Travis Hoium: Some of the best known stocks of the last decade have fallen in 2025. Can they make a comeback? Motley Fool Money starts now. Welcome to Motley Fool Money. I'm Travis Hoium, joined today by Jon Quast and Rachel Warren. Today, we want to talk about comebacks and potential comebacks to some really well known companies Chipotle, Target, Crocs. Those are the three that are going to be on the tip of our tongue today. But there's a number of companies that fall into this category. Chipotle stock Joh ...

Core Insights - McGraw Hill's stock surged 19% after reporting earnings that significantly exceeded analyst expectations, with an adjusted profit of $1.40 per share compared to the anticipated $0.35 per share for fiscal Q2 2026 [1][6] - Despite the strong earnings report, the company experienced a 2.8% decline in revenue to $669.2 million and a 21% drop in GAAP profits to $105.3 million [3][6] - The company reported a 6.5% increase in recurring revenue and a 7.6% rise in high-margin digital revenue, contributing to a gross profit margin increase of 150 basis points to 79.2% [3][6] Financial Performance - McGraw Hill generated $168.3 million in operating cash flow in H1 2026, which is only 40% of the $412.5 million generated in H1 2025 [4] - Free cash flow (FCF) for H1 2026 was reported at $119.2 million, marking a 68% decline [4] - The company is projected to generate nearly $240 million in FCF for the year, but with a market cap of $2.2 billion and $3 billion in net debt, the enterprise value-to-free cash flow ratio is nearly 22x [5] Market Position - McGraw Hill gained notable market share during the quarter and expanded its use of AI-powered tools [3] - The overall decline in sales and profits, along with the significant drop in free cash flow, raises concerns about the attractiveness of McGraw Hill's stock as an investment [5][6]