This is an update to my article from August. Since writing that article, the thesis has only strengthened. At its investor day on 10/17, HMHC again announced a beat-and-raise quarter. This marks the second consecutive increase to full year (FY) guidance. FY free cash flow (FCF) guidance of $100-120mm implies a high-teens% FCF yield. Third quarter billings beat Wall Street estimates by 5%. Net debt has been reduced by 28% over the past year.
This is all further proof that HMHC is firing on all cylinders under the current management team. They have successfully reattained