Filing Flows › McGraw Hill (MH) › Q2 FY27 › vs Q1 FY27
McGraw Hill (MH) Q2 FY27 vs Q1 FY27 (quarter over quarter)
McGraw Hill's revenue rose $82.3M (+15%) from $550M in Q1 FY27 to $632M in Q2 FY27. The biggest changes: Print +$74.4M (+38%); Digital +$7.9M (+2%). Gross margin 79.2% against 79.9% (-0.7 pts).
McGraw Hill, Q2 FY27: revenue $632M (-6% year over year), operating margin 22.3%, net earnings $86.4M, operating cash flow $189M. The chart draws each line against Q1 FY27, the increases inside each band.
Margins
| Q2 FY27 | Q1 FY27 | Change | |
|---|---|---|---|
| Gross margin | 79.2% | 79.9% | -0.7 pts |
| Operating margin | 22.3% | 20.8% | +1.5 pts |
| Net margin | 13.7% | 10.5% | +3.1 pts |
| Free cash flow margin | 26.0% | -4.2% | +30.2 pts |
Every line
| Line | Q2 FY27 | Q1 FY27 | Change | % |
|---|---|---|---|---|
| Digital | $361M | $354M | $7.9M | +2% |
| $271M | $196M | $74.4M | +38% | |
| Revenue | $632M | $550M | $82.3M | +15% |
| Gross profit | $500M | $439M | $61.3M | +14% |
| Cost of revenue | $132M | $111M | $21.1M | +19% |
| Operating profit | $141M | $114M | $26.8M | +23% |
| Operating expenses | $359M | $325M | $34.5M | +11% |
| Pre-tax earnings | $93.0M | $68.5M | $24.5M | +36% |
| Other expense, net | $48.0M | $45.8M | $2.3M | +5% |
| Research & development | $69.3M | $59.8M | $9.4M | +16% |
| Sales & marketing | $103M | $94.8M | $8.4M | +9% |
| General & admin | $88.7M | $86.8M | $1.9M | +2% |
| Other operating costs | $98.3M | $83.5M | $14.8M | +18% |
| Net earnings | $86.4M | $57.9M | $28.5M | +49% |
| Income tax | $6.6M | $10.7M | −$4.0M | -38% |
| Depreciation & amortization | $98.3M | $83.5M | $14.8M | +18% |
| Share-based compensation | $1.7M | $3.9M | −$2.2M | -57% |
| Working capital & other | $3.1M | −$145M | $148M | — |
| Operating cash flow | $189M | $601K | $189M | 315× |
| Free cash flow (OCF − capex) | $164M | −$23.3M | $187M | — |
| Capital expenditures | $25.4M | $23.9M | $1.5M | +6% |
Questions
How much did McGraw Hill's revenue grow quarter over quarter in Q2 FY27?
McGraw Hill's revenue rose $82.3M (+15%) from $550M in Q1 FY27 to $632M in Q2 FY27.
What drove McGraw Hill's revenue change in Q2 FY27?
Print +$74.4M (+38%); Digital +$7.9M (+2%).