Filing Flows › McGraw Hill (MH) › Q3 FY26
McGraw Hill (MH) Q3 FY26 earnings results (third quarter fiscal 2026)
10-Q filed Feb 11, 2026
McGraw Hill (MH) reported revenue of $434M for the third quarter fiscal 2026 (Q3 FY26), +4% from a year earlier and -35% from the quarter before. Operating margin was 7.0%, net loss $20.2M (4.7% of revenue).
McGraw Hill, Q3 FY26: revenue $434M (+4% year over year), operating margin 7.0%, net loss $20.2M, operating cash flow $309M. The chart follows the revenue to costs, profit and cash.
| Q3 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $434M | -35% | +4% |
| Operating profit | $30.4M | -81% | — |
| Net earnings | −$20.2M | -119% | — |
| Operating cash flow | $309M | +17% | +12% |
| Free cash flow | $285M | +17% | +9% |
What changed
Revenue was $434.2M in Q3 FY26, up 4% year over year and down 35% from the previous quarter. Re-occurring Revenue was the largest line at 82% of revenue. Re-occurring Revenue added $46.1M year over year (up 15%), 261% of the total change. Shipping and Handling declined 36%.
Gross margin was 85.3%, up 1.0 points from a year earlier. Operating profit was $30.4M, a 7.0% margin (up 1.2 points year over year). Of the extra revenue versus a year earlier, 35% reached operating profit, above the 6% margin then. Operating expenses grew 4% against revenue growth of 4%. The quarter ended with a net loss of $20.2M, after a profit of $105.3M the previous quarter. Net interest and other expense of $55.5M was the main reason.
Operating cash flow was $309.0M (up 12% year over year). Non-cash charges added back $95.7M of depreciation and amortization and $661K of share-based compensation. Working capital and other items added $232.8M. Capital expenditures of $23.6M left free cash flow of $285.4M.
Questions
What was McGraw Hill's revenue in the third quarter fiscal 2026?
McGraw Hill (MH) reported revenue of $434M for the third quarter fiscal 2026 (Q3 FY26), +4% from a year earlier and -35% from the quarter before.
Was McGraw Hill profitable in the third quarter fiscal 2026?
Operating profit was $30.4M (7.0% of revenue) and net loss $20.2M.
Source: McGraw Hill 10-Q on SEC EDGAR.