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Graham Holdings Q3 2026 net income falls 39%

Kaplan's Dublin Business School sale closed for $127.5 million, while Graham Holdings' nine-month operating income was $227.0 million.

Filing Impact
(High)
Filing Sentiment

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Form Type
8-K

Rhea-AI Filing Summary

Graham Holdings Company (GHC) reported third-quarter 2026 revenue of $1,326.0 million, up 4% from $1,278.9 million a year earlier, and operating income of $85.5 million versus $67.1 million, up 27%. Net income attributable to common stockholders was $75.1 million compared with $122.9 million; adjusted net income was $80.2 million versus $62.0 million. Adjusted operating cash flow, a non-GAAP measure, was $121.8 million versus $110.1 million.

For the first nine months of 2026, revenue was $3,864.5 million, up 6%, and operating income was $227.0 million versus $187.4 million. Net income attributable to common stockholders was $385.3 million versus $183.6 million, and adjusted operating cash flow was $354.5 million versus $309.5 million. Education revenue and operating income fell 14% and 20%, respectively, in the quarter. Kaplan sold all outstanding shares of Accountancy & Business College (Ireland) Limited, which operates Dublin Business School, together with certain intellectual property, to China Chunlai Education Group Co., Ltd. for $127.5 million; the sale closed October 27, 2026. At September 30, 2026, borrowings were $853.4 million, and cash, marketable equity securities and other investments totaled $1,246.2 million, excluding DBS cash classified as held for sale.

3 points · 0 major

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 2 points

How the balance works

Positive

  • Moderate pointOperating income increased 27% in Q3 and 21% in the first nine months of 2026.
  • Moderate pointNine-month revenue increased 6% to $3,864.5 million.
  • Moderate pointNine-month adjusted operating cash flow increased 15% to $354.5 million.

Negative

  • Moderate pointQ3 net income attributable to common stockholders declined 39% to $75.1 million.
  • Moderate pointEducation division Q3 revenue fell 14% and operating income fell 20%.

Filing Explained

During the first nine months of 2026, Graham Holdings bought 176,529 Class B shares for $198.6 million; at September 30, 2026, 4,185,665 shares were outstanding and the board had remaining authority to buy up to 285,953 more, which is authorization rather than a completed purchase.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Operating revenue $1,326.0 million Third quarter 2026; up 4% from $1,278.9 million in third quarter 2025
Operating income $85.5 million Third quarter 2026; up 27% from $67.1 million in third quarter 2025
Net income attributable to common stockholders $75.1 million Third quarter 2026; down 39% from $122.9 million in third quarter 2025
Diluted net income per common share $17.60 per share Third quarter 2026; down 37% from $27.91 per share in third quarter 2025
Operating revenue $3,864.5 million First nine months of 2026; up 6% from $3,660.5 million in the first nine months of 2025
Operating income $227.0 million First nine months of 2026; up 21% from $187.4 million in the first nine months of 2025
Adjusted operating cash flow (non-GAAP) $354.5 million First nine months of 2026; up 15% from $309.5 million in the first nine months of 2025
Sale price $127.5 million Kaplan's sale of the company operating Dublin Business School and certain intellectual property; closed October 27, 2026
Adjusted Operating Cash Flow financial
"Adjusted Operating Cash Flow (non-GAAP)"
Adjusted operating cash flow is the cash a company generates from its core business after removing one-time, nonrecurring or accounting-driven items so the number better reflects ongoing cash generation. Investors use it to judge whether a company’s day-to-day operations reliably produce cash to pay bills, invest and service debt—similar to checking a household’s regular paycheck after stripping out an occasional tax refund or one-off sale to see true, repeatable income.
mandatorily redeemable noncontrolling interest financial
"fair value adjustment of the mandatorily redeemable noncontrolling interest"
A mandatorily redeemable noncontrolling interest is a minority ownership stake that the issuing company is legally required to buy back or repay at a set future date or upon a specific trigger. Think of it as a hybrid between an ownership share and a timed loan — it gives outsiders a stake today but creates a known cash obligation later. Investors watch it because it can change reported leverage, reduce future cash available for operations or dividends, and affect how risky the company appears.
marketable equity securities financial
"net losses on marketable equity securities"
Marketable equity securities are ownership shares in companies that can be quickly bought or sold on public exchanges or other active markets. They matter to investors because they can be converted to cash fast, affect a firm's reported assets and risk exposure, and their market price moves with investor sentiment—think of them like stocks on a busy trading floor that you can usually sell immediately if you need money or want to adjust your portfolio.
held for sale financial
"assets and liabilities of DBS as held for sale"
An asset or a group of assets classified as 'held for sale' is one the company intends to sell rather than keep using, and management has committed to that plan with an active effort to find a buyer. Investors care because these items are removed from ongoing operating results and valued differently, offering a clearer view of the business’s continuing performance—think of it like marking a piece of furniture for the garage sale rather than counting it as part of your regular household setup.
Operating revenue $1,326.0 million Up 4% from $1,278.9 million in third quarter 2025
Operating income $85.5 million Up 27% from $67.1 million in third quarter 2025
Net income attributable to common stockholders $75.1 million Down 39% from $122.9 million in third quarter 2025
Diluted net income per common share $17.60 per share Down 37% from $27.91 per share in third quarter 2025
Adjusted operating cash flow (non-GAAP) $121.8 million Up 11% from $110.1 million in third quarter 2025

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were GHC's third-quarter 2026 revenue and earnings?
GHC reported third-quarter revenue of $1,326.0 million, up 4% from $1,278.9 million, and operating income of $85.5 million, up 27% from $67.1 million. Net income attributable to common stockholders was $75.1 million, compared with $122.9 million in the third quarter of 2025.

What was the sale price for Dublin Business School?
Kaplan sold all outstanding shares of Accountancy & Business College (Ireland) Limited, which operates Dublin Business School, together with certain intellectual property, for $127.5 million. China Chunlai Education Group Co., Ltd. was the buyer, and the transaction closed October 27, 2026.

How many GHC Class B shares did Graham Holdings repurchase in 2026?
Graham Holdings purchased 176,529 shares of its Class B common stock for $198.6 million during the first nine months of 2026. The company had authorization remaining for 285,953 shares as of September 30, 2026.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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false000010488900001048892026-10-292026-10-29

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 29, 2026
GRAHAM HOLDINGS COMPANY
(Exact name of registrant as specified in its charter) 
Delaware
001-06714
53-0182885
(State or other jurisdiction of
incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
1812 North Moore Street, Arlington, Virginia
22209
(Address of principal executive offices)(Zip Code)
(703) 345-6300
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbolName of each exchange on which registered
Class B Common Stock, par value $1.00 per shareGHCNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 

Item 2.02          Results of Operations and Financial Condition.
On October 29, 2026, Graham Holdings Company issued a press release announcing the Company’s earnings for the third quarter ended September 30, 2026.  A copy of this press release is furnished with this report as an exhibit to this Form 8-K.
Item 9.01          Financial Statements and Exhibits.
Exhibit 99.1 Graham Holdings Company Earnings Release Dated October 29, 2026.


2
Exhibit Index
 
 
Exhibit 99.1    Graham Holdings Company Earnings Release dated October 29, 2026.

Exhibit 104    Cover Page Interactive Data File, formatted in Inline XBRL and included as Exhibit 101.

3
SIGNATURE
 
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
Graham Holdings Company
(Registrant)
Date: October 29, 2026/s/ Wallace R. Cooney
Wallace R. Cooney,
Chief Financial Officer
(Principal Financial Officer)


 
 

4

Exhibit 99.1
Contact: Wallace R. CooneyFor Immediate Release 
(703) 345-6470October 29, 2026
GRAHAM HOLDINGS COMPANY REPORTS
THIRD QUARTER EARNINGS
ARLINGTON, VA - Graham Holdings Company (NYSE: GHC) today reported its financial results for the third quarter of 2026. The Company also filed its Form 10-Q today for the quarter ended September 30, 2026 with the Securities and Exchange Commission.
Division Operating Results
Revenue for the third quarter of 2026 was $1,326.0 million, up 4% from $1,278.9 million in the third quarter of 2025. The Company reported operating income of $85.5 million for the third quarter of 2026, compared to $67.1 million for the third quarter of 2025. The Company reported adjusted operating cash flow (non-GAAP) of $121.8 million for the third quarter of 2026, compared to $110.1 million for the third quarter of 2025. Revenues, operating results and adjusted operating cash flow increased at television broadcasting, healthcare, manufacturing, automotive and other businesses, partially offset by a decline at education. Capital expenditures totaled $39.6 million and $20.2 million for the third quarter of 2026 and 2025, respectively.
Revenue for the first nine months of 2026 was $3,864.5 million, up 6% from $3,660.5 million in the first nine months of 2025. The Company reported operating income of $227.0 million for the first nine months of 2026, compared to $187.4 million for the first nine months of 2025. Revenues and operating results increased at television broadcasting, healthcare, manufacturing, automotive and other businesses, partially offset by a decline at education. The Company reported adjusted operating cash flow (non-GAAP) of $354.5 million for the first nine months of 2026, compared to $309.5 million for the first nine months of 2025. Adjusted operating cash flow increased at television broadcasting, manufacturing, automotive and other businesses, partially offset by declines at education and healthcare. Capital expenditures totaled $80.2 million and $54.1 million for the first nine months of 2026 and 2025, respectively.
Disposition of Business
In the third quarter of 2026, Kaplan entered into an agreement to sell Dublin Business School (DBS) to China Chunlai Education Group Co., Ltd., a provider of private higher education in China. At September 30, 2026, the Company classified the assets and liabilities of DBS as held for sale. The transaction closed on October 27, 2026. Under the terms of the Share Purchase Agreement, Kaplan sold all of the outstanding shares of Accountancy & Business College (Ireland) Limited, which operates DBS, together with certain intellectual property, for $127.5 million.
Debt, Cash and Marketable Equity Securities
At September 30, 2026, the Company had $853.4 million in borrowings outstanding at an average interest rate of 5.8%, including $186.2 million outstanding on its $400 million revolving credit facility. Cash, marketable equity securities and other investments totaled $1,246.2 million at September 30, 2026, excluding DBS cash classified as held for sale.
Overall, the Company recognized $15.0 million in net losses and $17.9 million in net gains on marketable equity securities in the third quarter and first nine months of 2026, compared to $84.8 million and $117.0 million in net gains on marketable equity securities in the third quarter and first nine months of 2025.
Common Stock Repurchases
During the first nine months of 2026, the Company purchased a total of 176,529 shares of its Class B common stock at a cost of $198.6 million. At September 30, 2026, there were 4,185,665 shares outstanding. On September 12, 2024, the Board of Directors authorized the Company to acquire up to 500,000 shares of its Class B common stock; the Company has remaining authorization for 285,953 shares as of September 30, 2026.
Overall Company Results
The Company reported net income attributable to common shares of $75.1 million ($17.60 per share) for the third quarter of 2026, compared to $122.9 million ($27.91 per share) for the third quarter of 2025.
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1

For the first nine months of 2026, the Company reported net income attributable to common shares of $385.3 million ($88.92 per share), compared to $183.6 million ($41.75 per share) for the first nine months of 2025.
The results for the third quarter and first nine months of 2026 and 2025 were affected by a number of items as described in the Non-GAAP Financial Information schedule attached to this release. Excluding these items, net income attributable to common shares was $80.2 million ($18.77 per share) for the third quarter of 2026, compared to $62.0 million ($14.08 per share) for the third quarter of 2025. Excluding these items, net income attributable to common shares was $238.2 million ($54.98 per share) for the first nine months of 2026, compared to $176.1 million ($40.05 per share) for the first nine months of 2025.
Forward-Looking Statements
All public statements made by the Company and its representatives that are not statements of historical fact, including certain statements in this press release, in the Company’s Annual Report on Form 10-K and in the Company’s 2025 Annual Report to Stockholders, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts, and assumptions by the Company’s management and involve a number of risks, uncertainties, and other factors that could cause actual results to differ from those stated, including, without limitation, comments about expectations related to acquisitions or dispositions or related business activities, the Company’s business strategies and objectives, the prospects for growth in the Company’s various business operations, the Company’s future financial performance, and the risks and uncertainties described in Item 1A of the Company’s Annual Report on Form 10-K. Accordingly, undue reliance should not be placed on any forward-looking statement made by or on behalf of the Company. The Company assumes no obligation to update any forward-looking statement after the date on which such statement is made, even if new information subsequently becomes available.
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2

GRAHAM HOLDINGS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
September 30%
(in thousands, except per share amounts)20262025Change
Operating revenues$1,326,037 $1,278,859 4 
Operating expenses1,216,622 1,180,498 3 
Depreciation of property, plant and equipment18,119 19,298 (6)
Amortization of intangible assets5,775 9,692 (40)
Impairment of intangible and other long-lived assets
— 2,235 — 
Operating income
85,521 67,136 27 
Equity in (losses) earnings of affiliates, net(3,590)15,780 — 
Interest income1,594 1,464 9 
Interest expense(15,769)(17,164)(8)
Non-operating pension and postretirement benefit income, net47,601 31,047 53 
(Loss) gain on marketable equity securities, net(15,027)84,768 — 
Other (expense) income, net(1,187)7 — 
Income before income taxes
99,143 183,038 (46)
Provision for income taxes
21,900 56,800 (61)
Net income
77,243 126,238 (39)
Net income attributable to noncontrolling interests
(2,133)(3,313)(36)
Net Income Attributable to Graham Holdings Company Common Stockholders
$75,110 $122,925 (39)
Per Share Information Attributable to Graham Holdings Company Common Stockholders
Basic net income per common share$17.79 $28.19 (37)
Basic average number of common shares outstanding4,198 4,334 
Diluted net income per common share$17.60 $27.91 (37)
Diluted average number of common shares outstanding4,243 4,378 
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3

GRAHAM HOLDINGS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Nine Months Ended
September 30%
(in thousands, except per share amounts)20262025Change
Operating revenues$3,864,535 $3,660,546 6 
Operating expenses3,545,916 3,386,690 5 
Depreciation of property, plant and equipment54,794 59,504 (8)
Amortization of intangible assets17,808 24,757 (28)
Impairment of goodwill, other long-lived assets and asset group held for sale19,029 2,235 — 
Operating income226,988 187,360 21 
Equity in earnings of affiliates, net
11,397 10,466 9 
Interest income5,950 6,225 (4)
Interest expense(49,171)(117,547)(58)
Non-operating pension and postretirement benefit income, net248,323 94,266 — 
Gain on marketable equity securities, net17,929 117,026 (85)
Other expense, net(4,146)(20,514)(80)
Income before income taxes457,270 277,282 65 
Provision for income taxes66,900 84,900 (21)
Net income390,370 192,382 — 
Net income attributable to noncontrolling interests
(5,051)(8,814)(43)
Net Income Attributable to Graham Holdings Company Common Stockholders
$385,319 $183,568 — 
Per Share Information Attributable to Graham Holdings Company Common Stockholders
Basic net income per common share$89.84 $42.15 — 
Basic average number of common shares outstanding4,264 4,329 
Diluted net income per common share$88.92 $41.75 — 
Diluted average number of common shares outstanding4,309 4,370 

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GRAHAM HOLDINGS COMPANY
BUSINESS DIVISION INFORMATION
(Unaudited)
Three Months EndedNine Months Ended
September 30%September 30%
(in thousands)20262025Change20262025Change
Operating Revenues
Education$404,282 $472,662 (14)$1,262,569 $1,334,206 (5)
Television broadcasting125,304 105,087 19 346,487 314,625 10 
Healthcare260,252 208,415 25 717,243 584,375 23 
Manufacturing147,601 124,257 19 405,915 318,480 27 
Automotive299,060 285,228 5 868,036 851,791 2 
Other businesses89,443 83,215 7 264,209 257,082 3 
Corporate office883 620 42 2,278 1,861 22 
Intersegment elimination(788)(625)— (2,202)(1,874)— 
$1,326,037 $1,278,859 4 $3,864,535 $3,660,546 6 
Operating Expenses
Education$364,994 $423,610 (14)$1,140,623 $1,198,936 (5)
Television broadcasting76,845 78,313 (2)233,602 235,513 (1)
Healthcare237,008 187,423 26 651,963 519,969 25 
Manufacturing138,603 117,562 18 381,816 298,739 28 
Automotive289,722 278,920 4 845,325 829,698 2 
Other businesses111,333 108,230 3 327,423 340,630 (4)
Corporate office22,799 18,290 25 58,997 51,575 14 
Intersegment elimination(788)(625)— (2,202)(1,874)— 
$1,240,516 $1,211,723 2 $3,637,547 $3,473,186 5 
Operating Income (Loss)
Education$39,288 $49,052 (20)$121,946 $135,270 (10)
Television broadcasting48,459 26,774 81 112,885 79,112 43 
Healthcare23,244 20,992 11 65,280 64,406 1 
Manufacturing8,998 6,695 34 24,099 19,741 22 
Automotive9,338 6,308 48 22,711 22,093 3 
Other businesses(21,890)(25,015)12 (63,214)(83,548)24 
Corporate office(21,916)(17,670)(24)(56,719)(49,714)(14)
$85,521 $67,136 27 $226,988 $187,360 21 
Amortization of Intangible Assets and Impairment of Goodwill, Other Long-Lived Assets and Asset Group Held for Sale
Education$84 $1,404 (94)$19,670 $5,222 — 
Television broadcasting1,360 1,360 — 4,080 4,080 — 
Healthcare71 1,095 (94)257 1,330 (81)
Manufacturing3,717 4,442 (16)11,203 9,304 20 
Automotive5 560 (99)15 570 (97)
Other businesses538 3,066 (82)1,612 6,486 (75)
Corporate office— — — — — — 
$5,775 $11,927 (52)$36,837 $26,992 36 
Operating Income (Loss) before Amortization of Intangible Assets and Impairment of Goodwill, Other Long-Lived Assets and Asset Group Held for Sale
Education$39,372 $50,456 (22)$141,616 $140,492 1 
Television broadcasting49,819 28,134 77 116,965 83,192 41 
Healthcare23,315 22,087 6 65,537 65,736 0 
Manufacturing12,715 11,137 14 35,302 29,045 22 
Automotive9,343 6,868 36 22,726 22,663 0 
Other businesses(21,352)(21,949)3 (61,602)(77,062)20 
Corporate office(21,916)(17,670)(24)(56,719)(49,714)(14)
$91,296 $79,063 15 $263,825 $214,352 23 
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Three Months EndedNine Months Ended
September 30%September 30%
(in thousands)20262025Change20262025Change
Depreciation
Education$5,524 $7,085 (22)$17,237 $22,261 (23)
Television broadcasting2,271 2,597 (13)6,952 7,850 (11)
Healthcare1,952 1,837 6 5,779 5,346 8 
Manufacturing2,855 3,219 (11)9,027 8,576 5 
Automotive1,993 1,718 16 5,775 5,155 12 
Other businesses3,354 2,671 26 9,515 9,813 (3)
Corporate office170 171 (1)509 503 1 
$18,119 $19,298 (6)$54,794 $59,504 (8)
Pension Expense
Education$4,555 $4,318 5 $13,666 $12,954 5 
Television broadcasting1,554 1,475 5 4,661 4,426 5 
Healthcare2,365 2,496 (5)5,894 7,488 (21)
Manufacturing1,242 866 43 3,727 2,596 44 
Automotive34 (1)— 102 47 — 
Other businesses1,889 1,857 2 5,614 5,868 (4)
Corporate office740 761 (3)2,217 2,284 (3)
$12,379 $11,772 5 $35,881 $35,663 1 
Adjusted Operating Cash Flow (non-GAAP)(1)
Education$49,451 $61,859 (20)$172,519 $175,707 (2)
Television broadcasting53,644 32,206 67 128,578 95,468 35 
Healthcare27,632 26,420 5 77,210 78,570 (2)
Manufacturing16,812 15,222 10 48,056 40,217 19 
Automotive11,370 8,585 32 28,603 27,865 3 
Other businesses(16,109)(17,421)8 (46,473)(61,381)24 
Corporate office(21,006)(16,738)(25)(53,993)(46,927)(15)
$121,794 $110,133 11 $354,500 $309,519 15 
____________
(1)Adjusted Operating Cash Flow (non-GAAP) is calculated as Operating Income (Loss) before Amortization of Intangible Assets and Impairment of Goodwill, Other Long-Lived Assets and Asset Group Held for Sale plus Depreciation Expense and Pension Expense.
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GRAHAM HOLDINGS COMPANY
EDUCATION DIVISION INFORMATION
(Unaudited)
Three Months EndedNine Months Ended
September 30%September 30%
(in thousands)20262025Change20262025Change
Operating Revenues
Kaplan international$230,134 $294,292 (22)$754,145 $827,719 (9)
Higher education93,865 92,162 2 272,561 265,387 3 
Supplemental education80,805 86,679 (7)237,145 242,243 (2)
Kaplan corporate and other369 280 32 924 315 — 
Intersegment elimination(891)(751)— (2,206)(1,458)— 
$404,282 $472,662 (14)$1,262,569 $1,334,206 (5)
Operating Expenses
Kaplan international$212,842 $265,399 (20)$672,603 $738,827 (9)
Higher education75,961 77,479 (2)220,320 219,925 0 
Supplemental education71,150 71,700 (1)211,706 213,890 (1)
Kaplan corporate and other5,761 8,417 (32)18,433 22,516 (18)
Amortization of intangible assets84 1,404 (94)641 5,222 (88)
Impairment of goodwill and asset group held for sale— — — 19,029 — — 
Intersegment elimination(804)(789)— (2,109)(1,444)— 
$364,994 $423,610 (14)$1,140,623 $1,198,936 (5)
Operating Income (Loss)
Kaplan international$17,292 $28,893 (40)$81,542 $88,892 (8)
Higher education17,904 14,683 22 52,241 45,462 15 
Supplemental education9,655 14,979 (36)25,439 28,353 (10)
Kaplan corporate and other(5,392)(8,137)34 (17,509)(22,201)21 
Amortization of intangible assets(84)(1,404)94 (641)(5,222)88 
Impairment of goodwill and asset group held for sale— — — (19,029)— — 
Intersegment elimination(87)38 — (97)(14)— 
$39,288 $49,052 (20)$121,946 $135,270 (10)
Operating Income (Loss) before Amortization of Intangible Assets and Impairment of Goodwill and Asset Group Held for Sale
Kaplan international$17,292 $28,893 (40)$81,542 $88,892 (8)
Higher education17,904 14,683 22 52,241 45,462 15 
Supplemental education9,655 14,979 (36)25,439 28,353 (10)
Kaplan corporate and other(5,392)(8,137)34 (17,509)(22,201)21 
Intersegment elimination(87)38 — (97)(14)— 
$39,372 $50,456 (22)$141,616 $140,492 1 
Depreciation
Kaplan international$4,366 $6,072 (28)$13,945 $19,014 (27)
Higher education378 314 20 945 1,153 (18)
Supplemental education769 692 11 2,317 2,076 12 
Kaplan corporate and other11 7 57 30 18 67 
$5,524 $7,085 (22)$17,237 $22,261 (23)
Pension Expense
Kaplan international$— $142 — $176 $428 (59)
Higher education1,984 1,849 7 5,936 5,546 7 
Supplemental education2,017 1,929 5 6,063 5,788 5 
Kaplan corporate and other554 398 39 1,491 1,192 25 
$4,555 $4,318 5 $13,666 $12,954 5 
Adjusted Operating Cash Flow (non-GAAP)(1)
Kaplan international$21,658 $35,107 (38)$95,663 $108,334 (12)
Higher education20,266 16,846 20 59,122 52,161 13 
Supplemental education12,441 17,600 (29)33,819 36,217 (7)
Kaplan corporate and other(4,827)(7,732)38 (15,988)(20,991)24 
Intersegment elimination(87)38 — (97)(14)— 
$49,451 $61,859 (20)$172,519 $175,707 (2)
____________
(1)Adjusted Operating Cash Flow (non-GAAP) is calculated as Operating Income (Loss) before Amortization of Intangible Assets and Impairment of Goodwill and Asset Group Held for Sale plus Depreciation Expense and Pension Expense.
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7

GRAHAM HOLDINGS COMPANY
HEALTHCARE DIVISION INFORMATION
(Unaudited)
Three Months EndedNine Months Ended
September 30%September 30%
(in thousands)20262025Change20262025Change
Operating Revenues
CSI$162,289 $120,382 35 $428,593 $324,045 32 
Other Healthcare97,963 88,033 11 288,650 260,330 11 
$260,252 $208,415 25 $717,243 $584,375 23 
Operating Expenses
CSI$147,548 $106,985 38 $395,042 $287,008 38 
Other Healthcare89,460 80,438 11 256,921 232,961 10 
$237,008 $187,423 26 $651,963 $519,969 25 
Operating Income
CSI$14,741 $13,397 10 $33,551 $37,037 (9)
Other Healthcare8,503 7,595 12 31,729 27,369 16 
$23,244 $20,992 11 $65,280 $64,406 1 
Amortization of Intangible Assets and Impairment of Long-Lived Assets
CSI$21 $40 (48)$62 $107 (42)
Other Healthcare50 1,055 (95)195 1,223 (84)
$71 $1,095 (94)$257 $1,330 (81)
Operating Income before Amortization of Intangible Assets and Impairment of Long-Lived Assets
CSI$14,762 $13,437 10 $33,613 $37,144 (10)
Other Healthcare8,553 8,650 (1)31,924 28,592 12 
$23,315 $22,087 6 $65,537 $65,736 0 
Depreciation    
CSI$293 $186 58 $887 $545 63 
Other Healthcare1,659 1,651 0 4,892 4,801 2 
$1,952 $1,837 6 $5,779 $5,346 8 
Pension Expense
CSI$602 $— — $602 $— — 
Other Healthcare1,763 2,496 (29)5,292 7,488 (29)
$2,365 $2,496 (5)$5,894 $7,488 (21)
Adjusted Operating Cash Flow (non-GAAP)(1)
CSI$15,657 $13,623 15 $35,102 $37,689 (7)
Other Healthcare11,975 12,797 (6)42,108 40,881 3 
$27,632 $26,420 5 $77,210 $78,570 (2)
____________
(1)Adjusted Operating Cash Flow (non-GAAP) is calculated as Operating Income (Loss) before Amortization of Intangible Assets and Impairment of Long-Lived Assets plus Depreciation Expense and Pension Expense.
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8

NON-GAAP FINANCIAL INFORMATION
GRAHAM HOLDINGS COMPANY
(Unaudited)
In addition to the results reported in accordance with accounting principles generally accepted in the United States (GAAP) included in this press release, the Company has provided information regarding Adjusted Operating Cash Flow and Net income excluding certain items described below, reconciled to the most directly comparable GAAP measures. Management believes that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:
•the ability to make meaningful period-to-period comparisons of the Company’s ongoing results;
•the ability to identify trends in the Company’s underlying business; and
•a better understanding of how management plans and measures the Company’s underlying business.
Adjusted Operating Cash Flow and Net income, excluding certain items, should not be considered substitutes or alternatives to computations calculated in accordance with and required by GAAP. These non-GAAP financial measures should be read only in conjunction with financial information presented on a GAAP basis.
The gains and losses on marketable equity securities relate to the change in the fair value (quoted prices) of its portfolio of equity securities. The mandatorily redeemable noncontrolling interest represents the ownership portion of a group of minority shareholders at a subsidiary of the Company's Healthcare business. The Company measures the redemption value of this minority ownership on a quarterly basis with changes in the fair value recorded as interest expense or income, which is included in net income for the period. The effect of gains and losses on marketable equity securities and net interest expense related to fair value adjustments of the mandatorily redeemable noncontrolling interest are not directly related to the core performance of the Company’s business operations since these items do not directly relate to the sale of the Company’s services or products. GAAP requires that the Company include the gains and losses on marketable equity securities and net interest expense related to fair value adjustments of the mandatorily redeemable noncontrolling interest in net income on the Condensed Consolidated Statements of Operations. The Company excludes the gains and losses on marketable equity securities and net interest expense related to fair value adjustments of the mandatorily redeemable noncontrolling interest from the non-GAAP adjusted net income because these items are independent of the Company’s core operations and not indicative of the performance of the Company’s business operations.
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9

The following tables reconcile the non-GAAP financial measures for Net income, excluding certain items, to the most directly comparable GAAP measures:
Three Months Ended September 30
20262025
(in thousands, except per share amounts)Income before income taxesIncome TaxesNet IncomeIncome before income taxesIncome TaxesNet Income
Amounts attributable to Graham Holdings Company Common Stockholders
As reported$99,143 $21,900 $77,243 $183,038 $56,800 $126,238 
Attributable to noncontrolling interests(2,133)(3,313)
Attributable to Graham Holdings Company Stockholders75,110 122,925 
Adjustments:
Intangible and other long-lived asset impairment charges— — — 2,235 522 1,713 
Settlement gain related to retiree annuity pension purchase(14,950)(3,889)(11,061)— — — 
Charges related to non-operating Separation Incentive Programs and a Voluntary Retirement Incentive Program3,201 833 2,368 2,546 651 1,895 
Interest (credit) expense related to the fair value adjustment of the mandatorily redeemable noncontrolling interest(125)2 (127)718 (6,198)6,916 
Net losses (gains) on marketable equity securities15,027 3,838 11,189 (84,768)(21,735)(63,033)
Net losses of affiliates whose operations are not managed by the Company
6,290 1,607 4,683 5,787 1,484 4,303 
Non-operating loss (gain) from impairment and earnings of equity and cost method investments600 153 447 (17,122)(4,395)(12,727)
Income tax expense related to the KLG business— (1,465)1,465 — — — 
Non-U.S. global minimum corporate income tax benefit— 3,908 (3,908)— — — 
Net Income, adjusted (non-GAAP)
$80,166 

$61,992 
Per share information attributable to Graham Holdings Company Common Stockholders
Diluted income per common share, as reported
$17.60 $27.91 
Adjustments:
Intangible and other long-lived asset impairment charges— 0.39 
Settlement gain related to retiree annuity pension purchase(2.59)— 
Charges related to non-operating Separation Incentive Programs and a Voluntary Retirement Incentive Program0.55 0.43 
Interest (credit) expense related to the fair value adjustment of the mandatorily redeemable noncontrolling interest(0.03)1.57 
Net losses (gains) on marketable equity securities2.62 (14.31)
Net losses of affiliates whose operations are not managed by the Company
1.10 0.98 
Non-operating loss (gain) from impairment and earnings of equity and cost method investments0.10 (2.89)
Income tax expense related to the KLG business0.34 — 
Non-U.S. global minimum corporate income tax benefit(0.92)— 
Diluted income per common share, adjusted (non-GAAP)
$18.77 $14.08 
The adjusted diluted per share amounts may not compute due to rounding.
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10

  Nine Months Ended September 30
20262025
(in thousands, except per share amounts)Income before income taxesIncome TaxesNet IncomeIncome before income taxesIncome TaxesNet Income
Amounts attributable to Graham Holdings Company Common Stockholders
As reported$457,270 $66,900 $390,370 $277,282 $84,900 $192,382 
Attributable to noncontrolling interests(5,051)(8,814)
Attributable to Graham Holdings Company Stockholders$385,319 $183,568 
Adjustments:
Intangible and other long-lived asset impairment charges— — — 2,235 522 1,713 
Impairment charge and loss on sale related to KLG 24,179 (594)24,773 — — — 
Settlement gain related to retiree annuity pension purchase(151,905)(39,514)(112,391)— — — 
Charges related to non-operating Separation Incentive Programs and Voluntary Retirement Incentive Programs11,138 2,897 8,241 9,185 2,351 6,834 
Interest (credit) expense related to the fair value adjustment of the mandatorily redeemable noncontrolling interest(1,007)(122)(885)68,278 7,496 60,782 
Net gains on marketable equity securities(17,929)(4,580)(13,349)(117,026)(30,006)(87,020)
Net (earnings) losses of affiliates whose operations are not managed by the Company
(6,772)(1,730)(5,042)18,110 4,643 13,467 
Net non-operating loss (gain) from impairment, sale and earnings of equity and cost method investments
5,916 1,511 4,405 (4,443)(1,189)(3,254)
Income tax benefit related to the KLG business— 68,099 (68,099)— — — 
Non-U.S. global minimum corporate income tax expense— (15,272)15,272 — — — 
Net Income, adjusted (non-GAAP)$238,244 $176,090 
Per share information attributable to Graham Holdings Company Common Stockholders
Diluted income per common share, as reported$88.92 $41.75 
Adjustments:
Intangible and other long-lived asset impairment charges— 0.39 
Impairment charge and loss on sale related to KLG 5.72 — 
Settlement gain related to retiree annuity pension purchase(25.94)— 
Charges related to non-operating Separation Incentive Programs and Voluntary Retirement Incentive Programs1.90 1.55 
Interest (credit) expense related to the fair value adjustment of the mandatorily redeemable noncontrolling interest(0.20)13.83 
Net gains on marketable equity securities(3.08)(19.79)
Net (earnings) losses of affiliates whose operations are not managed by the Company
(1.16)3.06 
Net non-operating loss (gain) from impairment, sale and earnings of equity and cost method investments
1.02 (0.74)
Income tax benefit related to the KLG business(15.72)— 
Non-U.S. global minimum corporate income tax expense3.52 — 
Diluted income per common share, adjusted (non-GAAP)$54.98 $40.05 
The adjusted diluted per share amounts may not compute due to rounding.
# # #

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