McGraw Hill, Inc.

Good morning and welcome to the McGraw-Hill Fiscal First Quarter 2026 Earnings Conference Call for the quarter ended June 30th, 2025 via webcast. All participants are in a listen-only mode. As a reminder, today's call is being recorded. Any written transcript will be made available in the Investor Information section of the company's website tomorrow. A webcast replay will also be made available on the company's website. Following the prepared remarks, we will open the call for questions. I would now like to turn the call over to your host, Danielle Cloblen, Senior Vice President, Investor Relations. Please go ahead, Danielle.

Good morning, everyone. Thank you for joining us today as we review McGraw-Hill's Fiscal Key 1, 2026 results, which will be followed by a question and answer session. Joining me today are Simon Allen, Chairman, President, and Chief Executive Officer, and Bob Salmon, Executive Vice President and Chief Financial Officer. During this call, we will be making forward looking statements about the company. These statements are based on current expectations and the current economic environment. Forward looking statements, estimates, and projections are inherently subject to significant economic, competitive, regulatory, and other uncertainties and contingencies, many of which are beyond the control of management. These forward looking statements are also subject to the cautionary statement that is included in our earnings release and the slide presentation. These are further detailed in our 10-Q and other filings with the SEC. Important assumptions and factors that could cause actual results to differ materially from those in the forward-looking statements are specified in our earnings release issued today, as well as in our SEC filings. We will also refer to certain non-GAAP measures. We believe these measures provide useful supplemental data that will not substitute for GAAP measures, allow for greater transparency in the review of financial and operational performance. In the press release, appendix of the slide presentation, and as supplemental files on our website, you can find a definition of terms and a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures. For those who listened to the recording of this presentation, we remind you that the remarks made herein are as of today, August 14th, 2025, and have not been subsequently updated. With that, I'll turn the call over to our Chairman, President, and Chief Executive Officer, Simon Allen.

Thank you, Danielle, and good morning, everyone. It's an honor to address you today after achieving what was a very significant milestone for McGraw-Hill with our July IPO. For those who might be new or reconnecting with our story, I'll provide a brief business overview before turning it over to Bob to discuss fiscal Q1 results. You're all likely familiar with the McGraw-Hill brand. For over 137 years, our resilient and innovative company has been a trusted global leader in education, supporting the evolving needs of over 60 million learners and educators worldwide. Spread across more than 100 countries, our dedicated and skilled workforce of 4,200 employees, including over 700 technology experts and data scientists, are united by our mission, which serves as a key differentiator and cornerstone of our culture. We operate a scaled B2B model that uniquely supports the entire learning lifecycle. From pre-K to higher education and through to professional learning, we serve 99% of K-12 school districts, 82% of U.S. higher education institutions, and 94% of U.S. medical libraries. Demand for our high-quality content and digital solutions has increased as we employ data-driven insights and learning science to adapt to individual student needs while solving critical educator pain points. This competitive advantage has manifested in market share gains built on three distinct modes, our IP, our data, and our people. We operate a scaled digital ecosystem, having invested over $2 billion in technology over the past decade, including in artificial intelligence long before it became mainstream in education. This enables us to serve over 26 million paid digital users and curate over 19 billion learning interactions annually. This wealth of data creates a powerful feedback loop that fuels our growth and product development. Through disciplined execution, responsible and impactful use of technology, and our wealth of scaled data and insights, we have transformed McGraw-Hill into a leading global provider of information solutions in education. While information is abundant in today's world, we create true learning experiences that go beyond technology-enabled point solutions. AI is a tailwind for our business as it enables us to tailor our content to the unique needs of individual students and educators, fostering knowledge building. We have integrated machine learning and gen AI capabilities into our learning solutions that sit above our deep content and data mode. This enhances our ability to drive personalized learning, leveraging AI and our assets at a differentiated scale. Our pedagogically driven approach and ongoing assessment using artificial intelligence strengthens the vital social element of the student-teacher relationship. By focusing on clearly defined strategic priorities, We consistently drive sustainable growth and innovation by increasing our market share, expanding our addressable market, and investing in new digital capabilities, all while improving operational efficiency. We continue to invest ambitiously in new solutions and capabilities to benefit our core business and enable growth within new market opportunities. To that end, in fiscal Q1, we delivered $536 million in total revenue, $388 million in reoccurring revenue, and $191 million in adjusted EBITDA. All of these metrics were at the upper end of the disclosed ranges in our July S1 filing. Digital growth continued with $325 million in revenue in the quarter. Our significant outperformance in higher education was on display yet again, with our market share reaching nearly 29% based on trailing 12-month data from MPI. In addition, we once again realized strong capture rates within K-12. We also launched new solutions across the business, bolstering our portfolio with personalized driven instruction. Key fiscal Q1 highlights included Alex Calculus, a new program for K-12 and higher education, which addresses a critical need in STEM learning and expands our addressable market opportunity. Alex Adventure, on the other end of the spectrum, our K-5 solution, which expanded into two new grade levels, enabling further supplemental market penetration. McGraw Hill Plus, our proprietary tool that tracks student proficiency and builds longitudinal learner profiles, now includes a new third party math assessment partnership with Propel. McGraw Hill Plus won the prestigious Baker Learning Analytics Prize, recognizing our innovation and progress through the use of data to transform education. Evergreen, we are leveraging our first mover advantage, delivering continuous content updates across more and more titles within our higher education business while saving educators valuable time. In August, we launched Emerge, our next generation core literacy program for K through fifth grade. Deeply rooted in the science of literacy, our nationwide pilot is available across the full digital spectrum and enables a full data dictionary. eMERGE reinforces our confidence for continued K-12 leadership in the larger market opportunity that is expected in fiscal years 2027 and 2028. as well as building these ai native learning solutions we are also actively infusing gen ai capabilities into our existing products for example ai reader empowers students with personalized learning and has boosted time on platform within connect by more than 30 percent We recently expanded AI Reader into our first day forward medical solution, setting up more promising usage trends in global professional. We are making great progress driving efficiency with Scribe, our internally developed GenAI tool, which helps reduce content generation time and cost while preserving a human in the loop approach. Use cases are expanding across all business units and present an opportunity for incremental margin expansion over time. Before I conclude, I want to reiterate the inherent stability in our business, driven by our longstanding presence, knowledge and education, predictable academic cycles, multi-year institutional contracts, and advantageous scale. Macro trends around our core business remain positive. We have not experienced a material impact from recent federal education policy changes or from tariffs. We are confident in the enduring importance of education globally and the resiliency of our business. I'm incredibly proud of what we have accomplished as we lead the evolving landscape with increasingly more opportunity ahead. I'll now turn the call over to Bob to walk you through our financials.