• Pearson for K-12 schools, focused on digital learning.
• A Microsoft for K-12 education, providing core curriculum, software, and services.

• Core Curriculum Programs: Provides comprehensive educational programs and instructional materials for core K-12 subjects such as reading, math, and science.
• Supplemental & Intervention Solutions: Offers additional educational resources designed to enhance core instruction and support students with specific learning needs.
• Assessments: Delivers a variety of digital and print assessment tools to measure student progress and inform instructional strategies.
• Professional Learning Services: Provides professional development and training programs to help educators effectively implement HMH's educational solutions.

HMH (Houghton Mifflin Harcourt) primarily serves institutional customers within the educational sector. Since their main customers (school districts) are not publicly traded companies with stock symbols, the following categories describe their major customer segments:

• K-12 School Districts and Educational Institutions: This is HMH's largest and most significant customer segment. It includes public, private, and charter elementary, middle, and high schools across the United States and, to a lesser extent, internationally. These institutions purchase HMH's comprehensive curriculum solutions, textbooks, digital learning platforms, instructional materials, assessments, and professional development services for educators.
• Individual Educators and Teachers: While often purchasing resources on behalf of their schools or using school budgets, individual educators also represent a customer category, acquiring supplemental classroom materials, professional learning resources, and subject-specific tools directly from HMH or its distribution channels.
• Students and Parents (Direct-to-Consumer): HMH also serves individual students and their parents directly through its consumer-facing channels. This segment purchases supplementary educational products, workbooks, test preparation guides, and digital learning subscriptions to support learning outside of the traditional classroom setting.

John "Jack" Lynch, Chief Executive Officer

Jack Lynch joined HMH in 2017 as President, Chief Executive Officer, and Director. He has an extensive background in the K-12 education and technology space. Prior to HMH, he was the CEO of Renaissance Learning, a leader in K-12 learning analytics, which was owned by Hellman & Friedman and Google Capital. Lynch was also the founding CEO of bigchalk.com, an education network serving 40,000 schools. He has served as president and CEO of the Pearson Technology Group and was a member of the executive board of Wolters Kluwer. Under his leadership, HMH underwent a strategic transformation to a digital-first, connected learning company, including the divestiture of its Books and Media division in 2021 and its sale to Veritas Capital, a private equity firm, in 2022.

Joe Abbott, Chief Financial Officer

Joe Abbott joined HMH in March 2016 as Chief Financial Officer. Prior to his role at HMH, Abbott was an investment banker at Morgan Stanley in the Global Media and Communications Group, where he led the firm's advisory of clients in the education content and information services sectors and was involved in significant transactions within the education sector. Earlier in his career, he served as an officer in the United States Navy. He also held various leadership roles with Thomson Lifelong Learning Group and Thomson Learning, including Chief Executive Officer and Chief Financial Officer.

Mike Evans, Chief Revenue Officer

Mike Evans is the Chief Revenue Officer for Houghton Mifflin Harcourt, responsible for K-12 go-to-market and customer lifecycle, including sales, marketing, customer success, technical support, and corporate program management. Before joining Houghton Mifflin Harcourt, he served as Chief Financial Officer for McGraw Hill Education, where he played a key role in its proposed merger with Cengage. Prior to McGraw Hill Education, Evans was Chief Operating Officer and Chief Financial Officer for Renaissance Learning, a SAAS provider to Pre-K12 schools, which was a private equity-backed company. He also held positions as Senior Vice President, General Manager for Pre-K12 Literacy and Mathematics for Pearson Education's Learning Services division, President of Pearson's student information business (Pearson School Systems), and Chief Operating Officer at Bigchalk.

Matthew Mugo Fields, President, Integrated Platform

Matthew Mugo Fields serves as the President, Integrated Platform at Houghton Mifflin Harcourt. He is also listed as General Manager, Supplemental & Intervention Solutions & President of Heinemann.

Amy Metet, Chief Information Officer

Amy Metet is the Chief Information Officer of Houghton Mifflin Harcourt.

Here are the key risks to HMH (HMH) business:

1. Volatility of the Energy Sector: HMH operates primarily in the oil and gas drilling sector, both offshore and onshore, providing highly engineered equipment and services. This industry is inherently cyclical and subject to significant volatility, which can be influenced by global oil prices, exploration and production spending by customers, and broader economic conditions. Such fluctuations directly impact demand for HMH's products and services.
2. Extensive Regulation in Offshore Operations: A significant portion of HMH's business involves complex and critical equipment for the offshore environment. This segment is subject to extensive and evolving regulations, which could lead to increased compliance costs, operational restrictions, or potential liabilities if not met.

For HMH, a global provider of highly engineered drilling equipment, systems, and services for offshore and onshore oil and gas operations, the addressable market for its main products and services is the global upstream oil and gas capital expenditure (capex).

This market is projected to exceed $700 billion annually between 2025 and 2027.

Here are 3-5 expected drivers of future revenue growth for HMH (HMH Holding Inc.) over the next 2-3 years:

• Expansion into New Markets and Adjacent Industries: HMH is actively pursuing opportunities in adjacent industries such as renewables and mining, leveraging its existing service and technology portfolio. The company also focuses on expanding its land capabilities and exploring other oil and gas capital equipment segments, alongside organic and inorganic initiatives to grow its non-oil and gas businesses.
• Deployment of Technologies for Increased Drilling Efficiency and Energy-Efficient Solutions: HMH aims to support the drilling industry's transition towards more energy-efficient solutions and deploy technologies to enhance sector competitiveness through increased drilling efficiency. This strategy is fueled by sustained exploration and production demand for offshore hydrocarbons and the adoption of new technologies to improve equipment efficiency and safety.
• Growth in Aftermarket Services: The company anticipates future revenue contributions from increased order intake in its Aftermarket Services segment, particularly for overhaul and repair. The critical and complex nature of HMH's installed equipment encourages customers to rely on HMH for their aftermarket support.
• Progress on Project Milestones and Favorable Product Volume: Revenue growth is expected to be driven by ongoing progress on project milestones and a favorable product mix and volume.
• Leveraging Global Reach and Technical Expertise: HMH's global presence, technical expertise, and innovative product offerings, combined with integrated operations from manufacturing to aftermarket services, enable the company to provide comprehensive technology, engineering, and project management services throughout the equipment's lifecycle.

Inbound Investments

• Houghton Mifflin Harcourt was acquired by Veritas Capital for approximately $2.8 billion in an all-cash transaction.
• The acquisition, announced in February 2022 and completed in April 2022, resulted in shareholders receiving $21 per share.
• The deal enabled HMH to pursue its long-term growth strategy with Veritas Capital, a private investment firm focused on technology companies.

Outbound Investments

• HMH completed the divestiture of its consumer publishing business, HMH Books & Media, to HarperCollins Publishers for $349 million.
• The sale was completed on May 10, 2021, with net proceeds of approximately $337 million used to pay down debt.
• In April 2023, after being acquired by Veritas Capital, HMH acquired NWEA, a not-for-profit academic assessment company.

Share Issuance

• Between December 31, 2020, and December 31, 2021, the number of issued shares increased from 150,459,034 to 152,267,951, indicating an issuance of approximately 1.8 million shares.

Capital Expenditures

• Capital expenditures were $112 million in 2020 and approximately $29 million in 2021.
• The primary focus of these expenditures was on technology and content development, supporting the company's shift towards a digital-first strategy in educational publishing.
• As a private company, HMH has ramped up R&D in 2024-2025 to embed generative AI for tailored learning paths.