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Financial statements

McGraw Hill, Inc. financial statements

Income statement, balance sheet and cash flow statement for the last 3 fiscal years, taken from the XBRL data McGraw Hill, Inc. files with the SEC in its annual reports.

In USD millions, except per-share amounts. Outflows in the cash flow statement are negative.

Income statement

FY2024FY2026FY2026
Revenue1,9602,1012,103
Cost of revenue420422401
Gross profit1,5401,6791,702
Research and development263284276
Selling and marketing374380379
General and administrative332345369
Operating expenses1,3851,3721,425
Operating income155307277
Pre-tax income-16810.643.8
Income tax25.396.58.47
Net income-193-85.835.3
EBITDA522669639
EPS, basic-1.16-0.520.19
EPS, diluted-1.16-0.520.19
Shares, basic (weighted)167167183
Shares, diluted (weighted)167167184

Balance sheet

FY2024FY2026FY2026
Cash and equivalents204390254
Receivables338362
Inventory174195
Other current assets42.742.6
Total current assets1,053974
Property, plant and equipment95.290.4
Lease right-of-use assets49.744.8
Goodwill2,5582,5582,523
Other non-current assets318332
Total assets5,7585,486
Accounts payable147127
Accrued liabilities125108
Deferred revenue794835
Short-term debt13.213.2
Total current liabilities1,3301,267
Long-term debt3,1652,561
Lease liabilities64.757.3
Other non-current liabilities2023.5
Total liabilities5,4784,759
Total debt3,1652,561
Paid-in capital1,5621,973
Retained earnings-1,281-1,246
Other comprehensive income-2.43-2.52
Shareholders' equity369280726
Total equity369280726
Total liabilities and equity5,7585,486
Shares outstanding0191

Cash flow statement

FY2024FY2026FY2026
Net income-193-85.835.3
Depreciation and amortization366362362
Stock-based compensation0033.7
Deferred income tax-30.4-1.47-1.06
Change in receivables-42.8-12.5-22.9
Change in inventory-0.7826.3-29.5
Change in payables-46.885.5-21.3
Cash from operations236646331
Capital expenditures-82-71.1-84.9
Cash from investing-136-167-204
Stock issued001.5
Cash from financing-77.2-295-265
Net change in cash22.1186-136
Free cash flow154575246
Interest paid333275208
Income taxes paid43.846.976.6

Key metrics

Worked out from the statements above. Latest values use the trailing twelve months to June 30, 2026; growth uses fiscal years. Valuation uses the share price of $12.73 on September 25, 2026.

Profitability

MetricValueHow it is calculated
Gross margin81.7%Gross profit / revenue.
Operating margin13.9%Operating income / revenue.
EBITDA margin30.8%EBITDA (operating income + depreciation and amortization) / revenue.
Pre-tax margin3.5%Pre-tax income / revenue.
Net margin4.4%Net income / revenue.
FCF margin15.9%Free cash flow (cash from operations - capital expenditures) / revenue.
Operating cash flow margin20.2%Cash from operations / revenue.
Effective tax rate-23.8%Income tax / pre-tax income, when pre-tax income is positive.
Return on equity (ROE)11.8%Net income / average shareholders' equity (opening and closing). Not shown when equity is negative.
Return on assets (ROA)1.7%Net income / average total assets.
Return on invested capital (ROIC)7.4%Approximation: operating income x (1 - tax rate) / average (total debt + equity - cash). Tax rate is the effective rate when between 0% and 50%, else 21%.
R&D / revenue12.8%Research and development expense / revenue.
Stock-based pay / revenue1.8%Stock-based compensation (from the cash flow statement) / revenue.
Capex / revenue4.4%Capital expenditures / revenue.
D&A / revenue16.9%Depreciation and amortization / revenue.

Growth

MetricValueHow it is calculated
Revenue growth, 1y0.1%Revenue vs the same period a year earlier. Only from a positive base.
Gross profit growth, 1y1.3%Gross profit vs the same period a year earlier. Only from a positive base.
Operating income growth, 1y-9.8%Operating income vs the same period a year earlier. Only from a positive base.
EBITDA growth, 1y-4.6%EBITDA vs the same period a year earlier. Only from a positive base.
Operating cash flow growth, 1y-48.8%Operating cash flow vs the same period a year earlier. Only from a positive base.
Free cash flow growth, 1y-57.2%Free cash flow vs the same period a year earlier. Only from a positive base.
Book value growth, 1y159.1%Book value vs the same period a year earlier. Only from a positive base.
Total assets growth, 1y-4.7%Total assets vs the same period a year earlier. Only from a positive base.
Share count change, 1y10.2%Change in diluted weighted shares vs a year earlier. Negative means buybacks shrank the share count; positive means dilution.

Balance sheet health

MetricValueHow it is calculated
Current ratio0.78xCurrent assets / current liabilities.
Quick ratio0.50x(Cash + short-term investments + receivables) / current liabilities.
Cash ratio0.17x(Cash + short-term investments) / current liabilities.
Debt / equity3.25xTotal debt / shareholders' equity. Not shown when equity is negative.
Debt / assets47.6%Total debt / total assets.
Liabilities / assets85.3%Total liabilities / total assets.
Net debt$2.37BTotal debt - cash - short-term investments. Negative means more cash than debt.
Net debt / EBITDA3.63xNet debt / EBITDA (twelve months), when EBITDA is positive.
Working capital-$257.1MCurrent assets - current liabilities.
Goodwill and intangibles / assets46.9%(Goodwill + intangible assets) / total assets.
Tangible book value-$1.73BShareholders' equity - goodwill - intangible assets.

Efficiency

MetricValueHow it is calculated
Asset turnover0.39xRevenue / average total assets.
Fixed asset turnover22.9xRevenue / average property, plant and equipment.
Inventory turnover2.12xCost of revenue / average inventory.
Days inventory172 days365 x average inventory / cost of revenue.
Receivables turnover5.60xRevenue / average receivables.
Days sales outstanding65 days365 x average receivables / revenue.
Days payables112 days365 x average accounts payable / cost of revenue.
Cash conversion cycle126 daysDays inventory + days sales outstanding - days payables.
FCF conversion362.5%Free cash flow / net income, when net income is positive.
Capex / operating cash flow21.6%Capital expenditures / cash from operations, when that is positive.

Per share

MetricValueHow it is calculated
EPS, diluted$0.48Net income per diluted share, as reported (split-adjusted). Over the last twelve months: the four quarters summed, or net income / latest diluted shares when a quarter has no reported EPS.
Revenue per share$11.07Revenue / diluted weighted shares.
FCF per share$1.76Free cash flow / diluted weighted shares.
Operating cash flow per share$2.24Cash from operations / diluted weighted shares.
Book value per share$4.12Shareholders' equity / shares outstanding (diluted weighted shares when not reported).
Tangible book per share-$9.07Tangible book value / shares outstanding.
Cash per share$1.01(Cash + short-term investments) / shares outstanding.

Valuation

MetricValueHow it is calculated
Market cap$2.44BShare price x shares outstanding.
Enterprise value$4.80BMarket cap + total debt - cash - short-term investments.
P/E26.3xMarket cap / net income. Only when net income is positive.
P/S1.15xMarket cap / revenue.
P/B3.09xMarket cap / shareholders' equity. Only when equity is positive.
P/FCF7.25xMarket cap / free cash flow. Only when free cash flow is positive.
P/OCF5.68xMarket cap / cash from operations, when positive.
EV/Sales2.27xEnterprise value / revenue.
EV/EBIT16.3xEnterprise value / operating income, when both are positive.
EV/EBITDA7.36xEnterprise value / EBITDA, when both are positive.
EV/FCF14.3xEnterprise value / free cash flow, when both are positive.
FCF yield13.8%Free cash flow / market cap.
Earnings yield3.8%Net income / market cap (the inverse of P/E).
What was McGraw Hill, Inc.'s revenue in fiscal 2026?

McGraw Hill, Inc. reported revenue of $2.10B for fiscal 2026, 0.1% higher than the year before.

Was McGraw Hill, Inc. profitable in fiscal 2026?

Yes. Net income was $35.3M, a net margin of 1.7%.

How much free cash flow did McGraw Hill, Inc. generate in fiscal 2026?

Cash from operations of $331.2M minus capital expenditures of $84.9M left free cash flow of $246.3M.

Source: SEC EDGAR XBRL company facts. Where a company tags only year-to-date figures, quarters are worked out as differences. Where a line is not tagged it is left empty, never estimated.

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