McGraw Hill, Inc.

and presentations section of the company's investor relations website. A webcast replay of today's call will also be made available on the company's investor relations 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 Cloblin, Treasurer and Senior Vice President, Investor Relations. Please go ahead, Danielle.

Good morning, everyone. Welcome to McGraw-Hills Fiscal Second Quarter 2026 results. 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 our 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 investor presentation. These are further detailed in our 10Q 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 filing. We will also refer to certain non-GAAP measures today. We believe that these measures provide useful supplemental data that, while not a substitute for GAAP measures, allow for greater transparency in the review of our financial and operational performance. In the earnings press release and the appendix of the investor presentation, as well as supplemental files on the investor relations website, you can find a definition of these non-GAAP measures and reconciliations to the most directly comparable GAAP measures. For those who listened to the recording of this call, we remind you that the remarks made herein are as of today, November 12th, 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. McGraw-Hill continues to shape education through innovation and AI-driven technology that personalizes learning experiences at scale. driving deeper engagement and better outcomes. Fiscal second quarter results exceeded expectations, showcasing strengths, resilience, and the scale of our diverse portfolio, which serves the learning life cycle during the pivotal back to school season. This strength was underscored by fiscal Q2 revenue, which reached $669 million, our second best performance for this quarter in a decade. despite a 2.8% year-over-year decline due to the anticipated smaller K-12 market. Reoccurring revenue grew 6.5% year-over-year to $422 million, or 63% of total revenue, underscoring the strength of our subscription-based model. Digital revenue increased 7.6 percent year over year to $352 million, representing 53 percent of total revenue. In particular, our higher education business delivered exceptional results. Revenue expanded 14 percent year over year, while digital revenue grew 18.4 percent due to continued market share gains, inclusive access growth, enrollment favorability, and realizing value-based pricing. Our trailing 12-month market share rose 160 basis points to 30% according to MPI data. The evergreen content delivery model, now available across more than 700 leading titles, continues to resonate, reflected in a record high NPS score during the full semester. The K-12 selling season met our expectations with continued solid performance despite the smaller market opportunity. Reoccurring revenue grew 3% year-over-year with share gains in core science, ELA, and math. Early momentum is building for Alex Adventure, our supplemental math offering for K-3 students, positioning us for growth beyond the core ahead of the major California math opportunity in fiscal year 2027. We're already seeing positive early indicators for California math with two large deals booked in fiscal year 2026. Our team also continued to deliver compelling profitability. Adjusted EBITDA reached $286 million in Q2, yielding a margin of 43 percent, up 60 basis points year over year. This reflects strong operating leverage and an expanding digital mix amid reinvestment that is enabling an exceptional pace of innovation. Our strategy, combined with our execution and forward visibility, gives us confidence to raise fiscal year 2026 guidance across the board, which Bob will detail shortly. At McGraw-Hill, we focus on solutions that demonstrate proven efficacy. By integrating high-quality proprietary content with actionable student data and thoughtful pedagogy, we deliver meaningful learner outcomes. Having leveraged machine learning for over two decades, our AI philosophy centers on saving educators time, strengthening student-teacher relationships, and personalizing learning. Our multi-layered moat is built upon three elements. Firstly, our intellectual property. With 137 years of trusted content developed alongside our authors and more than 50 Nobel laureates, our pedagogical-driven approach is held to the highest standards. Secondly, our proprietary data. We possess a deep understanding of the learning journey fueled by billions of student interactions across millions of digital users annually. Our solutions deliver structured learning progression through real-time insights and feedback built on evidence rather than prediction alone. And thirdly, our domain expertise. We have decades of experience helping educators and institutions integrate digital tools into curricula. Our workforce, including former educators and technology experts, ensures solutions are grounded in pedagogy and structured learning methods that reflect classroom realities. Along with strong relationships, a trusted brand, and a robust distribution network, this moat forms the foundation that allows us to deploy AI effectively across learning environments. While large language models serve as valuable information tools, education demands a structured learning progression supported by continuous student interaction and data to ensure true comprehension over memorization. Educators see us as a trusted partner, reflected in a recent survey we commissioned through Morning Consult, with K-12 teachers and administrators ranking McGraw-Hill as the education company using AI most effectively in its products. Helping teachers harness the power of AI to address specific student needs differentiates McGraw-Hill from emerging AI first entrants. Consider the student who is falling behind in math. Our AI-powered supplemental solution, Alex, which spans K through 12 through higher education, uses machine learning to pinpoint knowledge gaps and deliver targeted content. It helps improve pass rates by 20%, according to a recent Clemson University case study. Alex Adventure is our recent addition for K3 math, which is gaining traction. We are also optimistic about the global launch of Alex Calculus, unlocking $100 million in TAM. Now, consider the fifth grade teacher struggling with administrative tasks and lesson plans. McGraw Hill Plus simplifies workloads and provides real time insights into student proficiency, enabling targeted instruction. Available in math in 10 states, with two more states coming online next fiscal year, we experienced a 67% increase in the number of districts that accessed McGraw Hill Plus this school year alone. along with rising utilization rates. Alex and McGraw-Hill Plus are primed to expand in the multibillion-dollar supplemental and intervention market, where we hold only 5 percent share today. We remain very enthusiastic about Gen AI and continue embedding it into our solutions to enhance learning experiences and to support educators. AI Reader is a prime example of how we scaled a proven tool across our portfolio. Launched last spring, AI Reader encourages higher education students to actively engage with content until concepts are fully understood. One million students are engaging with the tool and 11 million learning interactions were generated in Q2 alone and accelerating. During Back to School 2025, we expanded AI Reader, embedding the tool in 600-plus Connect titles, as well as within our First Aid Forward solutions for medical students. Additionally, we recently introduced four exciting new AI-powered solutions to enhance our portfolio. Firstly, Sharpen Advantage transforms our popular college student study app into an AI-powered enterprise solution focused on academic success through real-time faculty dashboards to track progress, address learning gaps, and create personalized learning study experiences. Underpinned by our content, Sharpen Advantage offers a responsible alternative to generic chatbots institutions can trust, unlocking significant growth opportunities beyond our core. secondly clinical reasoning leverages our evidence-based content and introduces virtual patient interactions to prepare medical students for real-world clinical care positioning us for incremental digital growth thirdly writing assistant provides real-time personalized feedback to students fostering skill development through self-checking and self-corrections We've recorded over 130,000 interactions across 877 unique school districts nationwide in October alone. Fourthly and finally, Teacher Assistant gives K-12 teachers instant planning support, reducing prep time. It's currently available for California math with a nationwide rollout to follow. We believe our writing and teaching assistant capabilities will enhance market share and retention, particularly in the larger upcoming K-12 market opportunity. In closing, we believe that our momentum is undeniable. Our market share is growing, user engagement is accelerating, and our reoccurring revenue mix is expanding. Our business remains resilient with no significant impact from tariffs or proposed federal education policy changes. As you know, the vast majority of funding comes at the state and local levels, with an immaterial portion of K-12 budgets tied to course materials. Now, I'll turn the call over to Bob to discuss our financial performance.