Graham Holdings Company

04/30/2026 | Press release | Distributed by Public on 04/30/2026 06:33

Graham Holdings Company Reports First Quarter Earnings

ARLINGTON, Va.--(BUSINESS WIRE)--Apr. 30, 2026-- 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.

GRAHAM HOLDINGS COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three Months Ended

March 31

%

(in thousands, except per share amounts)

2026

2025

Change

Operating revenues

$

1,235,992

$

1,165,915

6

Operating expenses

1,134,681

1,090,064

4

Depreciation of property, plant and equipment

18,394

20,554

(11

)

Amortization of intangible assets

6,055

7,824

(23

)

Impairment of goodwill and asset group held for sale

19,029

-

-

Operating income

57,833

47,473

22

Equity in earnings (losses) of affiliates, net

34,850

(8,428

)

-

Interest income

2,475

2,500

(1

)

Interest expense

(16,229

)

(82,277

)

(80

)

Non-operating pension and postretirement benefit income, net

31,073

34,617

(10

)

(Loss) gain on marketable equity securities, net

(68,923

)

43,801

-

Other expense, net

(428

)

(4,065

)

(89

)

Income before income taxes

40,651

33,621

21

Provision for income taxes

9,900

7,900

25

Net income

30,751

25,721

20

Net income attributable to noncontrolling interests

(1,645

)

(1,827

)

(10

)

Net Income Attributable to Graham Holdings Company Common Stockholders

$

29,106

$

23,894

22

Per Share Information Attributable to Graham Holdings Company Common Stockholders

Basic net income per common share

$

6.68

$

5.50

21

Basic average number of common shares outstanding

4,331

4,320

Diluted net income per common share

$

6.62

$

5.45

21

Diluted average number of common shares outstanding

4,375

4,358

GRAHAM HOLDINGS COMPANY

BUSINESS DIVISION INFORMATION

(Unaudited)

Three Months Ended

March 31

%

(in thousands)

2026

2025

Change

Operating Revenues

Education

$

440,479

$

424,731

4

Television broadcasting

111,553

103,554

8

Healthcare

209,340

173,741

20

Manufacturing

125,034

98,005

28

Automotive

267,624

280,991

(5

)

Other businesses

81,927

84,897

(3

)

Corporate office

672

620

8

Intersegment elimination

(637

)

(624

)

-

$

1,235,992

$

1,165,915

6

Operating Expenses

Education

$

408,097

$

384,698

6

Television broadcasting

77,610

79,156

(2

)

Healthcare

191,914

155,424

23

Manufacturing

117,034

92,525

26

Automotive

262,316

274,499

(4

)

Other businesses

106,064

116,135

(9

)

Corporate office

15,761

16,629

(5

)

Intersegment elimination

(637

)

(624

)

-

$

1,178,159

$

1,118,442

5

Operating Income (Loss)

Education

$

32,382

$

40,033

(19

)

Television broadcasting

33,943

24,398

39

Healthcare

17,426

18,317

(5

)

Manufacturing

8,000

5,480

46

Automotive

5,308

6,492

(18

)

Other businesses

(24,137

)

(31,238

)

23

Corporate office

(15,089

)

(16,009

)

6

$

57,833

$

47,473

22

Amortization of Intangible Assets and Impairment of Goodwill and Asset Group Held for Sale

Education

$

19,343

$

2,119

-

Television broadcasting

1,360

1,360

-

Healthcare

96

118

(19

)

Manufacturing

3,743

2,431

54

Automotive

5

5

-

Other businesses

537

1,791

(70

)

Corporate office

-

-

-

$

25,084

$

7,824

-

Operating Income (Loss) before Amortization of Intangible Assets and Impairment of Goodwill and Asset Group Held for Sale

Education

$

51,725

$

42,152

23

Television broadcasting

35,303

25,758

37

Healthcare

17,522

18,435

(5

)

Manufacturing

11,743

7,911

48

Automotive

5,313

6,497

(18

)

Other businesses

(23,600

)

(29,447

)

20

Corporate office

(15,089

)

(16,009

)

6

$

82,917

$

55,297

50

Three Months Ended

March 31

%

(in thousands)

2026

2025

Change

Depreciation

Education

$

6,054

$

7,764

(22

)

Television broadcasting

2,336

2,628

(11

)

Healthcare

1,914

1,786

7

Manufacturing

3,135

2,703

16

Automotive

1,845

1,729

7

Other businesses

2,938

3,789

(22

)

Corporate office

172

155

11

$

18,394

$

20,554

(11

)

Pension Expense

Education

$

4,439

$

4,223

5

Television broadcasting

1,488

1,419

5

Healthcare

1,886

2,999

(37

)

Manufacturing

1,230

1,076

14

Automotive

17

27

(37

)

Other businesses

1,787

1,716

4

Corporate office

733

732

0

$

11,580

$

12,192

(5

)

Adjusted Operating Cash Flow (non-GAAP)(1)

Education

$

62,218

$

54,139

15

Television broadcasting

39,127

29,805

31

Healthcare

21,322

23,220

(8

)

Manufacturing

16,108

11,690

38

Automotive

7,175

8,253

(13

)

Other businesses

(18,875

)

(23,942

)

21

Corporate office

(14,184

)

(15,122

)

6

$

112,891

$

88,043

28

____________

(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

EDUCATION DIVISION INFORMATION

(Unaudited)

Three Months Ended

March 31

%

(in thousands)

2026

2025

Change

Operating Revenues

Kaplan international

$

271,636

$

261,256

4

Higher education

92,403

88,487

4

Supplemental education

76,864

75,403

2

Kaplan corporate and other

271

12

-

Intersegment elimination

(695

)

(427

)

-

$

440,479

$

424,731

4

Operating Expenses

Kaplan international

$

240,249

$

231,194

4

Higher education

74,714

75,680

(1

)

Supplemental education

69,584

69,435

0

Kaplan corporate and other

4,621

6,660

(31

)

Amortization of intangible assets

314

2,119

(85

)

Impairment of goodwill and asset group held for sale

19,029

-

-

Intersegment elimination

(414

)

(390

)

-

$

408,097

$

384,698

6

Operating Income (Loss)

Kaplan international

$

31,387

$

30,062

4

Higher education

17,689

12,807

38

Supplemental education

7,280

5,968

22

Kaplan corporate and other

(4,350

)

(6,648

)

35

Amortization of intangible assets

(314

)

(2,119

)

85

Impairment of goodwill and asset group held for sale

(19,029

)

-

-

Intersegment elimination

(281

)

(37

)

-

$

32,382

$

40,033

(19

)

Operating Income (Loss) before Amortization of Intangible Assets and Impairment of Goodwill and Asset Group Held for Sale

Kaplan international

$

31,387

$

30,062

4

Higher education

17,689

12,807

38

Supplemental education

7,280

5,968

22

Kaplan corporate and other

(4,350

)

(6,648

)

35

Intersegment elimination

(281

)

(37

)

-

$

51,725

$

42,152

23

Depreciation

Kaplan international

$

4,968

$

6,549

(24

)

Higher education

267

456

(41

)

Supplemental education

810

753

8

Kaplan corporate and other

9

6

50

$

6,054

$

7,764

(22

)

Pension Expense

Kaplan international

$

126

$

140

(10

)

Higher education

1,920

1,808

6

Supplemental education

1,986

1,887

5

Kaplan corporate and other

407

388

5

$

4,439

$

4,223

5

Adjusted Operating Cash Flow (non-GAAP)(1)

Kaplan international

$

36,481

$

36,751

(1

)

Higher education

19,876

15,071

32

Supplemental education

10,076

8,608

17

Kaplan corporate and other

(3,934

)

(6,254

)

37

Intersegment elimination

(281

)

(37

)

-

$

62,218

$

54,139

15

____________

(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

March 31

%

(in thousands)

2026

2025

Change

Operating Revenues

CSI

$

117,781

$

90,248

31

Other Healthcare

91,559

83,493

10

$

209,340

$

173,741

20

Operating Expenses

CSI

$

111,469

$

80,605

38

Other Healthcare

80,445

74,819

8

$

191,914

$

155,424

23

Operating Income

CSI

$

6,312

$

9,643

(35

)

Other Healthcare

11,114

8,674

28

$

17,426

$

18,317

(5

)

Amortization of Intangible Assets

CSI

$

21

$

33

(36

)

Other Healthcare

75

85

(12

)

$

96

$

118

(19

)

Operating Income before Amortization of Intangible Assets

CSI

$

6,333

$

9,676

(35

)

Other Healthcare

11,189

8,759

28

$

17,522

$

18,435

(5

)

Depreciation

CSI

$

293

$

176

66

Other Healthcare

1,621

1,610

1

$

1,914

$

1,786

7

Pension Expense

CSI

$

-

$

-

-

Other Healthcare

1,886

2,999

(37

)

$

1,886

$

2,999

(37

)

Adjusted Operating Cash Flow (non-GAAP)(1)

CSI

$

6,626

$

9,852

(33

)

Other Healthcare

14,696

13,368

10

$

21,322

$

23,220

(8

)

____________

(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 March 31

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

$

40,651

$

9,900

$

30,751

$

33,621

$

7,900

$

25,721

Attributable to noncontrolling interests

(1,645

)

(1,827

)

Attributable to Graham Holdings Company Stockholders

29,106

23,894

Adjustments:

Impairment charge related to KLG

19,029

4,681

14,348

-

-

-

Charges related to non-operating Separation Incentive Programs

4,100

1,067

3,033

624

160

464

Interest (income) expense related to the fair value adjustment of the mandatorily redeemable noncontrolling interest

(669

)

(148

)

(521

)

66,407

16,035

50,372

Net losses (gains) on marketable equity securities

68,923

17,606

51,317

(43,801

)

(11,231

)

(32,570

)

Net (gains) losses of affiliates whose operations are not managed by the Company

(30,967

)

(7,911

)

(23,056

)

11,910

3,054

8,856

Non-operating gain from the sale of a cost method investment

(484

)

(124

)

(360

)

-

-

-

Net Income, adjusted (non-GAAP)

$

73,867

$

51,016

Per share information attributable to Graham Holdings Company Common Stockholders

Diluted income per common share, as reported

$

6.62

$

5.45

Adjustments:

Impairment charge related to KLG

3.26

-

Charges related to non-operating Separation Incentive Programs

0.69

0.11

Interest (income) expense related to the fair value adjustment of the mandatorily redeemable noncontrolling interest

(0.12

)

11.49

Net losses (gains) on marketable equity securities

11.66

(7.43

)

Net (gains) losses of affiliates whose operations are not managed by the Company

(5.24

)

2.02

Non-operating gain from the sale of a cost method investment

(0.08

)

-

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

$

16.79

$

11.64

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20260429980150/en/

Wallace R. Cooney
(703) 345-6470

Source: Graham Holdings Company

Graham Holdings Company published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 12:38 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]