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.

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Wallace R. Cooney

(703) 345-6470

Graham Holdings Company Reports First Quarter Earnings