ADDED
Management's Discussion and Analysis of Financial Condition and Results of Operations 36 Item 3.
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited; dollars in thousands) Three Months Ended December 31, Nine Months Ended December 31, 2025 2024 2025 2024 Net income (loss) $ ( 20,199 ) $ ( 52,928 ) $ 85,587 $ 71,028 Other comprehensive income (loss): Foreign currency translation adjustment, net of tax 288 ( 3,054 ) 2,254 ( 3,312 ) Total other comprehensive income (loss) $ 288 $ ( 3,054 ) $ 2,254 $ ( 3,312 ) Comprehensive income (loss) $ ( 19,911 ) $ ( 55,982 ) $ 87,841 $ 67,716 See accompanying notes to these unaudited consolidated financial statements.
In management's opinion, the Company has made all adjustments of a normal recurring nature necessary 7 MCGRAW HILL, INC.
AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Unaudited; dollars in thousands, except for share and per share data) for fair financial statement presentation.
Accordingly, these unaudited 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 final prospectus filed with the Securities and Exchange Commission (the SEC ) on July 24, 2025 (the Prospectus ).
AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Unaudited; dollars in thousands, except for share and per share data) 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.
Concentration of Credit Risk As of December 31, 2025, the Company had two customers that accounted for 23 % of the gross accounts receivable balance.
AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Unaudited; dollars in thousands, except for share and per share data) development costs are charged as a component of operating and administrative expenses.
Property, Plant and Equipment, Net Property, plant and equipment are stated at cost less accumulated depreciation.
Gross deferred technology costs were $ 298,102 and $ 239,427 as of December 31, 2025 and March 31, 2025, respectively.
REMOVED
Management's Discussion and Analysis of Financial Condition and Results of Operations 33 Item 3.
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited; dollars in thousands) Three Months Ended September 30, Six Months Ended September 30, 2025 2024 2025 2024 Net income (loss) $ 105,284 $ 133,403 $ 105,786 $ 123,956 Other comprehensive income (loss): Foreign currency translation adjustment, net of tax ( 549 ) 947 1,966 ( 258 ) Total other comprehensive income (loss) $ ( 549 ) $ 947 $ 1,966 $ ( 258 ) Comprehensive income (loss) $ 104,735 $ 134,350 $ 107,752 $ 123,698 See accompanying notes to these unaudited consolidated financial statements.
In managements opinion, the Company has made all adjustments of a normal recurring nature necessary for fair financial statement presentation.
Accordingly, these unaudited interim consolidated financial 6 MCGRAW HILL, INC.
AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Unaudited; dollars in thousands, except for share and per share data) 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 final prospectus filed with the Securities and Exchange Commission (the SEC ) on July 24, 2025 (the Prospectus ).
Allowance for Estimated Credit Losses The Company estimates credit losses for its accounts receivable using the current expected 7 MCGRAW HILL, INC.
AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Unaudited; dollars in thousands, except for share and per share data) credit loss model under ASC 326, Financial Instruments - Credit Losses.
Concentration of Credit Risk As of September 30, 2025, the Company had one customer that accounted for 17 % of the gross accounts receivable balance.
Amortization expenses for product development costs are charged as a component of operating and administrative expenses.
AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Unaudited; dollars in thousands, except for share and per share data) Property, Plant and Equipment, Net Property, plant and equipment are stated at cost less accumulated depreciation.