GHC

ARLINGTON, Va., July 30, 2026--(BUSINESS WIRE)--Graham Holdings Company (NYSE: GHC) today reported its financial results for the second quarter of 2026. The Company also filed its Form 10-Q today for the quarter ended June 30, 2026, with the Securities and Exchange Commission. Division Operating Results Revenue for the second quarter of 2026 was $1,302.5 million, up 7% from $1,215.8 million in the second quarter of 2025. Revenues increased at television broadcasting, healthcare, manufacturing, automotive and other businesses, partially offset by a decline at education. The Company reported operating income of $83.6 million for the second quarter of 2026, compared to $72.8 million for the second quarter of 2025. The increase in operating results is due to improved results at education, television broadcasting and other businesses, partially offset by declines at healthcare, manufacturing and automotive. The Company reported adjusted operating cash flow (non-GAAP) of $119.8 million for the second quarter of 2026, compared to $111.3 million for the second quarter of 2025. Adjusted operating cash flow increased at education, television broadcasting, manufacturing and other businesses, partially offset by declines at healthcare and automotive. Capital expenditures totaled $19.8 million for each of the second quarters of 2026 and 2025. Revenue for the first six months of 2026 was $2,538.5 million, up 7% from $2,381.7 million in the first six months of 2025. Revenues increased at television broadcasting, healthcare, manufacturing, automotive and other businesses, partially offset by a slight decline at education. The Company reported operating income of $141.5 million for the first six months of 2026, compared to $120.2 million for the first six months of 2025. The increase in operating results is due to improved results at television broadcasting, manufacturing and other businesses, partially offset by declines at education, healthcare and automotive. The Company reported adjusted operating cash flow (non-GAAP) of $232.7 million for the first six months of 2026, compared to $199.4 million for the first six months of 2025. Adjusted operating cash flow increased at education, television broadcasting, manufacturing and other businesses, partially offset by declines at healthcare and automotive. Capital expenditures totaled $40.6 million and $33.9 million for the first six months of 2026 and 2025, respectively. Acquisitions and Dispositions of Businesses In the first quarter of 2026, the Company entered into an agreement to sell the Kaplan Languages Group (KLG) included in Kaplan International and recorded a $19.0 million pre-tax impairment charge. The transaction closed on May 1, 2026; the Company recorded a $5.2 million loss on the sale of the business in the second quarter of 2026. Pension Plan In June 2026, the Company purchased an irrevocable group annuity contract from an insurance company for $113.9 million to settle $124.3 million of the outstanding defined benefit pension obligation related to certain retirees and beneficiaries. The purchase of the group annuity contract was funded from the assets of the Company’s pension plan. As a result of this transaction, the Company was relieved of all responsibility for these pension obligations and the insurance company is now required to pay and administer the retirement benefits owed to approximately 1,080 retirees and beneficiaries, with no change to the amount, timing or form of monthly retirement benefit payments. As a result, the Company recorded a pre-tax noncash settlement gain of $137.0 million in the second quarter of 2026. Income Taxes The Company recognized a U.S. income tax benefit of $69.6 million during the six months ended June 30, 2026, in connection with the restructuring and sale of the KLG business. As a result of this significant U.S. income tax benefit, the Company accrued a non-U.S. global minimum corporate top-up income tax expense of $19.2 million in the second quarter of 2026. This accrual relates to non-U.S. jurisdictions that have not yet enacted legislation adopting recent guidance from the Organization for Economic Co-operation and Development (OECD), which would exempt U.S. parent multinational groups from Pillar Two top-up tax on their U.S. source income. The enactment of legislation in the U.K. and other jurisdictions would have a favorable impact on the Company’s income tax provision and could result in a complete reversal of the $19.2 million accrued amount without payment. Debt, Cash and Marketable Equity Securities At June 30, 2026, the Company had $900.4 million in borrowings outstanding at an average interest rate of 5.7%, including $231.2 million outstanding on its $400 million revolving credit facility. Cash, marketable equity securities and other investments totaled $1,297.4 million at June 30, 2026. Overall, the Company recognized $101.9 million and $33.0 million in net gains on marketable equity securities in the second quarter and first six months of 2026, compared to $11.5 million in net losses and $32.3 million in net gains on marketable equity securities in the second quarter and first six months of 2025. Common Stock Repurchases During the first six months of 2026, the Company purchased a total of 110,471 shares of its Class B common stock at a cost of $122.0 million. At June 30, 2026, there were 4,251,268 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 352,011 shares as of June 30, 2026. Overall Company Results The Company reported net income attributable to common shares of $281.1 million ($64.86 per share) for the second quarter of 2026, compared to $36.7 million ($8.35 per share) for the second quarter of 2025. For the first six months of 2026, the Company reported net income attributable to common shares of $310.2 million ($71.04 per share), compared to $60.6 million ($13.81 per share) for the first six months of 2025. The results for the second quarter and first six 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 $84.2 million ($19.46 per share) for the second quarter of 2026, compared to $63.1 million ($14.33 per share) for the second quarter of 2025. Excluding these items, net income attributable to common shares was $158.1 million ($36.19 per share) for the first six months of 2026, compared to $114.1 million ($25.98 per share) for the first six 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. 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: View source version on businesswire.com: https://www.businesswire.com/news/home/20260729686649/en/ Contacts Wallace R. Cooney(703) 345-6470

A lackluster earnings announcement from Graham Holdings Company (NYSE:GHC) last week didn't sink the stock price. However, we believe that investors should be aware of some underlying factors which may be of concern. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Importantly, our data indicates that Graham Holdings' profit received a boost of US$44m in unusual items, over the last year. While we like to see profit increases, we tend to be a little more cautious when unusual items have made a big contribution. We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature. And that's as you'd expect, given these boosts are described as 'unusual'. If Graham Holdings doesn't see that contribution repeat, then all else being equal we'd expect its profit to drop over the current year. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Arguably, Graham Holdings' statutory earnings have been distorted by unusual items boosting profit. Because of this, we think that it may be that Graham Holdings' statutory profits are better than its underlying earnings power. But the good news is that its EPS growth over the last three years has been very impressive. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. In terms of investment risks, we've identified 1 warning sign with Graham Holdings, and understanding it should be part of your investment process. This note has only looked at a single factor that sheds light on the nature of Graham Holdings' profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

ARLINGTON, Va., April 30, 2026--(BUSINESS WIRE)--Graham Holdings Company (NYSE: GHC) today reported its financial results for the first quarter of 2026. The Company also filed its Form 10-Q today for the quarter ended March 31, 2026 with the Securities and Exchange Commission. Division Operating Results Revenue for the first quarter of 2026 was $1,236.0 million, up 6% from $1,165.9 million in the first quarter of 2025. Revenues increased at education, television broadcasting, healthcare and manufacturing, partially offset by declines at automotive and other businesses. The Company reported operating income of $57.8 million for the first quarter of 2026, compared to $47.5 million for the first quarter of 2025. The increase in operating results is due to improved results at television broadcasting, manufacturing and other businesses, partially offset by declines at education, healthcare and automotive. The Company reported adjusted operating cash flow (non-GAAP) of $112.9 million for the first quarter of 2026, compared to $88.0 million for the first quarter of 2025. Adjusted operating cash flow increased at education, television broadcasting, manufacturing and other businesses, partially offset by declines at healthcare and automotive. Capital expenditures totaled $20.9 million and $14.1 million for the first quarter of 2026 and 2025, respectively. Acquisitions and Dispositions of Businesses In the first quarter of 2026, the Company entered into an agreement to sell the Kaplan Languages Group (KLG) included in Kaplan International, with an expected closing date of May 1, 2026. At March 31, 2026, the Company classified the assets and liabilities of KLG as held for sale; the Company also recorded a $19.0 million pre-tax impairment charge in the first quarter of 2026 related to the KLG business. In March 2026, Graham Healthcare Group acquired Covenant Home Health of Havertown, PA, a home health provider in Eastern Pennsylvania. Debt, Cash and Marketable Equity Securities At March 31, 2026, the Company had $822.0 million in borrowings outstanding at an average interest rate of 5.8%, including $149.1 million outstanding on its $400 million revolving credit facility. Cash, marketable equity securities and other investments totaled $1,171.8 million at March 31, 2026, excluding KLG cash classified as held for sale. Overall, the Company recognized $68.9 million in net losses on marketable equity securities in the first quarter of 2026, compared to $43.8 million in net gains on marketable equity securities in the first quarter of 2025. Common Stock Repurchases During the first three months of 2026, the Company purchased a total of 32,190 shares of its Class B common stock at a cost of $34.1 million. At March 31, 2026, there were 4,329,530 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 430,292 shares as of March 31, 2026. Overall Company Results The Company reported net income attributable to common shares of $29.1 million ($6.62 per share) for the first quarter of 2026, compared to $23.9 million ($5.45 per share) for the first quarter of 2025. The results for the first quarter 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 $73.9 million ($16.79 per share) for the first quarter of 2026, compared to $51.0 million ($11.64 per share) for the first quarter 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. 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: View source version on businesswire.com: https://www.businesswire.com/news/home/20260429980150/en/ Contacts Wallace R. Cooney (703) 345-6470

Graham Holdings recently reported past fourth-quarter and full-year 2025 results showing slightly higher sales at US$1,251.02 million for the quarter and US$4.91 billion for the year, but much lower net income of US$108.72 million and US$292.29 million respectively, alongside US$10.10 million of impairment charges. The sharp drop in basic earnings per share from continuing operations, from US$126.63 to US$24.93 in the quarter and from US$164.62 to US$67.11 for the year, contrasts with the company’s decision to maintain a regular quarterly dividend of US$1.88 per share. Against this backdrop of weaker earnings and impairment charges, we’ll examine how these developments reshape Graham Holdings’ investment narrative. We've uncovered the 13 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. To own Graham Holdings, you have to be comfortable with a diversified, somewhat idiosyncratic company where earnings can swing quite a bit from year to year, even when revenue inches higher. The latest quarter underlines that tension: sales ticked up to US$1.25 billion and full-year revenue reached US$4.91 billion, yet net income and EPS fell sharply, with another US$10.10 million of impairments layered on top of earlier charges. At the same time, management affirmed a US$1.88 quarterly dividend and recently refinanced debt with longer-dated notes, signaling a clear preference to project stability despite thinner margins and low return on equity. In the near term, the key catalyst is whether underlying businesses can convert modest revenue growth into cleaner, less impairment-heavy earnings, as repeated charges and lumpy profits remain one of the biggest watchpoints for shareholders. However, one risk investors should be aware of is the recurring pattern of impairment charges. Despite retreating, Graham Holdings' shares might still be trading above their fair value and there could be some more downside. Discover how much. Three fair value estimates from the Simply Wall St Community span from about US$995 to a very large US$2.32 billion, underscoring just how far apart individual views can be. Set against recent earnings compression and weaker profit margins, that spread reflects very different expectations about how sustainably Graham Holdings can translate its revenue base into long term, high quality earnings. Explore 3 other fair value estimates on Graham Holdings - why the stock might be worth 6% less than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Graham Holdings research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision. Our free Graham Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Graham Holdings' overall financial health at a glance. Every day counts. These free picks are already gaining attention. See them before the crowd does: The latest GPUs need a type of rare earth metal called Neodymium and there are only 31 companies in the world exploring or producing it. Find the list for free. Uncover the next big thing with 30 elite penny stocks that balance risk and reward. This technology could replace computers: discover 22 stocks that are working to make quantum computing a reality. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include GHC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Graham Holdings, NYSE:GHC, reported significant impairment charges tied to its 2025 results. The company also reported a sharp drop in annual net income for 2025. These items came alongside a recent share price of $1,053.21. The 2025 impairment charges and lower net income come at a time when Graham Holdings shares have had mixed recent moves. The stock is down 1.5% over the past week and 9.7% over the past month, while still showing a 9.7% gain over the past year and a 73.8% return over three years. At a current share price of $1,053.21, NYSE:GHC is trading at a level that reflects its historical record of compounding, even as near-term results come under pressure. For investors, the scale and nature of these impairments, together with the net income impact, may influence how the quality and durability of Graham Holdings' earnings are viewed. The market reaction so far has been modest year to date, with a 3.1% decline. This indicates that some of this news may already be reflected in the share price, while the full implications for future cash flows and capital allocation remain uncertain. Stay updated on the most important news stories for Graham Holdings by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Graham Holdings. Is Graham Holdings's dividend sustainable? Check out what every dividend investor needs to know in our dividend analysis. ⚖️ Price vs Analyst Target: At US$1,053.21, the share price is about 5.9% above the US$995 analyst target, a relatively small premium. ✅ Simply Wall St Valuation: Simply Wall St flags the shares as trading about 60.7% below its estimate of fair value. ❌ Recent Momentum: The 30 day return of roughly 9.7% decline hints at weak short term sentiment following the impairment news. There is only one way to know the right time to buy, sell or hold Graham Holdings: review detailed analysis and data. Head to Simply Wall St's company report for the latest analysis of Graham Holdings's Fair Value. 📊 The 2025 impairment charges and lower net income suggest reported earnings quality is being affected by large one off items. 📊 Keep an eye on profit margin trends, now at 5.9% versus 15% last year, along with any future commentary on further write downs. ⚠️ The key risk is that accounting adjustments and one off items could make it harder to judge the underlying earning power of the business. For the full picture, including more risks and rewards, check out the complete Graham Holdings analysis. Alternatively, you can visit the community page for Graham Holdings to see how other investors believe this latest news will impact the company's narrative. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include GHC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

ARLINGTON, Va., February 25, 2026--(BUSINESS WIRE)--Graham Holdings Company (NYSE: GHC) today reported its financial results for the fourth quarter and full year of 2025. The Company also filed its Form 10-K today for the year ended December 31, 2025 with the Securities and Exchange Commission. Division Operating Results Revenue for 2025 was $4,911.6 million, up 3% from $4,790.9 million in 2024. Revenues increased at education, healthcare, manufacturing and other businesses, partially offset by declines at television broadcasting and automotive. The Company reported operating income for 2025 of $234.9 million, compared to $215.5 million in 2024. Excluding goodwill and other long-lived asset impairment charges, operating results were down in 2025, due to declines at television broadcasting and automotive, partially offset by increases at education, healthcare, manufacturing and other businesses. The Company reported adjusted operating cash flow (non-GAAP) for 2025 of $407.1 million, compared to $447.0 million in 2024. Adjusted operating cash flow declined at television broadcasting and automotive, partially offset by increases at education, healthcare, manufacturing, and other businesses. Capital expenditures totaled $79.8 million and $93.1 million for 2025 and 2024, respectively. For the fourth quarter of 2025, revenue was $1,251.0 million, up slightly from $1,245.8 million in 2024. Revenues increased at education, healthcare and manufacturing, partially offset by declines at television broadcasting, automotive and other businesses. The Company reported operating income of $47.6 million in the fourth quarter of 2025, compared to $72.5 million in 2024. Excluding goodwill and other long-lived asset impairment charges, operating results were down in the fourth quarter of 2025, due to declines at television broadcasting, manufacturing and automotive, partially offset by increases at healthcare, other businesses and education. The Company reported adjusted operating cash flow (non-GAAP) for the fourth quarter of 2025 of $97.6 million, compared to $139.6 million in 2024. Adjusted operating cash flow declined at television broadcasting, manufacturing, automotive and education, partially offset by increases at healthcare and other businesses. Capital expenditures totaled $25.7 million and $27.1 million for the fourth quarter of 2025 and 2024, respectively. Acquisitions and Dispositions of Businesses On October 21, 2025, the Company acquired a Honda automotive dealership in Woodbridge, VA, including the real property for the dealership operations. Debt, Cash and Marketable Equity Securities On November 24, 2025, the Company issued $500 million of 5.625% unsecured eight-year fixed-rate notes due December 1, 2033. Also on November 24, 2025, the Company entered into an Amendment and Restatement Agreement providing for a U.S. $400 million five-year revolving credit facility. In connection with these activities, on November 24, 2025, the Company used the net proceeds from the sale of the notes, together with the borrowings under the revolving credit agreement, to (i) redeem the $400 million of 5.75% notes due June 1, 2026, (ii) refinance outstanding revolving loans under the existing revolving credit facility, and (iii) repay all amounts outstanding under the Company's existing $150 million term loan. On October 21, 2025, the automotive subsidiary borrowed $38.7 million under the delayed draw term loan to finance the acquisition of a Honda automotive dealership, including the real property for the dealership operations. At December 31, 2025, the Company had $880.8 million in borrowings outstanding at an average interest rate of 5.7%, including $222.5 million outstanding on its $400 million revolving credit facility. Cash, marketable equity securities and other investments totaled $1,400.4 million at December 31, 2025. At December 31, 2024, the Company had $748.2 million in borrowings outstanding at an average interest rate of 6.0%, including $62.8 million outstanding on its $300 million revolving credit facility. Cash, marketable equity securities and other investments totaled $1,156.6 million at December 31, 2024. The Company recognized $83.1 million and $27.0 million in net gains on marketable equity securities in the fourth quarter of 2025 and 2024, respectively. Common Stock Repurchases During 2025, the Company purchased a total of 3,978 shares of its Class B common stock at a cost of $3.5 million. At December 31, 2025, there were 4,360,943 shares outstanding. On September 12, 2024, the Board of Directors authorized the Company to acquire up to 500,000 shares of Class B common stock; the Company has remaining authorization for 462,482 shares as of December 31, 2025. Pension Plan At December 31, 2025, the Company had a pension surplus of $2,772.4 million, reported in the Company’s Consolidated Balance Sheet as Prepaid Pension Cost, an increase from $2,510.5 million at December 31, 2024. Mandatorily Redeemable Noncontrolling Interest The Company recorded a credit to interest expense of $13.8 million for the fourth quarter ended December 31, 2025 to adjust the fair value of the mandatorily redeemable noncontrolling interest at the healthcare division. Overall Company Results The Company reported net income attributable to common shares of $292.3 million ($66.47 per share) for the year ended December 31, 2025, compared to $724.6 million ($163.40 per share) for the year ended December 31, 2024. For the fourth quarter of 2025, the Company reported net income attributable to common shares of $108.7 million ($24.69 per share), compared to $548.8 million ($125.55 per share) for the fourth quarter of 2024. The results for 2025 and 2024 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 $226.5 million ($51.50 per share) for 2025, compared to $282.2 million ($63.63 per share) for 2024. Excluding these items, net income attributable to common shares was $50.4 million ($11.45 per share) for the fourth quarter of 2025, compared to $98.7 million ($22.58 per share) for the fourth quarter of 2024. * * * * * * * * * * * * Additional Commentary on Fourth Quarter 2025 Results Division Results Education For the fourth quarter of 2025, education division revenue totaled $410.1 million, up slightly from $408.2 million for the same period of 2024. Kaplan reported operating income for the fourth quarter of 2025 of $24.6 million, compared to $0.1 million in the fourth quarter of 2024. Excluding a long-lived asset impairment charge recorded in the fourth quarter of 2024, operating income increased. Kaplan International revenue decreased 3% in the fourth quarter of 2025 (7% on a constant currency basis). The decrease is due largely to lower revenue at Pathways, partially offset by growth at UK Professional and Singapore. Kaplan International reported operating income of $24.5 million for the fourth quarter of 2025, a 29% increase from $19.0 million in 2024. The increase is due primarily to improvement at UK Professional. Higher Education revenue in the fourth quarter of 2025 increased 7% compared to the same period of 2024 due to an increase in fees from Purdue Global and growth in other higher education programs. Kaplan recorded $17.4 million and $14.6 million in fees from Purdue Global in its Higher Education operating results for the fourth quarters of 2025 and 2024, respectively. Higher Education results improved in the fourth quarter of 2025 due to an increase in the Purdue Global fee recorded. Supplemental Education revenue increased 7% in the fourth quarter of 2025, driven by growth in most program offerings. Operating results were down in the fourth quarter of 2025 compared to 2024 due to increased employee healthcare and incentive compensation expense, partially offset by revenue growth. Kaplan corporate and other expenses were up in the fourth quarter of 2025 due to increased information technology and legal costs, and higher incentive compensation and employee healthcare costs compared to the fourth quarter of 2024. In the fourth quarter of 2024, Kaplan recorded an intangible asset impairment charge of $22.9 million related to one of the Kaplan International business units. Television Broadcasting For the fourth quarter of 2025, revenue decreased 32% to $110.5 million, from $161.7 million in 2024, due primarily to a $48.4 million decrease in political advertising revenue, a $3.9 million decrease in retransmission revenues, and a decline in digital advertising revenue, partially offset by an increase in local and national advertising revenue. Operating income for the fourth quarter of 2025 declined 58% to $33.2 million, from $78.5 million in the same period of 2024, due to decreased revenues, partially offset by lower overall costs. Healthcare Healthcare division revenues increased 28% in the fourth quarter of 2025, while operating income increased 77%. Adjusted operating cash flow (non-GAAP) at Healthcare increased to $36.1 million in the fourth quarter of 2025, from $24.6 million in the fourth quarter of 2024. CSI Pharmacy Holding Company, LLC (CSI) revenue increased 44% and operating results were up from an expansion of infusion treatment offerings and patient service areas. Home health and hospice and other healthcare revenue increased 9% due to growth in home health and hospice services and at all the other healthcare businesses. Operating results improved significantly at home health and hospice due to revenue growth and a reduction in incentive compensation and pension expense in the fourth quarter of 2025. Operating results declined modestly at the other healthcare businesses. The healthcare division recorded equity in earnings of $4.1 million and $3.5 million for the fourth quarter of 2025 and 2024, respectively, related to its interests in home health and hospice joint ventures. Manufacturing Manufacturing revenues increased 24% in the fourth quarter of 2025 due to higher revenues at Hoover, Dekko and Joyce, partially offset by lower revenues at Forney. The revenue increase at Hoover is due largely to the Arconic acquisition, partially offset by a decline in overall product demand. Operating results were down in the fourth quarter of 2025 due largely to a significant decline in results at Hoover and a small decline in results at Joyce, partially offset by improved results at Dekko and Forney. Hoover results in the fourth quarter of 2025 included transition and intangible asset amortization costs related to the Arconic transaction, along with a substantial decline in Hoover’s core fire-retardant wood products business from the continued sluggish multi-family housing market. Automotive Revenues for the fourth quarter of 2025 decreased 6% due to the closure of the Ourisman Jeep of Bethesda dealership in September 2025, and declines in new and used vehicle sales and sales of finance and insurance product offerings that was partly related to the adverse impacts of the federal government shutdown in the fourth quarter of 2025. This decline was partially offset by the Honda of Woodbridge acquisition in October 2025 and sales growth for services and parts. Operating results for the fourth quarter of 2025 declined due to lower sales and overall gross margins on new and used vehicles and a decline in finance and insurance product sales, partially offset by the Honda of Woodbridge acquisition and higher gross profit on services and parts. In addition, as a result of underperformance at the Chrysler-Dodge-Jeep-Ram automotive dealership from a continued decline in revenues, the Company recorded a $10.1 million intangible asset impairment charge in the fourth quarter of 2025. Other Businesses A summary of revenue by category for other businesses: Overall, revenue from other businesses decreased 2% in the fourth quarter of 2025. Specialty revenue decreased due to declines at Clyde’s Restaurant Group (CRG) partly related to the adverse impacts of the federal government shutdown in the fourth quarter of 2025. This decline was partially offset by revenue growth at Supporting Cast. Retail revenue increased due to revenue growth at Framebridge and Saatchi Art, partially offset by lower revenue at Society6. Media revenue declined due to lower revenue at World of Good Brands (WGB), Slate and Code3, partially offset by revenue growth at City Cast and Foreign Policy. Operating results improved in the fourth quarter of 2025 due to a reduction in losses at WGB, Society6, Saatchi Art, Decile and Supporting Cast and improved results at Code3, partially offset by increased losses at City Cast and Foreign Policy, a decline in results at Slate and a small decline in results at CRG. Framebridge operating losses were up slightly; operating results include ongoing expansion investments from new retail store openings and the new manufacturing facility in Nevada. Adjusted operating cash flow losses (non-GAAP) at other businesses improved to $12.0 million in the fourth quarter of 2025, from $16.1 million in the fourth quarter of 2024. In the fourth quarter of 2024, the Company offered Separation Incentive Programs (SIPs) to certain employees at WGB and Decile; $0.3 million in related non-operating pension expense was recorded. Equity in Earnings of Affiliates Overall, the Company recorded equity in earnings of affiliates of $5.9 million for the fourth quarter of 2025, compared to $5.2 million for 2024. These amounts include $1.4 million in net gains for both 2025 and 2024 from affiliates whose operations are not managed by the Company. Net Interest Income (Expense) The Company reported net interest income of $0.8 million and incurred net interest expense of $46.2 million for the fourth quarter of 2025 and 2024, respectively. The Company recorded a credit to interest expense of $13.8 million and interest expense of $34.2 million in the fourth quarter of 2025 and 2024, respectively, to adjust the fair value of the mandatorily redeemable noncontrolling interest at GHG. Excluding these adjustments, the net interest expense increased modestly for the fourth quarter of 2025 compared to 2024. Non-Operating Pension and Postretirement Benefit Income, Net The Company recorded net non-operating pension and postretirement benefit income of $33.3 million for the fourth quarter of 2025, compared to $689.6 million for the fourth quarter of 2024. In the fourth quarter of 2024, the Company recorded a pre-tax, noncash pension settlement gain of $653.4 million in connection with the purchase of an irrevocable group annuity contract from an insurance company. Also in the fourth quarter of 2024, the Company recorded $0.5 million in expenses related to non-operating SIPs at Kaplan, manufacturing and other businesses. The SIPs were funded by the assets of the Company’s pension plan. Other Non-Operating Income For the fourth quarter of 2025, the Company recorded other non-operating income, net, of $1.7 million, compared to $9.6 million for the fourth quarter of 2024. The 2025 amounts included $4.7 million in gains on sales of cost method investments, partially offset by $2.3 million in foreign currency losses and other items. The 2024 amounts included $11.1 million in foreign currency gains and other items, partially offset by a $1.7 million decrease in the fair value of a cost method investment. Earnings Per Share The calculation of diluted earnings per share for the fourth quarter of 2025 was based on 4,378,973 weighted average shares outstanding compared to 4,341,412 for the fourth quarter of 2024. 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. Any forward-looking statements made in this press release speaks only as of the date on which it is made. 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. 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 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: View source version on businesswire.com: https://www.businesswire.com/news/home/20260224509125/en/ Contacts Wallace R. Cooney (703) 345-6470

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away. In contrast to all that, many investors prefer to focus on companies like Graham Holdings (NYSE:GHC), which has not only revenues, but also profits. Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. In business, profits are a key measure of success; and share prices tend to reflect earnings per share (EPS) performance. Which is why EPS growth is looked upon so favourably. It is awe-striking that Graham Holdings' EPS went from US$51.47 to US$167 in just one year. Even though that growth rate may not be repeated, that looks like a breakout improvement. Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. The good news is that Graham Holdings is growing revenues, and EBIT margins improved by 13.8 percentage points to 22%, over the last year. Both of which are great metrics to check off for potential growth. The chart below shows how the company's bottom and top lines have progressed over time. To see the actual numbers, click on the chart. See our latest analysis for Graham Holdings While it's always good to see growing profits, you should always remember that a weak balance sheet could come back to bite. So check Graham Holdings' balance sheet strength, before getting too excited. Owing to the size of Graham Holdings, we wouldn't expect insiders to hold a significant proportion of the company. But we do take comfort from the fact that they are investors in the company. Indeed, they have a considerable amount of wealth invested in it, currently valued at US$1.6b. Coming in at 32% of the business, that holding gives insiders a lot of influence, and plenty of reason to generate value for shareholders. So there is opportunity here to invest in a company whose management have tangible incentives to deliver. It's good to see that insiders are invested in the company, but are remuneration levels reasonable? Our quick analysis into CEO remuneration would seem to indicate they are. For companies with market capitalisations between US$4.0b and US$12b, like Graham Holdings, the median CEO pay is around US$8.0m. The Graham Holdings CEO received total compensation of just US$3.9m in the year to December 2024. That's clearly well below average, so at a glance that arrangement seems generous to shareholders and points to a modest remuneration culture. While the level of CEO compensation shouldn't be the biggest factor in how the company is viewed, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. Generally, arguments can be made that reasonable pay levels attest to good decision-making. Graham Holdings' earnings have taken off in quite an impressive fashion. The cherry on top is that insiders own a bucket-load of shares, and the CEO pay seems really quite reasonable. The sharp increase in earnings could signal good business momentum. Graham Holdings is certainly doing some things right and is well worth investigating. While we've looked at the quality of the earnings, we haven't yet done any work to value the stock. So if you like to buy cheap, you may want to check if Graham Holdings is trading on a high P/E or a low P/E, relative to its industry. Although Graham Holdings certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of companies that not only boast of strong growth but have strong insider backing. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.