McGraw Hill (MH): K-12 revenue fell 9.6% in the September quarter to $324.6 million
McGraw Hill Q2 K-12 revenue fell 9.6% y/y to $324.6M on lower Transactional Revenue from California and Texas share losses.
What this filing says
McGraw Hill's K-12 revenue dropped in the quarter ended September 30, 2026, mainly from lower one-time sales tied to adoption opportunities in California and Texas, along with lower recurring revenue from weaker sales and deferred revenue timing. The filing also says an October 2026 amendment restated the company's existing cash flow credit agreement, which shareholders may want to read in the full filing.
Key figures
- Q2 K-12 revenue
- $324.6 million
- Q2 K-12 revenue decline
- $34.5 million, or 9.6%
- Six-month K-12 revenue
- $599.0 million
- Six-month K-12 revenue decline
- $31.1 million, or 4.9%
- Transactional Revenue share of total
- approximately 29%
- Shares outstanding
- 191,324,797 shares
Positive for shareholders
- K-12 recurring revenue from digital subscriptions and multi-year print products provides a steadier base of income.
Negative for shareholders
- Lower Transactional Revenue from weaker market share capture in California and Texas drove most of the quarterly K-12 decline.
- Transactional Revenue fell from about 33% to about 29% of total revenue for the six-month periods.
- Recurring revenue also fell on lower sales and the timing of deferred revenue recognition.
Written by Quantisnow AI from this filing. Not financial advice.
Key terms
- Re-occurring Revenue:
- Revenue from digital subscriptions and multi-year print products, recognized over the subscription or contract term.
- Transactional Revenue:
- Revenue from one-time print or digital sales, recognized when the product ships or is delivered, plus shipping and handling billed to customers.
- Adjusted EBITDA:
- Earnings before interest, taxes, depreciation and amortization, adjusted for certain items the company chooses to exclude.
FAQ
Why did McGraw Hill's K-12 revenue decline this quarter?
The filing attributes most of the decline to lower Transactional Revenue from weaker market share capture in California and Texas, plus lower Re-occurring Revenue from lower sales and the timing of deferred revenue recognition.
What did McGraw Hill change in its credit agreement?
On October 9, 2026, alongside completing an offering, the company entered into an Amendment and Restatement Agreement that amends and restates its Cash Flow Credit Agreement dated July 30, 2021.
Historical context for MH
Across the 30 sessions after earlier MH headlines, the stock closed higher 13 times and lower 17 times, with a median move of 2.1% in either direction. This shows timing only: many things move a stock in a session, and these figures do not show that any headline caused a move.
| Session | Earlier headline | MH | SPY |
|---|---|---|---|
| Nov 2, 2026 | McGraw Hill Integrates Trusted Content into AI Platform Developed by University of California, San Francisco School of Medicine | -4.2% | -0.5% |
| Oct 29, 2026 | McGraw Hill Announces Agentic AI Education Plugin for Microsoft Copilot | +1.6% | -0.4% |
| Oct 16, 2026 | McGraw Hill Expands AI-Powered Study and Student Engagement Tools for Higher Education | -1.5% | -1.1% |
| Oct 12, 2026 | McGraw Hill, Inc. Announces Successful Completion of Refinancing Transactions | +1.6% | -0.1% |
| Oct 5, 2026 | McGraw Hill to Release Fiscal Second Quarter 2027 Financial Results and Host Webcast on November 5, 2026 | -2.0% | +0.7% |
| Oct 1, 2026 | McGraw Hill, Inc. Announces Further Deleveraging with Additional $50 Million of Debt Reduction | -0.4% | +0.2% |
- Market cap
- 30-day
- Sector
- Consumer Discretionary
- Industry
- Publishing
- Listed since
- 2025
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