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.

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.

GRAHAM HOLDINGS COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

 

Three Months Ended

 

 

September 30

%

(in thousands, except per share amounts)

2026

 

2025

Change

Operating revenues

$

1,326,037

 

 

$

1,278,859

 

4

 

Operating expenses

 

1,216,622

 

 

 

1,180,498

 

3

 

Depreciation of property, plant and equipment

 

18,119

 

 

 

19,298

 

(6

)

Amortization of intangible assets

 

5,775

 

 

 

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 income

 

1,594

 

 

 

1,464

 

9

 

Interest expense

 

(15,769

)

 

 

(17,164

)

(8

)

Non-operating pension and postretirement benefit income, net

 

47,601

 

 

 

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 outstanding

 

4,198

 

 

 

4,334

 

 

Diluted net income per common share

$

17.60

 

 

$

27.91

 

(37

)

Diluted average number of common shares outstanding

 

4,243

 

 

 

4,378

 

 

GRAHAM HOLDINGS COMPANY

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

(Unaudited)

 

 

 

 

 

Nine Months Ended

 

 

September 30

%

(in thousands, except per share amounts)

2026

 

2025

Change

Operating revenues

$

3,864,535

 

 

$

3,660,546

 

6

 

Operating expenses

 

3,545,916

 

 

 

3,386,690

 

5

 

Depreciation of property, plant and equipment

 

54,794

 

 

 

59,504

 

(8

)

Amortization of intangible assets

 

17,808

 

 

 

24,757

 

(28

)

Impairment of goodwill, other long-lived assets and asset group held for sale

 

19,029

 

 

 

2,235

 

—

 

Operating income

 

226,988

 

 

 

187,360

 

21

 

Equity in earnings of affiliates, net

 

11,397

 

 

 

10,466

 

9

 

Interest income

 

5,950

 

 

 

6,225

 

(4

)

Interest expense

 

(49,171

)

 

 

(117,547

)

(58

)

Non-operating pension and postretirement benefit income, net

 

248,323

 

 

 

94,266

 

—

 

Gain on marketable equity securities, net

 

17,929

 

 

 

117,026

 

(85

)

Other expense, net

 

(4,146

)

 

 

(20,514

)

(80

)

Income before income taxes

 

457,270

 

 

 

277,282

 

65

 

Provision for income taxes

 

66,900

 

 

 

84,900

 

(21

)

Net income

 

390,370

 

 

 

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 outstanding

 

4,264

 

 

 

4,329

 

 

Diluted net income per common share

$

88.92

 

 

$

41.75

 

—

 

Diluted average number of common shares outstanding

 

4,309

 

 

 

4,370

 

 

GRAHAM HOLDINGS COMPANY

BUSINESS DIVISION INFORMATION

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Nine Months Ended

 

 

 

September 30

 

%

 

September 30

 

%

(in thousands)

2026

 

2025

 

Change

 

2026

 

2025

 

Change

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

Education

$

404,282

 

 

$

472,662

 

 

(14

)

 

$

1,262,569

 

 

$

1,334,206

 

 

(5

)

Television broadcasting

 

125,304

 

 

 

105,087

 

 

19

 

 

 

346,487

 

 

 

314,625

 

 

10

 

Healthcare

 

260,252

 

 

 

208,415

 

 

25

 

 

 

717,243

 

 

 

584,375

 

 

23

 

Manufacturing

 

147,601

 

 

 

124,257

 

 

19

 

 

 

405,915

 

 

 

318,480

 

 

27

 

Automotive

 

299,060

 

 

 

285,228

 

 

5

 

 

 

868,036

 

 

 

851,791

 

 

2

 

Other businesses

 

89,443

 

 

 

83,215

 

 

7

 

 

 

264,209

 

 

 

257,082

 

 

3

 

Corporate office

 

883

 

 

 

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 broadcasting

 

76,845

 

 

 

78,313

 

 

(2

)

 

 

233,602

 

 

 

235,513

 

 

(1

)

Healthcare

 

237,008

 

 

 

187,423

 

 

26

 

 

 

651,963

 

 

 

519,969

 

 

25

 

Manufacturing

 

138,603

 

 

 

117,562

 

 

18

 

 

 

381,816

 

 

 

298,739

 

 

28

 

Automotive

 

289,722

 

 

 

278,920

 

 

4

 

 

 

845,325

 

 

 

829,698

 

 

2

 

Other businesses

 

111,333

 

 

 

108,230

 

 

3

 

 

 

327,423

 

 

 

340,630

 

 

(4

)

Corporate office

 

22,799

 

 

 

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 broadcasting

 

48,459

 

 

 

26,774

 

 

81

 

 

 

112,885

 

 

 

79,112

 

 

43

 

Healthcare

 

23,244

 

 

 

20,992

 

 

11

 

 

 

65,280

 

 

 

64,406

 

 

1

 

Manufacturing

 

8,998

 

 

 

6,695

 

 

34

 

 

 

24,099

 

 

 

19,741

 

 

22

 

Automotive

 

9,338

 

 

 

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 broadcasting

 

1,360

 

 

 

1,360

 

 

—

 

 

 

4,080

 

 

 

4,080

 

 

—

 

Healthcare

 

71

 

 

 

1,095

 

 

(94

)

 

 

257

 

 

 

1,330

 

 

(81

)

Manufacturing

 

3,717

 

 

 

4,442

 

 

(16

)

 

 

11,203

 

 

 

9,304

 

 

20

 

Automotive

 

5

 

 

 

560

 

 

(99

)

 

 

15

 

 

 

570

 

 

(97

)

Other businesses

 

538

 

 

 

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 broadcasting

 

49,819

 

 

 

28,134

 

 

77

 

 

 

116,965

 

 

 

83,192

 

 

41

 

Healthcare

 

23,315

 

 

 

22,087

 

 

6

 

 

 

65,537

 

 

 

65,736

 

 

0

 

Manufacturing

 

12,715

 

 

 

11,137

 

 

14

 

 

 

35,302

 

 

 

29,045

 

 

22

 

Automotive

 

9,343

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Nine Months Ended

 

 

 

September 30

 

%

 

September 30

 

%

(in thousands)

2026

 

2025

 

Change

 

2026

 

2025

 

Change

Depreciation

 

 

 

 

 

 

 

 

 

 

 

Education

$

5,524

 

 

$

7,085

 

 

(22

)

 

$

17,237

 

 

$

22,261

 

 

(23

)

Television broadcasting

 

2,271

 

 

 

2,597

 

 

(13

)

 

 

6,952

 

 

 

7,850

 

 

(11

)

Healthcare

 

1,952

 

 

 

1,837

 

 

6

 

 

 

5,779

 

 

 

5,346

 

 

8

 

Manufacturing

 

2,855

 

 

 

3,219

 

 

(11

)

 

 

9,027

 

 

 

8,576

 

 

5

 

Automotive

 

1,993

 

 

 

1,718

 

 

16

 

 

 

5,775

 

 

 

5,155

 

 

12

 

Other businesses

 

3,354

 

 

 

2,671

 

 

26

 

 

 

9,515

 

 

 

9,813

 

 

(3

)

Corporate office

 

170

 

 

 

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 broadcasting

 

1,554

 

 

 

1,475

 

 

5

 

 

 

4,661

 

 

 

4,426

 

 

5

 

Healthcare

 

2,365

 

 

 

2,496

 

 

(5

)

 

 

5,894

 

 

 

7,488

 

 

(21

)

Manufacturing

 

1,242

 

 

 

866

 

 

43

 

 

 

3,727

 

 

 

2,596

 

 

44

 

Automotive

 

34

 

 

 

(1

)

 

—

 

 

 

102

 

 

 

47

 

 

—

 

Other businesses

 

1,889

 

 

 

1,857

 

 

2

 

 

 

5,614

 

 

 

5,868

 

 

(4

)

Corporate office

 

740

 

 

 

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 broadcasting

 

53,644

 

 

 

32,206

 

 

67

 

 

 

128,578

 

 

 

95,468

 

 

35

 

Healthcare

 

27,632

 

 

 

26,420

 

 

5

 

 

 

77,210

 

 

 

78,570

 

 

(2

)

Manufacturing

 

16,812

 

 

 

15,222

 

 

10

 

 

 

48,056

 

 

 

40,217

 

 

19

 

Automotive

 

11,370

 

 

 

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.

GRAHAM HOLDINGS COMPANY

EDUCATION DIVISION INFORMATION

(Unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Nine Months Ended

 

 

 

September 30

 

%

 

September 30

 

%

(in thousands)

2026

 

2025

 

Change

 

2026

 

2025

 

Change

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

Kaplan international

$

230,134

 

 

$

294,292

 

 

(22

)

 

$

754,145

 

 

$

827,719

 

 

(9

)

Higher education

 

93,865

 

 

 

92,162

 

 

2

 

 

 

272,561

 

 

 

265,387

 

 

3

 

Supplemental education

 

80,805

 

 

 

86,679

 

 

(7

)

 

 

237,145

 

 

 

242,243

 

 

(2

)

Kaplan corporate and other

 

369

 

 

 

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 education

 

75,961

 

 

 

77,479

 

 

(2

)

 

 

220,320

 

 

 

219,925

 

 

0

 

Supplemental education

 

71,150

 

 

 

71,700

 

 

(1

)

 

 

211,706

 

 

 

213,890

 

 

(1

)

Kaplan corporate and other

 

5,761

 

 

 

8,417

 

 

(32

)

 

 

18,433

 

 

 

22,516

 

 

(18

)

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

 

(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 education

 

17,904

 

 

 

14,683

 

 

22

 

 

 

52,241

 

 

 

45,462

 

 

15

 

Supplemental education

 

9,655

 

 

 

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 education

 

17,904

 

 

 

14,683

 

 

22

 

 

 

52,241

 

 

 

45,462

 

 

15

 

Supplemental education

 

9,655

 

 

 

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 education

 

378

 

 

 

314

 

 

20

 

 

 

945

 

 

 

1,153

 

 

(18

)

Supplemental education

 

769

 

 

 

692

 

 

11

 

 

 

2,317

 

 

 

2,076

 

 

12

 

Kaplan corporate and other

 

11

 

 

 

7

 

 

57

 

 

 

30

 

 

 

18

 

 

67

 

 

$

5,524

 

 

$

7,085

 

 

(22

)

 

$

17,237

 

 

$

22,261

 

 

(23

)

Pension Expense

 

 

 

 

 

 

 

 

 

 

 

Kaplan international

$

—

 

 

$

142

 

 

—

 

 

$

176

 

 

$

428

 

 

(59

)

Higher education

 

1,984

 

 

 

1,849

 

 

7

 

 

 

5,936

 

 

 

5,546

 

 

7

 

Supplemental education

 

2,017

 

 

 

1,929

 

 

5

 

 

 

6,063

 

 

 

5,788

 

 

5

 

Kaplan corporate and other

 

554

 

 

 

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 education

 

20,266

 

 

 

16,846

 

 

20

 

 

 

59,122

 

 

 

52,161

 

 

13

 

Supplemental education

 

12,441

 

 

 

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.

GRAHAM HOLDINGS COMPANY

HEALTHCARE DIVISION INFORMATION

(Unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Nine Months Ended

 

 

 

September 30

 

%

 

September 30

 

%

(in thousands)

2026

 

2025

 

Change

 

2026

 

2025

 

Change

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

CSI

$

162,289

 

 

$

120,382

 

 

35

 

 

$

428,593

 

 

$

324,045

 

 

32

 

Other Healthcare

 

97,963

 

 

 

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 Healthcare

 

89,460

 

 

 

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 Healthcare

 

8,503

 

 

 

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 Healthcare

 

50

 

 

 

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 Healthcare

 

8,553

 

 

 

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 Healthcare

 

1,659

 

 

 

1,651

 

 

0

 

 

 

4,892

 

 

 

4,801

 

 

2

 

 

$

1,952

 

 

$

1,837

 

 

6

 

 

$

5,779

 

 

$

5,346

 

 

8

 

Pension Expense

 

 

 

 

 

 

 

 

 

 

 

CSI

$

602

 

 

$

—

 

 

—

 

 

$

602

 

 

$

—

 

 

—

 

Other Healthcare

 

1,763

 

 

 

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 Healthcare

 

11,975

 

 

 

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.

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.

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

 

2026

 

2025

(in thousands, except per share amounts)

Income before income taxes

 

Income Taxes

 

Net Income

 

Income before income taxes

 

Income Taxes

 

Net 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 Stockholders

 

 

 

 

 

75,110

 

 

 

 

 

 

 

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 Program

 

3,201

 

 

 

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 securities

 

15,027

 

 

 

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 investments

 

600

 

 

 

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 Program

 

 

 

 

 

0.55

 

 

 

 

 

 

 

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 securities

 

 

 

 

 

2.62

 

 

 

 

 

 

 

(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 investments

 

 

 

 

 

0.10

 

 

 

 

 

 

 

(2.89

)

Income tax expense related to the KLG business

 

 

 

 

 

0.34

 

 

 

 

 

 

 

—

 

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.

 

Nine Months Ended September 30

 

2026

 

2025

(in thousands, except per share amounts)

Income before income taxes

 

Income Taxes

 

Net Income

 

Income before income taxes

 

Income Taxes

 

Net 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 Programs

 

11,138

 

 

 

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 Programs

 

 

 

 

 

1.90

 

 

 

 

 

 

 

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 expense

 

 

 

 

 

3.52

 

 

 

 

 

 

 

—

 

Diluted income per common share, adjusted (non-GAAP)

 

 

 

 

$

54.98

 

 

 

 

 

 

$

40.05

 

 

 

 

 

 

 

 

 

 

 

 

 

The adjusted diluted per share amounts may not compute due to rounding.

 

Media gallery

About The Author
Business Wire