Graham Holdings (GHC) Q2 2025 10-Q highlights. Revenue rose 2.6% YoY to $1.22 bn (services $668.6 m, goods $547.1 m). Operating costs were flat, lifting operating income 181% to $72.8 m and expanding margin to 6.0%. Net income attributable to shareholders swung to a $36.7 m profit (diluted EPS $8.35) from a $21.0 m loss in Q2 2024. Interest expense fell to $18.1 m from $91.4 m as accretion on the mandatorily redeemable non-controlling interest (NCI) abated.
For the first six months, revenue edged up 1.9% to $2.38 bn but net income dropped 41% to $60.6 m (EPS $13.81) because 2024 benefited from a $123.8 m gain on marketable securities versus a $32.3 m gain in 2025 and a $66.2 m settlement-related interest charge. Operating cash flow improved sharply to $140.8 m (vs $53.1 m).
Liquidity tightened: cash and equivalents declined 32% since December to $176.2 m, while current debt jumped to $502.1 m as the $399 m 5.75% notes move inside one year. Total debt stands at $816.4 m. The February $205 m cash/stock settlement cut the mandatorily redeemable NCI to $21.5 m, removing a large future obligation. Book value climbed to $4.35 bn. Management remains in covenant compliance.