HMH earnings analysis
What we found in HMH's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
HMH Holding Inc. reported a disappointing Q1 2026 with revenues of $171.3 million, down 14% year-over-year and missing estimates by $7.5 million. Earnings per share (EPS) came in at $0.14, which was $0.20 below expectations, reflecting operational challenges and a decline in core revenue. Despite these headwinds, management remains cautiously optimistic about the outlook for adjusted EBITDA, projecting it will be between $157 million and $177 million for the full year.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Total Revenue Decline
- Overall revenue fell to $171.3 million, down 14% from $198.4 million YoY.
- EPS Shortfall
- Reported EPS was $0.14, missing estimates by $0.20.
- Operating Income Growth
- Operating income increased by 20% YoY to $19.2 million despite lower revenues.
- Cost of Sales Optimization
- Cost of sales decreased by 17.8%, leading to improved gross margin percentages.
- Free Cash Flow Decline
- Free cash flow dropped to $4.6 million, a decrease of $6.6 million from $11.2 million YoY.
- Improved Interest Expense
- Interest expense decreased by 24% to $7.0 million due to refinancing efforts.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Revenue Decline Risks
- Revenue declined by $27.1 million, primarily due to a 40.6% drop in product revenue.
- Increased Operational Challenges
- Continued lower service activity and order intake as seen with a 14% decline in service revenue.
- Foreign Currency Loss Impact
- Foreign currency exchange losses amounted to $2.2 million, down from a gain of $4.0 million.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.14
- Gross margin
- 31.9%
- Operating margin
- 11.2%
- Segment
- Service revenue - ESS: $100.7M
- Segment
- Product revenue - ESS: $17.2M
- Segment
- Spare parts revenue - ESS: $39.4M
- Segment
- Service revenue - PCS: $27.9M
- Segment
- Product revenue - PCS: $15.6M
- Segment
- Spare parts revenue - PCS: $27.1M
What they said about what is next.
Full-year adjusted EBITDA guidance set between $157 million to $177 million.
The filing reads worse than the one before it.
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