Meet your new office bestie: ChatGPT
Ramirez, a 34-year-old who lives in the Pittsburgh area, says she randomly chose the name Deborah as a way to refer to the generative AI app ChatGPT, which she began using about a year ago to help her with basic tasks like drafting emails. As time went on, she asked Deborah to do more complex work, such as market research and analysis, and found herself typing "thank you" after the results came back. Eventually the relationship got to the point where the app became akin to a coworker who's always willing to give feedback — or listen to her gripes about real-life clients and colleagues. And so the bot became a bud.
"Those are things that you would usually turn to your work bestie over lunch about when you can go to ChatGPT — or Deborah, in my case," says Ramirez.
People are treating AI chatbots as more than just 24/7 therapists and loyal companions. With the tools becoming ubiquitous in the workplace, some are regarding them as model colleagues, too.
Unlike teammates with a pulse, chatbots are never snotty, grumpy, or off the clock. They don't eat leftover salmon at their desks or give you the stink eye. They don't go on a tangent about their kids or talk politics when you ask to schedule a meeting. And they won't be insulted if you reject their suggestions.
For many, tapping AI chatbots in lieu of their human colleagues has deep appeal. Consider that nearly one-third of US workers would rather clean a toilet than ask a colleague for help, according to a recent survey from the Center for Generational Kinetics, a thought-leadership firm, and commissioned by workplace-leadership strategist Henna Pryor. Experts warn, though, that too much bot bonding could dull social and critical-thinking skills, hurting careers and company performance.
In the past two years, the portion of US employees who say they have used Gen AI in their role a few times a year or more nearly doubled to 40% from 21%, according to a Gallup report released in June. Part of what accounts for that rapid ascendance is how much Gen AI reflects our humanity, as Stanford University lecturer Martin Gonzalez concluded in a 2024 research paper. "Instead of a science-fiction-like ball of pulsing light, we encounter human quirks: poems recited in a pirate's voice, the cringeworthy humor of dad jokes," wrote Gonzalez, who's now an executive at Google's AI research lab DeepMind.
One sign that people see AI agents as lifelike is in how they politely communicate with the tools by using phrases like "please" or "thank you," says Connie Noonan Hadley, an organizational psychologist and professor at Boston University's Questrom School of Business.
"So far, people are keeping up with basic social niceties," she says. "AI tends to give you compliments, too, so there are some social skills still being maintained."
Human colleagues, on the other hand, aren't always as well-mannered.
Monica Park, a graphic designer for a jeweler in New York, used to dread showing early mock-ups of her work to colleagues. She recalls the heartache she felt after a coworker at a previous employer angrily responded to a draft of a design she'd drawn with an F-bomb.
"You never know if it's a good time to ask for feedback," Park, 32, tells me. "So much of it has to do with the mood of the person looking at it."
Last year she became a regular ChatGPT user and says that while the app will also dish out criticism, it's only the constructive kind. "It's not saying it in a malicious or judgmental way," Park says. "ChatGPT doesn't have any skin in the game."
Aaron Ansari, an information-security consultant, counts Anthropic's AI chatbot Claude among his top peers. The 46-year-old Orlando-area resident likes that he can ask it to revise a document as many times as he wants without being expected to give anything in return. By contrast, a colleague at a previous job would pressure him to buy Girl Scout cookies from her kids whenever he stopped by her desk.
"It became her reputation," Ansari says. "You can't go to 'Susie' without money."
Now a managing partner at a different consulting firm, he finds himself opening Claude before pinging colleagues for support. This way, he can avoid ruffling any feathers, like when he once attempted to reach a colleague in a different time zone at what turned out to be an inconvenient hour.
"You call and catch them in the kitchen," says Ansari. "I have interrupted their lunch unintentionally, but they certainly let me know."
AI's appeal can be so strong that workers are at risk of developing unhealthy attachments to chatbots, research shows. " Your Brain on ChatGPT," a study published in June from researchers at the Massachusetts Institute of Technology, found that the convenience that AI agents provide can weaken people's critical-thinking skills and foster procrastination and laziness.
"Like junk food, it's efficient when you need it, but too much over time can give you relational diabetes," says Laura Greve, a clinical health psychologist in Boston. "You're starved of the nutrients you need, the real human connection."
And if workers at large overindulge in AI, we could all end up becoming "emotionally unintelligent oafs," she warns. "We're accidentally training an entire generation to be workplace hermits."
In turn, Hadley adds, businesses that rely on collaboration could suffer. "The more workers turn to AI instead of other people, the greater the chance the social fabric that weaves us together will weaken," she says.
Karen Loftis, a senior product manager in a Milwaukee suburb, recently left a job at a large tech company that's gone all-in on AI. She said before ChatGPT showed up, sales reps would call her daily for guidance on how to plug the company's latest products. That's when they'd learn about her passion for seeing musicians like Peter Frampton in concert.
But when she saw the singer-songwriter perform earlier this year, it was "like a non-event," she said, because those calls almost entirely stopped coming in. "With AI, it's all work and no relationships," she said.
Workers who lean heavily on AI may also be judged differently by their peers than their bosses.
Colleagues are more inclined to see them as dependent on the technology, less creative, and lacking growth potential, says David De Cremer, a behavioral scientist and Dunton Family Dean of Northeastern University's D'Amore-McKim School of Business. "It's objectification by association," he says.
Company leaders, however, are more likely to view workers who demonstrate AI chops as assets. Big-company CEOs such as Amazon's Andy Jassy and Shopify's Tobi Lütke have credited the technology for boosting productivity and cost savings.
Workers who spoke with BI about using chatbots — including those who work remotely — say they still interact with their human peers, but less often as they did before AI agents came along.
Lucas Figueiredo, who lives near Atlanta and works at a revenue management specialist for an airline, says he previously struggled to tell whether the AirPods a former colleague constantly wore were playing music whenever he wanted to ask this person a coding question.
"You don't want to spook someone or disrupt their workflow," the 27-year-old tells me, though he admits he has done just that.
These days, if Figueiredo gets stuck, he will first go to Microsoft's Copilot before approaching a colleague for an assist. The new strategy has been paying off.
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Time Business News
2 hours ago
- Time Business News
Prompt Engineering : Everything you need to know
In a world where content is created in seconds by AI tools, the real power lies not in the machine — but in the prompt. Welcome to the era of prompt engineering: the essential skill that helps marketers, entrepreneurs, and creatives speak effectively to AI, unlocking better, faster, and more brand-aligned results. Whether you're writing a LinkedIn post, crafting ad copy, or planning a month's worth of social content using tools like Planpost AI, your results depend heavily on how well you frame your request. This guide breaks down the science and strategy behind better prompts, turning you from a casual AI user into a confident content generator. Marketers who want to streamline campaigns across multiple channels Social media managers seeking fast, on-brand content creation Entrepreneurs and solopreneurs with no time to waste on blank screens Copywriters who want to scale ideas while keeping tone and personality intact AI tool users who want better, more consistent results from tools like Planpost AI, ChatGPT, Jasper, and Bard A good prompt is more important than a powerful tool — the output only reflects your input Prompt engineering combines creativity, clarity, and logic Tools like Planpost AI simplify the process, but your strategy powers the results Iteration is part of the process — refine prompts to refine outcomes Effective prompting can drastically speed up content creation without sacrificing brand voice Different formats (social, email, ads, blogs) require different prompt styles and structures Not long ago, interacting with machines was limited to search queries and keyword-based commands. We typed what we wanted into Google, hoping it would understand our intent. Fast forward to today, and we're talking to language models that can draft emails, write blog posts, and mimic brand voices — all from a single sentence. But the catch remains: they still rely entirely on how we ask. That evolution is what gave birth to a new skillset: prompt engineering. The earliest form of 'prompting' was simply searching — asking Google for information using keywords. Then came voice assistants like Siri and Alexa, which responded to slightly more complex queries. But the real breakthrough came with the rise of large language models (LLMs) — AI systems trained to understand and generate human-like text based on context, tone, and instruction. With the launch of tools like ChatGPT, Bard, Claude, Jasper, and now Planpost AI, anyone can write anything — but the results hinge on how well you write the prompt. The more thoughtful your input, the better the AI's output. When ChatGPT first went viral, many users were amazed at what it could do. But marketers quickly noticed something deeper: two people could use the same tool and get wildly different results. The difference? One knew how to ask better questions. Prompt engineering emerged as the bridge between raw AI power and useful, human-quality content. It enables users to: Give AI context it would otherwise miss Shape tone, length, and output style Focus the AI's attention on specific tasks, such as writing for different buyer personas or converting bullet points into carousel posts Reduce editing time by getting closer to the final result on the first try In content creation, especially social media, quality and speed are everything. Prompt engineering lets you have both — if you know how to use it well. While all the major AI writing tools rely on the same foundational technology — natural language processing — what separates Planpost AI from a tool like ChatGPT is how it structures and simplifies the prompting process. Planpost is designed specifically for marketers. It bakes in brand tone, social media formats, post variations, and platform-specific outputs — but even so, understanding how prompting works behind the scenes can drastically improve your results. In short: tools help, but technique wins. Prompt engineering is the strategic process of crafting clear, contextual, and constraint-driven instructions to guide an AI model toward a specific, high-quality output. In simpler terms, it's how you talk to the AI to get exactly what you want — no fluff, no confusion. Think of it like briefing a new intern. If you say, 'Write something for Instagram,' you'll likely get a vague caption. But if you say, 'Write a 5-line caption promoting a new planner to time-poor mums in a cheerful tone,' the result becomes useful, targeted, and on-brand. Effective prompt engineering gives you control over: The structure of the content The voice and emotion it conveys The format and length that suits the channel 1. Intent This is what you want the AI to do. Are you asking it to write, summarize, translate, brainstorm, or rewrite? Examples: 'Write a tweet' 'Generate Instagram caption ideas' 'Summarise this blog for LinkedIn readers' 2. Context This defines who it's for, where it's going, and why it matters. Key elements: audience, platform, industry, purpose Examples: 'For UK small business owners launching eco-products' 'Aimed at social media marketers planning a Q4 campaign' 3. Constraints These are the creative boundaries: tone, style, format, and length. Examples: 'Keep it under 100 words' 'Use a witty, conversational tone' 'Structure as a bullet-point list' When you combine these three — intent, context, and constraints — your prompts become sharper, your AI outputs stronger, and your content workflow significantly more efficient. To get the best from AI writing tools, it helps to understand how they 'think.' Unlike humans, AI doesn't have feelings or opinions. Instead, it guesses what words come next based on patterns it has learned from tons of text. This guessing game is called probability-based prediction. When you type a prompt, the AI looks at your words and tries to predict the most likely next word or sentence. For example, if you say, 'Write a social media post about summer,' the AI picks words that usually follow 'summer' in similar posts it has seen before. It's like completing a sentence based on what it has learned. If your prompt is too general or unclear, the AI gets confused about what you want. It then plays it safe and gives a generic answer. For example, 'Write something about our product' is too broad, so the AI might create a dull or boring post. Think about it like talking to a helper. If you just say, 'Do this task,' they might not do it well because they don't have enough details. But if you explain exactly what you want, who it's for, and how it should sound, they can do a great job. The same goes for AI: clear and detailed prompts lead to better, more useful results. Imagine you ask two people to write a social media post for your new eco-friendly product. The junior assistant gets a short brief: 'Write about our product.' They write something basic and boring. The specialist gets a detailed brief: 'Write a friendly, short Instagram post aimed at young people who care about the environment. Include a call to action to visit our website.' Which post do you think will get more attention? Of course, the specialist's — because they had clear instructions. AI works the same way. The better you guide it with your prompt, the better content it creates for you. Think of writing a prompt like giving directions to a helpful friend. The clearer you are, the better they'll help you out. When it comes to AI, the same rule applies — a good prompt sets you up for great results. Let's break down the key parts of a perfect prompt that'll get you exactly what you need: Start by telling the AI who it's supposed to be. Imagine you're asking a friend with a specific skill for help. Giving the AI a 'role' helps it understand the kind of response you example: 'You're a social media expert who knows how to write catchy and fun captions.' Next, be super clear about what you want. Vague instructions lead to vague answers, so spell it example: 'Write a 5-line Instagram caption about our new eco-friendly water bottle.' Let the AI know how you want the output to sound or look. This keeps your content on point and consistent with your example: 'Make it friendly and include 3 emojis that fit the vibe.' Sometimes, showing a couple of examples works wonders. It's like saying, 'Here's what I like — now can you do something similar?' This technique is called few-shot example: *'Here are two captions I like: 'Stay hydrated and save the planet 🌍💧 #EcoLife' 'Sip smart with our sustainable bottle! ♻️💚 #GreenLiving'Now write something along these lines.'* Put it all together, and your prompt might look like this: 'You're a social media expert. Write a 5-line Instagram caption for our eco-friendly water bottle. Keep it friendly and add 3 emojis. Here are two examples I like: 'Stay hydrated and save the planet 🌍💧 #EcoLife' and 'Sip smart with our sustainable bottle! ♻️💚 #GreenLiving.' Now create something similar.' This kind of prompt makes it so much easier for AI to nail what you want — and saves you time tweaking or rewriting. Every type of marketing content has its own style and needs. Knowing how to tailor your prompts to fit each format helps you get spot-on results faster. Let's walk through common marketing content types and see how to craft prompts for each — with real examples to guide you. Short, snappy, and engaging — social captions need personality and a hook. Prompt: 'Write a 3-line Instagram caption promoting a summer sale for handmade candles. Use a fun, friendly tone.' Output: 'Light up your summer nights with our handmade candles! 🕯️☀️ Grab yours before the sale melts away! 🔥 #SummerVibes #HandmadeLove' Ads must be clear, persuasive, and often have strict character limits. Prompt: 'Create a 90-character Facebook ad copy for a new fitness app, emphasizing easy workouts.' Output: 'Get fit on your schedule! Try our easy workouts today and feel the difference. 💪' Catchy subject lines boost open rates — they should be brief but attention-grabbing. Prompt: 'Write 5 catchy email subject lines for a newsletter announcing a 20% off sale on eco-friendly products.' Output: 'Go Green & Save 20%! 🌿' 'Your Eco Favorites Are 20% Off — Today Only!' 'Sustainability Meets Savings: 20% Off Inside' 'Flash Sale Alert: 20% Off Eco Must-Haves' 'Save 20% & Help the Planet — Limited Time!' Blog intros set the tone and grab readers quickly. Prompt: 'Write an engaging introduction for a blog post about the benefits of AI in digital marketing.' Output: 'AI is reshaping the digital marketing landscape faster than ever. From smarter targeting to automated content, discover how AI tools are helping businesses connect better with their audiences.' These need to highlight benefits clearly and entice buyers. Prompt: 'Write a 50-word product description for a waterproof Bluetooth speaker designed for outdoor use.' Output: 'Take your music anywhere with our waterproof Bluetooth speaker. Durable, lightweight, and with 12 hours of battery life, it's perfect for outdoor adventures and poolside parties.' Hashtags increase reach and engagement on social platforms. Prompt: 'Suggest 10 relevant hashtags for a vegan skincare brand launching a new moisturizer.' Output: #VeganSkincare #CrueltyFreeBeauty #NaturalGlow #EcoFriendly #Moisturizer #CleanBeauty #PlantBased #SustainableSkincare #GlowingSkin #VeganBeauty Different platforms have unique content styles. Here's how you can create prompts tailored to each, with copy-paste-ready templates to use right away. Short-form story prompt: 'Write a 15-second Instagram Story promoting a weekend flash sale on handmade jewelry, with a playful tone.' Carousel series prompt: 'Create a 5-slide Instagram carousel explaining the benefits of using recycled materials in fashion, with each slide having a short headline and description.' Personal story post: 'Write a LinkedIn post sharing a personal story about overcoming challenges in remote work, with a professional but warm tone.' Thought leadership tone: 'Create a LinkedIn article introduction on the future of AI in business, using a confident and visionary tone.' One-liner with hook: 'Write a tweet that hooks readers on the importance of digital detox, ending with a question.' Example:'Feeling overwhelmed by constant notifications? Maybe it's time for a digital detox. How do you unplug and recharge? 🤔 #MentalHealth #DigitalDetox' Script + visual concept + hook: 'Write a 30-second TikTok script promoting a new smoothie brand, starting with a question hook and including a visual idea for showing fresh fruits.' 💡 Copy & Paste Prompt Bank Here are some ready-to-use prompt templates for your next campaign: 'Write a [number]-line [platform] post about [topic], in a [tone] tone, including [elements like emojis, hashtags].' 'Create a [format] for [platform], aimed at [audience], focusing on [key message].' 'Suggest [number] catchy [email subject lines/hashtags/ad copy] related to [topic].' Even the best marketers can slip up when writing prompts. The good news? Most mistakes are easy to spot and fix. Let's look at some common errors and how you can improve your prompts — with simple 'Bad → Good → Best' examples to make it crystal clear. Bad: 'Write something about our product.' Good: 'Write a 3-line social media caption about our eco-friendly water bottle.' Best: 'Write a 3-line Instagram caption promoting our eco-friendly water bottle for young adults, using a friendly tone and including 2 emojis.' Why it matters: The more details you provide, the more targeted and useful the AI output will be. Bad: 'Write an email about our sale.' (The tone is not specified and may be too formal or casual.) Good: 'Write a promotional email about our summer sale in a friendly and casual tone.' Best: 'Write a promotional email for our summer sale targeting millennials. Use a casual, upbeat tone with humor.' Why it matters: Tone sets how your audience feels about your message. Without it, the AI may guess wrong. Bad: 'Write a blog intro and suggest hashtags and a call to action.' Good: 'Write a blog introduction about digital marketing trends.' Then, separately: 'Suggest 5 hashtags related to digital marketing.' Best: Break down tasks into separate prompts for clarity and better focus. Why it matters: One clear task at a time helps the AI focus and avoid confusion. Bad: 'Write a product description.' Good: 'Write a product description for busy parents.' Best: 'Write a 50-word product description for busy parents looking for quick meal solutions, highlighting ease and health benefits.' Why it matters: Audience details ensure the content speaks directly to the right people. Bad: Use the first AI output without changes. Good: Review the output and ask for improvements or variations. Best: Test different prompts, tweak wording, and refine until you get the perfect result. Why it matters: Prompt engineering is an ongoing process — better prompts come with practice and iteration. Your brand voice is your unique personality — it's what makes your content instantly recognizable. Teaching AI to capture that voice takes a bit of effort, but it's worth it. Start by clearly describing your brand's tone, style, and values in your prompts. Use keywords like 'friendly,' 'professional,' 'humorous,' or 'authoritative' to guide the AI. Provide the AI with examples of your best-performing posts or copy. You can include sentences like: 'Write in a tone similar to this example: [insert your example].' Or feed style guide points: 'Use simple language, avoid jargon, and maintain a conversational tone.' Planpost AI lets you save custom instructions and brand guidelines that the AI remembers and applies across tasks. Use this to keep your messaging consistent without repeating yourself every time. If your AI tool supports it, upload brand assets or create profiles with your tone preferences. This way, every prompt automatically aligns with your style. Imagine you're teaching a new friend to help with your work. If you just say, 'Do this,' they might get confused. But if you explain things step-by-step, show examples, and tell them what to do if something happens — suddenly, they're a star helper. That's exactly how advanced prompt techniques work with AI. Break it down: Instead of one big ask, split it into small steps. Like telling the AI: 'First, list the benefits. Then, explain how it helps. Last, wrap it up.' This way, the AI thinks more clearly and your content sounds sharper. Instead of one big ask, split it into small steps. Like telling the AI: 'First, list the benefits. Then, explain how it helps. Last, wrap it up.' This way, the AI thinks more clearly and your content sounds sharper. Show examples: Ever heard 'show, don't tell'? Give the AI a couple of examples before asking it to write. It's like giving it a template to follow — makes results way better. Ever heard 'show, don't tell'? Give the AI a couple of examples before asking it to write. It's like giving it a template to follow — makes results way better. Set the role: Tell the AI who it is. Like, 'You're a copywriting pro.' It helps the AI stay focused and write the right way. Tell the AI who it is. Like, 'You're a copywriting pro.' It helps the AI stay focused and write the right way. If this, then that: Want the AI to do different things depending on the situation? Use conditional prompts like 'If the product is eco-friendly, highlight sustainability. If not, focus on durability.' Easy! One of our users at Planpost AI used these tricks and saw their social media engagement jump by 40%! Just by guiding the AI better. Think of AI as your new creative buddy. But just like any great team, you both have roles to play. Here's how the process usually flows: First, you get ideas. Next, AI helps turn ideas into drafts. Then, you review what AI wrote and make it yours. Finally, you tweak and polish. It's a back-and-forth dance — not just one-and-done. Use AI for the heavy lifting like brainstorming and drafting. But when it comes to adding that special personal touch — your brand's voice, your unique style — that's where you shine. Here's a concise, side-by-side comparison of Planpost AI, ChatGPT, and Jasper all in one row for easy reading: Feature Planpost AI ChatGPT Jasper Strengths Marketing-focused, brand-aware, great for social posts Highly versatile, broad knowledge base Conversion-focused, excels in sales & ads copy Best For Social media posts, campaign content Brainstorming, long-form writing, customer support Ads, email campaigns, landing pages Key Features Marketing templates, brand tone control, multi-platform support Flexible chat interface, API access, extensive knowledge SEO integration, tone adjustment, conversion templates Ease of Use Very user-friendly, marketing-tailored UI Moderate; prompt learning curve User-friendly, marketing-focused UI Pricing (Approx.) Starts at $29/month Free tier; paid $20/month Plans from $49/month Ideal Users Marketers, social media managers, small businesses Writers, content creators, developers, researchers Digital marketers, copywriters, advertisers Think of prompt engineering like a new language — and like any language, it's evolving fast. What's on the horizon? Here are some exciting trends that'll shape how we work with AI: Imagine your AI prompts talking to each other — one prompt feeds into the next, creating a smooth workflow that builds complex content step-by-step without you having to do all the heavy lifting. Just like stock photos or templates, soon there will be marketplaces full of ready-made prompts created by experts. Need a perfect Instagram caption or a blog intro? You'll just grab a prompt, tweak it, and go! Why stop at text? AI is getting smarter at understanding images and combining them with words. Soon, you'll be able to give prompts that include pictures and get back even richer, more creative content. As prompts often include sensitive info, there's growing focus on prompt security — making sure your ideas, brand secrets, and data don't leak or get misused. Safe, smart prompting is becoming a priority. Prompting might sound technical, but at its heart, it's really about creativity and strategy. You don't need to be a coder or AI expert to do this well — you just need to think clearly about what you want and be willing to experiment. Remember: the best AI content comes from prompts that are tested, tweaked, and improved — just like any creative skill. So don't be afraid to play around, try new things, and learn from what works (and what doesn't). Your AI partner gets better the more you work together. ✅ Download the full prompt swipe file — your go-to collection of proven prompts for every platform and purpose. ✅ Try Planpost AI's ready-to-use prompt packs — crafted by marketing pros to save you time and boost results. ✅ Sign up for our newsletter 'Prompt Weekly' — get fresh AI prompt tips, trends, and tricks delivered straight to your inbox for free. Jump in, start experimenting, and watch your AI content skills soar! TIME BUSINESS NEWS


Business Wire
3 hours ago
- Business Wire
McGraw Hill, Inc. Reports Fiscal First Quarter 2026 Results
COLUMBUS, Ohio--(BUSINESS WIRE)--McGraw Hill, Inc. (NYSE: MH) ('McGraw Hill' or the 'Company'), a leading global provider of information solutions across education from preK-12 through higher education and professional learning, today announced financial results for its fiscal first quarter 2026 ended June 30, 2025. Fiscal First Quarter 2026 Key Financial Highlights Total revenue of $535.7 million, an increase of 2.4% year-over-year. Re-occurring revenue of $387.6 million, an increase of 7.1% year-over-year. Digital revenue of $325.0 million, an increase of 7.2% year-over-year. GAAP gross profit of $412.3 million, an increase of 3.7% year-over-year. Remaining performance obligation (RPO) of $1,650.2 million on June 30, 2025. Net income (loss) of $0.5 million, compared to $(9.4) million in the prior-year period. Adjusted EBITDA (1) of $191.4 million, an increase of 7.2% year-over-year. "McGraw Hill delivered strong performance in the fiscal first quarter reinforcing our leadership position in the market," said Simon Allen, McGraw Hill Chairman, President and CEO. "Our debut in the public markets was a significant milestone in our company's journey and a testament to our enduring, mission critical business. Through our deep understanding of learning methodologies, our wealth of data and insights, and our responsible and impactful use of artificial intelligence, we are seeing strong demand for McGraw Hill solutions which personalize the learning experience for millions of educators and students around the world." 'Our fiscal first quarter performance reflects McGraw Hill's track record of disciplined execution and profitable growth with results landing at the upper end of the ranges provided in our registration statement filed in July,' said Bob Sallmann, McGraw Hill Executive Vice President and Chief Financial Officer. 'The proceeds from our IPO have strengthened our balance sheet which we believe will deepen our competitive positioning through growth-oriented investments that leverage our scale ahead of robust market opportunities in fiscal year 2027 and beyond.' Fiscal First Quarter 2026 Business Highlights Revenue totaled $535.7 million, an increase of 2.4% year-over-year. The increase was driven primarily by re-occurring and digital revenue growth. Market share increased within U.S. higher education along with strong K-12 capture rate amid the predictably smaller fiscal year 2026 market. Gross profit margin improved over 90 basis points year-over-year to 77.0%, due to higher margin digital growth. Adjusted EBITDA margin (1) expanded over 150 basis points year-over-year to 35.7%, amid ongoing business reinvestment. New solutions and capabilities were bolstered through the impactful and responsible use of data science and GenAI to drive efficacy, solve pain points, and fuel continued growth and market expansion. Internal efficiencies captured through proprietary AI-powered solutions like Scribe, reducing cost and time to market within select product development. Performance on pace with historical seasonality with emphasis on first half fiscal year results in alignment with the academic calendar with approximately 60% of revenue and 65% of Adjusted EBITDA (1) typically realized in the first half of the fiscal year. K-12 Business Revenue totaled $270.9 million, a decline of 1.4% year-over-year. The decrease was expected due to the smaller overall market opportunity this fiscal year. Re-occurring revenue totaled $183.6 million, an increase of 10.1% year-over-year. Capture rates trended favorable with leadership across several state contracts and continued science program strength. Positioned for growth in the larger fiscal year 2027 market and beyond having secured review panel recommendation for California math while also conducting a nationwide flagship K-5 core literacy pilot. Higher Education Business Revenue totaled $182.4 million, an increase of 14.1% year-over-year. The increase was driven by share gains, enrollment, and continued demand for digital learning solutions. Re-occurring revenue totaled $159.6 million, an increase of 6.8% year-over-year. Momentum continued with Inclusive Access land and expand execution amid ongoing innovation. First-to-market Evergreen content delivery model gained traction, achieving a 95% acceptance rate among instructors receiving the update. Global Professional Business Revenue totaled $35.2 million, relatively steady year-over-year, as a 3.9% increase in re-occurring revenue was offset by the ongoing strategic exit of non-core solutions. International Business Revenue totaled $51.5 million, a decrease of 11.7% year-over-year, as regional specific contract timing resulted in an 8.7% re-occurring revenue decline amid continued digital transition. Fiscal First Quarter 2026 Financial Highlights Fiscal Year 2026 Guidance The following outlook is forward-looking, based on the Company's current expectations, and actual results may differ materially from what is indicated. Earnings Conference Call and Webcast Today, August 14, at 8:30 a.m. (ET), McGraw Hill will hold a conference call via webcast to review its fiscal Q1 2026 results and provide a business update. The webcast will be hosted by Simon Allen, Chairman, President and Chief Executive Officer, and Bob Sallmann, Executive Vice President and Chief Financial Officer, and will conclude with a Q&A period. To access the live webcast of the conference call or to view a replay, visit the Company's investor relations website at The conference call can also be accessed by registering online at the Event Registration Page at which time registrants will receive dial-in information as well as a conference ID. Registration can be completed in advance of the conference call. About McGraw Hill McGraw Hill (NYSE: MH) is a leading global provider of education solutions for preK-12, higher education and professional learning, supporting the evolving needs of millions of educators and students around the world. We provide trusted, high-quality content and personalized learning experiences that use data, technology and learning science to help students progress towards their goals. Through our commitment to fostering a culture of innovation and belonging, we are dedicated to improving outcomes and access to education for all. We have over 30 offices across North America, Asia, Australia, Europe, the Middle East and South America, and make our learning solutions available in more than 80 languages. The Company's fiscal year is a 52-week period ended March 31. Visit us at or find us on Facebook, Instagram, LinkedIn or X. Safe Harbor Statement This press release includes statements that are, or may be deemed to be, 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended (the 'Securities Act'), Section 21E of the Securities Exchange Act of 1934, as amended (the 'Exchange Act'), and the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of forward-looking terminology, including terms such as 'believes,' 'estimates,' 'anticipates,' 'expects,' 'projects,' 'intends,' 'plans,' 'may,' 'will,' 'should' or 'seeks,' or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts and include, but are not limited to, statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, the Company's results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which it operates. By their nature, forward-looking statements involve risks and uncertainties, as they relate to events and depend on circumstances that may or may not occur in the future. The Company's expectations, beliefs and projections are expressed in good faith, and the Company believes there is a reasonable basis for them; however, the Company cautions readers that forward-looking statements are not guarantees of future performance and that the Company's actual results of operations, financial condition and liquidity, and the developments in the industry in which the Company operates, may differ materially from those made in or suggested by the forward-looking statements contained in this press release. There are a number of risks, uncertainties and other important factors that could cause our actual results to differ materially from the forward-looking statements contained in this press release, including those described under the headings 'Risk Factors' and 'Cautionary Note Regarding Forward-Looking Statements' in the Company's final prospectus filed pursuant to Rule 424(b) under the Securities Act, filed on July 24, 2025, the Company's Quarterly Report on Form 10-Q and in other filings made with the U.S. Securities and Exchange Commission ('SEC'). In addition, even if our results of operations, financial condition and liquidity, and the developments in the industry in which we operate are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods. Any forward-looking statements the Company makes in this press release speak only as of the date of such statement. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information. future developments or otherwise, except as may be required by any applicable securities law. (1) Non GAAP Financial Measures In addition to presenting financial results that have been prepared in accordance with generally accepted principles in the United States ('GAAP'), we have included in this release all of the following non-GAAP financial measures—EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted net income (loss), Adjusted basic and diluted earnings (loss) per share, Adjusted operating and administrative expenses, Adjusted selling and marketing expenses, Adjusted general and administrative expenses and Adjusted research and development expenses—which are financial measures that are not required by or presented in accordance with GAAP. We believe that these non-GAAP financial measures are useful in evaluating our business and the underlying trends that are affecting our performance. The Company has included non-GAAP financial measures within the meaning of Regulation G and Item 10(e) of Regulation S-K. We include these non-GAAP financial measures in this release because management uses them to assess our performance. We believe they reflect the underlying trends and indicators of our business and allow management to focus on the most meaningful indicators of our continuous operational performance. Although we believe these measures are useful for investors for the same reasons, readers of the financial statements should note that these measures are not a substitute for GAAP financial measures or disclosures. Each of the above measures is not a recognized term under GAAP and do not purport to be an alternative to net income (loss), or any other measure derived in accordance with GAAP as a measure of operating performance, or to cash flows from operations as a measure of liquidity. Such measures are presented for supplemental information purposes only, have limitations as analytical tools, and should not be considered in isolation or as substitute measures for our results as reported under GAAP. Management uses non-GAAP financial measures to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. Because not all companies use identical calculations, our measures may not be comparable to other similarly titled measures of other companies, and our use of these measures varies from others in our industry. Such measures are not intended to be a measure of cash available for management's discretionary use, as they may not capture actual cash obligations associated with interest payments, taxes and debt service requirements. Because of these limitations, we rely primarily on our GAAP results and use these non-GAAP measures only supplementally. See 'Reconciliations of Non-GAAP Financial Measures' in the 'Supplemental Information' section further below and 'Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures' in our Quarterly Report on Form 10-Q for reconciliations of non-GAAP financial measures to the most directly comparable financial measure stated in accordance with GAAP. Forward-Looking Non-GAAP Financial Measures This press release contains forward-looking estimates of Adjusted EBITDA for fiscal year 2026. We provide this non-GAAP measure to investors on a prospective basis for the same reasons (set forth above) that we provide it to investors on a historical basis. We are unable to provide a reconciliation of our forward-looking estimate of fiscal year 2026 net income (loss) to a forward-looking estimate of fiscal year 2026 Adjusted EBITDA because certain information needed to make a reasonable forward-looking estimate of net income (loss) for fiscal year 2026 is unreasonably difficult to predict and estimate and is often dependent on future events that may be uncertain or outside of our control. In addition, we believe such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The unavailable information could have a significant impact on our future financial results. Our forward-looking estimates of both GAAP and non-GAAP measures of our financial performance may differ materially from our actual results and should not be relied upon as statements of fact. MCGRAW HILL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except for share data) March 31, 2025 (Unaudited) Assets Current assets Cash and cash equivalents $ 247,331 $ 389,830 Accounts receivable, net of allowance for credit losses of $11,052 and $13,521 as of June 30, 2025 and March 31, 2025, respectively 444,689 338,426 Inventories, net 160,722 174,018 Prepaid and other current assets 139,087 150,357 Total current assets 991,829 1,052,631 Product development costs, net 232,727 222,182 Property, plant and equipment, net 96,557 95,197 Goodwill 2,557,595 2,557,595 Other intangible assets, net 1,397,017 1,454,185 Deferred income taxes 7,119 7,983 Operating lease right-of-use assets 49,877 49,661 Other non-current assets 328,744 318,326 Total assets $ 5,661,465 $ 5,757,760 Liabilities and stockholders' equity (deficit) Current liabilities Accounts payable $ 117,142 $ 146,742 Accrued royalties 100,476 71,457 Accrued compensation 36,017 124,954 Deferred revenue 737,620 794,031 Current portion of long-term debt 13,170 13,170 Operating lease liabilities 8,108 8,042 Other current liabilities 186,465 172,023 Total current liabilities 1,198,998 1,330,419 Long-term debt 3,165,341 3,164,551 Deferred income taxes 15,005 15,656 Long-term deferred revenue 912,559 882,156 Operating lease liabilities 64,385 64,737 Other non-current liabilities 21,916 19,997 Total liabilities 5,378,204 5,477,516 Commitments and contingencies Stockholders' equity (deficit) Class A voting common stock, par value $0.01 per share; 186,471,212 shares authorized, 165,160,216 shares issued and outstanding as of June 30, 2025 and March 31, 2025 1,652 1,652 Class B non-voting common stock, par value $0.01 per share; 14,384,922 shares authorized, 1,451,303 shares issued and outstanding as of June 30, 2025 and March 31, 2025 14 14 Additional paid-in capital 1,562,204 1,562,204 Accumulated deficit (1,280,698 ) (1,281,200 ) Accumulated other comprehensive income (loss) 89 (2,426 ) Total stockholders' equity (deficit) 283,261 280,244 Total liabilities and stockholders' equity (deficit) $ 5,661,465 $ 5,757,760 Expand MCGRAW HILL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited; dollars in thousands) Three Months Ended June 30, 2025 2024 Operating activities Net income (loss) $ 502 $ (9,447 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities Depreciation (including amortization of technology costs) 17,187 14,434 Amortization of intangibles 57,365 61,179 Amortization of product development costs 13,302 13,267 Amortization of deferred royalties 34,669 33,311 Amortization of deferred commission costs 7,435 11,971 Credit losses on accounts receivable (2,286 ) (1,586 ) Unrealized (gain) loss on interest rate cap — 117 Inventory obsolescence 3,486 3,903 Deferred income taxes 864 (403 ) Amortization of debt discount 3,352 3,989 Amortization of deferred financing costs 1,253 1,405 Changes in operating assets and liabilities: Accounts receivable (105,289 ) (193,170 ) Inventories 10,544 25,825 Prepaid and other current assets (28,185 ) (38,795 ) Accounts payable and accrued expenses (91,569 ) (12,600 ) Deferred revenue (27,553 ) 55,224 Other current liabilities 12,233 28,119 Other changes in operating assets and liabilities, net (3,962 ) 362 Cash provided by (used for) operating activities (96,652 ) (2,895 ) Investing activities Product development expenditures (22,788 ) (18,972 ) Capital expenditures (16,283 ) (15,919 ) Cash provided by (used for) investing activities (39,071 ) (34,891 ) Financing activities Payment of A&E Term Loan Facility (3,292 ) — Payment of Term Loan Facility — (5,312 ) Payment of finance lease obligations (1,718 ) (2,929 ) Deferred Initial Public Offering costs (2,374 ) — Cash provided by (used for) financing activities (7,384 ) (8,241 ) Effect of exchange rate changes on cash 608 428 Net change in cash and cash equivalents (142,499 ) (45,599 ) Cash and cash equivalents, at the beginning of the period 389,830 203,618 Cash and cash equivalents, at the end of the period $ 247,331 $ 158,019 Supplemental disclosures Cash paid for interest expense $ 22,408 $ 53,749 Cash paid for income taxes 56,813 8,048 Expand Supplemental Information Reconciliations of Non-GAAP Financial Measures EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin EBITDA is defined as net income (loss) from continuing operations plus interest expense (income), net, income tax provision (benefit), depreciation and amortization. Adjusted EBITDA is defined as net income (loss) from continuing operations plus interest expense (income), net, income tax provision (benefit), depreciation and amortization, restructuring and cost savings implementation charges, the effects of the application of purchase accounting, advisory fees paid to Platinum Advisors pursuant to the Advisory Agreement (which was terminated upon consummation of our IPO), impairment charges, transaction and integration costs, (gain) loss on extinguishment of debt and the impact of earnings or charges resulting from matters that we do not consider indicative of our ongoing operations. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenue. The following table presents a reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin to the most directly comparable GAAP financial measure for the three months ended June 30, 2025 and 2024: Three Months Ended June 30, ($ in thousands) 2025 2024 Net income (loss) $ 502 $ (9,447 ) Interest expense (income), net 58,774 80,876 Income tax provision (benefit) 36,949 4,351 Depreciation, amortization and product development amortization 87,854 88,880 EBITDA $ 184,079 $ 164,660 Restructuring and cost savings implementation charges (a) 3,106 6,571 Advisory fees (b) 2,500 2,500 Transaction and integration costs (c) 100 1,094 Other (d) 1,631 3,769 Adjusted EBITDA $ 191,416 $ 178,594 Total Revenue $ 535,710 $ 522,954 Net income (loss) margin 0.1 % (1.8 )% Adjusted EBITDA Margin 35.7 % 34.2 % Expand ____________________ (a) Represents severance and other expenses associated with headcount reductions and other cost savings initiated as part of our formal restructuring initiatives. (b) For the three months ended June 30, 2025 and 2024, represents $2.5 million of advisory fees paid to Platinum Advisors pursuant to the Advisory Agreement (which was terminated upon consummation of our IPO). (c) This primarily represents transaction and integration costs associated with acquisitions. (d) For the three months ended June 30, 2025, the amount represents (i) foreign currency exchange transaction impact of $(1.9) million, (ii) non-recurring expenses related to strategic initiatives, including marketing, consulting, and non-operational costs associated with the market introduction of a new product launch of $0.8 million, (iii) reimbursements of expenses paid to Platinum Advisors incurred in connection with its services under the Advisory Agreement of $0.1 million, (iv) non-recurring transaction-related costs associated with this offering that were expensed as incurred of $1.9 million and (v) the impact of additional insignificant earnings or charges resulting from matters that we do not consider indicative of our ongoing operations of $0.7 million, that are primarily related to individually insignificant miscellaneous items, including asset disposals and certain additional payments related to incremental insurance premiums and policies as a result of the Acquisition that will not renew after the consummation of the IPO. For the three months ended June 30, 2024, the amount represents (i) foreign currency exchange transaction impact of $0.5 million, (ii) non-recurring expenses related to strategic initiatives, including marketing, consulting, and non-operational costs associated with the market introduction of a new product launch of $1.4 million, (iii) reimbursements of expenses paid to Platinum Advisors incurred in connection with its services under the Advisory Agreement of $0.3 million, (iv) post-acquisition compensation expense of $0.2 million, associated with the acquisition of Boards & Beyond, and (v) the impact of additional insignificant earnings or charges resulting from matters that we do not consider indicative of our ongoing operations of $1.4 million, primarily related to individually insignificant miscellaneous items, including third-party consulting and advisory fees associated with system and process rationalization initiatives, as well as certain additional payments related to incremental insurance premiums and policies as a result of the Acquisition that will not renew after the consummation of the IPO. Expand Adjusted net income (loss) and Adjusted basic and diluted earnings (loss) per share Adjusted net income (loss) is defined as net income (loss) from continuing operations adjusted to exclude amortization of intangible assets, restructuring and cost savings implementation charges, the effects of the application of purchase accounting, advisory fees paid to Platinum Advisors pursuant to the Advisory Agreement (which was terminated upon consummation of our IPO), impairment charges, transaction and integration costs, (gain) loss on extinguishment of debt and the impact of earnings or charges resulting from matters that we do not consider indicative of our ongoing operations and the related tax impact of those adjustments. We define Adjusted basic and diluted earnings (loss) per share as Adjusted net income (loss) divided by the basic and diluted weighted average shares outstanding. The following table presents a reconciliation of Adjusted net income (loss) and Adjusted basic and diluted earnings (loss) per share to the most directly comparable GAAP financial measure for the three months ended June 30, 2025 and 2024: ____________________ (1) Represents amortization of definite-lived acquired intangible assets. (2) Represents the same adjustments used in calculating EBITDA and Adjusted EBITDA. (3) Represents the tax impact of the adjustments, which are pre-tax, based upon the statutory tax rate. Expand Non-GAAP operating and administrative expenses Adjusted operating and administrative expenses is defined as GAAP operating and administrative expenses adjusted to exclude restructuring and cost savings implementation charges, advisory fees paid to Platinum Advisors pursuant to the Advisory Agreement (which was terminated upon consummation of our IPO), transaction and integration costs, amortization of product development costs and the impact of earnings or charges resulting from matters that we do not consider indicative of our ongoing operations. Adjusted selling and marketing expenses is defined as GAAP selling and marketing expenses adjusted to exclude the impact of earnings or charges resulting from matters that we do not consider indicative of our ongoing operations. Adjusted general and administrative expenses is defined as GAAP general and administrative expenses adjusted to exclude restructuring and cost savings implementation charges, advisory fees paid to Platinum Advisors pursuant to the Advisory Agreement (which was terminated upon consummation of our IPO), transaction and integration costs and the impact of earnings or charges resulting from matters that we do not consider indicative of our ongoing operations. Adjusted research and development expenses is defined as GAAP research and development expenses adjusted to exclude the impact of earnings or charges resulting from matters that we do not consider indicative of our ongoing operations. The following table presents a reconciliation of these non-GAAP operating and administrative expenses to the most directly comparable GAAP financial measure for the three months ended June 30, 2025 and 2024: ____________________ (1) We calculate each of these measures by using the same adjustments used in calculating EBITDA and Adjusted EBITDA to the extent such items are included in the corresponding GAAP operating and administrative expense category. Expand Key Operating Metrics Re-occurring Revenue and Transactional Revenue for the Three Months Ended June 30, 2025 and 2024 Three Months Ended June 30, 2025 2024 ($ in thousands) Re-occurring Revenue Transactional Revenue Total Re-occurring Revenue Transactional Revenue Total K-12 $ 183,641 $ 87,290 $ 270,931 $ 166,819 $ 108,008 $ 274,827 Higher Education 159,552 22,827 182,379 149,454 10,392 159,846 Global Professional 23,657 11,502 35,159 22,773 12,514 35,287 International 20,764 30,700 51,464 22,752 35,559 58,311 Other — (4,223 ) (4,223 ) — (5,317 ) (5,317 ) Total Revenue $ 387,614 $ 148,096 $ 535,710 $ 361,798 $ 161,156 $ 522,954 Expand RPO as of June 30, 2025 and as of March 31, 2025 June 30, 2025 March 31, 2025 ($ in thousands) Current Non-current Total Current Non-current Total RPO by Segment: K-12 $ 472,329 $ 854,715 $ 1,327,044 $ 457,353 $ 822,232 $ 1,279,585 Higher Education 173,796 47,934 221,730 247,685 49,631 297,316 Global Professional 57,426 6,950 64,376 54,949 7,399 62,348 International 26,315 2,960 29,275 30,515 2,892 33,407 Other 7,754 — 7,754 3,531 — 3,531 Total RPO $ 737,620 $ 912,559 $ 1,650,179 $ 794,033 $ 882,154 $ 1,676,187 Expand Digital and Print Revenue Disaggregation of Revenue for the Three Months Ended June 30, 2025 and 2024 Three Months Ended June 30, 2025 2024 ($ in thousands) Digital Print (1) Total Digital Print (1) Total Revenue by Segment: K-12 $ 108,597 $ 162,334 $ 270,931 $ 99,618 $ 175,209 $ 274,827 Higher Education 168,826 13,553 182,379 153,955 5,891 159,846 Global Professional 25,272 9,887 35,159 25,093 10,194 35,287 International 22,353 29,111 51,464 24,559 33,752 58,311 Other (2) — (4,223 ) (4,223 ) — (5,317 ) (5,317 ) Expand ____________________ (1) Print revenue contains print and multi-year print products. (2) Includes in-transit product sales and intersegment revenue adjustments that are not included within segment revenues reviewed by the Company's Chief Operating Decision Maker. Expand

Politico
4 hours ago
- Politico
DC throws shade at Canada
Presented by Welcome to Canada Playbook. Let's get into it. In today's edition: → Canadian approval of Washington crashes under Trump. → Defense Minister DAVID MCGUINTY's tour of duty. → How Trump's State Department sees Canada. Trade war CROSS-BORDER COLD FRONT — Canadians' views of U.S. leadership have turned increasingly negative since President DONALD TRUMP returned to office, a new Gallup poll found. Here's what POLITICO's JACOB WENDLER dug out of the new report: — Approval of Washington dropped to 15 percent — its lowest since Trump's first term — with nearly four in five Canadians disapproving of U.S. leadership's job performance. — That exceeds disapproval ratings for Chinese leadership, with 64 percent of Canadians expressing disapproval of Beijing. — Canadians' approval of their own leadership rose nearly 20 percentage points from last year, with nearly 60 percent of Canadians approving of the country's leaders. Read the write-up here. DRIVING THE DAY 5 BASES, 4 PROVINCES — If it's Thursday, DAVID MCGUINTY is likely in British Columbia. Canada's new defense minister has been on a tour of Canadian bases. We're guessing he's going to turn up at CFB Esquimalt and CFB Comox. McGuinty has crossed the country this week, promoting the 20 percent pay raise — and various social supports for military families — that Prime Minister MARK CARNEY announced last week at a base in Trenton, Ontario. — Answering Trump: The boost in salaries is part of Canada's promise to hit the old NATO spending target of 2 percent of GDP by March 2026 — and reach the new 5 percent benchmark by 2035, in answer to President TRUMP's repeated complaints about freeloaders. — I've been everywhere: McGuinty's tour started Monday at CFB Borden, an Ontario base that is home to the military's largest training institution. 'This is part and parcel of reinvesting in our Canadian Armed Forces, making sure that we have a dynamic, resilient and a lethal armed forces,' he told reporters. The minister had a sit-down there with the base commander and troops to discuss the hemorrhaging of full-time personnel and what his predecessor BILL BLAIR described as the 'death spiral' of recruitment. On Tuesday, McGuinty showed up at CFB Winnipeg. The next day, he was at CFB Cold Lake in Alberta. — Reality check: Playbook spoke to CHARLOTTE DUVAL-LANTOINE, vice president of Ottawa operations for the Canadian Global Affairs Institute — and a Ph.D. candidate studying military behavior, structure and culture. She said a vast majority of military members have lost trust in Ottawa after empty commitments from successive governments. She gave McGuinty credit for delivering news of the pay increases and new benefits in person. Here are a few more takeaways from our conversation: → Service members are jaded from the get-go. 'They tend to assume that things are going to go poorly — that the government is not going to live up to their promises,' Duval-Lantoine explained. → It's not just about money. McGuinty must focus on retaining staff and warding off 'another affordability crisis' that may drive away more serving members, she added. → And it's not just about salaries. The military's housing crisis deserves attention, she said. 'Do we need to post and move people geographically as much as we are?' Duval-Lantoine asks. 'It's also a problem of well being, of military families, where they get uprooted all the time — and that creates problems for dual-income [earning], but also for children and their stability.' For your radar 'STATE' OF SHOCK — The U.S. State Department just published its latest take on the state of human rights in Canada, one of a trove of takes on countries all around the world. Some of those reports, per the NYT, 'left out language on persistent abuses in many nations that was present in prior reports.' This year's Canada assessment, which dropped this week, bears little resemblance to the milquetoast 2023 edition. The Trump administration deploys sharp criticism of Ottawa in a document laced with political barbs directed at Canada's federal government. The report reaffirmed that freedom of expression was a thing in Canada, but claimed 'significant curtailments' of press freedom. Rebel News subscribers will applaud a lot of it. Liberals' heads will explode. A few examples that stand out: → Trucker convoy: The report's authors describe the 2022 protests that took over much of downtown Ottawa for several weeks as a response to 'draconian lockdown measures that substantially damaged the communities and economic livelihoods of many Canadians.' The report claims the government's response to the protests included 'large-scale social media censorship and debanking.' (A Federal Court judge ruled the government's invocation of the Emergencies Act was unreasonable. A public inquiry saw things differently.) → Court action: The assessment notes a different Federal Court ruling that upheld the government's disqualification of Rebel News from journalism tax credits — and describes Rebel as 'one of the few in the country that produced critical reporting on the government's response to protests of the COVID-19 lockdowns.' That's certainly a take. → The Don Jr. Show: The assessment highlighted a lawsuit with its roots in a May 2024 event co-hosted by Rebel and Rumble. Among the headliners: DONALD TRUMP JR., journalist GLENN GREENWALD and YouTuber DAVID FREIHEIT. The organizers, the report notes, are suing Canada Lands Company (which operates the park where the event was held) and former Toronto MP YA'ARA SAKS for allegedly slapping 'unwarranted' security costs on the event and attempting to disrupt it. → Follow the money: The authors claimed that most private media outlets were 'substantially dependent' on taxpayer funding — with apparent consequences: 'Government intervention in the media market favored means of communication that did not diverge from government-suggested bounds of political speech, and government policy and practices often disadvantaged independent media,' read the report. Another eye-opening claim: 'News organizations faced direct and indirect pressure to conform their political speech in order to gain or maintain access to these funds, leading to self-censorship. Independent news organizations that did not take government funds faced a substantial market disadvantage.' → DEI in the crosshairs: The authors also noted federal funding that prioritized local journalists from various marginalized groups as 'discriminating against journalists who fell outside of these favored categories.' THE ROOMS THAT MATTER — PM CARNEY is on a lighter work schedule somewhere in the National Capital Region. — Governor General MARY SIMON will speak at the WAVES 2025: Global Indigenous Languages Summit. — Conservative Leader PIERRE POILIEVRE will hold a press conference in Saskatoon at 11 a.m. ET. — PBO YVES GIROUX posts a new report entitled 'Forecasting Federal Capital Expenses' at 9 a.m. ET. Want more POLITICO? Download our mobile app to save stories, get notifications on U.S.-Canada relations, and more. In iOS or Android . ALSO FOR YOUR RADAR CHARM OFFENSIVE — The PM's office ended some unnecessary suspense Wednesday over whether he'd be part of a virtual gathering of the 'coalition of the willing.' The PM did end up on a call with leaders from the U.K., France, Germany, Ukraine — and U.S. Vice President JD VANCE. The side meeting, convened by German Chancellor FRIEDRICH MERZ, was ahead of Friday's high-stakes summit in Alaska between POTUS and Russian President VLADIMIR PUTIN. — Yesterday, not today: Carney's office declined to confirm his attendance when pressed by Playbook. But it later issued a release marking his participation and announcing an additional C$2 billion in military support for Ukraine. The PM was not part of two core sessions Merz organized with Trump, Ukrainian President VOLODYMYR ZELENSKYY and other European leaders. According to our colleagues in Europe, Merz and French President EMMANUEL MACRON emerged from those talks hopeful Trump will push for a Ukraine ceasefire — and avoid trading Ukrainian territory during the negotiations. MORNING MUST-CLICKS — Top of the Globe this morning: Nearly 150 Canadians held in ICE custody this year, including two toddlers, data show. — The Canadian Press reports: A Chinese tariff of nearly 76 percent on Canadian canola seed is set to come into force today. — ERIN O'TOOLE cites SUN TZU in an essay on Canada's lessons learned in trade talks with the Trump administration. — Conservative Leader PIERRE POILIEVRE told the Calgary Herald that he's campaigning in Battle River-Crowfoot like he's 'one vote behind.' — From The Logic's JOANNA SMITH: 'Saudi bank saga reveals the lobbying registry's vulnerability.' — In D.C., The Hill reports: Trump's tariffs are forcing Canada to address its money laundering problem. — Fratton Park founder REGAN WATTS dropped some spicy language on The Ben Mulroney Show directed at ANA POILIEVRE, who had posted an Instagram story that complained about Air Canada flight delays. 'That is not what we should be doing in this country, particularly as public figures,' Watts said just past the show's 11-minute mark. 'We should be supporting our large companies and supporting the employees who work there.' — The Globe's MARK RENDELL reports that the Bank of Canada's governing council is divided on the need for more interest rate relief. LOBBY WATCH Our daily check-in on federal lobbyist registrations and notable meetings around town: — Prime Minister Carney publicly noted a July 2 meeting with the Canadian Vehicle Manufacturers' Association and its Big Three automaker CEOs. The CVMA's entry in the lobbyist registry reveals who else was in the room: former PMO chief of staff MARCO MENDICINO, principal secretary TOM PITFIELD and senior policy adviser MATHEW HALL; and Finance Minister FRANÇOIS-PHILIPPE CHAMPAGNE. — The Canadian Bankers Association logged a July 3 meeting with 'fentanyl czar' KEVIN BROSSEAU and his senior staff; and a July 22 check-in with Liberal MP KARINA GOULD, chair of the House finance committee. — The Aluminium Association of Canada met KIRSTEN HILLMAN, Canada's top envoy in Washington, three times in July. — The United Steelworkers logged July meetings with Carney, Hillman, Labor secretary of state JOHN ZERUCELLI, and Hamilton-area Liberal MPs. — Heidelberg Materials, which scored millions in federal support for a carbon capture, utilization, and storage project in Edmonton, Alberta, logged an Aug. 2 meeting with PMO chief of staff MARC-ANDRÉ BLANCHARD and principal secretary DAVID LAMETTI. — Innovative Medicines Canada met with Industry Minister MÉLANIE JOLY on July 18. PROZONE For POLITICO Pro subscribers, here's our latest trade news: — Trump administration looks to award $1B to critical minerals projects. — US, other fossil fuel producers try to weaken plastics treaty. — A 'glacial outburst' is flooding Alaska's capital. — EIA: Oil production to fall as prices drop to pandemic levels. — Minnesota Dems in hot seat over Boundary Waters mining. And our latest Pro policy newsletter: Diplomacy on a deadline. PLAYBOOKERS Birthdays: HBD to Sen. TONY LOFFREDA, former MP and MPP GARY CARR (70!), former Sen. RAYNELL ANDREYCHUK and GORDON THIESSEN, sixth governor of the Bank of Canada. Movers and shakers: The Globe reports that MARK MULRONEY is joining CIBC as a vice chair in the office of incoming CEO HARRY CULHAM. Noted: Elections Canada published preliminary data for the Battle River-Crowfoot byelection that showed 14,454 voters cast ballots at advance polls. That's roughly 17 percent of the 84,515 total voters in the riding (which is also a preliminary count). TRIVIA Wednesday's answer: PIERRE POILIEVRE was born on PIERRE TRUDEAU's last full day in office following the 1979 federal election. Props to REID ALEXANDER, DARREN MAJOR, JOHN DILLON, RALPH LEVENSTEIN, BOOTS VAISEY, CAMERON RYAN, THOR CHRISTIANSON, ELIZABETH BURN, STUART BENSON, STEPHEN HAAS, DARRYL DAMUDE, MALCOLM MCKAY, MAIA EASTMAN, AMY SCANLON BOUGHNER, DOUGLAS HEATH, CHRIS FARLEY, SHEILA GERVAIS, FRANCIS DOWNEY. Today's question: Which notable lake in Gatineau Park lies immediately to the southeast of Harrington Lake? Send your answer to canadaplaybook@ Writing tomorrow's Playbook: MICKEY DJURIC. Canada Playbook would not happen without: Canada Editor Sue Allan, editor Willa Plank and POLITICO's Grace Maalouf.