McGraw Hill and the Illusion of Progress

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The share price of McGraw Hill (MH +16.21%) experienced a momentary lift yesterday. A flicker, really. One might almost believe, observing the numbers, that something genuinely new was occurring. It seems the market occasionally rewards the appearance of innovation, even when the underlying realities are… less definitive.

By the close of trading, the price had, predictably, settled. A gain of over 15%, they say. Such percentages are, of course, merely abstractions. They do not, in themselves, indicate a fundamental shift in the human condition, or even in the efficacy of textbooks.

The Digital Turn

Revenue rose by 4.2% to $434.2 million for the quarter. A respectable sum, certainly. The increase, however, was largely attributable to a surge in digital revenue – a rather sterile $363.7 million. They speak of “expanding beyond physical textbooks.” One wonders what becomes of the scent of paper and ink, the weight of knowledge in one’s hands. Perhaps it is simply an occupational hazard of progress to mourn what is lost.

Artificial intelligence, naturally, features prominently in their narrative. They are “integrating” it, they claim, to save teachers time and improve student outcomes. One imagines the AI, a tireless, unblinking assistant, grading endless stacks of papers. A melancholy task, even for a machine.

The CEO, Mr. Philip Moyer, spoke of being a “digital-first business.” A phrase that rings hollow, somehow. They have, he added, “over a century of learning insights.” One suspects those insights consist primarily of understanding how to repackage the same information for each successive generation, and then charge a premium for the privilege.

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The shift to a digital platform, they assure us, is boosting profit margins. The gross margin improved by almost a percentage point to 85.3%. A small victory, perhaps, but a victory nonetheless. They managed to pay down $200 million in debt, which is… something. It allows them to continue, to perpetuate the cycle.

Revised Expectations

Encouraging trends, they say, prompted them to raise their full-year outlook. Adjusted EBITDA is now expected to be between $729 million and $739 million. A comfortable sum. It is difficult to reconcile such figures with the struggles of underfunded schools and overburdened teachers. But then, one should not expect consistency.

Mr. Moyer spoke of rolling out AI solutions and delivering “real improvements in education outcomes.” One pictures a quiet classroom, students staring blankly at screens, the AI diligently tracking their progress, and a teacher, somewhere in the background, wondering what it all means. He intends, he said, to “build on this foundation.” A foundation built on what, one wonders? Hope? Ambition? Or simply the enduring human need to believe in something?

The market, of course, will move on. The numbers will fluctuate. And McGraw Hill, like all institutions, will continue to exist, a small, quiet tragedy unfolding over decades, largely unnoticed.

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2026-02-13 00:16