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McGraw Hill cash flow, quarter by quarter

Latest: Q2 FY27 · from the cash-flow statements filed with the SEC

Free cash flow$164M in Q2 FY27 · $256M over twelve months

Operating cash flow$189M
Capital spending−$25.4M
Free cash flow+$164M
Cash / net income2.2×
Cash conversion cycle112 days

Analysis

In Q2 FY27, McGraw Hill generated $189M of operating cash flow and spent $25.4M on capital projects, leaving free cash flow of $164M. That is $79.7M less than in Q2 FY26 ($244M).

Over the twelve months to Sep 30, 2026, operating cash flow was $353M; the largest uses were other financing ($309M), other investing ($173M), capital spending ($96.7M); the cash balance fell by $230M.

Operating cash flow was $189M against net income of $86.4M — 2.2× profit, cash ran ahead of reported earnings. The largest differences: receivables −$268M, deferred revenue +$267M, depreciation & amortization +$98.3M.

Its cash conversion cycle was 112 days (receivables 74 + inventory 120 − payables 82).

Free cash flow

McGraw Hill: free cash flow by quarterMcGraw Hill: free cash flow by quarter$261MQ3 FY25−$69.6MQ4 FY25−$113MQ1 FY26$244MQ2 FY26$285MQ3 FY26−$170MQ4 FY26−$23.3MQ1 FY27$164MQ2 FY27
Operating cash flow less capital spending.
McGraw Hill: operating cash flow against capital spendingMcGraw Hill: operating cash flow against capital spendingOperating cash flowCapital spending$275M$13.6MQ3 FY25−$41.2M$28.4MQ4 FY25−$96.7M$16.3MQ1 FY26$265M$21.2MQ2 FY26$309M$23.6MQ3 FY26−$146M$23.8MQ4 FY26$601K$23.9MQ1 FY27$189M$25.4MQ2 FY27
Latest (Q2 FY27): Operating cash flow $189M, Capital spending $25.4M.

Capital allocation, year by year

McGraw Hill: where the cash came from (up) and went (down), by fiscal yearMcGraw Hill: where the cash came from (up) and went (down), by fiscal yearOperating cash flowNet borrowingShares issuedAsset salesCapital spendingFY24: Operating cash flow $236MFY24: Net borrowing −$56.0MFY24: Asset sales $20.5MFY24: Capital spending −$82.0M$257MFY24FY25: Operating cash flow $646MFY25: Net borrowing $641MFY25: Capital spending −$71.1M$1.3BFY25FY26: Operating cash flow $331MFY26: Net borrowing −$46.6MFY26: Shares issued $1.5MFY26: Capital spending −$84.9M$333MFY26
Over these 3 years operating cash flow totalled $1.2B; the largest uses were capital spending ($238M) and net borrowing ($103M). Cash-flow statements as filed.

Cash runway and the debt wall

Cash & investments$233M
Debt$2.5B
Net debt$2.3B
Due within a year$13.2M

McGraw Hill funds itself: free cash flow was $256M over the last twelve months, and $233M of cash and investments stands against $2.5B of debt ($13.2M due within a year, 17.7× covered by cash).

McGraw Hill: debt maturities by year (FY26)McGraw Hill: debt maturities by year (FY26)$13.2MYear 1$13.2MYear 2$842MYear 3$612MYear 4$1.2BYear 5
Principal due in each year as disclosed in the annual report, against $233M of cash and investments now.

Where the cash came from and went

McGraw Hill: sources (+) and uses (−) of cash, Q2 FY27McGraw Hill: sources (+) and uses (−) of cash, Q2 FY27Operating cash flow$189MOther investing−$68.7MNet borrowing (+) / repaid (−)−$54.9MCash drawn (+) / kept (−)−$39.3MCapital spending−$25.4MOther financing−$905KExchange rates−$253K
McGraw Hill: sources (+) and uses (−) of cash, TTM to Q2 FY27McGraw Hill: sources (+) and uses (−) of cash, TTM to Q2 FY27Operating cash flow$353MOther financing−$309MCash drawn (+) / kept (−)$230MOther investing−$173MCapital spending−$96.7MNet borrowing (+) / repaid (−)−$6.3MExchange rates$2.0M

From profit to cash

McGraw Hill: net income to operating cash flow, Q2 FY27McGraw Hill: net income to operating cash flow, Q2 FY27Net income$86.4MDepreciation & amortization$98.3MStock-based pay$1.7MDeferred taxes−$4.3MReceivables−$268MInventory$20.4MPayables$44.0MDeferred revenue$267MPrepaid and other assets−$64.1MOther liabilities−$26.9MOther operating capital−$7.4MOperating cash flow$189M
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.
QuarterReceivable daysInventory daysPayable daysCash conversion cycle
Q2 FY277412082112
Q1 FY2761155101116
Q4 FY2659219144134
Q3 FY2696218172142
Q2 FY2676978093
Q1 FY26671239793

Every quarter

QuarterOperating cash flowCapital spendingNet borrowing (+) / repaid (−)Shares issuedCash drawn (+) / kept (−)Free cash flow
Q2 FY27$189M−$25.4M−$54.9M—−$39.3M$164M
Q1 FY27$601K−$23.9M−$5.0M$1.8M$59.9M−$23.3M
Q4 FY26−$146M−$23.8M−$810K—$261M−$170M
Q3 FY26$309M−$23.6M−$2.2M—−$51.2M$285M
Q2 FY26$265M−$21.2M——−$216M$244M
Q1 FY26−$96.7M−$16.3M−$5.0M—$142M−$113M
Q4 FY25−$41.2M−$28.4M−$1.5M—$159M−$69.6M
Q3 FY25$275M−$13.6M−$2.3M—−$133M$261M

McGraw Hill: income statement and cash flow

McGraw Hill, Q2 FY27: revenue $632M (-6% year over year), operating margin 22.3%. The chart follows the revenue to costs, profit and cash.

McGraw Hill: every quarter, Q/Q and Y/Y → Open in the app

Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.