Overview

• US education solutions provider's fiscal Q4 revenue fell 2% yr/yr on weaker K-12 demand

• Company's Q4 net loss narrowed compared to prior year period

• Board approved $50 mln share repurchase plan

Outlook

• McGraw Hill sees fiscal 2027 revenue between $2.115 bln and $2.175 bln

• Company expects fiscal 2027 re-occurring revenue of $1.587 bln to $1.627 bln

• McGraw Hill targets fiscal 2027 adjusted EBITDA of $750 mln to $790 mln

Result Drivers

• K-12 WEAKNESS - Q4 revenue declined due to a smaller K-12 market opportunity, partially offset by strong Higher Education performance

• HIGHER EDUCATION STRENGTH - Higher Education revenue grew 1.6% yr/yr in Q4, supported by share gains, pricing favorability and beneficial enrollment trends

Company press release: ID:nBwD6KY2a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Revenue		$463.72 mln
Q4 EPS		-$0.26
Q4 Adjusted Net Income		$61.17 mln
Q4 Net Income		-$50.27 mln
Q4 Adjusted EBITDA		$130.58 mln
Q4 Adjusted EBITDA Margin		28.20%

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the consumer publishing peer group is "buy"

• Wall Street's median 12-month price target for McGraw Hill Inc is $19.00, about 48.4% above its June 10 closing price of $12.80

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

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