A legacy education provider bets on digital growth, deleveraging, and AI resilience as it prepares for an NYSE debut under the ticker “MH.”
Executive Summary: A Historic Brand Charts a New Chapter
McGraw Hill, a name synonymous with educational publishing, is preparing to reenter public markets with a high-profile IPO on the New York Stock Exchange. Backed by private equity firm Platinum Equity, the company is targeting a valuation of approximately $4.2 billion, with the intent to raise over $500 million through the offering. As traditional publishers pivot toward digital transformation and recurring revenue models, McGraw Hill’s return to Wall Street signals a renewed commitment to innovation, financial discipline, and growth through technology.
IPO Details: Scope, Proceeds, and Ownership
According to the company’s S-1 filing, McGraw Hill will offer 24.39 million shares, with pricing expected in the range of $19 to $22 per share. The IPO includes a 30-day overallotment option of 3.66 million shares for underwriters, potentially increasing total gross proceeds to over $537 million. At the top of the range, the offering would assign the firm a market capitalization of roughly $4.2 billion.
Post-offering, Platinum Equity will maintain a controlling stake of 85%–87%, ensuring continuity in governance while opening the door to institutional and retail investors. The primary objective of the capital raise is to repay a significant portion of the company’s debt, which currently exceeds $3 billion—an overhang from its leveraged buyout in 2021.
Financial Performance: Recovery and Digital Momentum
McGraw Hill reported $2.1 billion in revenue for FY2025, a 7% increase year-over-year. The company’s adjusted EBITDA reached $202 million, while net losses narrowed substantially from $193 million in FY2024 to $85.8 million.
Digital services now account for over 65% of revenue, compared to just 31% in 2015, reflecting a steady and disciplined pivot toward scalable, subscription-based learning products. Within the K–12 segment, 82% of revenues are now digital, positioning the company as a frontrunner in adaptive and AI-integrated educational technology.
Strategic Vision: From Textbooks to Tech-Driven Learning
McGraw Hill serves over 60 million learners annually, offering customized learning solutions across K–12, higher education, and professional training. The company’s digital tools, including ALEKS (an adaptive learning platform), have become cornerstones of modern curricula. With 26 million active digital users and 19 billion annual learning interactions, McGraw Hill is leaning heavily into data science and machine learning to personalize educational outcomes.
The IPO proceeds are intended to reduce debt and enhance McGraw Hill’s ability to invest further in AI, platform innovation, and international expansion. By migrating its business model toward predictable, recurring revenue, the company seeks to reposition itself as a long-term digital education partner rather than a traditional content publisher.
Risks and Market Challenges: AI and Investor Sentiment
The S-1 filing explicitly flags AI disruption as a material risk. As generative AI tools grow increasingly capable of producing customized content, McGraw Hill must prove the enduring value of its proprietary platforms, pedagogical rigor, and trusted brand equity.
Moreover, the firm’s success in public markets will depend on investor appetite for mature, cash-flow-positive businesses, particularly in an environment still shaped by high interest rates and volatility. While McGraw Hill offers stability and long-term relevance, questions remain about its competitive positioning in an education sector undergoing rapid transformation.
Control is another point of scrutiny. With Platinum Equity retaining a supermajority stake, minority shareholders may have limited influence over corporate strategy, dividend policies, or potential M&A activity.
Conclusion: A Cautious Bet on a Reinvented Giant
McGraw Hill’s IPO represents more than a financial event—it’s a calculated re-entry into public capital markets by a firm that has already undergone substantial reinvention. The offering gives investors access to a de-risked, asset-light, and tech-enabled education company that combines over a century of brand credibility with a forward-looking digital roadmap.
With a clear focus on deleveraging, scaling adaptive platforms, and responding to AI-driven shifts in learning, McGraw Hill positions itself as a compelling, if conservative, long-term equity story. The success of the IPO will offer insight into how Wall Street currently values stability, scale, and digital reinvention in the education sector.
