
McGraw Hill (MH) had a net profit margin of 1.7% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.
What is McGraw Hill's return on equity (ROE)?
McGraw Hill (MH) has a return on equity of 4.9% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.
What is McGraw Hill's free cash flow?
McGraw Hill (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.
What is McGraw Hill's operating cash flow?
McGraw Hill (MH) generated $331.2M in operating cash flow during fiscal year 2026, representing cash generated from core business activities.
What are McGraw Hill's total assets?
McGraw Hill (MH) had $5.5B in total assets as of fiscal year 2026, including both current and long-term assets.
What are McGraw Hill's capital expenditures?
McGraw Hill (MH) invested $84.9M in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
How much does McGraw Hill spend on research and development?
McGraw Hill (MH) invested $276.3M in research and development during fiscal year 2026.
What is McGraw Hill's current ratio?
McGraw Hill (MH) had a current ratio of 0.77 as of fiscal year 2026, which is below 1.0, which may suggest potential liquidity concerns.
What is McGraw Hill's debt-to-equity ratio?
McGraw Hill (MH) had a debt-to-equity ratio of 3.53 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is McGraw Hill's return on assets (ROA)?
McGraw Hill (MH) had a return on assets of 0.6% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
What is McGraw Hill's Altman Z-Score?
McGraw Hill (MH) has an Altman Z-Score of 0.41, 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.
What is McGraw Hill's Piotroski F-Score?
McGraw Hill (MH) has a Piotroski F-Score of 7 out of 9, indicating strong financial health. 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.
Are McGraw Hill's earnings high quality?
McGraw Hill (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.
How financially healthy is McGraw Hill?
McGraw Hill (MH) scores 32 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.