Q3 2021 Investor Presentation(opens in new window)

Earnings Call

Third Quarter 2021

November 4, 2021

Forward-Looking Statements and Non-

GAAP Measures

This presentation and oral statements made in connection with this presentation contain certain statements that are not historical facts, including information regarding our intentions, beliefs or current expectations concerning, among other things, our results of operations, including billings and net sales; financial performance and condition;

liquidity; products and services, including for new adoptions; outlook for full year 2021; prospects; growth; markets and market share; strategies, including with respect to investing in our core solutions and extensions businesses and operational excellence; the expected impact of our digital first, connected strategy; efficiency and cost savings initiatives; the industry in which we operate; any disruption resulting from the completed sale of our HMH Books & Media business that adversely affects our business and business relationships, including with employees and suppliers; the expected impact of the COVID-19 pandemic and potential business decisions. Those statements constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from the results expressed in or implied by our forward-looking statements, including, but not limited to, those identified under the caption "Forward-Looking Statements" in our news release issued on November 4, 2021 and in the "Special Note Regarding Forward- Looking Statements" and "Risk Factors" in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We undertake no obligation, and do not expect, to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

In addition, this presentation and oral statements made in connection with this presentation reference non-GAAP financial measures, such as adjusted EBITDA and free cash flow, and operating measures, such as billings. The use of these non-GAAP measures are limited as they include and/or do not include certain items not included and/or included in the most directly comparable GAAP measure. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures (to the extent available

without unreasonable efforts) and a calculation of operating measures are provided in the appendix to this presentation and in our news release issued on November 4, 2021

which are posted on hmhco.comunder the Investors section.

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Introduction	Strategy Update	Operating &	Conclusion
Financial Overview

Third Quarter 2021 Highlights

Robust growth in billings, profitability and free cash flow

Billings1 growth of 22% in Q3, 21% year-to-date

Adjusted EBITDA2 margin continued to expand in Q3 to 35% $137 million in trailing 12-months free cash flow2

Digital first, connected strategy delivered strong results

ARR1 growth accelerates to 123%; ARR1 is now $120 million, or 11% of trailing 12-months billings1 NRR1 increased to 153%; On track to finish 2021 with ARR1 = 12% to 15% of billings

Strong balance sheet enables additional growth dimension

1.4x TTM adjusted EBITDA2 below target leverage ratio of 2.0x

Intend to make tuck-in acquisitions to further accelerate organic growth

Raising billings & unlevered free cash flow margin guidance for the second time this year

4	1	An operating measure.
2	Non-GAAP measure, please refer to Use of non-GAAP measures in the appendix for an explanation and reconciliation.

Substantial TAM with Significant Penetration Opportunity

$740+B

Instructional

Materials

Learning

Sector Spend

$10B+

Core

Curriculum

$2.5B

Intervention

$1.5B

Supplemental

$2.5B

Services

$3.5B

Instructional

Materials Spend

Core

Extensions

$10B+

~10%

~90%

2021 TAM

Revenue Penetration

Presence in K-12 Schools

5	SOURCE: National Center for Educational Statistics (NCES) and SEMBA reports.