McGraw Hill FY27 Q1 net income turns to profit at $57.86 million; revenue rises 2.6% to $549.9 million

• McGraw Hill posted fiscal Q1 2027 revenue of $549.9 million, up 2.6% from a year earlier.
• GAAP net income swung to $57.9 million, reflecting margin expansion as GAAP gross margin widened 2.9 percentage points to 79.9%.
• Adjusted EBITDA rose 8.2% to $207 million, lifting the adjusted EBITDA margin by 2 percentage points to 37.7%.
• Re-occurring revenue climbed 9.8% to $425.6 million, representing 77% of revenue; digital revenue increased 8.8% to $353.5 million.
• Management cited AI as a tailwind; FY2027 guidance was reaffirmed for revenue of $2.12-$2.18 billion, adjusted EBITDA of $750-$790 million.

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