Graham Holdings Co.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 30 April 2026: press release. The quarter’s numbers.

Key takeaways

Revenue rose 6% to $1,236.0 million: Revenue was $1,236.0 million, up from $1,165.9 million a year earlier. Revenue increased at education, television broadcasting, healthcare and manufacturing, and declined at automotive and other businesses. Source
Operating income rose 22% to $57.8 million: Operating income was $57.8 million, against $47.5 million a year earlier. Television broadcasting, manufacturing and other businesses improved, partly offset by education, healthcare and automotive. Source
Reported diluted EPS was $6.62: Net income attributable to common shares was $29.1 million, or $6.62 per diluted share, against $23.9 million, or $5.45 per diluted share, a year earlier. Source
KLG impairment of $19.0 million: A $19.0 million pre-tax impairment charge tied to the KLG business was recorded in the first quarter, within education operating results. Source
Net losses on equity securities: Net losses on marketable equity securities totaled $68.9 million, compared with $43.8 million of net gains in the first quarter of 2025. Source
Adjusted diluted EPS was $16.79: Excluding the listed items, adjusted net income attributable to common shares was $73.9 million, or $16.79 per diluted share, against $51.0 million, or $11.64, a year earlier. Source
Kaplan Languages Group sale agreed: The company agreed to sell KLG, part of Kaplan International, with expected closing on May 1, 2026. KLG assets and liabilities were held for sale at March 31, 2026. Source

“Revenues increased at education, television broadcasting, healthcare and manufacturing, partially offset by declines at automotive and other businesses.”
Graham Holdings Co., press release

What changed from last quarter

New: Agreement to sell the Kaplan Languages Group, part of Kaplan International, entered in the first quarter of 2026, with expected closing May 1, 2026. Source
New: Graham Healthcare Group acquired Covenant Home Health, a home health provider in Eastern Pennsylvania, in March 2026. Source

Results and growth drivers

Revenue rose 6% to $1,236.0 million: Revenue was $1,236.0 million, up from $1,165.9 million a year earlier. Revenue increased at education, television broadcasting, healthcare and manufacturing, and declined at automotive and other businesses. Source
Operating income rose 22% to $57.8 million: Operating income was $57.8 million, against $47.5 million a year earlier. Television broadcasting, manufacturing and other businesses improved, partly offset by education, healthcare and automotive. Source
Adjusted operating cash flow rose to $112.9 million: Adjusted operating cash flow (non-GAAP) was $112.9 million, up from $88.0 million. It rose at education, television broadcasting, manufacturing and other businesses and fell at healthcare and automotive. Source
Reported diluted EPS was $6.62: Net income attributable to common shares was $29.1 million, or $6.62 per diluted share, against $23.9 million, or $5.45 per diluted share, a year earlier. Source

Segments and regions

Education revenue up, operating income down: Education revenue rose 4% to $440.5 million. Operating income fell 19% to $32.4 million, including the $19.0 million KLG impairment and higher amortization of intangible assets. Source
Kaplan International and higher education: Kaplan International revenue rose 4% to $271.6 million, with operating income up 4% to $31.4 million. Higher education revenue rose 4%, and its operating income rose 38% to $17.7 million. Source
Television broadcasting profit rose 39%: Television broadcasting revenue rose 8% to $111.6 million, and operating income rose 39% to $33.9 million. Source
Healthcare revenue up, profit down: Healthcare revenue rose 20% to $209.3 million, and operating income fell 5% to $17.4 million. CSI revenue rose 31%, while CSI operating income fell 35%. Source
Manufacturing revenue and profit rose: Manufacturing revenue rose 28% to $125.0 million, and operating income rose 46% to $8.0 million. Source
Automotive revenue and other businesses: Automotive revenue fell 5% to $267.6 million, and operating income fell 18% to $5.3 million. Other businesses revenue fell 3%, and their operating loss narrowed to $24.1 million from $31.2 million. Source

“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.”
Graham Holdings Co., press release

Costs, impairment and amortization

KLG impairment of $19.0 million: A $19.0 million pre-tax impairment charge tied to the KLG business was recorded in the first quarter, within education operating results. Source
Operating expenses rose 4%: Operating expenses were $1,134.7 million, up 4% from $1,090.1 million a year earlier, against revenue growth of 6%. Source
Depreciation and amortization declined: Depreciation fell 11% to $18.4 million from $20.6 million. Amortization of intangible assets fell 23% to $6.1 million from $7.8 million. Source

Non-operating items and adjusted earnings

Net losses on equity securities: Net losses on marketable equity securities totaled $68.9 million, compared with $43.8 million of net gains in the first quarter of 2025. Source
Equity in affiliates turned positive: Equity in earnings of affiliates was $34.9 million, compared with a loss of $8.4 million in the first quarter of 2025. Source
Interest expense fell 80%: Interest expense was $16.2 million, down from $82.3 million a year earlier. Non-operating pension and postretirement benefit income was $31.1 million, against $34.6 million. Source
Adjusted diluted EPS was $16.79: Excluding the listed items, adjusted net income attributable to common shares was $73.9 million, or $16.79 per diluted share, against $51.0 million, or $11.64, a year earlier. Source

Capital, debt and cash

Borrowings of $822.0 million outstanding: Borrowings were $822.0 million at March 31, 2026, at an average interest rate of 5.8%. Of this, $149.1 million was outstanding on the $400 million revolving credit facility. Source
Cash and investments totaled $1,171.8 million: Cash, marketable equity securities and other investments were $1,171.8 million, excluding KLG cash held for sale. The December 31, 2025 total was $1,400.4 million. Source
Capital expenditures rose to $20.9 million: Capital expenditures were $20.9 million in the first quarter of 2026, against $14.1 million in the first quarter of 2025. Source

Share repurchases and share count

Repurchased 32,190 Class B shares: The company bought 32,190 Class B shares for $34.1 million in the first three months of 2026. In all of 2025 it had bought 3,978 shares for $3.5 million. Source
Shares outstanding fell slightly: Shares outstanding were 4,329,530 at March 31, 2026, against 4,360,943 at December 31, 2025. Source
Remaining authorization of 430,292 shares: Remaining authorization was 430,292 shares at March 31, 2026, from 462,482 at December 31, 2025, under the September 12, 2024 authorization of up to 500,000 shares. Source

Acquisitions, dispositions and held-for-sale status

Kaplan Languages Group sale agreed: The company agreed to sell KLG, part of Kaplan International, with expected closing on May 1, 2026. KLG assets and liabilities were held for sale at March 31, 2026. Source
KLG excluded from cash total: KLG cash is excluded from the cash, securities and investments total. KLG assets and liabilities are reported as held for sale. Source
Covenant Home Health acquired in March: Graham Healthcare Group acquired Covenant Home Health, a home health provider in Eastern Pennsylvania, in March 2026. Source

Coming up, as management said on 30 April 2026

KLG sale expected to close May 1: The sale of the Kaplan Languages Group is expected to close on May 1, 2026. Source

Risks management discussed

Financial: Reported results include fair-value changes in the equity securities portfolio, which produced a $68.9 million net loss in the quarter. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

ARLINGTON, VA - 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.

	Three Months Ended
	March 31				%
GRAHAM HOLDINGS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(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

	Three Months Ended
	March 31		%
GRAHAM HOLDINGS COMPANY
BUSINESS DIVISION INFORMATION
(Unaudited)
(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)
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

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.

	Three Months Ended
	March 31		%
GRAHAM HOLDINGS COMPANY
EDUCATION DIVISION INFORMATION
(Unaudited)
(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)
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

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.

	Three Months Ended
	March 31		%
GRAHAM HOLDINGS COMPANY
HEALTHCARE DIVISION INFORMATION
(Unaudited)
(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)
CSI	$6,626		$9,852		(33)
Other Healthcare	14,696		13,368		10
	$21,322		$23,220		(8)

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.

Contacts
GRAHAM HOLDINGS COMPANY REPORTS · FIRST QUARTER EARNINGS
Wallace R. Cooney · (703) 345-6470
April 30, 2026