[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Restructuring__ [@Restructuring__](/creator/twitter/Restructuring__) on x 38.6K followers Created: 2025-07-18 22:45:45 UTC 3) Performance Snapshot Since acquiring McGraw Hill in 2021, Platinum Equity has focused on enhancing the core business. FY 2025 net loss has shrunk to $85.8mm, ~56% lower than 2024’s $193mm and XX% below 2023’s $404mm. Adj. EBITDA climbed XX% to $727mm, pushing margins to 35%. For additional perspective, Bloomberg reported McGraw Hill’s 2021 EBITDA at $450mm, implying an increase of over XX% since the purchase. Recurring revenues, stemming from multi-year contracts and digital subscriptions, now account for XX% of sales, up from XX% two years ago. Management has been trying to shift the revenue mix away from “transactional revenue,” such as one-time purchases of digital downloads and print shipments, to lock customers in for longer periods. The IPO filing highlights a large backlog of approximately $1.7bn of remaining performance obligations (RPOs), nearly equivalent to a year’s worth of booked but unearned revenue. One structural headwind that the filing flagged is the impact of AI. The S-1 warns that tools like ChatGPT could lower the cost of producing competing educational materials and “negatively affect demand for or the pricing of” its products. Conversely, McGraw Hill management views “AI as a tailwind” and has been attempting to be ahead of this change with several AI initiatives like AI Reader, but several other EdTech companies have been crushed, like Chegg. Another secular headwind is the decrease in higher education enrollments. U.S. “enrollment levels have declined in recent years,” and in the near term, “the current U.S. administration’s” policies relating to higher ed certainly do not help. XXXXX engagements  **Related Topics** [$450mm](/topic/$450mm) [hills](/topic/hills) [bloomberg](/topic/bloomberg) [$727mm](/topic/$727mm) [$404mm](/topic/$404mm) [$193mm](/topic/$193mm) [$858mm](/topic/$858mm) [chapter 11](/topic/chapter-11) [Post Link](https://x.com/Restructuring__/status/1946340643669708984)
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Restructuring__ @Restructuring__ on x 38.6K followers
Created: 2025-07-18 22:45:45 UTC
- Performance Snapshot
Since acquiring McGraw Hill in 2021, Platinum Equity has focused on enhancing the core business.
FY 2025 net loss has shrunk to $85.8mm, ~56% lower than 2024’s $193mm and XX% below 2023’s $404mm. Adj. EBITDA climbed XX% to $727mm, pushing margins to 35%. For additional perspective, Bloomberg reported McGraw Hill’s 2021 EBITDA at $450mm, implying an increase of over XX% since the purchase.
Recurring revenues, stemming from multi-year contracts and digital subscriptions, now account for XX% of sales, up from XX% two years ago. Management has been trying to shift the revenue mix away from “transactional revenue,” such as one-time purchases of digital downloads and print shipments, to lock customers in for longer periods.
The IPO filing highlights a large backlog of approximately $1.7bn of remaining performance obligations (RPOs), nearly equivalent to a year’s worth of booked but unearned revenue.
One structural headwind that the filing flagged is the impact of AI. The S-1 warns that tools like ChatGPT could lower the cost of producing competing educational materials and “negatively affect demand for or the pricing of” its products. Conversely, McGraw Hill management views “AI as a tailwind” and has been attempting to be ahead of this change with several AI initiatives like AI Reader, but several other EdTech companies have been crushed, like Chegg.
Another secular headwind is the decrease in higher education enrollments. U.S. “enrollment levels have declined in recent years,” and in the near term, “the current U.S. administration’s” policies relating to higher ed certainly do not help.
XXXXX engagements
Related Topics $450mm hills bloomberg $727mm $404mm $193mm $858mm chapter 11