New York, February 13, 2026, 09:01 (EST) — Premarket.
- MH shares inch up premarket, following that big surge in the previous session.
- McGraw Hill upped its full-year guidance following its fiscal Q3 numbers.
- K-12 demand remains volatile, and debt paydown speed is still in the spotlight.
McGraw Hill (NYSE:MH) climbed roughly 2.7% ahead of the bell Friday, trading close to $14.70. The stock finished Thursday at $14.31, notching an almost 16% jump in the session before. (Investing)
Backed by Platinum Equity, the education publisher went public on the New York Stock Exchange just last July, making it a relative newcomer among listed companies. So, every quarterly report is under the microscope—investors are watching to see if its bet on digital subscriptions can weather shifts in K-12 school budgets. (Reuters)
Investors have their eyes on the split — higher ed has kept growth alive, but the K-12 segment tends to whip around, especially in adoption cycles. Debt still looms. The company’s working to prove it can pay that down without cutting the business too close to the bone.
Pearson and other rivals are also pushing into subscription-based digital courseware, upping the pressure on the sector to deliver consistent, recurring sales gains.
McGraw Hill posted a 4.2% bump in fiscal third-quarter revenue, reaching $434.2 million, as its Higher Education segment soared 24%. The K-12 business didn’t keep pace, slipping 14.6% to $128.2 million. Recurring revenue, though, climbed 14.8% to $357.5 million. (McGraw Hill Investors)
Digital revenue climbed 11% to $363.7 million, accounting for about 84% of total sales this quarter, the company reported. GAAP net loss landed at $20.2 million. Adjusted EBITDA, though, moved up to $135.9 million. As for remaining performance obligation—future contracted revenue not yet booked—that reached approximately $1.70 billion. (Business Wire)
McGraw Hill bumped up its fiscal 2026 revenue target, now expecting $2.067 billion to $2.087 billion. The adjusted EBITDA projection also moved higher, landing in a range of $729 million to $739 million. CFO Bob Sallmann pointed to “strong free cash flow” that let the company pay down another $200 million on its term loan, dropping net leverage to 2.9x. New CEO Philip Moyer described McGraw Hill as a “digital-first business” and said he’s pushing to ramp up new learning tools while keeping the focus on “sustainable and profitable growth.”
Moyer stepped in as chief executive on Feb. 9, following his appointment as the next leader of the company’s digital push—he previously led Vimeo and held a senior artificial intelligence role at Google. Simon Allen, who steered the firm through its IPO, stays on as chair. (Business Wire)
BMO Capital Markets isn’t buying into the rally. The firm cut its price target down to $19 from $21 but maintained its outperform rating, Investing.com reported. (Investing)
The softer K-12 market doesn’t always bounce back quickly—often sticking around as a drag on revenue longer than traders think. That remains the biggest swing factor for McGraw Hill’s top line in the near term. In its most recent quarterly report, the company pointed to various legal exposures and other issues that could drive up costs or pull management’s attention. (SEC)
The U.S. cash market opens at 9:30 a.m. ET, and the key thing to watch is if Friday’s early uptick can stick when heavier trading hits. Investors, on top of that, are steeling themselves for another round of analyst revisions as new guidance forces model adjustments.
