MCGRAW HILL, INC., 10-Q filed on 8/14/2025
Quarterly Report
v3.25.2
Cover - shares
 3 Months Ended
Jun. 30, 2025
Aug. 11, 2025
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2025  
Document Transition Report false  
Entity File Number 001-42764  
Registrant Name MCGRAW HILL, INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 87-1259704  
Entity Address, Address Line One 8787 Orion Place  
Entity Address, City or Town Columbus  
Entity Address, State or Province OH  
Entity Address, Postal Zip Code 43240  
City Area Code 614  
Local Phone Number 430-4000  
Title of 12(b) Security Common stock, par value $0.01  
Trading Symbol MH  
Security Exchange Name NYSE  
Entity Current Reporting Status No  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   191,001,519
Document Fiscal Year Focus 2026  
Document Fiscal Period Focus Q1  
Current Fiscal Year End Date --03-31  
Central Index Key 0001951070  
Amendment Flag false  
v3.25.2
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Income Statement [Abstract]    
Revenue $ 535,710 $ 522,954
Cost of sales (excluding depreciation and amortization) 123,384 125,290
Gross profit 412,326 397,664
Operating expenses    
Operating and administrative expenses 241,549 246,271
Depreciation 17,187 14,434
Amortization of intangibles 57,365 61,179
Total operating expenses 316,101 321,884
Operating income (loss) 96,225 75,780
Interest expense (income), net 58,774 80,876
Income (loss) from operations before taxes 37,451 (5,096)
Income tax provision (benefit) 36,949 4,351
Net income (loss) $ 502 $ (9,447)
Earnings (loss) per share:    
Basic (in dollars per share) $ 0.00 $ (0.06)
Diluted (in dollars per share) $ 0.00 $ (0.06)
Weighted-average shares outstanding:    
Basic (in shares) 166,611,519 166,611,519
Diluted (in shares) 166,611,519 166,611,519
v3.25.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Statement of Comprehensive Income [Abstract]    
Net income (loss) $ 502 $ (9,447)
Other comprehensive income (loss):    
Foreign currency translation adjustment, net of tax 2,515 (1,205)
Total other comprehensive income (loss) 2,515 (1,205)
Comprehensive income (loss) $ 3,017 $ (10,652)
v3.25.2
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2025
Mar. 31, 2025
Current assets    
Cash and cash equivalents $ 247,331 $ 389,830
Accounts receivable, net of allowance for credit losses of $11,052 and $13,521 as of June 30, 2025 and March 31, 2025, respectively 444,689 338,426
Inventories, net 160,722 174,018
Prepaid and other current assets 139,087 150,357
Total current assets 991,829 1,052,631
Product development costs, net 232,727 222,182
Property, plant and equipment, net 96,557 95,197
Goodwill 2,557,595 2,557,595
Other intangible assets, net 1,397,017 1,454,185
Deferred income taxes 7,119 7,983
Operating lease right-of-use assets 49,877 49,661
Other non-current assets 328,744 318,326
Total assets 5,661,465 5,757,760
Current liabilities    
Accounts payable 117,142 146,742
Accrued royalties 100,476 71,457
Accrued compensation 36,017 124,954
Deferred revenue 737,620 794,031
Current portion of long-term debt 13,170 13,170
Operating lease liabilities 8,108 8,042
Other current liabilities 186,465 172,023
Total current liabilities 1,198,998 1,330,419
Long-term debt 3,165,341 3,164,551
Deferred income taxes 15,005 15,656
Long-term deferred revenue 912,559 882,156
Operating lease liabilities 64,385 64,737
Other non-current liabilities 21,916 19,997
Total liabilities 5,378,204 5,477,516
Commitments and contingencies (Note 14)
Stockholders' equity (deficit)    
Additional paid-in capital 1,562,204 1,562,204
Accumulated deficit (1,280,698) (1,281,200)
Accumulated other comprehensive income (loss) 89 (2,426)
Total stockholders' equity (deficit) 283,261 280,244
Total liabilities and stockholders' equity (deficit) 5,661,465 5,757,760
Class A    
Stockholders' equity (deficit)    
Common stock 1,652 1,652
Class B    
Stockholders' equity (deficit)    
Common stock $ 14 $ 14
v3.25.2
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2025
Mar. 31, 2025
Allowance for credit losses $ 11,052 $ 13,521
Class A    
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 186,471,212 186,471,212
Common stock, shares issued (in shares) 165,160,216 165,160,216
Common stock, shares outstanding (in shares) 165,160,216 165,160,216
Class B    
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 14,384,922 14,384,922
Common stock, shares issued (in shares) 1,451,303 1,451,303
Common stock, shares outstanding (in shares) 1,451,303 1,451,303
v3.25.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Operating activities    
Net income (loss) $ 502 $ (9,447)
Adjustments to reconcile net income (loss) to net cash provided by operating activities    
Depreciation (including amortization of technology costs) 17,187 14,434
Amortization of intangibles 57,365 61,179
Amortization of product development costs 13,302 13,267
Credit losses on accounts receivable (2,286) (1,586)
Unrealized (gain) loss on interest rate cap 0 117
Inventory obsolescence 3,486 3,903
Deferred income taxes 864 (403)
Amortization of debt discount 3,352 3,989
Amortization of deferred financing costs 1,253 1,405
Changes in operating assets and liabilities:    
Accounts receivable (105,289) (193,170)
Inventories 10,544 25,825
Prepaid and other current assets (28,185) (38,795)
Accounts payable and accrued expenses (91,569) (12,600)
Deferred revenue (27,553) 55,224
Other current liabilities 12,233 28,119
Other changes in operating assets and liabilities, net (3,962) 362
Cash provided by (used for) operating activities (96,652) (2,895)
Investing activities    
Product development expenditures (22,788) (18,972)
Capital expenditures (16,283) (15,919)
Cash provided by (used for) investing activities (39,071) (34,891)
Financing activities    
Payment of Term Loan Facility (3,292) (5,312)
Payment of finance lease obligations (1,718) (2,929)
Deferred Initial Public Offering costs (2,374) 0
Cash provided by (used for) financing activities (7,384) (8,241)
Effect of exchange rate changes on cash 608 428
Net change in cash and cash equivalents (142,499) (45,599)
Cash and cash equivalents, at the beginning of the period 389,830 203,618
Cash and cash equivalents, at the end of the period 247,331 158,019
Supplemental disclosures    
Cash paid for interest expense 22,408 53,749
Cash paid for income taxes 56,813 8,048
Deferred Royalties    
Adjustments to reconcile net income (loss) to net cash provided by operating activities    
Amortization of capitalized contract costs 34,669 33,311
Deferred Commission Costs    
Adjustments to reconcile net income (loss) to net cash provided by operating activities    
Amortization of capitalized contract costs $ 7,435 $ 11,971
v3.25.2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIT) - USD ($)
$ in Thousands
Total
Common Class A
Common Class B
Common Stock
Common Class A
Common Stock
Common Class B
Additional Paid-in Capital
Accumulated Deficit
Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Mar. 31, 2024       165,160,216 1,451,303      
Beginning balance at Mar. 31, 2024 $ 368,754     $ 1,652 $ 14 $ 1,562,204 $ (1,195,361) $ 245
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income (loss) (9,447)           (9,447)  
Other comprehensive income (loss), net of tax (1,205)             (1,205)
Ending balance (in shares) at Jun. 30, 2024       165,160,216 1,451,303      
Ending balance at Jun. 30, 2024 358,102     $ 1,652 $ 14 1,562,204 (1,204,808) (960)
Beginning balance (in shares) at Mar. 31, 2025   165,160,216 1,451,303 165,160,216 1,451,303      
Beginning balance at Mar. 31, 2025 280,244     $ 1,652 $ 14 1,562,204 (1,281,200) (2,426)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income (loss) 502           502  
Other comprehensive income (loss), net of tax 2,515             2,515
Ending balance (in shares) at Jun. 30, 2025   165,160,216 1,451,303 165,160,216 1,451,303      
Ending balance at Jun. 30, 2025 $ 283,261     $ 1,652 $ 14 $ 1,562,204 $ (1,280,698) $ 89
v3.25.2
Description of Business, Basis of Preparation and Summary of Significant Accounting Policies
 3 Months Ended
Jun. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business, Basis of Preparation and Summary of Significant Accounting Policies
1. Description of Business, Basis of Preparation and Summary of Significant Accounting Policies

Description of Business

McGraw Hill, Inc. conducts its operations through its subsidiaries, including its indirect subsidiary McGraw-Hill Education, Inc., a Delaware corporation and operating company that is doing business as and that we refer to as “McGraw Hill.” As used in the accompanying consolidated financial statements, unless the context otherwise indicates, any reference to “our Company,” “the Company,” “us,” “we,” and “our,” refers to McGraw Hill, Inc., together with its consolidated subsidiaries. The use of the term “Platinum” means Platinum Equity, LLC together with its affiliated investment vehicles.

Platinum formed McGraw Hill, Inc. (formerly known as Mav Holding Corporation) on June 8, 2021. On July 31, 2021, Mav Acquisition Corporation, an investment vehicle of certain private investment funds sponsored and ultimately controlled by Platinum acquired 100% of the equity interests in McGraw-Hill Education, Inc. Immediately following the consummation of the acquisition, Mav Acquisition Corporation merged with and into McGraw-Hill Education, Inc. with McGraw-Hill Education, Inc. being the surviving entity and McGraw-Hill Education, Inc. being indirectly owned by McGraw Hill, Inc.

McGraw Hill, Inc. is a leading global provider of information solutions for education across K-12 to higher education and through professional learning. The business is comprised of the following four reportable segments:

•K-12: The Company provides end-to-end core, supplemental and intervention curricula to support the needs of U.S. K-12 schools. The Company sells blended digital and print learning solutions directly to school districts across the U.S.

•Higher Education: The Company provides students, instructors and institutions with adaptive digital learning solutions and content, and instructional materials. The primary users of the Company's solutions are students enrolled in two-and four-year non-profit colleges and universities, and to a lesser extent, for-profit institutions. The Company sells its Higher Education solutions to well-known online retailers and distribution partners, who subsequently sell to students. The Company also sells direct to student via its proprietary e-commerce platform.

•Global Professional: The Company provides students, institutions and professionals with comprehensive medical and engineering learning solutions. The Company sells digital learning solutions and print materials which are easily accessible through a broad range of mediums.

•International: The Company is a provider of comprehensive digital and print solutions in more than 100 countries and 80 languages outside of the United States. Through our expansive global distribution network, we serve the needs of learners and educators throughout the world with our K-12 and Higher Education solutions that primarily originate or are adapted from our U.S.-based solutions.

Basis of Preparation

Principles of Consolidation

    These unaudited interim consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). Certain information and disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP are not required in these interim financial statements and have been condensed or omitted. In managements opinion, the Company has made all adjustments of a normal recurring nature necessary for fair financial statement presentation. Accordingly, these interim consolidated financial statements and
related notes should be read in conjunction with the Company's audited consolidated financial statements and related notes thereto for the fiscal year ended March 31, 2025 included in the Company's Prospectus. Our interim period operating results are not necessarily indicative of the results that may be expected for any other interim period or for the full fiscal year.

All intercompany transactions and balances have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation.

Fiscal Year

Our fiscal year is a 52-week period ended on March 31.

Use of Estimates

    The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

    On an ongoing basis, the Company evaluates its estimates and assumptions, including those related to revenue recognition, allowance for estimated credit losses and sales returns, valuation of inventories, product development costs, impairment of long-lived assets (including other intangible assets), valuation of right-of-use assets, impairment of goodwill and indefinite-lived intangible assets, purchase price allocation of acquired businesses, stock-based compensation, income taxes and contingencies.

Seasonality and Comparability

    The Company's revenues, operating profit and operating cash flows are affected by the inherent seasonality of the academic calendar. Changes in the Company's customers’ ordering patterns may affect the comparison of its results in a quarter with the same quarter of the previous year, or in a fiscal year with the prior fiscal year, where customers may shift the timing of material orders for any number of reasons, including, but not limited to, changes in academic semester start dates or changes to their inventory management practices.

Summary of Significant Accounting Policies

Cash and Cash Equivalents

    Cash and cash equivalents include bank deposits and highly liquid investments with original maturities of three months or less that consist primarily of interest-bearing demand deposits with daily liquidity, money market and time deposits. The balance also includes cash that is held by the Company outside of the U.S. to fund international operations or to be reinvested outside of the U.S. The investments and bank deposits are stated at cost, which approximates market value. These investments are not subject to significant market risk.
    
Accounts Receivable

Credit is extended to customers based upon an evaluation of the customer’s financial condition. Accounts receivable are recognized net of an allowance for estimated credit losses.

Allowance for Estimated Credit Losses

    The Company estimates credit losses for its accounts receivable using the current expected credit loss model under ASC 326, Financial Instruments - Credit Losses. In determining the allowance for
estimated credit losses, the Company considers forecasts of future economic conditions in addition to information about past events and current conditions.

The Company measures expected credit losses on a pool basis for those account receivables that have similar risk characteristics. Risk characteristics relevant to the Company’s accounts receivable include the financial condition of the customer and the customer’s credit risk category. When estimating credit losses, the Company also considers historical write-off experience and aging of accounts receivable.

Receivables are written off against the allowance for estimated credit losses when the receivable is determined to be uncollectible. The change in the allowance for estimated credit losses is reflected as part of Operating and administrative expenses in the consolidated statements of operations.

Sales Returns

The allowance for sales returns is an estimate, which is based on historical rates of return, timing of returns and market conditions. The provision for sales returns is reflected as a reduction to Revenues in the consolidated statements of operations for sales recognized as revenue and as a reduction to Deferred revenue in the consolidated balance sheets for sales which have not been recognized yet. Sales returns are charged against the reserve as products are returned to inventory.

Concentration of Credit Risk

    As of June 30, 2025, the Company had no single customer that accounted for 10% or more of the gross accounts receivable balance. As of March 31, 2025, three customers comprised 38% of the gross accounts receivable balance, which is reflective of both customer concentration and the seasonal nature of the Company's industry. For all periods presented, the Company had no single customer that accounted for 10% or more of its gross revenue. The loss of, or any reduction in sales from a significant customer or deterioration in their ability to pay could harm the Company's business and financial results.

Inventories, Net

    Inventories, consisting principally of books, are stated at the lower of cost or net realizable value and are valued using the first in first out ("FIFO") method. The majority of inventories relate to finished goods. An estimate, the reserve for inventory obsolescence, is reflected in Inventories, net within the consolidated balance sheets. In determining this reserve, the Company considers management’s current assessment of the marketplace, industry trends and projected product demand as compared to the number of units currently on hand.

Product Development Costs, Net

    Product development costs include both the pre-publication cost of developing educational content and the development of assessment solution products. Costs incurred prior to the publication date of a title or release date of a product represent activities associated with product development. These may be performed internally or outsourced to subject matter specialists and include, but are not limited to, editorial review and fact verification, graphic art design and layout and the process of conversion from print to digital media or within various formats of digital media. These costs are capitalized when the costs are directly attributable to a project or title and the title is expected to generate probable future economic benefits. Capitalized costs are amortized upon publication of the title over its estimated useful life with a higher proportion of the amortization typically taken in the earlier years. Amortization expenses for product development costs are charged as a component of operating and administrative expenses. In evaluating recoverability, the Company considers management’s current assessment of the marketplace, industry trends and the projected success of the program.
Property, Plant and Equipment, Net

    Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation and amortization are recorded on a straight-line basis, over the assets’ estimated useful lives. The Company evaluates the depreciation periods of property, plant and equipment to determine whether events or circumstances warrant revised estimates of useful lives.

Deferred Technology Costs

    The Company capitalizes certain software development and website implementation costs. Capitalized costs only include incremental, direct costs of materials and services incurred to develop the software after the preliminary project stage is completed, funding has been committed and it is probable that the project will be completed and used to perform the function intended. Software development and website implementation costs are expensed as incurred during the preliminary project stage. Capitalized costs are amortized from the period the software is ready for its intended use over its estimated useful life, generally three years, using the straight-line method and are included within depreciation in the consolidated statements of operations. Periodically, the Company evaluates the amortization methods, remaining lives and recoverability of such costs. Capitalized software development and website implementation costs are included in Other non-current assets in the consolidated balance sheets and are presented net of accumulated amortization.

Gross deferred technology costs were $255,855 and $239,427 as of June 30, 2025 and March 31, 2025, respectively. Accumulated amortization of deferred technology costs was $87,250 and $76,838 as of June 30, 2025 and March 31, 2025, respectively. Amortization of deferred technology costs was $10,412 and $7,785 for the three months ended June 30, 2025 and 2024, respectively.
Cloud Computing Arrangements

The Company capitalizes certain implementation costs for cloud computing arrangements that meet the definition of a service contract in accordance with ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software. Capitalized costs include external direct costs for materials and services. Software maintenance and training costs are expensed in the period in which they are incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally three years and are included within depreciation in the consolidated statements of operations, beginning when the module or component of the hosting arrangement is ready for its intended use. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Capitalized costs for internal use software are included in Other non-current assets in the consolidated balance sheets and are presented net of accumulated amortization.

Capitalized implementation costs for cloud computing arrangements accounted for as service contracts was $35,072 and $35,072 as of June 30, 2025 and March 31, 2025, respectively. Accumulated amortization of cloud computing costs was $19,186 and $16,263 as of June 30, 2025 and March 31, 2025, respectively. Amortization of cloud computing costs was $2,923 and $2,387 for the three months ended June 30, 2025 and 2024, respectively.

Goodwill and Indefinite-Lived Intangible Assets

    Goodwill represents the excess of purchase price and related costs over the fair value of identifiable assets acquired and liabilities assumed in a business combination. Indefinite-lived intangible assets consist of the Company's acquired brands. Goodwill and indefinite-lived intangible assets are not amortized, but instead are tested for impairment annually or more frequently if events or changes in circumstances indicate that it is more likely than not the asset is impaired. The Company has historically performed its annual testing for goodwill and indefinite-lived intangible asset impairment as of March 31.
The Company has four reporting units, K-12, Higher Education, Global Professional and International, with goodwill and indefinite-lived intangible assets that are evaluated for impairment.

    The Company initially performs a qualitative analysis to evaluate whether there are events or circumstances that provide evidence that it is more likely than not that the fair value of any of its reporting units or indefinite-lived intangible assets are less than their carrying amount. If, based on this evaluation the Company does not believe that it is more likely than not that the fair value of any of its reporting units or indefinite-lived intangible assets are less than their carrying amount, no quantitative impairment test is performed. Conversely, if the results of the Company's qualitative assessment determine that it is more likely than not that the fair value of any of its reporting units or indefinite-lived intangible assets are less than their respective carrying amounts, the Company performs a quantitative impairment test. If the results of the Company's quantitative assessment determine that the carrying value exceeds the fair value of the reporting unit or indefinite-lived intangible assets, then the Company recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit or indefinite-lived assets fair value.

To perform the quantitative impairment test, the Company uses the discounted cash flow method and a market-based valuation model to estimate the fair value of the reporting units. The discounted cash flow method incorporates various assumptions, the most significant being projected revenue growth rates, operating profit margins and cash flows, the terminal growth rate, and the discount rate. The Company projects revenue growth rates, operating margins and cash flows based on each reporting unit's current business, expected developments, and operational strategies over a five year period. In estimating the terminal growth rates, the Company considers its historical and projected results, as well as the economic environment in which its reporting units operate. The discount rates utilized for each reporting unit reflect the Company's assumptions of marketplace participants' cost of capital and risk assumptions, both specific to the reporting unit and overall in the economy. The market-based approach incorporates the use of revenue and earnings multiples based on market data as well as the consideration of transactions involving acquisitions of control in similar entities to determine a value for a particular business. Fair values of indefinite-lived intangible assets are estimated using relief-from-royalty discounted cash flow analyses. Significant judgments inherent in the relief-from-royalty method include the selection of appropriate royalty and discount rates and estimating the amount and timing of expected future cash flows. The discount rates used in the discounted cash flow analyses reflect the risks inherent in the expected future cash flows generated by the respective intangible assets. The royalty rates used in the discounted cash flow analyses are based upon an estimate of the royalty rates that a market participant would pay to license the Company's trade names and trademarks.

Accounting for the Impairment of Long-Lived Assets (Including Other Intangible Assets)

    The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Upon such an occurrence, recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to current forecasts of undiscounted future net cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future undiscounted cash flows, an impairment charge is recognized equal to the amount by which the carrying amount of the asset exceeds the fair value of the asset. Fair value is determined based on market observable inputs, discounted cash flows or appraised values, depending upon the nature of the assets.

Fair Value Measurements

In accordance with authoritative guidance for fair value measurements, certain assets and liabilities are required to be recorded at fair value on a recurring basis. Fair value is defined as the amount that would be received to sell an asset or transfer a liability in an orderly transaction between market participants. A fair value hierarchy has been established which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
The three levels of inputs used to measure fair value are as follows:

•Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities.
•Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liabilities.
•Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The carrying amount of the Company’s financial assets and liabilities, such as cash and cash equivalents, prepaid and other current assets, accounts payable and accrued expenses approximate their fair value due to the short maturity of those instruments.

Financial Assets and Liabilities

On a recurring basis, the Company measures certain financial assets and liabilities at fair value. The accounting standard for fair value measurements defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty and its credit risk in its assessment of fair value.

The following table presents the carrying amounts, not including debt discount or deferred financing costs, and estimated fair market values of the Company's debt as of June 30, 2025 and March 31, 2025:

June 30, 2025March 31, 2025
Carrying AmountEstimated Fair Value (Level 2)Carrying AmountEstimated Fair Value (Level 2)
Liabilities:
A&E Term Loan Facility$1,157,123 $1,158,569 $1,160,415 $1,156,063 
2022 Secured Notes828,466 822,253 828,466 799,470 
2022 Unsecured Notes639,034 643,827 639,034 627,851 
2024 Secured Notes650,000 671,125 650,000 651,625 
$3,274,623 $3,295,774 $3,277,915 $3,235,009 

The fair value of debt is deemed to be the amount at which the instrument could be exchanged in an orderly transaction between market participants at the measurement date. The fair market values of the 2024 Secured Notes, 2022 Secured Notes and 2022 Unsecured Notes were determined based on quoted market prices on a private exchange and are classified as Level 2 within the fair value hierarchy as of June 30, 2025 and March 31, 2025, respectively, due to limited trading activity. The fair market value of the A&E Term Loan Facility was determined using pricing sources and models utilizing market observable inputs to determine fair value and is classified as Level 2 within the fair value hierarchy as of June 30, 2025 and March 31, 2025, respectively. The factors used to estimate these values may not be valid on any subsequent date. Accordingly, the fair market values of the debt presented may not be indicative of their future values.
Non-Financial Assets and Liabilities

Non-financial assets and liabilities for which the Company employs fair value measures on a nonrecurring basis include goodwill, other intangible assets, property, plant, and equipment and operating lease assets. These assets are evaluated for impairment when specific trigger events occur, or when an annual quantitative impairment test is required.

Foreign Currency

    The Company has operations in many foreign countries. For most international operations, the local currency is the functional currency. For international operations that are determined to be extensions of the U.S. operations or where a majority of revenue and/or expenses is U.S. dollar denominated, the U.S. dollar is the functional currency. For local currency operations, assets and liabilities are translated into U.S. dollars using end-of-period exchange rates, and revenue and expenses are translated into U.S. dollars using weighted-average exchange rates. Differences arising from the exchange rate changes are recorded within foreign currency translation adjustments, a component of Other comprehensive income (loss). Foreign currency transaction gains/losses are recorded in operating and administrative expenses in the consolidated statements of operations.

Stock-Based Compensation

    The Company issues stock options and other stock-based compensation to eligible employees, directors and consultants and accounts for these transactions under the provisions of ASC Topic 718, Compensation-Stock Compensation ("ASC 718"). For equity awards, total compensation cost is based on the grant date fair value. For liability awards, total compensation cost is based on the fair value of the award on the date the award is granted and is remeasured at each reporting date until settlement. For performance-based awards issued, the value of the instrument is measured at the grant date fair value and expensed over the vesting term when the performance targets are considered probable of being achieved. For awards subject to both performance-based and market-based vesting conditions, the value of the instrument is measured at the grant date as the fair value and expensed using an accelerated recognition method once the performance targets are considered probable of being achieved. The Company recognizes stock-based compensation expense for service-based awards, on a straight-line basis, over the service period required to earn the award, which is typically the vesting period. Forfeitures are accounted for as they occur.

Revenue Recognition

    Revenue is recognized when the control of goods is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods. The Company determines revenue recognition through the following steps:

•Identification of the contract, or contracts, with a customer;
•Identification of the performance obligations in the contract;
•Determination of the transaction price;
•Allocation of the transaction price to the performance obligations in the contract; and
•Recognition of revenue when, or as, the Company satisfies a performance obligation.

The Company's performance obligation for print products is typically satisfied at the time of shipment to the customer, which is when control transfers to the customer. For print products, such as workbooks, that are multi-year contracts, each academic year represents a distinct performance obligation which is satisfied when each academic year’s delivery to the customer takes place.
The Company's digital products are generally sold as subscriptions, which are paid for at the time of sale or shortly thereafter, and the performance obligation is satisfied ratably over the life of the digital products’ subscription period.

     The Company's contracts with customers often include multiple performance obligations which generally include print and digital textbooks/content and instructional materials. One or more of these contractual performance obligations may be provided for no additional consideration i.e., gratis performance obligations. These performance obligations are considered distinct as the customer can benefit from each of the promised products under the contract on its own and the transfer of these promised products are separately identifiable and are not dependent on other promised products within the contract. For contracts that contain multiple performance obligations, the Company allocates the transaction price based on the relative standalone selling price ("SSP") method, inclusive of gratis performance obligations, pursuant to which the transaction price is allocated to each performance obligation based on the proportion of the SSP of each performance obligation to the sum of the SSPs of all of the performance obligations in the contract. The Company determines the SSP based on its historical pricing for the distinct performance obligation when sold separately.

Cost of Sales (Excluding Depreciation and Amortization)

Cost of sales (excluding depreciation and amortization) includes expenses directly attributable to the production of the Company's products. Costs associated with printed products include variable costs such as paper, printing and binding, content related royalty expenses, directly related hosting costs and gratis costs (products provided at no additional consideration as part of the sales transaction), certain transportation and freight costs and inventory obsolescence. Gratis costs are predominately incurred in the K-12 business and vary based upon the level of state sales during a given period. Cost of sales also includes royalty expense where author developed content is used, primarily in the Higher Education and Global Professional segments.

Leases

For operating lease arrangements with an initial lease term of more than 12 months, the Company records a lease liability and right-of-use asset on the consolidated balance sheets at the lease commencement date. The Company measures lease liabilities based on the present value of the total lease payments not yet paid. As most of the Company's leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate at the lease commencement date to determine the present value of the total lease payments. The Company measures right-of-use assets based on the corresponding lease liability adjusted for (i) payments made to the lessor at or before the commencement date, (ii) initial direct costs the Company incurs and (iii) tenant incentives under the lease. Certain lease arrangements contain escalation clauses covering increased costs for various defined real estate taxes and operating services which are factored into the determination of lease payments, however, the Company does not assume renewals or early terminations unless it is reasonably certain to exercise these options, and the Company accounts for arrangements with lease and non-lease components as a single lease component.

For leases with an initial lease term of 12 months or less, the Company does not record right-of-use assets and lease liabilities. For such leases, the Company recognizes lease expense in the consolidated statements of operations on a straight-line basis over the lease term.

Shipping and Handling Costs
    
    All amounts billed to customers in a sales transaction for shipping and handling are classified as revenue. Shipping and handling costs incurred by the Company are a component of Cost of sales (excluding depreciation and amortization). The Company recognized shipping and handling revenue of $6,873 and $8,645 for the three months ended June 30, 2025 and 2024, respectively.
Income Taxes

    The Company’s operations are subject to U.S. federal, state and local, and foreign income taxes.

    The Company determines the provision for income taxes using the asset and liability approach. Under this approach, deferred income taxes represent the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities.

    Valuation allowances are established when management determines that it is more-likely-than-not that some portion or all of the deferred tax asset will not be realized. Management evaluates the weight of both positive and negative evidence in determining whether a deferred tax asset will be realized. Management will look to a history of losses, future reversal of existing taxable temporary differences, taxable income in carryback years, feasibility of tax planning strategies and estimated future taxable income. The valuation allowance can also be affected by changes in tax laws and changes to statutory tax rates.

    The Company prepares and files tax returns based on management’s interpretation of tax laws and regulations. As with all businesses, the Company's tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax assessments based on differences in interpretation of tax laws and regulations. The Company adjusts its estimated uncertain tax positions reserves based on current audits and recent settlements with various taxing authorities as well as changes in tax laws, regulations, and interpretations. The Company recognizes accrued interest and penalties related to uncertain tax positions in Income tax provision (benefit) within the consolidated statements of operations.

Contingencies

    The Company accrues for loss contingencies when both (i) information available prior to issuance of the financial statements indicates that it is probable that a loss had been incurred at the date of the financial statements and (ii) the amount of loss can reasonably be estimated. When the Company accrues for loss contingencies and the reasonable estimate of the loss is within a range, the best estimate within the range is recorded. The Company discloses an estimated possible loss or a range of loss when it is at least reasonably possible that a loss may have been incurred. Neither an accrual nor disclosure is required for losses that are deemed remote.

Earnings (Loss) per Share

The Company computes net income (loss) per share in accordance with ASC Topic 260, Earnings per Share, which requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the statement of operations. Basic earnings (loss) per share is computed by dividing the net income (loss) available to common stockholders by the weighted-average number of common shares outstanding during the period. Dilutive earnings (loss) per share amounts are based on the weighted-average number of common shares outstanding, including the effect of all dilutive potential common shares that were outstanding during the period using the treasury stock method. Dilutive earnings (loss) per share excludes all potentially dilutive shares if their effect is anti-dilutive.

Stock Conversion and Stock Split

In connection with our initial public offering (“IPO”), on July 23, 2025, we converted all of our outstanding Class A voting common stock and Class B non-voting common stock into a single class of common stock on a 1-for-1 basis (the “Stock Conversion”) and effected a 1.06555-for-1 stock split (the “Stock Split”) of the Company's common stock, including the shares of common stock underlying outstanding stock options. The par value of the Company’s common stock was not adjusted and
166,611,519 shares of common stock par value $0.01 per share (“Common Stock”) were outstanding as a result of the Stock Split. All share and per share data has been presented on the basis of this Stock Split for all the periods presented within these unaudited consolidated financial statements.

Recently Adopted Accounting Standards     

In November 2023, the FASB issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and a description of other segment items by reportable segment. The ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods and to disclose the title and position of the CODM. In addition, the ASU permits public entities to disclose any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. The ASU does not change how a public entity identifies its operating segments, aggregates them, or applies the quantitative thresholds to determine its reportable segments. This update is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company adopted the ASU for the fiscal year ended March 31, 2025 on a retrospective basis for all prior periods presented in its consolidated financial statements, see Note 9, Segment Reporting.

Recently Issued Accounting Standards

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands income tax disclosure requirements to include additional information in the effective tax rate reconciliation as well as additional disaggregation of income taxes paid. The ASU also removes disclosures related to certain unrecognized tax benefits and deferred taxes. The new requirements will be effective for fiscal years beginning after December 15, 2025, or the Company's fiscal 2027. The guidance may be applied prospectively or retrospectively, and early adoption is permitted. The Company is currently evaluating the effect of adopting the ASU on its consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires public entities to provide disaggregated disclosures of certain expense captions presented on the face of the income statement into specific expense categories within the notes to the consolidated financial statements, including inventory purchases, employee compensation, and costs related to depreciation and amortization. In January 2025, the FASB issued ASU 2025-01, Clarifying the Effective Date, which clarifies that ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, or the Company's fiscal year ended March 31, 2028, and interim periods within fiscal years beginning after December 15, 2027, or the Company's fiscal year ended March 31, 2029, with early adoption permitted. The guidance may be applied on a prospective or retrospective basis. The Company is currently evaluating the effect of adopting the ASU on its consolidated financial statements and related disclosures.

In May 2025, the FASB issued ASU 2025-03, "Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity (VIE)." This ASU clarifies the guidance in determining the accounting acquirer in a business combination effected primarily by exchanging equity interests when the acquiree is a VIE that meets the definition of a business. The ASU is effective for fiscal years beginning after December 15, 2026, or the Company's fiscal year ended March 31, 2028, and interim periods within fiscal years beginning after December 15, 2027, or the Company's fiscal year ended March 31, 2029, with early adoption permitted. The guidance is to be applied prospectively to acquisitions after the adoption date. The Company is currently evaluating the effect of adopting the ASU on its consolidated financial statements and related disclosures.
v3.25.2
Revenue from Contracts with Customers
 3 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers
2. Revenue from Contracts with Customers

Disaggregation of Revenue

The following tables summarize the Company's revenue from contracts with its customers disaggregated by segment and product type for the three months ended June 30, 2025 and 2024:

Three Months Ended June 30,
20252024
DigitalPrint (1)TotalDigitalPrint (1)Total
Revenue by Segment:
K-12$108,597 $162,334 $270,931 $99,618 $175,209 $274,827 
Higher Education168,826 13,553 182,379 153,955 5,891 159,846 
Global Professional25,272 9,887 35,159 25,093 10,194 35,287 
International22,353 29,111 51,464 24,559 33,752 58,311 
Other (2)— (4,223)(4,223)— (5,317)(5,317)
Total Revenue $325,048 $210,662 $535,710 $303,225 $219,729 $522,954 
___________________
(1)
Print revenue contains print and multi-year print products.
(2)
Includes in-transit product sales and intersegment revenue adjustments that are not included within segment revenues reviewed by the Company's CODM.

In addition, the Company has included a further disclosure of revenue from contracts with its customers disaggregated by segment and by Re-occurring Revenue and Transactional Revenue, for the three months ended June 30, 2025 and 2024.

Re-occurring Revenue represents revenue from offerings that are generally sold as digital subscriptions and multi-year print products. Revenue from digital subscriptions, is recognized ratably over the term of the subscription period as the performance obligation is satisfied and revenue from multi-year print products (e.g., workbooks) is recognized at a point in time, upon shipment of the print product to the customer, in each academic year within the contract term. Transactional Revenue includes revenue from both print and digital offerings that are recognized at a point in time upon shipment of the print product or delivery of the digital offerings. In addition, Transactional Revenue includes revenue for amounts billed to customers in a sales transaction for shipping and handling.

Three Months Ended June 30,
20252024

Re-occurring
Revenue		Transactional
Revenue		TotalRe-occurring
Revenue		Transactional
Revenue		Total
K-12
$183,641 $87,290 $270,931 $166,819 $108,008 $274,827 
Higher Education
159,552 22,827 182,379 149,454 10,392 159,846 
Global Professional
23,657 11,502 35,159 22,773 12,514 35,287 
International
20,764 30,700 51,464 22,752 35,559 58,311 
Other
— (4,223)(4,223)— (5,317)(5,317)
Total Revenue
$387,614 $148,096 $535,710 $361,798 $161,156 $522,954 
Deferred Commission Costs

    The Company's incremental direct costs of obtaining a contract, which consist of sales commissions, are deferred and amortized over the expected period of benefit or the related contractual renewal period, depending on whether the contract is an initial or renewal contract, respectively. The Company classifies deferred commission costs as current or non-current based on the timing of when the Company expects to recognize the expense. The current and non-current portions of deferred commission costs are included in Prepaid and other current assets, and Other non-current assets, respectively, in the consolidated balance sheets. The Company expenses commission costs when incurred related to customer contracts that have a duration of less than one year. The Company recognizes these costs within Operating and administrative expenses in the consolidated statements of operations.

Deferred commission costs consisted of the following:

June 30, 2025March 31, 2025
Current$17,173 $22,449 
Non-current22,894 18,794 
Total Deferred Commission Costs $40,067 $41,243 

    Amortization expense related to deferred commission costs was $7,435 and $11,971 for the three months ended June 30, 2025 and 2024, respectively.

Deferred Royalties

The Company's direct costs of fulfilling a contract, which consist of royalties, are deferred and amortized over the expected period of benefit or the related contractual renewal period, depending on whether the contract is an initial or renewal contract, respectively. The Company classifies deferred royalties as current or non-current based on the timing of when the Company expects to recognize the expense. The current and non-current portions of deferred royalties are included in Prepaid and other current assets, and Other non-current assets, respectively, in the Company's consolidated balance sheets. The Company recognizes these costs within Cost of sales (excluding depreciation and amortization) in the consolidated statements of operations.

Deferred royalties consisted of the following:

June 30, 2025March 31, 2025
Current$65,424 $76,186 
Non-current59,221 61,495 
Total Deferred Royalties $124,645 $137,681 

Amortization expense related to deferred royalties was $34,669 and $33,311 for the three months ended June 30, 2025 and 2024, respectively.

Contract Assets and Contract Liabilities

The Company's contract assets consist of unbilled receivables that are recorded for contracts with performance obligations that have been satisfied but have not yet been billed. Contract assets are included in Accounts receivable, net, on the consolidated balance sheets.
The Company's contract liabilities consist of revenues from its digital subscription products and multi-year print products that are deferred at the time of sale. The Company classifies contract liabilities as current or non-current deferred revenue on the consolidated balance sheets based on the timing of when the Company expects to recognize revenue.

Contract assets and contract liabilities consisted of the following:

June 30, 2025March 31, 2025
Contract assets$48,372 $29,032 
Contract liabilities (deferred revenue):
Current737,620 794,031 
Non-current912,559 882,156 
Total Contract Liabilities $1,650,179 $1,676,187 

Total contract liabilities by segment consisted of the following:

June 30, 2025March 31, 2025
Total Contract Liabilities by Segment:
K-12$1,327,044 $1,279,585 
Higher Education221,730 297,316 
Global Professional64,376 62,348 
International29,275 33,407 
Other (1)
7,754 3,531 
Total Contract Liabilities
$1,650,179 $1,676,187 
_______________
(1)Includes contract liabilities for in-transit product sales that are not included in segment contract liabilities.
Revenue recognized during the three months ended June 30, 2025 and 2024 from amounts included within deferred revenue as of March 31, 2025 and 2024 was $335,920 and $312,695, respectively.

Estimated revenue expected to be recognized in future fiscal years ended March 31, related to amounts included within deferred revenue as of June 30, 2025 was as follows:
June 30, 2025
2026 (remaining nine months)
$574,360 
2027425,460 
2028297,335 
2029185,013 
203094,014 
Thereafter73,997 
$1,650,179 
v3.25.2
Operating and Administrative Expenses
 3 Months Ended
Jun. 30, 2025
Other Income and Expenses [Abstract]  
Operating and Administrative Expenses
3. Operating and Administrative Expenses

Operating and administrative expenses consisted of the following:

Three Months Ended June 30,
20252024
Selling and marketing
$87,397 $85,531 
General and administrative
75,392 84,023 
Research and development
65,458 63,450 
Amortization of product development costs
13,302 13,267 
Operating and administrative expenses
$241,549 $246,271 
v3.25.2
Inventories, Net
 3 Months Ended
Jun. 30, 2025
Inventory Disclosure [Abstract]  
Inventories, Net
4. Inventories, Net

As of June 30, 2025 and March 31, 2025, the majority of inventories reported on the consolidated balance sheets consisted of finished goods.

Inventory obsolescence for the three months ended June 30, 2025 and 2024 was $3,486 and $3,903, respectively. This is included within Cost of sales (excluding depreciation and amortization) in the consolidated statements of operations.
v3.25.2
Goodwill and Other Intangible Assets
 3 Months Ended
Jun. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets
5. Goodwill and Other Intangible Assets

Goodwill

There were no changes in the carrying amount of goodwill of $2,557,595 for the three months ended June 30, 2025 and 2024.

Other Intangible Assets

    The following information details the carrying amounts and accumulated amortization of the Company's intangible assets:

June 30, 2025
Useful LifeGross AmountAccumulated AmortizationAccumulated ImpairmentNet Amount
Content
10 - 15 years
$1,222,400 $(622,422)$— $599,978 
TrademarksIndefinite576,000 — (83,000)493,000 
Trademarks10 years21,750 (12,724)— 9,026 
Customers
1 - 14 years
225,600 (122,122)— 103,478 
Technology7 years427,000 (235,465)— 191,535 
Total$2,472,750 $(992,733)$(83,000)$1,397,017 
March 31, 2025
Useful LifeGross AmountAccumulated AmortizationAccumulated ImpairmentNet Amount
Content
10 - 15 years
$1,222,400 $(589,247)$— $633,153 
TrademarksIndefinite576,000 — (83,000)493,000 
Trademarks10 years21,750 (12,014)— 9,736 
Customers
1 - 14 years
225,600 (114,269)— 111,331 
Technology7 years427,000 (220,035)— 206,965 
Total$2,472,750 $(935,565)$(83,000)$1,454,185 

The Company's expected aggregate annual amortization expense for existing intangible assets subject to amortization for each of the fiscal years is as follows:

Expected Amortization Expense
2026 (remaining nine months)$165,764 
2027207,625 
2028172,109 
2029115,034 
203079,572 
Thereafter163,913 
$904,017 
The fair values of the definite-lived acquired intangible assets are amortized over their useful lives, which is consistent with the estimated useful life of considerations used in determining their fair values. Customer and Technology intangibles are amortized on a straight-line basis while Content and definite-lived Trademark intangibles are amortized using the sum-of-the-years' digits method. The weighted-average remaining amortization period is 7.5 years. Amortization expense was $57,168 and $60,995 for the three months ended June 30, 2025 and 2024, respectively.
v3.25.2
Prepaid and Other Current Assets
 3 Months Ended
Jun. 30, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Prepaid and Other Current Assets
6. Prepaid and Other Current Assets

Prepaid and other current assets consisted of the following:

June 30, 2025March 31, 2025
Deferred royalties$65,424 $76,186 
Deferred sales commission17,173 22,449 
Prepaid insurance7,032 6,049 
Prepaid tax2,621 3,006 
Other46,837 42,667 
Prepaid and other current assets$139,087 $150,357 
v3.25.2
Other Current Liabilities
 3 Months Ended
Jun. 30, 2025
Other Liabilities Disclosure [Abstract]  
Other Current Liabilities
7. Other Current Liabilities

    Other current liabilities consisted of the following:

June 30, 2025March 31, 2025
Allowance for sales returns$32,740 $39,657 
Accrued interest57,392 20,455 
Accrued tax43,787 59,797 
Finance lease obligations5,004 4,631 
Restructuring4,651 5,212 
Other42,891 42,271 
Other current liabilities $186,465 $172,023 
v3.25.2
Debt
 3 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Debt
8. Debt

Long-term debt consisted of the following:

MaturityJune 30, 2025March 31, 2025
A&E Term Loan FacilityAugust 2031$1,157,123 $1,160,415 
2022 Secured NotesAugust 2028828,466 828,466 
2022 Unsecured NotesAugust 2029639,034 639,034 
2024 Secured NotesSeptember 2031650,000 650,000 
Total debt outstanding3,274,623 3,277,915 
Less: unamortized debt discount(79,430)(82,782)
Less: unamortized deferred financing costs(16,682)(17,412)
Less: current portion of long-term debt(13,170)(13,170)
Long-term debt$3,165,341 $3,164,551 

A&E Cash Flow Credit Facilities

    On July 30, 2021, McGraw-Hill Education, Inc. and certain subsidiaries entered into that certain Credit Agreement (the “Cash Flow Credit Agreement”) which provided for (i) an initial $1,550,000 term loan facility (the “Term Loan Facility”) and (ii) an initial $150,000 revolving credit facility (the “Cash Flow Revolving Credit Facility”). On November 1, 2021, McGraw-Hill Education, Inc. borrowed an additional $575,000 under the Term Loan Facility pursuant to an incremental amendment to the Cash Flow Credit Agreement to finance certain transactions.

In June 2023, McGraw-Hill Education, Inc. and certain subsidiaries entered into an amendment to the Cash Flow Credit Agreement, which, among other things, replaced LIBOR with Term SOFR (of terms of one, three or six months), or if available and agreed to by such parties as specified in such agreement, other periods of twelve months or less than one month, in the case of the Cash Flow Revolving Credit Facility, with a credit spread adjustment of 0.10% for all interest periods, and in the case of the Term Loan Facility, with a credit spread adjustment of 0.11448% (one-month interest period), 0.26161% (three-months interest period), 0.42826% (six-months interest period) and 0.71513% (twelve-months interest period).

On August 6, 2024, McGraw-Hill Education, Inc. and certain subsidiaries amended its Cash Flow Credit Agreement which amendment (i) modified certain provisions therein, (ii) refinanced in full the outstanding term loans thereunder with new term loans having an extended maturity to August 2031 (such facility as being refinanced, the “A&E Term Loan Facility”) and (iii) except for $38,750 of the Cash
Flow Revolving Credit Facility outstanding immediately prior to August 6, 2024 (which remains due on July 30, 2026 and hereinafter referred to as the “Non-Extended Cash Flow Revolver Facility”), extended the maturity of $111,250 of the Cash Flow Revolving Credit Facility thereunder to August 6, 2029 for lenders who consented to such amendment (the “A&E Cash Flow Revolving Facility”). The A&E Term Loan Facility, together with the Non-Extended Cash Flow Revolver Facility and the A&E Cash Flow Revolving Facility, collectively, the "A&E Cash Flow Credit Facilities”.

On February 6, 2025, McGraw-Hill Education, Inc. and certain subsidiaries entered into an amendment to the Cash Flow Credit Agreement. Pursuant to this amendment, the Company repriced its existing A&E Term Loan Facility with replacement term loans in an aggregate principal amount of $1,213,708. The A&E Term Loan Facility following the repricing has substantially the same terms as the existing A&E Term Loan Facility, including the same maturity date of August 2031, except that the A&E Term Loan Facility following the repricing provided for a reduced applicable margin on Term SOFR of 75 basis points. The A&E Term Loan Facility matures on August 6, 2031 and is subject to 1.00% annual amortization payable in equal quarterly installments.

    The interest rate applicable to borrowings under the A&E Cash Flow Credit Facilities is, at McGraw-Hill Education, Inc.'s option, either (1) the base rate, subject to a floor of 1.50% per annum, plus an applicable margin (which is 2.25% for the A&E Term Loan Facility following the repricing, 3.00% for the Non-Extended Cash Flow Revolver Facility and 3.00% for the A&E Cash Flow Revolving Facility) or (2) Term SOFR (or for the A&E Cash Flow Revolving Facility borrowings in permitted alternative currencies, such other permitted alternative currency rate) subject to a floor of 0.50% per annum plus an applicable margin (which is 3.25% for the A&E Term Loan Facility following the repricing, 4.00% for the Non-Extended Cash Flow Revolver Facility and 4.00% for the A&E Cash Flow Revolving Facility). As of June 30, 2025, the interest rate for the A&E Term Loan Facility was 7.577% per annum.

The following fees are applicable under the A&E Cash Flow Revolving Facility and the Non-Extended Cash Flow Revolver Facility: (a) an unused line fee of 0.50% per annum of the unused portion of the A&E Cash Flow Revolving Facility and the Non-Extended Cash Flow Revolver Facility (in each case, excluding any swingline loans), (b) a letter of credit participation fee accruing at a rate equal to the interest rate margin applicable to Term SOFR under the A&E Cash Flow Revolving Facility borrowings on the aggregate stated amount of each letter of credit (c) a letter of credit (“LC”) fronting fee of 0.125% on the average amount of LC exposure of such issuing bank and (d) certain other customary fees and expenses of the lenders, letter of credit issuers and agents thereunder. In addition, the A&E Term Loan Facility was issued at a discount of 0.25%. As of June 30, 2025, the unamortized debt discount and deferred financing cost were $41,596 and $7,944, respectively, which are amortized over the term of the facility using the effective interest rate method.

As of June 30, 2025, the amount available under the A&E Cash Flow Revolving Facility and the Non-Extended Cash Flow Revolver Facility was $111,250 and $38,750, respectively. The Company incurred undrawn fees of $190 on unutilized commitments for both the A&E Cash Flow Revolving Facility and the Non-Extended Cash Flow Revolver Facility for the three months ended June 30, 2025 and undrawn fees of $190 on unutilized commitments related to the Cash Flow Revolving Credit Facility for the three months ended June 30, 2024. As of June 30, 2025, the unamortized deferred financing cost was $3,274, which is amortized over the term of the facility. This is included within Other non-current assets in the consolidated balance sheets. As of June 30, 2025, no amount was outstanding under the A&E Cash Flow Revolving Facility or the Non-Extended Cash Flow Revolver Facility.

All obligations under the Cash Flow Credit Agreement continue to be guaranteed by, and secured by a lien on the assets of, the direct parent of McGraw-Hill Education, Inc. and all of its direct and indirect wholly owned U.S. subsidiaries (subject to certain customary exceptions, including exceptions based on immateriality thresholds of aggregate assets and revenue of excluded U.S. subsidiaries). The lien securing the obligations under the Cash Flow Credit Agreement is a second-priority lien with respect to accounts receivable, inventory and certain other current assets (second in priority to the lien securing the
A&E ABL Revolving Credit Facilities) and a first-priority lien with respect to other assets, in each case, subject to other permitted liens. The A&E Cash Flow Credit Facilities are secured pari passu with the 2022 Secured Notes and the 2024 Secured Notes.

The Cash Flow Credit Agreement requires the maintenance of a maximum Consolidated First Lien Net Leverage Ratio, on the last day of any fiscal quarter when aggregate exposures exceed 40% of total revolving commitments (subject to certain exclusions, including issued or undrawn letters of credit), of no greater than 6.95 to 1.00, tested for the four fiscal quarter period ending on such date.

The Cash Flow Credit Agreement also includes customary mandatory prepayment requirements with respect to the term loans under the A&E Term Loan Facility based on certain events such as asset sales, debt issuances and defined levels of excess cash flow.

The Cash Flow Credit Agreement contains customary covenants, including, but not limited to, restrictions on the Company's ability and that of its restricted subsidiaries to merge and consolidate with other companies, incur indebtedness, grant liens or security interests on assets, pay dividends or make other restricted payments, make investments, sell or otherwise transfer assets, optionally prepay or modify terms of certain junior indebtedness, enter into transactions with affiliates or certain burdensome agreements, create certain restrictions on subsidiaries, modify the Company's governing documents, certain junior debt documents or change the Company's line of business.

The Cash Flow Credit Agreement provides that, upon the occurrence of certain events of default, McGraw-Hill Education, Inc.’s obligations thereunder may be accelerated. Such events of default include payment defaults to the lenders thereunder, material inaccuracies of representations and warranties, covenant defaults, cross-defaults to other material indebtedness, voluntary and involuntary bankruptcy proceedings, material money judgments, material pension plan events, certain change of control events and other customary events of default subject to certain materiality levels, default triggers and cure and grace periods.

As of June 30, 2025, the Company was in compliance with all covenants or other requirements in the Cash Flow Credit Agreement.
    
The fair value of the outstanding A&E Term Loan Facility was approximately $1,158,569 as of June 30, 2025. As of June 30, 2025, the remaining contractual life of the A&E Term Loan Facility was approximately 6.2 years.

A&E ABL Revolving Credit Facilities

    On July 30, 2021, McGraw-Hill Education, Inc. and certain subsidiaries entered into that certain Revolving Credit Agreement (the “ABL Revolving Credit Agreement”) which provided for (i) a $165,000 U.S. revolving credit facility, subject to U.S. borrowing base capacity (the “U.S. ABL Revolving Credit Facility”) and (ii) a $35,000 non-U.S. revolving credit facility, subject to non-U.S. borrowing base capacity (the “RoW ABL Revolving Credit Facility” and, together with the U.S. ABL Revolving Credit Facility, the “ABL Revolving Credit Facilities”).

In April 2023, McGraw-Hill Education, Inc. and certain of its subsidiaries entered into an amendment to the ABL Revolving Credit Agreement, which, among other things, replaced LIBOR with Term SOFR (of terms of one, three or six months, or if available and agreed to by such parties as specified in such agreement, other periods of twelve months or less than one month, with a credit spread adjustment of 0.10% for all interest periods). Subsequently, in May 2024, McGraw-Hill Education, Inc. and certain of its subsidiaries entered into an amendment to the ABL Revolving Credit Agreement which replaced CDOR with Term CORRA (of terms of one or three months) with a credit spread adjustment of
0.29547% for a one month interest period and 0.32138% for an interest period of three months for any borrowings denominated in Canadian dollars.

On August 6, 2024, McGraw-Hill Education, Inc. and certain subsidiaries amended the ABL Revolving Credit Agreement which amendment (i) modified certain provisions therein, (ii) extended the maturity to August 2029 and (iii) increased the aggregate principal amount of available commitments thereunder from $200,000 to $300,000, consisting of a $265,000 U.S. facility (the “A&E U.S. ABL Revolving Credit Facility”) and a $35,000 Rest of the World subfacility (the “A&E RoW ABL Revolving Credit Facility” and together with the A&E U.S. ABL Revolving Credit Facility, the “A&E ABL Revolving Credit Facilities”). The A&E ABL Revolving Credit Facilities will mature on August 6, 2029 and is not subject to amortization.

    The interest rate applicable to borrowings under the A&E ABL Revolving Credit Facilities is, at McGraw-Hill Education, Inc.'s option, either (1) the base rate, subject to a floor of 1.50% per annum, plus an applicable margin or (2) Term SOFR (subject to a credit spread adjustment), SONIA (subject to a credit spread adjustment), EURIBOR, Term CORRA (subject to a credit spread adjustment), BBSY or BKBM (in each case, as defined in the A&E ABL Revolving Credit Facilities), in each case, plus an applicable margin. The applicable margin is based on average availability under the ABL Revolving Credit Agreement at such time, and ranges from 1.25% to 1.75% for non-base rate loans and 0.25% to 0.75% for base rate loans. The interest rate on borrowings under the A&E ABL Revolving Credit Facilities is subject to a Term SOFR (or such other permitted alternative currency rate) floor of 0% per annum.

    The following fees are applicable under the A&E ABL Revolving Credit Facilities: (a) an unused line fee of (i) 0.250% per annum of the unused portion of any A&E ABL Revolving Credit Facilities (excluding any swingline loans) when the average daily unused portion of such A&E ABL Revolving Credit Facilities is less than or equal to 50% of the aggregate commitments under such A&E ABL Revolving Credit Facilities or (ii) 0.375% per annum of the unused portion of any A&E ABL Revolving Credit Facilities (excluding any swingline loans) when the average daily unused portion of such A&E ABL Revolving Credit Facilities is greater than 50% of the aggregate commitments under such A&E ABL Revolving Credit Facilities, (b) a letter of credit participation fee accruing at a rate equal to the interest rate margin applicable to Term SOFR borrowings on the aggregate stated amount of each letter of credit and (c) certain other customary fees and expenses of the lenders, letter of credit issuers and agents thereunder.

As of June 30, 2025, the amount available under the A&E ABL Revolving Credit Facilities was $300,000, subject to borrowing base capacity pursuant to the terms of the ABL Revolving Credit Agreement. Availability under the A&E ABL Revolving Credit Facilities excludes amounts outstanding for letters of credit in the amount of $4,030.

The Company incurred undrawn fees of $264 on unutilized commitments related to the A&E ABL Revolving Credit Facilities for the three months ended June 30, 2025, and undrawn fees of $186 on unutilized commitments related to the ABL Revolving Credit Facilities for the three months ended June 30, 2024. As of June 30, 2025, the unamortized deferred financing costs was $3,617, which are amortized over the term of the agreement. This is included within Other non-current assets in the consolidated balance sheets.

    All obligations under the A&E U.S. ABL Revolving Credit Facility continue to be guaranteed by, and secured by a lien on the assets of, the direct parent of McGraw-Hill Education, Inc. and all of McGraw-Hill Education, Inc.'s direct and indirect wholly owned U.S. subsidiaries (subject to certain customary exceptions, including exceptions based on immateriality thresholds of aggregate assets and revenue of excluded U.S. subsidiaries). The lien securing the obligations under the A&E ABL Revolving Credit Facilities is a first-priority lien with respect to cash and cash equivalents, accounts receivable, inventory and certain other current and foreign assets, and a second-priority lien with respect to other assets (second in priority to the liens securing the A&E Cash Flow Credit Facilities, the 2022 Secured
Notes and the 2024 Secured Notes). In addition to the U.S. obligors, the obligations under the A&E RoW ABL Revolving Credit Facility continue to be additionally guaranteed by, and secured by a lien on, the assets of certain foreign subsidiaries.

The ABL Revolving Credit Agreement contains customary covenants, including, but not limited to, restrictions on the ability of McGraw-Hill Education, Inc. and McGraw-Hill Education, Inc.'s restricted subsidiaries to merge and consolidate with other companies, incur indebtedness, grant liens or security interests on assets, make acquisitions, loans, advances or investments, pay dividends or make other restricted payments, sell or otherwise transfer assets, optionally prepay or modify terms of certain junior indebtedness, enter into transactions with affiliates or certain burdensome agreements, create certain restrictions on subsidiaries, modify the Company's governing documents, certain junior debt documents or change the Company's line of business.

The ABL Revolving Credit Agreement requires the maintenance of a minimum Consolidated Fixed Charge Coverage Ratio (as set forth in the ABL Revolving Credit Agreement), on any date when Adjusted Availability (as such term is defined in the ABL Revolving Credit Agreement) is less than the greater of (a) 10% of the Line Cap (as such term is defined in the ABL Revolving Credit Agreement) and (b) $18,750, of at least 1.00 to 1.00, tested for the four fiscal quarter period ending on the last day of the most recently ended fiscal quarter for which financials have been delivered, and at the end of each succeeding fiscal quarter thereafter until the date on which Adjusted Availability has exceeded the greater of (a) 10% of the Line Cap and (b) $18,750 for 30 consecutive calendar days.

The ABL Revolving Credit Agreement provides that, upon the occurrence of certain events of default, McGraw-Hill Education, Inc.’s (and other co-borrowers') obligations thereunder may be accelerated and the lending commitments terminated. Such events of default include payment defaults to the lenders thereunder, material inaccuracies of representations and warranties, covenant defaults, cross-defaults to other material indebtedness, voluntary and involuntary bankruptcy proceedings, material money judgments, material pension plan events, certain change of control events and other customary events of default, subject to certain materiality levels, default triggers and cure and grace periods.

As of June 30, 2025, the Company was in compliance with all covenants or other requirements in the ABL Revolving Credit Agreement.

2024 Secured Notes

On August 6, 2024, the Company completed the issuance of $650,000 aggregate principal amount of new 7.375% senior secured notes due 2031 (the “2024 Secured Notes”). The 2024 Secured Notes will mature on September 1, 2031. Interest on the 2024 Secured Notes is payable semiannually in arrears on March 1 and September 1 of each year, each commencing on March 1, 2025. The 2024 Secured Notes were offered and sold in transactions not required to be registered under the Securities Act and are not entitled to any registration rights.

The Company may redeem the 2024 Secured Notes at its option at certain redemption prices with respect to such series.

All obligations under the 2024 Secured Notes are guaranteed by, and secured by a lien on the assets of, the direct parent of McGraw-Hill Education, Inc. and all of McGraw-Hill Education, Inc.'s direct and indirect wholly owned U.S. subsidiaries (subject to certain customary exceptions, including exceptions based on immateriality thresholds of aggregate assets and revenue of excluded U.S. subsidiaries). The lien securing the obligations under the 2024 Secured Notes is a second-priority lien with respect to accounts receivable, inventory and certain other current assets (second in priority to the lien securing the A&E ABL Revolving Credit Facilities) and a first-priority lien with respect to other assets, in each case, subject to other permitted liens. The 2024 Secured Notes are secured pari passu with the A&E Cash Flow Credit Facilities and 2022 Secured Notes.
The Indenture governing the 2024 Secured Notes contains certain customary negative covenants and events of default, including, among other things and subject to certain significant exceptions and qualifications, limitations on the ability of the Company and its restricted subsidiaries to incur additional indebtedness and guarantee indebtedness; pay dividends or make other distributions in respect of, or repurchase or redeem, its capital stock; prepay, redeem or repurchase certain debt; issue certain preferred stock or similar equity securities; make loans and investments; sell assets; incur liens; enter into agreements containing prohibitions affecting its subsidiaries’ ability to pay dividends; enter into transactions with affiliates; and consolidate, merge or sell all or substantially all of its assets.

As of June 30, 2025, the Company was in compliance with all covenants or other requirements in the Indentures governing the 2024 Secured Notes.

As of June 30, 2025, the unamortized debt discount and deferred financing costs related to the 2024 Secured Notes were $4,602 and $1,011, respectively, which are amortized over the term of the 2024 Secured Notes using the effective interest rate method.

The fair value of the outstanding 2024 Secured Notes was approximately $671,125 as of June 30, 2025. As of June 30, 2025, the remaining contractual life of the 2024 Secured Notes is approximately 6.3 years.

2022 Secured Notes and 2022 Unsecured Notes

    On July 30, 2021, McGraw-Hill Education, Inc. assumed the obligations of (i) the $900,000 aggregate principal amount of 5.750% Secured Notes due 2028 (the “2022 Secured Notes”) and (ii) the $725,000 aggregate principal amount of 8.000% Senior Notes due 2029 (the “2022 Unsecured Notes” and, together with the 2022 Secured Notes, the “2022 Notes”). The 2022 Secured Notes will mature on August 1, 2028 and the 2022 Unsecured Notes will mature August 1, 2029. Interest on each series of the 2022 Notes is payable semiannually in arrears on February 1 and August 1 of each year, each commencing on February 1, 2022. Each series of 2022 Notes were offered and sold in transactions not required to be registered under the Securities Act and are not entitled to any registration rights.

The Company may redeem each series of the 2022 Notes at its option at certain redemption prices with respect to such series.

    All obligations under the 2022 Secured Notes are guaranteed by, and secured by a lien on the assets of, the direct parent of McGraw-Hill Education, Inc. and all of McGraw-Hill Education, Inc.'s direct and indirect wholly owned U.S. subsidiaries (subject to certain customary exceptions, including exceptions based on immateriality thresholds of aggregate assets and revenue of excluded U.S. subsidiaries). The lien securing the obligations under the 2022 Secured Notes is a second-priority lien with respect to accounts receivable, inventory and certain other current assets (second in priority to the lien securing the A&E ABL Revolving Credit Facilities) and a first-priority lien with respect to other assets, in each case, subject to other permitted liens. The 2022 Secured Notes are secured pari passu with the A&E Cash Flow Credit Facilities and the 2024 Secured Notes.

All obligations under the 2022 Unsecured Notes are guaranteed by all of McGraw-Hill Education, Inc.’s direct and indirect wholly owned U.S. subsidiaries (subject to certain customary exceptions, including exceptions based on immateriality thresholds of aggregate assets and revenue of excluded U.S. subsidiaries).

    The Indentures governing each series of the 2022 Notes contain certain customary negative covenants and events of default, including, among other things and subject to certain significant exceptions and qualifications, limitations on the ability of McGraw-Hill Education, Inc. and its restricted subsidiaries to incur additional indebtedness and guarantee indebtedness; pay dividends or make other
distributions in respect of, or repurchase or redeem, its capital stock; prepay, redeem or repurchase certain debt; issue certain preferred stock or similar equity securities; make loans and investments; sell assets; incur liens; enter into agreements containing prohibitions affecting its subsidiaries’ ability to pay dividends; enter into transactions with affiliates; and consolidate, merge or sell all or substantially all of its assets.

As of June 30, 2025, the Company was in compliance with all covenants or other requirements in the Indentures governing the 2022 Notes.

    As of June 30, 2025, the unamortized debt discount and deferred financing costs related to the 2022 Secured Notes was $17,120 and $4,014, respectively, which are amortized over the term of the 2022 Secured Notes using the effective interest rate method. As of June 30, 2025, the unamortized debt discount and deferred financing costs related to the 2022 Unsecured Notes was $16,112 and $3,713, respectively, which are amortized over the term of the 2022 Unsecured Notes using the effective interest rate method.

    The fair value of the outstanding 2022 Secured Notes and 2022 Unsecured Notes was approximately $822,253 and $643,827, respectively, as of June 30, 2025. As of June 30, 2025, the remaining contractual life of the 2022 Secured Notes and 2022 Unsecured Notes is approximately 3.1 years and 4.1 years, respectively.

Scheduled Principal Payments

The scheduled principal payments by fiscal year required under the terms of the Company's debt were as follows:

June 30, 2025
2026 (remaining nine months)$9,878 
202713,170 
202813,170 
2029841,636 
2030652,204 
Thereafter1,744,565 
$3,274,623 
v3.25.2
Segment Reporting
 3 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting
9. Segment Reporting

The Company manages and reports its businesses in the following segments based on the end markets we serve:

•K-12: The Company provides end-to-end core, supplemental and intervention curricula to support the needs of U.S. K-12 schools. The Company sells blended digital and print learning solutions directly to school districts across the U.S.

•Higher Education: The Company provides students, instructors and institutions with adaptive digital learning solutions and content, and instructional materials. The primary users of the Company's solutions are students enrolled in two-and four-year non-profit colleges and universities, and to a lesser extent, for-profit institutions. The Company sells its Higher Education solutions to well-known online retailers and distribution partners, who subsequently sell to students. The Company also sells direct to student via its proprietary e-commerce platform.
•Global Professional: The Company provides students, institutions and professionals with comprehensive medical and engineering learning solutions. Our learning solutions include digital solutions and print materials easily accessible through a broad range of mediums for learners and customers.

•International: The Company is a provider of comprehensive digital and print solutions in more than 100 countries and 80 languages outside of the United States. Through our expansive global distribution network, we serve the needs of learners and educators throughout the world with our K-12 and Higher Education solutions that primarily originate or are adapted from our U.S.-based solutions.

•Other: Includes in-transit product sales and certain transactions or adjustments that are not attributable to the segments that the chief operating decision maker (“CODM”) considers to be unusual and/or nonoperational.

    The CODM is our Chief Executive Officer. The CODM reviews the segments' separate financial information to assess performance and to allocate resources. The CODM measures and evaluates the reportable segments based on Adjusted EBITDA. Adjusted EBITDA is defined as net income (loss) from continuing operations plus interest expense (income), net, income tax provision (benefit), depreciation and amortization, restructuring and cost savings implementation charges, the effects of the application of purchase accounting, advisory fees paid to Platinum Equity Advisors, LLC, an entity affiliated with Platinum, pursuant to a Corporate Advisory Services Agreement between McGraw Hill and Platinum Advisors (the “Advisory Agreement”), impairment charges, transaction and integration costs, (gain) loss on extinguishment of debt and the impact of earnings or charges resulting from matters that the CODM does not consider when assessing the performance of, and allocated resources to, the segments. The CODM uses Adjusted EBITDA to allocate resources to our segments in our annual budgeting and forecasting process and to assess the performance of our segments, primarily by comparing current period results to both prior period and budget on a quarterly basis. The CODM reviews consolidated expense information to manage operations. In addition, our reportable segments are not evaluated using asset information.

For all our reportable segments, other segment items, which is calculated as the difference between segment revenue and segment adjusted EBITDA, primarily consist of cost of sales (excluding depreciation and amortization) and operating and administrative expenses.

    During the quarter ended December 31, 2024, the CODM changed the calculation of segment Adjusted EBITDA to no longer include the change in deferred revenue, royalties and commissions. Accordingly, the Company has updated its segment Adjusted EBITDA to align with the measure used by the CODM to allocate resources to, and assess the performance of, the Company’s segments.

The following table sets forth Adjusted EBITDA by segment:

Three Months Ended June 30,
20252024
Adjusted EBITDA:
K-12$96,393 $91,207 
Higher Education77,759 73,120 
Global Professional11,266 10,162 
International7,208 12,884 
Other(1,210)(8,779)
Total Adjusted EBITDA $191,416 $178,594 
The following table provides a reconciliation of total Adjusted EBITDA to Net income (loss):

Three Months Ended June 30,
20252024
Total Adjusted EBITDA$191,416 $178,594 
Interest (expense) income, net(58,774)(80,876)
Income tax benefit (provision)(36,949)(4,351)
Depreciation, amortization and product development amortization(87,854)(88,880)
Restructuring and cost savings implementation charges(3,106)(6,571)
Advisory fees(2,500)(2,500)
Transaction and Integration costs(100)(1,094)
Other(1,631)(3,769)
Net income (loss) $502 $(9,447)

The following tables summarizes revenue and long-lived assets by geographic region:

Revenue (1)
Three Months Ended June 30,
20252024
United States$484,389 $464,470 
International51,321 58,484 
Total $535,710 $522,954 
________________
(1)
Revenues are attributed to a geographic region based on the location of customer.

Long-Lived Assets (2)
As of
June 30, 2025March 31, 2025
United States$667,449 $646,104 
International33,491 31,773 
Total $700,940 $677,877 
__________________
(2)
Reflects total assets less current assets, goodwill, intangible assets, investments, deferred financing costs and non-current deferred tax assets.
v3.25.2
Taxes on Income (Loss)
 3 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Taxes on Income (Loss)
10. Taxes on Income (Loss)

The following table presents the Company's income tax provision (benefit) and effective tax rate:

Three Months Ended June 30,
20252024
Effective tax rate98.7 %(85.4)%
Income tax provision (benefit)$36,949 $4,351 
At the end of each interim period, the Company estimates the annual effective tax rate and applies that rate to its ordinary pretax income (loss). The tax expense or benefit related to significant, unusual or extraordinary items that will be separately reported or reported net of their related tax effect that are individually computed, are recognized in the interim period in which those items occur. In addition, the effect of changes in enacted tax laws or rates or tax status is recognized in the interim period in which the change occurs.

For the three months ended June 30, 2025 and 2024, the Company's estimated annual effective tax rate reflects that the reversal of existing temporary differences and carryforwards is forecasted to be insufficient to support the realizability of the net domestic deferred tax asset position at fiscal year end, mainly driven by disallowed interest expense under Section 163(j). As a result, the Company's estimated annual tax rate reflects a valuation allowance on net domestic deferred tax assets.
For the three months ended June 30, 2025 and 2024, a valuation allowance was recorded for certain foreign deferred tax assets due to negative evidence of cumulative book losses.

On May 16, 2025, the Company purchased $52,900 of Internal Revenue Code Section 48 federal tax credits from a third party for cash consideration of $50,299. These tax credits were utilized to offset a portion of the Company’s federal income tax liability for fiscal year ended March 31, 2025. The full amount of the cash consideration paid has been included within “Cash paid for income taxes” in the supplemental disclosures to the consolidated statements of cash flows. The difference between the notional value of the tax credits purchased and the cash consideration paid has been reflected as a component of the Company’s income tax provision (benefit) in the consolidated statements of operations.
v3.25.2
Accumulated Other Comprehensive Income (Loss)
 3 Months Ended
Jun. 30, 2025
Stockholders' Equity Note [Abstract]  
Accumulated Other Comprehensive Income (Loss)
11. Accumulated Other Comprehensive Income (Loss)

The following tables summarize the activity in accumulated other comprehensive loss, by component for the periods indicated:

Foreign currency translation adjustment, net of taxTotal
Balance as of March 31, 2024$245 $245 
Other comprehensive income (loss) before reclassifications(1,205)(1,205)
Balance as of June 30, 2024$(960)$(960)
Foreign currency translation adjustment, net of taxTotal
Balance as of March 31, 2025$(2,426)$(2,426)
Other comprehensive income (loss) before reclassifications2,515 2,515 
Balance as of June 30, 2025$89 $89 
v3.25.2
Earnings (Loss) per Share
 3 Months Ended
Jun. 30, 2025
Earnings Per Share [Abstract]  
Earnings (Loss) per Share
12. Earnings (Loss) per Share

The following table sets forth the computation of basic and diluted earnings (loss) per share adjusted to give effect to the Stock Split is as follows:

Three Months Ended June 30,
20252024
Numerator:
Net income (loss) attributable to common stockholders$502 $(9,447)
Denominator:
Basic weighted-average number of shares outstanding166,611,519 166,611,519 
Effect of dilutive potential common shares— — 
Dilutive weighted-average number of shares outstanding166,611,519 166,611,519 
Earnings (loss) per share attributable to common stockholders
Basic and diluted earnings (loss) per share$0.00 $(0.06)

The following table summarizes the Company's outstanding common stock equivalents that were excluded from the computation of diluted earnings (loss) per share on the basis that they represent contingently issuable shares that were not issuable as of the end of the reporting period:

Three Months Ended June 30,
20252024
Stock options8,611,063 9,763,898 
v3.25.2
Management Fee
 3 Months Ended
Jun. 30, 2025
Related Party Transactions [Abstract]  
Management Fee
13. Management Fee

Platinum Advisors Fee Agreement

The Company receives certain corporate and advisory services from Platinum Advisors pursuant to the Advisory Agreement and is invoiced by Platinum Advisors for such services and related expenses. The annual fee for such services will be agreed by the parties from time to time.

The Company has agreed to pay Platinum Advisors a non-refundable annual management fee of $10,000 and to reimburse Platinum Advisors for its out-of-pocket costs and expenses incurred in connection with its services under the Advisory Agreement. The Company paid Platinum Advisors management fees of $2,500 in each of the three months ended June 30, 2025 and 2024, along with expense reimbursements of $96 and $129, respectively, related to such services. These amounts are included within Operating and administrative expenses in the consolidated statements of operations. As of June 30, 2025 and March 31, 2025, the amount payable pursuant to the Advisory Agreement was $0.
v3.25.2
Commitment and Contingencies
 3 Months Ended
Jun. 30, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
14. Commitments and Contingencies

Legal Matters

In June 2022, the Attorney General for the State of Florida issued a subpoena to McGraw-Hill Education, Inc. as part of an investigation into alleged overcharges on instructional materials for use by public K-12 schools under the Florida False Claims Act. McGraw-Hill completed its production of documents and information in response to the subpoena in December 2022 and engaged in several meetings with the Attorney General’s office to articulate multiple factual and legal defenses to any prospective legal action by the Florida Attorney General. In January 2024, McGraw-Hill Education, Inc.’s
former Florida sales representative was deposed by the Attorney General and provided testimony supporting McGraw-Hill Education Inc.’s position. On August 12, 2025, the State of Florida filed a complaint in the Circuit Court for the Second Judicial Circuit in Leon County, Florida against McGraw Hill, LLC and Savvas Learning Company, LLC, alleging that defendants violated the Florida False Claims Act by purportedly charging certain Florida school districts the full published price for instructional materials while offering the same instructional materials at lower prices and/or for free to others and not extending those pricing advantages to all purchasing Florida school districts during the adoption period (the “Florida Complaint”). The Florida Complaint further alleges that by purportedly disregarding Florida’s most-favored-nation pricing and mandatory free materials requirements, the defendants overcharged certain Florida school districts and withheld price reductions they were legally required to provide. On August 11, 2025, the Circuit Court for the Second Judicial Circuit in Leon County, Florida unsealed a qui tam complaint (the “Qui Tam Complaint”), which had remained under seal pursuant to Florida law from its filing in May 2022 until the State of Florida intervened in the Qui Tam suit. Prior to August 12, 2025, the Company had no knowledge of the Qui Tam Complaint. The Qui Tam Complaint alleges similar claims against McGraw Hill, LLC and Savvas Learning Company, LLC as those advanced in the Florida Complaint. The Florida Complaint and the Qui Tam Complaint seek treble damages arising from each alleged violation, civil penalties, and attorneys’ fees and costs. The Relator in the Qui Tam Complaint is solely entitled to a portion of any recovery made by the State of Florida in the litigation, in addition to reasonable attorneys' fees, expenses and costs. McGraw Hill believes the Florida Complaint and the Qui Tam Complaint are subject to legal challenge on multiple factual and legal grounds and the Company intends to vigorously defend itself against the complaints. The Company is currently not able to predict the outcome of this matter or reasonably estimate the amount of any loss that may result and will continue to assess these conclusions as the matter progresses.

In January 2021, and February 2021, two purported class actions were filed against McGraw-Hill Education, Inc. in the Southern District of New York, alleging that our refined methodology for calculating royalties breaches the terms of our author agreements and breaches McGraw-Hill Education, Inc.’s implied covenant of good faith and fair dealing. The plaintiffs subsequently consolidated their claims in a single complaint. In May 2021, McGraw-Hill Education, Inc. filed a motion to dismiss the complaint in its entirety. In January 2022, the Court granted the motion to dismiss the plaintiffs’ breach of contract claim but denied McGraw-Hill Education, Inc.’s motion to dismiss the breach of implied covenant claim. In September 2022, the plaintiffs voluntarily dismissed their breach of implied covenant claim and in October 2022, filed an appeal on the Court’s granting of McGraw-Hill Education, Inc.’s motion to dismiss their breach of contract claim with the U.S. Court of Appeals for the Second Circuit. In November 2024, the Second Circuit remanded the case to the District Court for further adjudication on one element of the breach of contract claim. The issue of class certification remains open. Discovery in the District Court proceeding has concluded. McGraw Hill Education, Inc. intends to file a Motion for Summary Judgment with the Court in the late second or early fiscal third quarter of fiscal year 2026. The Company is currently unable to predict the outcome of this litigation or reasonably estimate the amount of any loss that may result from the litigation and will continue to assess these conclusions as the litigation progresses.

In July 2020, Achieve3000 filed a complaint against Beable Education Inc. (“Beable”) and its founder, Saki Dodelson, in the United States District Court for the District of New Jersey (the “Federal Action”) alleging, among other things, intellectual property/patent infringement, fraudulent inducement, unfair competition, theft of trade secret, tortious interference and breach of contract. Ms. Dodelson is the former CEO of Achieve3000. In October 2020, Beable and Dodelson filed a motion to dismiss the complaint, which the Court denied in its entirety in May 2021. In July 2021, Beable and Dodelson filed a counterclaim asserting breach of an earlier settlement agreement with Achieve3000 and seeking declarations of invalidity and non-infringement of the patent. Discovery in the Federal Action commenced. Beable and Dodelson subsequently filed for inter partes review before the Patent Trial and Appeal Board (“PTAB”) of the U.S. Patent and Trademark Office, challenging the validity of the patent. In January 2023, the PTAB ruled the patent is invalid. Achieve3000 appealed the ruling to the United States Court of Appeals for the Federal Circuit which affirmed the PTAB’s ruling in July 2024. Achieve3000 does not plan further appeals but filed an application in November 2023 to reissue the Patent, correcting errors to
narrow and refine the claims to address the prior art that formed the basis of the PTAB’s ruling. In March 2025, after the extension of discovery deadlines in the Federal Action due to ongoing disputes, discovery resumed. It is anticipated that depositions of witnesses will begin in the third or fourth quarter of 2025. The Company is currently unable to predict the outcome of the defendants' counter-claims or reasonably estimate the amount of any loss that may result from the counter-claims and will continue to assess these conclusions as the litigation progresses.

In the normal course of business both in the United States and abroad, the Company is a defendant in various lawsuits and legal proceedings which may result in adverse judgments, damages, fines or penalties and is subject to inquiries and investigations by various governmental and regulatory agencies concerning compliance with applicable laws and regulations. In view of the inherent difficulty of predicting the outcome of legal matters, the Company cannot state with confidence what the timing, eventual outcome, or eventual judgment, damages, fines, penalties or other impact of these pending matters will be. The Company will accrue a liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. The Company believes, based on its current knowledge, that the outcome of the legal actions, proceedings and investigations currently pending should not have a material adverse effect on the Company’s financial condition or results of operations.
v3.25.2
Subsequent Events
 3 Months Ended
Jun. 30, 2025
Subsequent Events [Abstract]  
Subsequent Events
15. Subsequent Events

One Big Beautiful Bill Act

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S., which contains a broad range of tax provisions affecting businesses. While the Company continues to evaluate the impact of this new legislation, we expect OBBBA to have a favorable impact on our income tax provision (benefit) for the quarter ended September 30, 2025, and for the fiscal year ended March 31, 2026.

Stock Conversion and Stock Split

On July 14, 2025, the Company's board of directors approved the Stock Conversion of all our outstanding Class A voting common stock and Class B non-voting common stock into a single class of common stock on a 1-for-1 basis and approved a 1.06555-for-1 Stock Split of the Company's common stock, including the shares of common stock underlying outstanding stock options. The par value of the Company’s common stock was not adjusted and 166,611,519 shares of Common Stock were outstanding as a result of the Stock Split. The Stock Split became effective after the Company's Registration Statement on Form S-1 was declared effective by the SEC and upon filing of the Company’s Second Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”) with the Secretary of State of the State of Delaware, and the Company's Amended and Restated Bylaws (“Bylaws”) on July 23, 2025, in connection with the IPO. All share and per share data has been presented on the basis of this Stock Split for all the periods presented within these unaudited consolidated financial statements.

Initial Public Offering

On July 25, 2025, the Company completed an IPO in which the Company issued and sold 24,390,000 shares of our Common Stock at a public offering price of $17.00 per share. The Company received $385,698 in net proceeds, after deducting $21,768 of underwriting discounts and commissions and approximately $7,164 in estimated offering expenses. Upon the closing of the IPO, the Company used the net proceeds from the offering to repay $385,698 of debt outstanding under its A&E Term Loan Facility. The underwriters were granted a 30-day option to purchase up to an additional 3,658,500 shares of Common Stock from Platinum (the “Selling Stockholder”) solely to cover over-allotments. As of the date of this filing, the underwriters have not exercised this option.

Prior to the IPO, deferred offering costs, which consist primarily of direct incremental legal,
accounting, and consulting fees relating to the Company’s IPO, were capitalized within prepaid expenses and other current assets in the consolidated balance sheets. Upon the consummation of the IPO, these costs were reclassified into additional paid-in capital, as an offset against IPO proceeds. As of June 30, 2025, $12,680 of these IPO-related costs are included within prepaid expenses and other current assets on the consolidated balance sheet.

Second Amended and Restated Certificate of Incorporation

In connection with the consummation of the IPO, the Company’s Certificate of Incorporation became effective upon filing with the Secretary of State of the State of Delaware on July 23, 2025. In addition to certifying the Stock Conversion and Stock Split, the Certificate of Incorporation contains provisions that, among other things, (i) increased the total authorized Common Stock with a par value $0.01 per share to 2,000,000,000 and (ii) created and authorized 100,000,000 shares of preferred stock with a par value $0.01 per share. After the consummation of the IPO, we have 191,001,519 shares of our Common Stock outstanding and no shares of Preferred Stock outstanding.

Platinum Advisors Fee Agreement

On July 25, 2025, the Advisory Agreement was terminated in connection with the consummation of the IPO.
v3.25.2
Insider Trading Arrangements
 3 Months Ended
Jun. 30, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.2
Description of Business, Basis of Preparation and Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Jun. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Principles of Consolidation
Principles of Consolidation

    These unaudited interim consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). Certain information and disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP are not required in these interim financial statements and have been condensed or omitted. In managements opinion, the Company has made all adjustments of a normal recurring nature necessary for fair financial statement presentation. Accordingly, these interim consolidated financial statements and
related notes should be read in conjunction with the Company's audited consolidated financial statements and related notes thereto for the fiscal year ended March 31, 2025 included in the Company's Prospectus. Our interim period operating results are not necessarily indicative of the results that may be expected for any other interim period or for the full fiscal year.

All intercompany transactions and balances have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation.
Fiscal Year
Fiscal Year
Our fiscal year is a 52-week period ended on March 31.
Use of Estimates
Use of Estimates

    The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

    On an ongoing basis, the Company evaluates its estimates and assumptions, including those related to revenue recognition, allowance for estimated credit losses and sales returns, valuation of inventories, product development costs, impairment of long-lived assets (including other intangible assets), valuation of right-of-use assets, impairment of goodwill and indefinite-lived intangible assets, purchase price allocation of acquired businesses, stock-based compensation, income taxes and contingencies.
Seasonality and Comparability
Seasonality and Comparability

    The Company's revenues, operating profit and operating cash flows are affected by the inherent seasonality of the academic calendar. Changes in the Company's customers’ ordering patterns may affect the comparison of its results in a quarter with the same quarter of the previous year, or in a fiscal year with the prior fiscal year, where customers may shift the timing of material orders for any number of reasons, including, but not limited to, changes in academic semester start dates or changes to their inventory management practices.
Cash and Cash Equivalents
Cash and Cash Equivalents

    Cash and cash equivalents include bank deposits and highly liquid investments with original maturities of three months or less that consist primarily of interest-bearing demand deposits with daily liquidity, money market and time deposits. The balance also includes cash that is held by the Company outside of the U.S. to fund international operations or to be reinvested outside of the U.S. The investments and bank deposits are stated at cost, which approximates market value. These investments are not subject to significant market risk.
Accounts Receivable
Accounts Receivable

Credit is extended to customers based upon an evaluation of the customer’s financial condition. Accounts receivable are recognized net of an allowance for estimated credit losses.
Allowance for Estimated Credit Losses
Allowance for Estimated Credit Losses

    The Company estimates credit losses for its accounts receivable using the current expected credit loss model under ASC 326, Financial Instruments - Credit Losses. In determining the allowance for
estimated credit losses, the Company considers forecasts of future economic conditions in addition to information about past events and current conditions.

The Company measures expected credit losses on a pool basis for those account receivables that have similar risk characteristics. Risk characteristics relevant to the Company’s accounts receivable include the financial condition of the customer and the customer’s credit risk category. When estimating credit losses, the Company also considers historical write-off experience and aging of accounts receivable.

Receivables are written off against the allowance for estimated credit losses when the receivable is determined to be uncollectible. The change in the allowance for estimated credit losses is reflected as part of Operating and administrative expenses in the consolidated statements of operations.
Sales Returns, Revenue Recognition and Shipping and Handling Costs
Sales Returns

The allowance for sales returns is an estimate, which is based on historical rates of return, timing of returns and market conditions. The provision for sales returns is reflected as a reduction to Revenues in the consolidated statements of operations for sales recognized as revenue and as a reduction to Deferred revenue in the consolidated balance sheets for sales which have not been recognized yet. Sales returns are charged against the reserve as products are returned to inventory.
Revenue Recognition

    Revenue is recognized when the control of goods is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods. The Company determines revenue recognition through the following steps:

•Identification of the contract, or contracts, with a customer;
•Identification of the performance obligations in the contract;
•Determination of the transaction price;
•Allocation of the transaction price to the performance obligations in the contract; and
•Recognition of revenue when, or as, the Company satisfies a performance obligation.

The Company's performance obligation for print products is typically satisfied at the time of shipment to the customer, which is when control transfers to the customer. For print products, such as workbooks, that are multi-year contracts, each academic year represents a distinct performance obligation which is satisfied when each academic year’s delivery to the customer takes place.
The Company's digital products are generally sold as subscriptions, which are paid for at the time of sale or shortly thereafter, and the performance obligation is satisfied ratably over the life of the digital products’ subscription period.

     The Company's contracts with customers often include multiple performance obligations which generally include print and digital textbooks/content and instructional materials. One or more of these contractual performance obligations may be provided for no additional consideration i.e., gratis performance obligations. These performance obligations are considered distinct as the customer can benefit from each of the promised products under the contract on its own and the transfer of these promised products are separately identifiable and are not dependent on other promised products within the contract. For contracts that contain multiple performance obligations, the Company allocates the transaction price based on the relative standalone selling price ("SSP") method, inclusive of gratis performance obligations, pursuant to which the transaction price is allocated to each performance obligation based on the proportion of the SSP of each performance obligation to the sum of the SSPs of all of the performance obligations in the contract. The Company determines the SSP based on its historical pricing for the distinct performance obligation when sold separately.
Shipping and Handling Costs
    
    All amounts billed to customers in a sales transaction for shipping and handling are classified as revenue. Shipping and handling costs incurred by the Company are a component of Cost of sales (excluding depreciation and amortization).
Concentration of Credit Risk
Concentration of Credit Risk

    As of June 30, 2025, the Company had no single customer that accounted for 10% or more of the gross accounts receivable balance. As of March 31, 2025, three customers comprised 38% of the gross accounts receivable balance, which is reflective of both customer concentration and the seasonal nature of the Company's industry. For all periods presented, the Company had no single customer that accounted for 10% or more of its gross revenue. The loss of, or any reduction in sales from a significant customer or deterioration in their ability to pay could harm the Company's business and financial results.
Inventories, Net
Inventories, Net
    Inventories, consisting principally of books, are stated at the lower of cost or net realizable value and are valued using the first in first out ("FIFO") method. The majority of inventories relate to finished goods. An estimate, the reserve for inventory obsolescence, is reflected in Inventories, net within the consolidated balance sheets. In determining this reserve, the Company considers management’s current assessment of the marketplace, industry trends and projected product demand as compared to the number of units currently on hand.
Product Development Costs, Net
Product Development Costs, Net
    Product development costs include both the pre-publication cost of developing educational content and the development of assessment solution products. Costs incurred prior to the publication date of a title or release date of a product represent activities associated with product development. These may be performed internally or outsourced to subject matter specialists and include, but are not limited to, editorial review and fact verification, graphic art design and layout and the process of conversion from print to digital media or within various formats of digital media. These costs are capitalized when the costs are directly attributable to a project or title and the title is expected to generate probable future economic benefits. Capitalized costs are amortized upon publication of the title over its estimated useful life with a higher proportion of the amortization typically taken in the earlier years. Amortization expenses for product development costs are charged as a component of operating and administrative expenses. In evaluating recoverability, the Company considers management’s current assessment of the marketplace, industry trends and the projected success of the program.
Property, Plant and Equipment, Net
Property, Plant and Equipment, Net

    Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation and amortization are recorded on a straight-line basis, over the assets’ estimated useful lives. The Company evaluates the depreciation periods of property, plant and equipment to determine whether events or circumstances warrant revised estimates of useful lives.
Deferred Technology Costs
Deferred Technology Costs
    The Company capitalizes certain software development and website implementation costs. Capitalized costs only include incremental, direct costs of materials and services incurred to develop the software after the preliminary project stage is completed, funding has been committed and it is probable that the project will be completed and used to perform the function intended. Software development and website implementation costs are expensed as incurred during the preliminary project stage. Capitalized costs are amortized from the period the software is ready for its intended use over its estimated useful life, generally three years, using the straight-line method and are included within depreciation in the consolidated statements of operations. Periodically, the Company evaluates the amortization methods, remaining lives and recoverability of such costs. Capitalized software development and website implementation costs are included in Other non-current assets in the consolidated balance sheets and are presented net of accumulated amortization.
Deferred Technology Costs
Deferred Technology Costs
    The Company capitalizes certain software development and website implementation costs. Capitalized costs only include incremental, direct costs of materials and services incurred to develop the software after the preliminary project stage is completed, funding has been committed and it is probable that the project will be completed and used to perform the function intended. Software development and website implementation costs are expensed as incurred during the preliminary project stage. Capitalized costs are amortized from the period the software is ready for its intended use over its estimated useful life, generally three years, using the straight-line method and are included within depreciation in the consolidated statements of operations. Periodically, the Company evaluates the amortization methods, remaining lives and recoverability of such costs. Capitalized software development and website implementation costs are included in Other non-current assets in the consolidated balance sheets and are presented net of accumulated amortization.
Cloud Computing Arrangements
Cloud Computing Arrangements
The Company capitalizes certain implementation costs for cloud computing arrangements that meet the definition of a service contract in accordance with ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software. Capitalized costs include external direct costs for materials and services. Software maintenance and training costs are expensed in the period in which they are incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally three years and are included within depreciation in the consolidated statements of operations, beginning when the module or component of the hosting arrangement is ready for its intended use. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Capitalized costs for internal use software are included in Other non-current assets in the consolidated balance sheets and are presented net of accumulated amortization.
Goodwill and Indefinite-Lived Intangible Assets
Goodwill and Indefinite-Lived Intangible Assets

    Goodwill represents the excess of purchase price and related costs over the fair value of identifiable assets acquired and liabilities assumed in a business combination. Indefinite-lived intangible assets consist of the Company's acquired brands. Goodwill and indefinite-lived intangible assets are not amortized, but instead are tested for impairment annually or more frequently if events or changes in circumstances indicate that it is more likely than not the asset is impaired. The Company has historically performed its annual testing for goodwill and indefinite-lived intangible asset impairment as of March 31.
The Company has four reporting units, K-12, Higher Education, Global Professional and International, with goodwill and indefinite-lived intangible assets that are evaluated for impairment.

    The Company initially performs a qualitative analysis to evaluate whether there are events or circumstances that provide evidence that it is more likely than not that the fair value of any of its reporting units or indefinite-lived intangible assets are less than their carrying amount. If, based on this evaluation the Company does not believe that it is more likely than not that the fair value of any of its reporting units or indefinite-lived intangible assets are less than their carrying amount, no quantitative impairment test is performed. Conversely, if the results of the Company's qualitative assessment determine that it is more likely than not that the fair value of any of its reporting units or indefinite-lived intangible assets are less than their respective carrying amounts, the Company performs a quantitative impairment test. If the results of the Company's quantitative assessment determine that the carrying value exceeds the fair value of the reporting unit or indefinite-lived intangible assets, then the Company recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit or indefinite-lived assets fair value.

To perform the quantitative impairment test, the Company uses the discounted cash flow method and a market-based valuation model to estimate the fair value of the reporting units. The discounted cash flow method incorporates various assumptions, the most significant being projected revenue growth rates, operating profit margins and cash flows, the terminal growth rate, and the discount rate. The Company projects revenue growth rates, operating margins and cash flows based on each reporting unit's current business, expected developments, and operational strategies over a five year period. In estimating the terminal growth rates, the Company considers its historical and projected results, as well as the economic environment in which its reporting units operate. The discount rates utilized for each reporting unit reflect the Company's assumptions of marketplace participants' cost of capital and risk assumptions, both specific to the reporting unit and overall in the economy. The market-based approach incorporates the use of revenue and earnings multiples based on market data as well as the consideration of transactions involving acquisitions of control in similar entities to determine a value for a particular business. Fair values of indefinite-lived intangible assets are estimated using relief-from-royalty discounted cash flow analyses. Significant judgments inherent in the relief-from-royalty method include the selection of appropriate royalty and discount rates and estimating the amount and timing of expected future cash flows. The discount rates used in the discounted cash flow analyses reflect the risks inherent in the expected future cash flows generated by the respective intangible assets. The royalty rates used in the discounted cash flow analyses are based upon an estimate of the royalty rates that a market participant would pay to license the Company's trade names and trademarks.
Accounting for the Impairment of Long-Lived Assets (Including Other Intangible Assets)
Accounting for the Impairment of Long-Lived Assets (Including Other Intangible Assets)
    The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Upon such an occurrence, recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to current forecasts of undiscounted future net cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future undiscounted cash flows, an impairment charge is recognized equal to the amount by which the carrying amount of the asset exceeds the fair value of the asset. Fair value is determined based on market observable inputs, discounted cash flows or appraised values, depending upon the nature of the assets.
Fair Value Measurements and Non-Financial Assets and Liabilities
Fair Value Measurements

In accordance with authoritative guidance for fair value measurements, certain assets and liabilities are required to be recorded at fair value on a recurring basis. Fair value is defined as the amount that would be received to sell an asset or transfer a liability in an orderly transaction between market participants. A fair value hierarchy has been established which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
The three levels of inputs used to measure fair value are as follows:

•Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities.
•Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liabilities.
•Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The carrying amount of the Company’s financial assets and liabilities, such as cash and cash equivalents, prepaid and other current assets, accounts payable and accrued expenses approximate their fair value due to the short maturity of those instruments.
Non-Financial Assets and Liabilities
Non-financial assets and liabilities for which the Company employs fair value measures on a nonrecurring basis include goodwill, other intangible assets, property, plant, and equipment and operating lease assets. These assets are evaluated for impairment when specific trigger events occur, or when an annual quantitative impairment test is required.
Financial Assets and Liabilities
Financial Assets and Liabilities

On a recurring basis, the Company measures certain financial assets and liabilities at fair value. The accounting standard for fair value measurements defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty and its credit risk in its assessment of fair value.
The fair value of debt is deemed to be the amount at which the instrument could be exchanged in an orderly transaction between market participants at the measurement date. The fair market values of the 2024 Secured Notes, 2022 Secured Notes and 2022 Unsecured Notes were determined based on quoted market prices on a private exchange and are classified as Level 2 within the fair value hierarchy as of June 30, 2025 and March 31, 2025, respectively, due to limited trading activity. The fair market value of the A&E Term Loan Facility was determined using pricing sources and models utilizing market observable inputs to determine fair value and is classified as Level 2 within the fair value hierarchy as of June 30, 2025 and March 31, 2025, respectively. The factors used to estimate these values may not be valid on any subsequent date. Accordingly, the fair market values of the debt presented may not be indicative of their future values.
Foreign Currency
Foreign Currency

    The Company has operations in many foreign countries. For most international operations, the local currency is the functional currency. For international operations that are determined to be extensions of the U.S. operations or where a majority of revenue and/or expenses is U.S. dollar denominated, the U.S. dollar is the functional currency. For local currency operations, assets and liabilities are translated into U.S. dollars using end-of-period exchange rates, and revenue and expenses are translated into U.S. dollars using weighted-average exchange rates. Differences arising from the exchange rate changes are recorded within foreign currency translation adjustments, a component of Other comprehensive income (loss). Foreign currency transaction gains/losses are recorded in operating and administrative expenses in the consolidated statements of operations.
Stock-Based Compensation
Stock-Based Compensation

    The Company issues stock options and other stock-based compensation to eligible employees, directors and consultants and accounts for these transactions under the provisions of ASC Topic 718, Compensation-Stock Compensation ("ASC 718"). For equity awards, total compensation cost is based on the grant date fair value. For liability awards, total compensation cost is based on the fair value of the award on the date the award is granted and is remeasured at each reporting date until settlement. For performance-based awards issued, the value of the instrument is measured at the grant date fair value and expensed over the vesting term when the performance targets are considered probable of being achieved. For awards subject to both performance-based and market-based vesting conditions, the value of the instrument is measured at the grant date as the fair value and expensed using an accelerated recognition method once the performance targets are considered probable of being achieved. The Company recognizes stock-based compensation expense for service-based awards, on a straight-line basis, over the service period required to earn the award, which is typically the vesting period. Forfeitures are accounted for as they occur.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of Sales (Excluding Depreciation and Amortization)

Cost of sales (excluding depreciation and amortization) includes expenses directly attributable to the production of the Company's products. Costs associated with printed products include variable costs such as paper, printing and binding, content related royalty expenses, directly related hosting costs and gratis costs (products provided at no additional consideration as part of the sales transaction), certain transportation and freight costs and inventory obsolescence. Gratis costs are predominately incurred in the K-12 business and vary based upon the level of state sales during a given period. Cost of sales also includes royalty expense where author developed content is used, primarily in the Higher Education and Global Professional segments.
Leases
Leases

For operating lease arrangements with an initial lease term of more than 12 months, the Company records a lease liability and right-of-use asset on the consolidated balance sheets at the lease commencement date. The Company measures lease liabilities based on the present value of the total lease payments not yet paid. As most of the Company's leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate at the lease commencement date to determine the present value of the total lease payments. The Company measures right-of-use assets based on the corresponding lease liability adjusted for (i) payments made to the lessor at or before the commencement date, (ii) initial direct costs the Company incurs and (iii) tenant incentives under the lease. Certain lease arrangements contain escalation clauses covering increased costs for various defined real estate taxes and operating services which are factored into the determination of lease payments, however, the Company does not assume renewals or early terminations unless it is reasonably certain to exercise these options, and the Company accounts for arrangements with lease and non-lease components as a single lease component.

For leases with an initial lease term of 12 months or less, the Company does not record right-of-use assets and lease liabilities. For such leases, the Company recognizes lease expense in the consolidated statements of operations on a straight-line basis over the lease term.
Income Taxes
Income Taxes

    The Company’s operations are subject to U.S. federal, state and local, and foreign income taxes.

    The Company determines the provision for income taxes using the asset and liability approach. Under this approach, deferred income taxes represent the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities.

    Valuation allowances are established when management determines that it is more-likely-than-not that some portion or all of the deferred tax asset will not be realized. Management evaluates the weight of both positive and negative evidence in determining whether a deferred tax asset will be realized. Management will look to a history of losses, future reversal of existing taxable temporary differences, taxable income in carryback years, feasibility of tax planning strategies and estimated future taxable income. The valuation allowance can also be affected by changes in tax laws and changes to statutory tax rates.
    The Company prepares and files tax returns based on management’s interpretation of tax laws and regulations. As with all businesses, the Company's tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax assessments based on differences in interpretation of tax laws and regulations. The Company adjusts its estimated uncertain tax positions reserves based on current audits and recent settlements with various taxing authorities as well as changes in tax laws, regulations, and interpretations. The Company recognizes accrued interest and penalties related to uncertain tax positions in Income tax provision (benefit) within the consolidated statements of operations.
Contingencies
Contingencies

    The Company accrues for loss contingencies when both (i) information available prior to issuance of the financial statements indicates that it is probable that a loss had been incurred at the date of the financial statements and (ii) the amount of loss can reasonably be estimated. When the Company accrues for loss contingencies and the reasonable estimate of the loss is within a range, the best estimate within the range is recorded. The Company discloses an estimated possible loss or a range of loss when it is at least reasonably possible that a loss may have been incurred. Neither an accrual nor disclosure is required for losses that are deemed remote.
Earnings (Loss) per Share
Earnings (Loss) per Share

The Company computes net income (loss) per share in accordance with ASC Topic 260, Earnings per Share, which requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the statement of operations. Basic earnings (loss) per share is computed by dividing the net income (loss) available to common stockholders by the weighted-average number of common shares outstanding during the period. Dilutive earnings (loss) per share amounts are based on the weighted-average number of common shares outstanding, including the effect of all dilutive potential common shares that were outstanding during the period using the treasury stock method. Dilutive earnings (loss) per share excludes all potentially dilutive shares if their effect is anti-dilutive.
Recently Adopted Accounting Standards and Recently Issued Accounting Standards
Recently Adopted Accounting Standards     

In November 2023, the FASB issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and a description of other segment items by reportable segment. The ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods and to disclose the title and position of the CODM. In addition, the ASU permits public entities to disclose any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. The ASU does not change how a public entity identifies its operating segments, aggregates them, or applies the quantitative thresholds to determine its reportable segments. This update is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company adopted the ASU for the fiscal year ended March 31, 2025 on a retrospective basis for all prior periods presented in its consolidated financial statements, see Note 9, Segment Reporting.

Recently Issued Accounting Standards

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands income tax disclosure requirements to include additional information in the effective tax rate reconciliation as well as additional disaggregation of income taxes paid. The ASU also removes disclosures related to certain unrecognized tax benefits and deferred taxes. The new requirements will be effective for fiscal years beginning after December 15, 2025, or the Company's fiscal 2027. The guidance may be applied prospectively or retrospectively, and early adoption is permitted. The Company is currently evaluating the effect of adopting the ASU on its consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires public entities to provide disaggregated disclosures of certain expense captions presented on the face of the income statement into specific expense categories within the notes to the consolidated financial statements, including inventory purchases, employee compensation, and costs related to depreciation and amortization. In January 2025, the FASB issued ASU 2025-01, Clarifying the Effective Date, which clarifies that ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, or the Company's fiscal year ended March 31, 2028, and interim periods within fiscal years beginning after December 15, 2027, or the Company's fiscal year ended March 31, 2029, with early adoption permitted. The guidance may be applied on a prospective or retrospective basis. The Company is currently evaluating the effect of adopting the ASU on its consolidated financial statements and related disclosures.

In May 2025, the FASB issued ASU 2025-03, "Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity (VIE)." This ASU clarifies the guidance in determining the accounting acquirer in a business combination effected primarily by exchanging equity interests when the acquiree is a VIE that meets the definition of a business. The ASU is effective for fiscal years beginning after December 15, 2026, or the Company's fiscal year ended March 31, 2028, and interim periods within fiscal years beginning after December 15, 2027, or the Company's fiscal year ended March 31, 2029, with early adoption permitted. The guidance is to be applied prospectively to acquisitions after the adoption date. The Company is currently evaluating the effect of adopting the ASU on its consolidated financial statements and related disclosures.
v3.25.2
Description of Business, Basis of Preparation and Summary of Significant Accounting Policies (Tables)
 3 Months Ended
Jun. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Carrying Amounts and Estimated Fair Market Values of Debt
The following table presents the carrying amounts, not including debt discount or deferred financing costs, and estimated fair market values of the Company's debt as of June 30, 2025 and March 31, 2025:

June 30, 2025March 31, 2025
Carrying AmountEstimated Fair Value (Level 2)Carrying AmountEstimated Fair Value (Level 2)
Liabilities:
A&E Term Loan Facility$1,157,123 $1,158,569 $1,160,415 $1,156,063 
2022 Secured Notes828,466 822,253 828,466 799,470 
2022 Unsecured Notes639,034 643,827 639,034 627,851 
2024 Secured Notes650,000 671,125 650,000 651,625 
$3,274,623 $3,295,774 $3,277,915 $3,235,009 
v3.25.2
Revenue from Contracts with Customers (Tables)
 3 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following tables summarize the Company's revenue from contracts with its customers disaggregated by segment and product type for the three months ended June 30, 2025 and 2024:

Three Months Ended June 30,
20252024
DigitalPrint (1)TotalDigitalPrint (1)Total
Revenue by Segment:
K-12$108,597 $162,334 $270,931 $99,618 $175,209 $274,827 
Higher Education168,826 13,553 182,379 153,955 5,891 159,846 
Global Professional25,272 9,887 35,159 25,093 10,194 35,287 
International22,353 29,111 51,464 24,559 33,752 58,311 
Other (2)— (4,223)(4,223)— (5,317)(5,317)
Total Revenue $325,048 $210,662 $535,710 $303,225 $219,729 $522,954 
___________________
(1)
Print revenue contains print and multi-year print products.
(2)
Includes in-transit product sales and intersegment revenue adjustments that are not included within segment revenues reviewed by the Company's CODM.
Three Months Ended June 30,
20252024

Re-occurring
Revenue		Transactional
Revenue		TotalRe-occurring
Revenue		Transactional
Revenue		Total
K-12
$183,641 $87,290 $270,931 $166,819 $108,008 $274,827 
Higher Education
159,552 22,827 182,379 149,454 10,392 159,846 
Global Professional
23,657 11,502 35,159 22,773 12,514 35,287 
International
20,764 30,700 51,464 22,752 35,559 58,311 
Other
— (4,223)(4,223)— (5,317)(5,317)
Total Revenue
$387,614 $148,096 $535,710 $361,798 $161,156 $522,954 
Schedule of Deferred Commission Costs and Deferred Royalties
Deferred commission costs consisted of the following:

June 30, 2025March 31, 2025
Current$17,173 $22,449 
Non-current22,894 18,794 
Total Deferred Commission Costs $40,067 $41,243 
Deferred royalties consisted of the following:

June 30, 2025March 31, 2025
Current$65,424 $76,186 
Non-current59,221 61,495 
Total Deferred Royalties $124,645 $137,681 
Schedule of Contract Assets and Liabilities
Contract assets and contract liabilities consisted of the following:

June 30, 2025March 31, 2025
Contract assets$48,372 $29,032 
Contract liabilities (deferred revenue):
Current737,620 794,031 
Non-current912,559 882,156 
Total Contract Liabilities $1,650,179 $1,676,187 

Total contract liabilities by segment consisted of the following:

June 30, 2025March 31, 2025
Total Contract Liabilities by Segment:
K-12$1,327,044 $1,279,585 
Higher Education221,730 297,316 
Global Professional64,376 62,348 
International29,275 33,407 
Other (1)
7,754 3,531 
Total Contract Liabilities
$1,650,179 $1,676,187 
_______________
(1)Includes contract liabilities for in-transit product sales that are not included in segment contract liabilities.
Schedule of Estimated Revenue to be Recognized
Estimated revenue expected to be recognized in future fiscal years ended March 31, related to amounts included within deferred revenue as of June 30, 2025 was as follows:
June 30, 2025
2026 (remaining nine months)
$574,360 
2027425,460 
2028297,335 
2029185,013 
203094,014 
Thereafter73,997 
$1,650,179 
v3.25.2
Operating and Administrative Expenses (Tables)
 3 Months Ended
Jun. 30, 2025
Other Income and Expenses [Abstract]  
Schedule of Operating and Administrative Expenses
Operating and administrative expenses consisted of the following:

Three Months Ended June 30,
20252024
Selling and marketing
$87,397 $85,531 
General and administrative
75,392 84,023 
Research and development
65,458 63,450 
Amortization of product development costs
13,302 13,267 
Operating and administrative expenses
$241,549 $246,271 
v3.25.2
Goodwill and Other Intangible Assets (Tables)
 3 Months Ended
Jun. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Indefinite-Lived Intangible Assets The following information details the carrying amounts and accumulated amortization of the Company's intangible assets:
June 30, 2025
Useful LifeGross AmountAccumulated AmortizationAccumulated ImpairmentNet Amount
Content
10 - 15 years
$1,222,400 $(622,422)$— $599,978 
TrademarksIndefinite576,000 — (83,000)493,000 
Trademarks10 years21,750 (12,724)— 9,026 
Customers
1 - 14 years
225,600 (122,122)— 103,478 
Technology7 years427,000 (235,465)— 191,535 
Total$2,472,750 $(992,733)$(83,000)$1,397,017 
March 31, 2025
Useful LifeGross AmountAccumulated AmortizationAccumulated ImpairmentNet Amount
Content
10 - 15 years
$1,222,400 $(589,247)$— $633,153 
TrademarksIndefinite576,000 — (83,000)493,000 
Trademarks10 years21,750 (12,014)— 9,736 
Customers
1 - 14 years
225,600 (114,269)— 111,331 
Technology7 years427,000 (220,035)— 206,965 
Total$2,472,750 $(935,565)$(83,000)$1,454,185 
Schedule of Finite-Lived Intangible Assets The following information details the carrying amounts and accumulated amortization of the Company's intangible assets:
June 30, 2025
Useful LifeGross AmountAccumulated AmortizationAccumulated ImpairmentNet Amount
Content
10 - 15 years
$1,222,400 $(622,422)$— $599,978 
TrademarksIndefinite576,000 — (83,000)493,000 
Trademarks10 years21,750 (12,724)— 9,026 
Customers
1 - 14 years
225,600 (122,122)— 103,478 
Technology7 years427,000 (235,465)— 191,535 
Total$2,472,750 $(992,733)$(83,000)$1,397,017 
March 31, 2025
Useful LifeGross AmountAccumulated AmortizationAccumulated ImpairmentNet Amount
Content
10 - 15 years
$1,222,400 $(589,247)$— $633,153 
TrademarksIndefinite576,000 — (83,000)493,000 
Trademarks10 years21,750 (12,014)— 9,736 
Customers
1 - 14 years
225,600 (114,269)— 111,331 
Technology7 years427,000 (220,035)— 206,965 
Total$2,472,750 $(935,565)$(83,000)$1,454,185 
Schedule of Expected Aggregate Annual Amortization Expense
The Company's expected aggregate annual amortization expense for existing intangible assets subject to amortization for each of the fiscal years is as follows:

Expected Amortization Expense
2026 (remaining nine months)$165,764 
2027207,625 
2028172,109 
2029115,034 
203079,572 
Thereafter163,913 
$904,017 
v3.25.2
Prepaid and Other Current Assets (Tables)
 3 Months Ended
Jun. 30, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Prepaid and Other Current Assets
Prepaid and other current assets consisted of the following:

June 30, 2025March 31, 2025
Deferred royalties$65,424 $76,186 
Deferred sales commission17,173 22,449 
Prepaid insurance7,032 6,049 
Prepaid tax2,621 3,006 
Other46,837 42,667 
Prepaid and other current assets$139,087 $150,357 
v3.25.2
Other Current Liabilities (Tables)
 3 Months Ended
Jun. 30, 2025
Other Liabilities Disclosure [Abstract]  
Schedule of Other Current Liabilities Other current liabilities consisted of the following:
June 30, 2025March 31, 2025
Allowance for sales returns$32,740 $39,657 
Accrued interest57,392 20,455 
Accrued tax43,787 59,797 
Finance lease obligations5,004 4,631 
Restructuring4,651 5,212 
Other42,891 42,271 
Other current liabilities $186,465 $172,023 
v3.25.2
Debt (Tables)
 3 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Schedule of Long-Term Debt
Long-term debt consisted of the following:

MaturityJune 30, 2025March 31, 2025
A&E Term Loan FacilityAugust 2031$1,157,123 $1,160,415 
2022 Secured NotesAugust 2028828,466 828,466 
2022 Unsecured NotesAugust 2029639,034 639,034 
2024 Secured NotesSeptember 2031650,000 650,000 
Total debt outstanding3,274,623 3,277,915 
Less: unamortized debt discount(79,430)(82,782)
Less: unamortized deferred financing costs(16,682)(17,412)
Less: current portion of long-term debt(13,170)(13,170)
Long-term debt$3,165,341 $3,164,551 
Schedule of Principal Payments
The scheduled principal payments by fiscal year required under the terms of the Company's debt were as follows:

June 30, 2025
2026 (remaining nine months)$9,878 
202713,170 
202813,170 
2029841,636 
2030652,204 
Thereafter1,744,565 
$3,274,623 
v3.25.2
Segment Reporting (Tables)
 3 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Schedule of Adjusted EBITDA by Segment
The following table sets forth Adjusted EBITDA by segment:

Three Months Ended June 30,
20252024
Adjusted EBITDA:
K-12$96,393 $91,207 
Higher Education77,759 73,120 
Global Professional11,266 10,162 
International7,208 12,884 
Other(1,210)(8,779)
Total Adjusted EBITDA $191,416 $178,594 
Schedule of Reconciliation of Adjusted EBITDA to Net Income (Loss)
The following table provides a reconciliation of total Adjusted EBITDA to Net income (loss):

Three Months Ended June 30,
20252024
Total Adjusted EBITDA$191,416 $178,594 
Interest (expense) income, net(58,774)(80,876)
Income tax benefit (provision)(36,949)(4,351)
Depreciation, amortization and product development amortization(87,854)(88,880)
Restructuring and cost savings implementation charges(3,106)(6,571)
Advisory fees(2,500)(2,500)
Transaction and Integration costs(100)(1,094)
Other(1,631)(3,769)
Net income (loss) $502 $(9,447)
Schedule of Revenue and Long-lived Assets by Geographic Region
The following tables summarizes revenue and long-lived assets by geographic region:

Revenue (1)
Three Months Ended June 30,
20252024
United States$484,389 $464,470 
International51,321 58,484 
Total $535,710 $522,954 
________________
(1)
Revenues are attributed to a geographic region based on the location of customer.

Long-Lived Assets (2)
As of
June 30, 2025March 31, 2025
United States$667,449 $646,104 
International33,491 31,773 
Total $700,940 $677,877 
__________________
(2)
Reflects total assets less current assets, goodwill, intangible assets, investments, deferred financing costs and non-current deferred tax assets.
v3.25.2
Taxes on Income (Loss) (Tables)
 3 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Provision (Benefit) and Effective Tax Rate
The following table presents the Company's income tax provision (benefit) and effective tax rate:

Three Months Ended June 30,
20252024
Effective tax rate98.7 %(85.4)%
Income tax provision (benefit)$36,949 $4,351 
v3.25.2
Accumulated Other Comprehensive Income (Loss) (Tables)
 3 Months Ended
Jun. 30, 2025
Stockholders' Equity Note [Abstract]  
Schedule of Activity in Accumulated Other Comprehensive Income (Loss)
The following tables summarize the activity in accumulated other comprehensive loss, by component for the periods indicated:

Foreign currency translation adjustment, net of taxTotal
Balance as of March 31, 2024$245 $245 
Other comprehensive income (loss) before reclassifications(1,205)(1,205)
Balance as of June 30, 2024$(960)$(960)
Foreign currency translation adjustment, net of taxTotal
Balance as of March 31, 2025$(2,426)$(2,426)
Other comprehensive income (loss) before reclassifications2,515 2,515 
Balance as of June 30, 2025$89 $89 
v3.25.2
Earnings (Loss) per Share (Tables)
 3 Months Ended
Jun. 30, 2025
Earnings Per Share [Abstract]  
Schedule of Computation of Basic and Diluted Earnings (Loss) per Share
The following table sets forth the computation of basic and diluted earnings (loss) per share adjusted to give effect to the Stock Split is as follows:

Three Months Ended June 30,
20252024
Numerator:
Net income (loss) attributable to common stockholders$502 $(9,447)
Denominator:
Basic weighted-average number of shares outstanding166,611,519 166,611,519 
Effect of dilutive potential common shares— — 
Dilutive weighted-average number of shares outstanding166,611,519 166,611,519 
Earnings (loss) per share attributable to common stockholders
Basic and diluted earnings (loss) per share$0.00 $(0.06)
Schedule of Outstanding Common Stock Equivalents Excluded from Computation of Diluted Earnings (Loss) per Share
The following table summarizes the Company's outstanding common stock equivalents that were excluded from the computation of diluted earnings (loss) per share on the basis that they represent contingently issuable shares that were not issuable as of the end of the reporting period:

Three Months Ended June 30,
20252024
Stock options8,611,063 9,763,898 
v3.25.2
Description of Business, Basis of Preparation and Summary of Significant Accounting Policies - Narrative (Details)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Jul. 23, 2025
$ / shares
shares
Jun. 30, 2025
USD ($)
language
country
segment
unit
Jun. 30, 2024
USD ($)
Mar. 31, 2025
USD ($)
Jul. 25, 2025
$ / shares
shares
Jul. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Number of reportable segments | segment   4        
Amortization of intangible assets   $ 57,365 $ 61,179      
Useful life for cloud computing costs   3 years        
Gross capitalized cloud computing costs   $ 35,072   $ 35,072    
Accumulated amortization of cloud computing costs   19,186   16,263    
Amortization of cloud computing costs   $ 2,923 2,387      
Number of reporting units | unit   4        
Forecast period used for intangible assets impairment evaluation   5 years        
Revenue   $ 535,710 522,954      
Subsequent Event            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Common stock conversion ratio 1          
Stock split conversion ratio 1.06555          
Common stock, shares outstanding (in shares) | shares 166,611,519       191,001,519  
Common stock, par value (in dollars per share) | $ / shares $ 0.01       $ 0.01  
Shipping and Handling            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Revenue   $ 6,873 8,645      
Deferred Technology Costs            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Useful life of finite-lived intangible assets   3 years        
Gross finite-lived intangible assets   $ 255,855   239,427    
Accumulated amortization of finite-lived intangible assets   87,250   $ 76,838    
Amortization of intangible assets   $ 10,412 $ 7,785      
Three Customers | Customer Concentration Risk | Accounts Receivable            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Concentration risk percentage       38.00%    
International            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Number of countries where the company provides digital and print solutions (more than) | country   100        
Number of languages where the company provides digital and print solutions (more than) | language   80        
Mav Acquisition Corporation | McGraw-Hill Education, Inc.            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Percentage of equity interests acquired           100.00%
v3.25.2
Description of Business, Basis of Preparation and Summary of Significant Accounting Policies - Carrying Amounts and Estimated Fair Market Values of Debt (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Mar. 31, 2025
Carrying Amount    
Liabilities:    
Long-term debt $ 3,274,623 $ 3,277,915
Carrying Amount | A&E Term Loan Facility    
Liabilities:    
Long-term debt 1,157,123 1,160,415
Carrying Amount | 2022 Secured Notes    
Liabilities:    
Long-term debt 828,466 828,466
Carrying Amount | 2022 Unsecured Notes    
Liabilities:    
Long-term debt 639,034 639,034
Carrying Amount | 2024 Secured Notes    
Liabilities:    
Long-term debt 650,000 650,000
Estimated Fair Value | Level 2    
Liabilities:    
Long-term debt 3,295,774 3,235,009
Estimated Fair Value | A&E Term Loan Facility | Level 2    
Liabilities:    
Long-term debt 1,158,569 1,156,063
Estimated Fair Value | 2022 Secured Notes | Level 2    
Liabilities:    
Long-term debt 822,253 799,470
Estimated Fair Value | 2022 Unsecured Notes | Level 2    
Liabilities:    
Long-term debt 643,827 627,851
Estimated Fair Value | 2024 Secured Notes | Level 2    
Liabilities:    
Long-term debt $ 671,125 $ 651,625
v3.25.2
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Disaggregation of Revenue [Line Items]    
Revenue $ 535,710 $ 522,954
Digital    
Disaggregation of Revenue [Line Items]    
Revenue 325,048 303,225
Print    
Disaggregation of Revenue [Line Items]    
Revenue 210,662 219,729
Re-occurring Revenue    
Disaggregation of Revenue [Line Items]    
Revenue 387,614 361,798
Transactional Revenue    
Disaggregation of Revenue [Line Items]    
Revenue 148,096 161,156
Operating Segments | K-12    
Disaggregation of Revenue [Line Items]    
Revenue 270,931 274,827
Operating Segments | Higher Education    
Disaggregation of Revenue [Line Items]    
Revenue 182,379 159,846
Operating Segments | Global Professional    
Disaggregation of Revenue [Line Items]    
Revenue 35,159 35,287
Operating Segments | International    
Disaggregation of Revenue [Line Items]    
Revenue 51,464 58,311
Operating Segments | Digital | K-12    
Disaggregation of Revenue [Line Items]    
Revenue 108,597 99,618
Operating Segments | Digital | Higher Education    
Disaggregation of Revenue [Line Items]    
Revenue 168,826 153,955
Operating Segments | Digital | Global Professional    
Disaggregation of Revenue [Line Items]    
Revenue 25,272 25,093
Operating Segments | Digital | International    
Disaggregation of Revenue [Line Items]    
Revenue 22,353 24,559
Operating Segments | Print | K-12    
Disaggregation of Revenue [Line Items]    
Revenue 162,334 175,209
Operating Segments | Print | Higher Education    
Disaggregation of Revenue [Line Items]    
Revenue 13,553 5,891
Operating Segments | Print | Global Professional    
Disaggregation of Revenue [Line Items]    
Revenue 9,887 10,194
Operating Segments | Print | International    
Disaggregation of Revenue [Line Items]    
Revenue 29,111 33,752
Operating Segments | Re-occurring Revenue | K-12    
Disaggregation of Revenue [Line Items]    
Revenue 183,641 166,819
Operating Segments | Re-occurring Revenue | Higher Education    
Disaggregation of Revenue [Line Items]    
Revenue 159,552 149,454
Operating Segments | Re-occurring Revenue | Global Professional    
Disaggregation of Revenue [Line Items]    
Revenue 23,657 22,773
Operating Segments | Re-occurring Revenue | International    
Disaggregation of Revenue [Line Items]    
Revenue 20,764 22,752
Operating Segments | Transactional Revenue | K-12    
Disaggregation of Revenue [Line Items]    
Revenue 87,290 108,008
Operating Segments | Transactional Revenue | Higher Education    
Disaggregation of Revenue [Line Items]    
Revenue 22,827 10,392
Operating Segments | Transactional Revenue | Global Professional    
Disaggregation of Revenue [Line Items]    
Revenue 11,502 12,514
Operating Segments | Transactional Revenue | International    
Disaggregation of Revenue [Line Items]    
Revenue 30,700 35,559
Other    
Disaggregation of Revenue [Line Items]    
Revenue (4,223) (5,317)
Other | Digital    
Disaggregation of Revenue [Line Items]    
Revenue 0 0
Other | Print    
Disaggregation of Revenue [Line Items]    
Revenue (4,223) (5,317)
Other | Re-occurring Revenue    
Disaggregation of Revenue [Line Items]    
Revenue 0 0
Other | Transactional Revenue    
Disaggregation of Revenue [Line Items]    
Revenue $ (4,223) $ (5,317)
v3.25.2
Revenue from Contracts with Customers - Deferred Commission Costs and Deferred Royalties (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Mar. 31, 2025
Deferred Commission Costs    
Capitalized Contract Cost [Line Items]    
Current $ 17,173 $ 22,449
Non-current 22,894 18,794
Total 40,067 41,243
Deferred Royalties    
Capitalized Contract Cost [Line Items]    
Current 65,424 76,186
Non-current 59,221 61,495
Total $ 124,645 $ 137,681
v3.25.2
Revenue from Contracts with Customers - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Capitalized Contract Cost [Line Items]    
Revenue recognized that was included within deferred revenue $ 335,920 $ 312,695
Deferred Commission Costs    
Capitalized Contract Cost [Line Items]    
Amortization of capitalized contract costs 7,435 11,971
Deferred Royalties    
Capitalized Contract Cost [Line Items]    
Amortization of capitalized contract costs $ 34,669 $ 33,311
v3.25.2
Revenue from Contracts with Customers - Contract Assets and Liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]    
Contract assets $ 48,372 $ 29,032
Contract liabilities (deferred revenue):    
Current 737,620 794,031
Non-current 912,559 882,156
Total Contract Liabilities $ 1,650,179 $ 1,676,187
v3.25.2
Revenue from Contracts with Customers - Contract Liabilities by Segment (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Mar. 31, 2025
Disaggregation of Revenue [Line Items]    
Total Contract Liabilities $ 1,650,179 $ 1,676,187
Operating Segments | K-12    
Disaggregation of Revenue [Line Items]    
Total Contract Liabilities 1,327,044 1,279,585
Operating Segments | Higher Education    
Disaggregation of Revenue [Line Items]    
Total Contract Liabilities 221,730 297,316
Operating Segments | Global Professional    
Disaggregation of Revenue [Line Items]    
Total Contract Liabilities 64,376 62,348
Operating Segments | International    
Disaggregation of Revenue [Line Items]    
Total Contract Liabilities 29,275 33,407
Other    
Disaggregation of Revenue [Line Items]    
Total Contract Liabilities $ 7,754 $ 3,531
v3.25.2
Revenue from Contracts with Customers - Estimated Revenue Expected to be Recognized (Details)
$ in Thousands
Jun. 30, 2025
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 1,650,179
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 574,360
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-04-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 425,460
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-04-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 297,335
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-04-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 185,013
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-04-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 94,014
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2030-04-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, amount $ 73,997
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period
v3.25.2
Operating and Administrative Expenses (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Other Income and Expenses [Abstract]    
Selling and marketing $ 87,397 $ 85,531
General and administrative 75,392 84,023
Research and development 65,458 63,450
Amortization of product development costs 13,302 13,267
Operating and administrative expenses $ 241,549 $ 246,271
v3.25.2
Inventories, Net (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Inventory Disclosure [Abstract]    
Inventory obsolescence $ 3,486 $ 3,903
v3.25.2
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Mar. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]      
Goodwill $ 2,557,595 $ 2,557,595 $ 2,557,595
Intangible Asset, Acquired, Finite-Lived [Line Items]      
Remaining amortization period 7 years 6 months    
Amortization of intangibles $ 57,365 61,179  
Acquired Intangible Assets      
Intangible Asset, Acquired, Finite-Lived [Line Items]      
Amortization of intangibles $ 57,168 $ 60,995  
v3.25.2
Goodwill and Other Intangible Assets - Summary of Intangible Assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Mar. 31, 2025
Trademarks    
Indefinite-Lived Intangible Assets    
Gross Amount $ 576,000 $ 576,000
Accumulated Impairment (83,000) (83,000)
Indefinite-lived intangible assets, Net Amount 493,000 493,000
Other Intangible Assets    
Accumulated Impairment (83,000) (83,000)
Acquired Intangible Assets    
Finite-Lived Intangible Assets    
Accumulated Amortization (992,733) (935,565)
Indefinite-Lived Intangible Assets    
Accumulated Impairment (83,000) (83,000)
Other Intangible Assets    
Intangible assets, gross (excluding goodwill) 2,472,750 2,472,750
Accumulated Amortization (992,733) (935,565)
Accumulated Impairment (83,000) (83,000)
Net Amount 1,397,017 1,454,185
Content    
Finite-Lived Intangible Assets    
Gross Amount 1,222,400 1,222,400
Accumulated Amortization (622,422) (589,247)
Finite-lived intangible assets, Net Amount 599,978 633,153
Other Intangible Assets    
Accumulated Amortization $ (622,422) $ (589,247)
Content | Minimum    
Finite-Lived Intangible Assets    
Useful Life 10 years 10 years
Content | Maximum    
Finite-Lived Intangible Assets    
Useful Life 15 years 15 years
Trademarks    
Finite-Lived Intangible Assets    
Useful Life 10 years 10 years
Gross Amount $ 21,750 $ 21,750
Accumulated Amortization (12,724) (12,014)
Finite-lived intangible assets, Net Amount 9,026 9,736
Other Intangible Assets    
Accumulated Amortization (12,724) (12,014)
Customers    
Finite-Lived Intangible Assets    
Gross Amount 225,600 225,600
Accumulated Amortization (122,122) (114,269)
Finite-lived intangible assets, Net Amount 103,478 111,331
Other Intangible Assets    
Accumulated Amortization $ (122,122) $ (114,269)
Customers | Minimum    
Finite-Lived Intangible Assets    
Useful Life 1 year 1 year
Customers | Maximum    
Finite-Lived Intangible Assets    
Useful Life 14 years 14 years
Technology    
Finite-Lived Intangible Assets    
Useful Life 7 years 7 years
Gross Amount $ 427,000 $ 427,000
Accumulated Amortization (235,465) (220,035)
Finite-lived intangible assets, Net Amount 191,535 206,965
Other Intangible Assets    
Accumulated Amortization $ (235,465) $ (220,035)
v3.25.2
Goodwill and Other Intangible Assets - Expected Aggregate Annual Amortization Expense (Details) - Acquired Intangible Assets
$ in Thousands
Jun. 30, 2025
USD ($)
Intangible Asset, Acquired, Finite-Lived [Line Items]  
2026 (remaining nine months) $ 165,764
2027 207,625
2028 172,109
2029 115,034
2030 79,572
Thereafter 163,913
Finite-lived intangible assets, Net Amount $ 904,017
v3.25.2
Prepaid and Other Current Assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Mar. 31, 2025
Capitalized Contract Cost [Line Items]    
Prepaid insurance $ 7,032 $ 6,049
Prepaid tax 2,621 3,006
Other 46,837 42,667
Prepaid and other current assets 139,087 150,357
Deferred Royalties    
Capitalized Contract Cost [Line Items]    
Deferred royalties and Deferred sales commission 65,424 76,186
Deferred Commission Costs    
Capitalized Contract Cost [Line Items]    
Deferred royalties and Deferred sales commission $ 17,173 $ 22,449
v3.25.2
Other Current Liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Mar. 31, 2025
Other Liabilities Disclosure [Abstract]    
Allowance for sales returns $ 32,740 $ 39,657
Accrued interest 57,392 20,455
Accrued tax 43,787 59,797
Finance lease obligations 5,004 4,631
Restructuring 4,651 5,212
Other 42,891 42,271
Other current liabilities $ 186,465 $ 172,023
v3.25.2
Debt - Summary of Long-Term Debt (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Mar. 31, 2025
Debt Instrument [Line Items]    
Total debt outstanding $ 3,274,623 $ 3,277,915
Less: unamortized debt discount (79,430) (82,782)
Less: unamortized deferred financing costs (16,682) (17,412)
Less: current portion of long-term debt (13,170) (13,170)
Long-term debt 3,165,341 3,164,551
Line of Credit | A&E Term Loan Facility | Secured Debt    
Debt Instrument [Line Items]    
Total debt outstanding 1,157,123 1,160,415
Less: unamortized debt discount (41,596)  
Less: unamortized deferred financing costs (7,944)  
Secured Debt | 2022 Secured Notes    
Debt Instrument [Line Items]    
Total debt outstanding 828,466 828,466
Less: unamortized debt discount (17,120)  
Less: unamortized deferred financing costs (4,014)  
Secured Debt | 2024 Secured Notes    
Debt Instrument [Line Items]    
Total debt outstanding 650,000 650,000
Less: unamortized debt discount (4,602)  
Less: unamortized deferred financing costs (1,011)  
Unsecured Debt | 2022 Unsecured Notes    
Debt Instrument [Line Items]    
Total debt outstanding 639,034 $ 639,034
Less: unamortized debt discount (16,112)  
Less: unamortized deferred financing costs $ (3,713)  
v3.25.2
Debt - A&E Cash Flow Credit Facilities (Details) - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended
Feb. 06, 2025
Jun. 30, 2023
Jun. 30, 2025
Jun. 30, 2024
Mar. 31, 2025
Aug. 06, 2024
Nov. 01, 2021
Jul. 30, 2021
Line of Credit Facility [Line Items]                
Unamortized discount     $ 79,430   $ 82,782      
Unamortized deferred financing costs     $ 16,682   $ 17,412      
Cash Flow Credit Agreement | Secured Debt | Line of Credit                
Line of Credit Facility [Line Items]                
Debt issued             $ 575,000 $ 1,550,000
Cash Flow Credit Agreement | Secured Debt | Line of Credit | Variable Rate Component, One-Month                
Line of Credit Facility [Line Items]                
Credit spread adjustment   0.11448%            
Cash Flow Credit Agreement | Secured Debt | Line of Credit | Variable Rate Component, Three-Month                
Line of Credit Facility [Line Items]                
Credit spread adjustment   0.26161%            
Cash Flow Credit Agreement | Secured Debt | Line of Credit | Variable Rate Component, Six-Month                
Line of Credit Facility [Line Items]                
Credit spread adjustment   0.42826%            
Cash Flow Credit Agreement | Secured Debt | Line of Credit | Variable Rate Component, Twelve-Month                
Line of Credit Facility [Line Items]                
Credit spread adjustment   0.71513%            
Cash Flow Credit Agreement | Revolving Credit Facility | Line of Credit                
Line of Credit Facility [Line Items]                
Maximum borrowing capacity               $ 150,000
Credit spread adjustment   0.10%            
A&E Cash Flow Credit Facilities | Line of Credit                
Line of Credit Facility [Line Items]                
Aggregate exposure threshold percentage for net leverage ratio     40.00%          
Maximum net leverage ratio     6.95          
A&E Cash Flow Credit Facilities | Line of Credit | Base Rate                
Line of Credit Facility [Line Items]                
Variable rate floor 1.50%              
A&E Cash Flow Credit Facilities | Line of Credit | Term SOFR                
Line of Credit Facility [Line Items]                
Variable rate floor 0.50%              
A&E Cash Flow Credit Facilities | Revolving Credit Facility | Line of Credit                
Line of Credit Facility [Line Items]                
Unused line fee percentage 0.50%              
Letter of credit fronting fee percentage 0.125%              
Unamortized deferred financing costs     $ 3,274          
Fees on unutilized commitments     190 $ 190        
Non-Extended Cash Flow Revolver Facility | Revolving Credit Facility | Line of Credit                
Line of Credit Facility [Line Items]                
Maximum borrowing capacity           $ 38,750    
Borrowing capacity available     38,750          
Amount outstanding     0          
Non-Extended Cash Flow Revolver Facility | Revolving Credit Facility | Line of Credit | Base Rate                
Line of Credit Facility [Line Items]                
Margin 3.00%              
Non-Extended Cash Flow Revolver Facility | Revolving Credit Facility | Line of Credit | Term SOFR                
Line of Credit Facility [Line Items]                
Margin 4.00%              
A&E Cash Flow Revolving Facility | Revolving Credit Facility | Line of Credit                
Line of Credit Facility [Line Items]                
Maximum borrowing capacity           $ 111,250    
Borrowing capacity available     111,250          
Amount outstanding     $ 0          
A&E Cash Flow Revolving Facility | Revolving Credit Facility | Line of Credit | Base Rate                
Line of Credit Facility [Line Items]                
Margin 3.00%              
A&E Cash Flow Revolving Facility | Revolving Credit Facility | Line of Credit | Term SOFR                
Line of Credit Facility [Line Items]                
Margin 4.00%              
A&E Term Loan Facility | Secured Debt | Line of Credit                
Line of Credit Facility [Line Items]                
Debt issued $ 1,213,708              
Reduction in the margin 0.75%              
Annual amortization payable percentage 1.00%              
Interest rate at period end     7.577%          
Discount percentage 0.25%              
Unamortized discount     $ 41,596          
Unamortized deferred financing costs     $ 7,944          
Remaining contractual term     6 years 2 months 12 days          
A&E Term Loan Facility | Secured Debt | Line of Credit | Base Rate                
Line of Credit Facility [Line Items]                
Margin 2.25%              
A&E Term Loan Facility | Secured Debt | Line of Credit | Term SOFR                
Line of Credit Facility [Line Items]                
Margin 3.25%              
A&E Term Loan Facility | Secured Debt | Line of Credit | Estimated Fair Value                
Line of Credit Facility [Line Items]                
Long-term debt fair value     $ 1,158,569          
v3.25.2
Debt - A&E ABL Revolving Credit Facilities (Details)
$ in Thousands
 1 Months Ended 3 Months Ended
Aug. 06, 2024
USD ($)
May 31, 2024
Apr. 30, 2023
Jun. 30, 2025
USD ($)
Jun. 30, 2024
USD ($)
Mar. 31, 2025
USD ($)
Aug. 05, 2024
USD ($)
Jul. 30, 2021
USD ($)
Line of Credit Facility [Line Items]                
Unamortized deferred financing costs       $ 16,682   $ 17,412    
ABL Revolving Credit Agreement                
Line of Credit Facility [Line Items]                
Letters of credit outstanding       4,030        
ABL Revolving Credit Agreement | U.S. and RoW Revolving Credit Facility | Base Rate                
Line of Credit Facility [Line Items]                
Variable rate floor 1.50%              
ABL Revolving Credit Agreement | U.S. and RoW Revolving Credit Facility | Term SOFR                
Line of Credit Facility [Line Items]                
Variable rate floor 0.00%              
ABL Revolving Credit Agreement | Revolving Credit Facility | U.S. and RoW Revolving Credit Facility                
Line of Credit Facility [Line Items]                
Maximum borrowing capacity $ 300,000           $ 200,000  
Credit spread adjustment     0.10%          
Unused line fee percentage when percentage of aggregate commitments is equal to or below the threshold 0.25%              
Unused line fee threshold percentage 50.00%              
Unused line fee percentage when percentage of aggregate commitments is equal to or below the threshold 0.375%              
Borrowing capacity available       300,000        
Fees on unutilized commitments       264 $ 186      
Unamortized deferred financing costs       $ 3,617        
Fixed charge coverage ratio threshold percentage       10.00%        
Fixed charge coverage ratio threshold amount       $ 18,750        
Minimum fixed charge coverage ratio       1.00        
ABL Revolving Credit Agreement | Revolving Credit Facility | U.S. and RoW Revolving Credit Facility | Non-Base Rate | Minimum                
Line of Credit Facility [Line Items]                
Margin 1.25%              
ABL Revolving Credit Agreement | Revolving Credit Facility | U.S. and RoW Revolving Credit Facility | Non-Base Rate | Maximum                
Line of Credit Facility [Line Items]                
Margin 1.75%              
ABL Revolving Credit Agreement | Revolving Credit Facility | U.S. and RoW Revolving Credit Facility | Base Rate | Minimum                
Line of Credit Facility [Line Items]                
Margin 0.25%              
ABL Revolving Credit Agreement | Revolving Credit Facility | U.S. and RoW Revolving Credit Facility | Base Rate | Maximum                
Line of Credit Facility [Line Items]                
Margin 0.75%              
ABL Revolving Credit Agreement | Revolving Credit Facility | U.S. and RoW Revolving Credit Facility | Variable Rate Component, One-Month                
Line of Credit Facility [Line Items]                
Credit spread adjustment   0.29547%            
ABL Revolving Credit Agreement | Revolving Credit Facility | U.S. and RoW Revolving Credit Facility | Variable Rate Component, Three-Month                
Line of Credit Facility [Line Items]                
Credit spread adjustment   0.32138%            
ABL Revolving Credit Agreement | Revolving Credit Facility | U.S. Revolving Credit Facility                
Line of Credit Facility [Line Items]                
Maximum borrowing capacity $ 265,000             $ 165,000
ABL Revolving Credit Agreement | Revolving Credit Facility | RoW Revolving Credit Facility                
Line of Credit Facility [Line Items]                
Maximum borrowing capacity $ 35,000             $ 35,000
v3.25.2
Debt - Secured and Unsecured Notes (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Mar. 31, 2025
Aug. 06, 2024
Jul. 30, 2021
Debt Instrument [Line Items]        
Unamortized discount $ 79,430 $ 82,782    
Unamortized deferred financing costs 16,682 $ 17,412    
Secured Debt | 2024 Secured Notes        
Debt Instrument [Line Items]        
Debt issued     $ 650,000  
Interest rate     7.375%  
Unamortized discount 4,602      
Unamortized deferred financing costs $ 1,011      
Remaining contractual term 6 years 3 months 18 days      
Secured Debt | 2024 Secured Notes | Estimated Fair Value        
Debt Instrument [Line Items]        
Long-term debt fair value $ 671,125      
Secured Debt | 2022 Secured Notes        
Debt Instrument [Line Items]        
Debt issued       $ 900,000
Interest rate       5.75%
Unamortized discount 17,120      
Unamortized deferred financing costs $ 4,014      
Remaining contractual term 3 years 1 month 6 days      
Secured Debt | 2022 Secured Notes | Estimated Fair Value        
Debt Instrument [Line Items]        
Long-term debt fair value $ 822,253      
Unsecured Debt | 2022 Unsecured Notes        
Debt Instrument [Line Items]        
Debt issued       $ 725,000
Interest rate       8.00%
Unamortized discount 16,112      
Unamortized deferred financing costs $ 3,713      
Remaining contractual term 4 years 1 month 6 days      
Unsecured Debt | 2022 Unsecured Notes | Estimated Fair Value        
Debt Instrument [Line Items]        
Long-term debt fair value $ 643,827      
v3.25.2
Debt - Principal Payments (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Mar. 31, 2025
Debt Disclosure [Abstract]    
2026 (remaining nine months) $ 9,878  
2027 13,170  
2028 13,170  
2029 841,636  
2030 652,204  
Thereafter 1,744,565  
Total debt outstanding $ 3,274,623 $ 3,277,915
v3.25.2
Segment Reporting - Narrative (Details) - International
Jun. 30, 2025
country
language
Segment Reporting Information [Line Items]  
Number of countries where the company provides digital and print solutions (more than) | country 100
Number of languages where the company provides digital and print solutions (more than) | language 80
v3.25.2
Segment Reporting - Adjusted EBITDA by Segment (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Segment Reporting Information [Line Items]    
Total Adjusted EBITDA $ 191,416 $ 178,594
Operating Segments | K-12    
Segment Reporting Information [Line Items]    
Total Adjusted EBITDA 96,393 91,207
Operating Segments | Higher Education    
Segment Reporting Information [Line Items]    
Total Adjusted EBITDA 77,759 73,120
Operating Segments | Global Professional    
Segment Reporting Information [Line Items]    
Total Adjusted EBITDA 11,266 10,162
Operating Segments | International    
Segment Reporting Information [Line Items]    
Total Adjusted EBITDA 7,208 12,884
Other    
Segment Reporting Information [Line Items]    
Total Adjusted EBITDA $ (1,210) $ (8,779)
v3.25.2
Segment Reporting - Reconciliation of Adjusted EBITDA to Net Income (Loss) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Segment Reporting [Abstract]    
Total Adjusted EBITDA $ 191,416 $ 178,594
Interest expense (income), net (58,774) (80,876)
Income tax benefit (provision) (36,949) (4,351)
Depreciation, amortization and product development amortization (87,854) (88,880)
Restructuring and cost savings implementation charges (3,106) (6,571)
Advisory fees (2,500) (2,500)
Transaction and Integration costs (100) (1,094)
Other (1,631) (3,769)
Net income (loss) $ 502 $ (9,447)
v3.25.2
Segment Reporting - Revenue and Long-lived Assets by Geographic Region (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Mar. 31, 2025
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue $ 535,710 $ 522,954  
Long-lived assets 700,940   $ 677,877
United States      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 484,389 464,470  
Long-lived assets 667,449   646,104
International      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 51,321 $ 58,484  
Long-lived assets $ 33,491   $ 31,773
v3.25.2
Taxes on Income (Loss) - Income Tax Provision (Benefit) and Effective Tax Rate (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Income Tax Disclosure [Abstract]    
Effective tax rate 98.70% (85.40%)
Income tax provision (benefit) $ 36,949 $ 4,351
v3.25.2
Taxes on Income (Loss) - Narrative (Details)
$ in Thousands
May 16, 2025
USD ($)
Income Tax Disclosure [Abstract]  
Tax credit purchased $ 52,900
Cash consideration for tax credit purchased $ 50,299
v3.25.2
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Beginning balance $ 280,244 $ 368,754
Other comprehensive income (loss) before reclassifications 2,515 (1,205)
Ending balance 283,261 358,102
Total    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Beginning balance (2,426) 245
Ending balance 89 (960)
Foreign currency translation adjustment, net of tax    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Beginning balance (2,426) 245
Other comprehensive income (loss) before reclassifications 2,515 (1,205)
Ending balance $ 89 $ (960)
v3.25.2
Earnings (Loss) per Share - Computation of Basic and Diluted Earnings (Loss) per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Numerator:    
Net income (loss) attributable to common stockholders, basic $ 502 $ (9,447)
Net income (loss) attributable to common stockholders, diluted $ 502 $ (9,447)
Denominator:    
Basic weighted-average number of shares outstanding (in shares) 166,611,519 166,611,519
Effect of dilutive potential common shares (in shares) 0 0
Dilutive weighted-average number of shares outstanding (in shares) 166,611,519 166,611,519
Basic earnings (loss) per share (in dollars per share) $ 0.00 $ (0.06)
Diluted earnings (loss) per share (in dollars per share) $ 0.00 $ (0.06)
v3.25.2
Earnings (Loss) per Share - Outstanding Common Stock Equivalents Excluded from Computation of Diluted Earnings (Loss) per Share (Details) - shares
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Earnings Per Share [Abstract]    
Stock options 8,611,063 9,763,898
v3.25.2
Management Fee (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Mar. 31, 2025
Related Party Transaction [Line Items]      
Operating and administrative expenses $ 241,549 $ 246,271  
Other current liabilities 186,465   $ 172,023
Affiliated Entity      
Related Party Transaction [Line Items]      
Annual management fee expense 10,000    
Other current liabilities 0   $ 0
Affiliated Entity | Advisory Agreement, Management Fees      
Related Party Transaction [Line Items]      
Operating and administrative expenses 2,500 2,500  
Affiliated Entity | Advisory Agreement, Expense Reimbursements      
Related Party Transaction [Line Items]      
Operating and administrative expenses $ 96 $ 129  
v3.25.2
Commitment and Contingencies (Details)
 2 Months Ended
Feb. 28, 2021
claim
Commitments and Contingencies Disclosure [Abstract]  
Number of class actions filed 2
v3.25.2
Subsequent Events (Details)
$ / shares in Units, $ in Thousands
 3 Months Ended
Aug. 22, 2025
shares
Jul. 25, 2025
USD ($)
$ / shares
shares
Jul. 23, 2025
$ / shares
shares
Jun. 30, 2025
USD ($)
Jun. 30, 2024
USD ($)
Subsequent Event [Line Items]          
Payments of offering expenses       $ 2,374 $ 0
Payment of Term Loan Facility       3,292 $ 5,312
Deferred offering costs       $ 12,680  
Subsequent Event          
Subsequent Event [Line Items]          
Common stock conversion ratio     1    
Stock split conversion ratio     1.06555    
Common stock, shares outstanding (in shares) | shares   191,001,519 166,611,519    
Common stock, par value (in dollars per share) | $ / shares   $ 0.01 $ 0.01    
Common stock, shares authorized (in shares) | shares   2,000,000,000      
Preferred stock, shares authorized (in shares) | shares   100,000,000      
Preferred stock, par value (in dollars per share) | $ / shares   $ 0.01      
Preferred stock, shares outstanding (in shares) | shares   0      
Subsequent Event | Secured Debt | A&E Term Loan Facility | Line of Credit          
Subsequent Event [Line Items]          
Payment of Term Loan Facility   $ 385,698      
Subsequent Event | IPO          
Subsequent Event [Line Items]          
Shares issued (in shares) | shares   24,390,000      
Price of shares issued (in dollars per share) | $ / shares   $ 17.00      
Proceeds received for shares issued   $ 385,698      
Payment of underwriting discounts and commissions   21,768      
Payments of offering expenses   $ 7,164      
Subsequent Event | Over-Allotment Option          
Subsequent Event [Line Items]          
Option period   30 days      
Subsequent Event | Over-Allotment Option | Forecast          
Subsequent Event [Line Items]          
Shares issued (in shares) | shares 3,658,500