McGraw Hill, Inc.MH
McGraw Hill, Inc. Segments Disclosure
11. Segment Reporting
The Company manages and reports its businesses in the following segments based on the end markets we serve:
•K-12: The Company provides end-to-end core, supplemental and intervention curricula to support the needs of U.S. K-12 schools. The Company sells blended digital and print learning solutions directly to school districts across the United States.
•Higher Education: The Company provides students, instructors and institutions with adaptive digital learning solutions and content, and instructional materials. The primary users of the Company's solutions are students enrolled in two-and four-year non-profit colleges and universities, and to a lesser extent, for-profit institutions. The Company sells its Higher Education solutions to well-known online retailers and distribution partners, who subsequently sell to students. The Company also sells direct to student via its proprietary e-commerce platform.
•Global Professional: The Company provides students, institutions and professionals with comprehensive medical and engineering learning solutions. Our learning solutions include digital solutions and print materials easily accessible through a broad range of mediums for learners and customers.
•International: The Company is a provider of comprehensive digital and print solutions in more than 100 countries and 80 languages outside of the United States. Through our expansive global distribution network, we serve the needs of learners and educators throughout the world with our K-12 and Higher Education solutions that primarily originate or are adapted from our U.S.-based solutions.
•Other: Includes in-transit product sales and certain transactions or adjustments that are not attributable to the segments that the chief operating decision maker (“CODM”) considers to be unusual and/or nonoperational.
The CODM is our CEO. The CODM reviews the segments' separate financial information to assess performance and to allocate resources. The CODM measures and evaluates its reportable segments based on Adjusted EBITDA. Adjusted EBITDA is defined as net income (loss) from continuing operations plus interest expense (income), net, income tax provision (benefit), depreciation and amortization, restructuring and cost savings implementation charges, the effects of the application of purchase accounting, advisory fees paid to Platinum Advisors pursuant to the Advisory Agreement, impairment charges, transaction and integration costs, stock-based compensation, (gain) loss on extinguishment of debt and the impact of earnings or charges resulting from matters that the CODM does not consider when assessing the performance of, and allocated resources to, the segments. The CODM uses Adjusted EBITDA to allocate resources to our segments in our annual budgeting and forecasting process and to assess the performance of our segments, primarily by comparing current period results to both prior period and budget on a quarterly basis. The CODM reviews consolidated expense information to manage operations. In addition, our reportable segments are not evaluated using asset information.
For all our reportable segments, other segment items, which is calculated as the difference between segment revenue and segment adjusted EBITDA, primarily consist of cost of sales (excluding depreciation and amortization) and operating and administrative expenses.
The following table sets forth Adjusted EBITDA by segment:
| Year Ended March 31, | |||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||
| Adjusted EBITDA: | |||||||||||||||||
| K-12 | $ | 284,964 | $ | 305,333 | $ | 291,366 | |||||||||||
| Higher Education | 389,826 | 350,862 | 290,231 | ||||||||||||||
| Global Professional | 45,597 | 45,105 | 43,402 | ||||||||||||||
| International | 21,911 | 35,742 | 30,926 | ||||||||||||||
| Other | 1,966 | (10,252) | 693 | ||||||||||||||
Total Adjusted EBITDA | $ | 744,264 | $ | 726,790 | $ | 656,618 | |||||||||||
The following table provides a reconciliation of total Adjusted EBITDA to Net income (loss):
| Year Ended March 31, | |||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||
| Total Adjusted EBITDA | $ | 744,264 | $ | 726,790 | $ | 656,618 | |||||||||||
| Interest (expense) income, net | (207,226) | (293,446) | (326,438) | ||||||||||||||
| Income tax benefit (provision) | (8,468) | (96,481) | (25,294) | ||||||||||||||
| Depreciation, amortization and product development amortization | (361,918) | (362,357) | (366,381) | ||||||||||||||
| Restructuring and cost savings implementation charges | (11,176) | (24,626) | (32,548) | ||||||||||||||
| Advisory fees | (3,125) | (10,000) | (10,000) | ||||||||||||||
| Impairment charge | (39,000) | — | (49,500) | ||||||||||||||
| Purchase accounting | — | — | (18,101) | ||||||||||||||
| Transaction and integration costs | (1,191) | (2,982) | (8,205) | ||||||||||||||
| Stock-based compensation | (33,723) | — | — | ||||||||||||||
| Gain (loss) on extinguishment of debt | (25,766) | (2,719) | 3,415 | ||||||||||||||
| Other | (17,351) | (20,018) | (16,585) | ||||||||||||||
Net income (loss) | $ | 35,320 | $ | (85,839) | $ | (193,019) | |||||||||||
The following tables summarizes revenue and long-lived assets by geographic region:
Revenue (1) | |||||||||||||||||
| Year Ended March 31, | |||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||
| United States | $ | 1,911,645 | $ | 1,896,464 | $ | 1,754,823 | |||||||||||
| International | 191,136 | 204,835 | 205,655 | ||||||||||||||
Total | $ | 2,102,781 | $ | 2,101,299 | $ | 1,960,478 | |||||||||||
______________
(1)Revenues are attributed to a geographic region based on the location of customer.
Long-Lived Assets (2) | |||||||||||
| As of March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| United States | $ | 714,551 | $ | 646,104 | |||||||
| International | 33,504 | 31,773 | |||||||||
Total | $ | 748,055 | $ | 677,877 | |||||||
______________
(2)Reflects total assets less current assets, goodwill, intangible assets, investments, deferred financing costs and non-current deferred tax assets.
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About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.