Filing Flows › McGraw Hill (MH) › Q2 FY27 › vs Q2 FY26
McGraw Hill (MH) Q2 FY27 vs Q2 FY26 (year over year)
McGraw Hill's revenue fell $37.0M (-6%) from $669M in Q2 FY26 to $632M in Q2 FY27. The biggest changes: Print −$46.2M (-15%); Digital +$9.2M (+3%). Gross margin 79.2% against 79.2% (-0.1 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 Q2 FY26, the increases inside each band.
Margins
| Q2 FY27 | Q2 FY26 | Change | |
|---|---|---|---|
| Gross margin | 79.2% | 79.2% | -0.1 pts |
| Operating margin | 22.3% | 23.4% | -1.1 pts |
| Net margin | 13.7% | 15.7% | -2.1 pts |
| Free cash flow margin | 26.0% | 36.4% | -10.5 pts |
Every line
| Line | Q2 FY27 | Q2 FY26 | Change | % |
|---|---|---|---|---|
| Digital | $361M | $352M | $9.2M | +3% |
| $271M | $317M | −$46.2M | -15% | |
| Revenue | $632M | $669M | −$37.0M | -6% |
| Gross profit | $500M | $530M | −$29.7M | -6% |
| Cost of revenue | $132M | $139M | −$7.3M | -5% |
| Operating profit | $141M | $157M | −$15.5M | -10% |
| Operating expenses | $359M | $374M | −$14.2M | -4% |
| Pre-tax earnings | $93.0M | $84.2M | $8.8M | +10% |
| Other expense, net | $48.0M | $72.3M | −$24.3M | -34% |
| Research & development | $69.3M | $69.7M | −$388K | -0.6% |
| Sales & marketing | $103M | $100M | $3.2M | +3% |
| General & admin | $88.7M | $111M | −$22.5M | -20% |
| Other operating costs | $98.3M | $92.8M | $5.5M | +6% |
| Net earnings | $86.4M | $105M | −$18.9M | -18% |
| Income tax | $6.6M | −$21.1M | $27.7M | — |
| Depreciation & amortization | $98.3M | $92.8M | $5.5M | +6% |
| Share-based compensation | $1.7M | $31.1M | −$29.4M | -95% |
| Working capital & other | $3.1M | $35.8M | −$32.7M | -91% |
| Operating cash flow | $189M | $265M | −$75.5M | -28% |
| Free cash flow (OCF − capex) | $164M | $244M | −$79.7M | -33% |
| Capital expenditures | $25.4M | $21.2M | $4.2M | +20% |
Questions
How much did McGraw Hill's revenue grow year over year in Q2 FY27?
McGraw Hill's revenue fell $37.0M (-6%) from $669M in Q2 FY26 to $632M in Q2 FY27.
What drove McGraw Hill's revenue change in Q2 FY27?
Print −$46.2M (-15%); Digital +$9.2M (+3%).