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

GRAHAM HOLDINGS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
	Three Months Ended
	June 30							%
(in thousands, except per share amounts)	2026				2025			Change
Operating revenues	$	1,302,506			$	1,215,772		7
Operating expenses		1,194,613				1,116,128		7
Depreciation of property, plant and equipment		18,281				19,652		(7	)
Amortization of intangible assets		5,978				7,241		(17	)
Operating income		83,634				72,751		15
Equity in (losses) earnings of affiliates, net		(19,863	)			3,114		—
Interest income		1,881				2,261		(17	)
Interest expense		(17,173	)			(18,106	)	(5	)
Non-operating pension and postretirement benefit income, net		169,649				28,602		—
Gain (loss) on marketable equity securities, net		101,879				(11,543	)	—
Other expense, net		(2,531	)			(16,456	)	(85	)
Income before income taxes		317,476				60,623		—
Provision for income taxes		35,100				20,200		74
Net income		282,376				40,423		—
Net income attributable to noncontrolling interests		(1,273	)			(3,674	)	(65	)
Net Income Attributable to Graham Holdings Company Common Stockholders	$	281,103			$	36,749		—
Per Share Information Attributable to Graham Holdings Company Common Stockholders
Basic net income per common share	$	65.53			$	8.43		—
Basic average number of common shares outstanding		4,265				4,333
Diluted net income per common share	$	64.86			$	8.35		—
Diluted average number of common shares outstanding		4,309				4,373

GRAHAM HOLDINGS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
	Six Months Ended
	June 30							%
(in thousands, except per share amounts)	2026				2025			Change
Operating revenues	$	2,538,498			$	2,381,687		7
Operating expenses		2,329,294				2,206,192		6
Depreciation of property, plant and equipment		36,675				40,206		(9	)
Amortization of intangible assets		12,033				15,065		(20	)
Impairment of goodwill and asset group held for sale		19,029				—		—
Operating income		141,467				120,224		18
Equity in earnings (losses) of affiliates, net		14,987				(5,314	)	—
Interest income		4,356				4,761		(9	)
Interest expense		(33,402	)			(100,383	)	(67	)
Non-operating pension and postretirement benefit income, net		200,722				63,219		—
Gain on marketable equity securities, net		32,956				32,258		2
Other expense, net		(2,959	)			(20,521	)	(86	)
Income before income taxes		358,127				94,244		—
Provision for income taxes		45,000				28,100		60
Net income		313,127				66,144		—
Net income attributable to noncontrolling interests		(2,918	)			(5,501	)	(47	)
Net Income Attributable to Graham Holdings Company Common Stockholders	$	310,209			$	60,643		—
Per Share Information Attributable to Graham Holdings Company Common Stockholders
Basic net income per common share	$	71.76			$	13.93		—
Basic average number of common shares outstanding		4,298				4,327
Diluted net income per common share	$	71.04			$	13.81		—
Diluted average number of common shares outstanding		4,342				4,366

GRAHAM HOLDINGS COMPANY
BUSINESS DIVISION INFORMATION
(Unaudited)
	Three Months Ended											Six Months Ended
	June 30								%			June 30								%
(in thousands)	2026				2025				Change			2026				2025				Change
Operating Revenues
Education	$	417,808			$	436,813			(4	)		$	858,287			$	861,544			0
Television broadcasting		109,630				105,984			3				221,183				209,538			6
Healthcare		247,651				202,219			22				456,991				375,960			22
Manufacturing		133,280				96,218			39				258,314				194,223			33
Automotive		301,352				285,572			6				568,976				566,563			0
Other businesses		92,839				88,970			4				174,766				173,867			1
Corporate office		723				621			16				1,395				1,241			12
Intersegment elimination		(777	)			(625	)		—				(1,414	)			(1,249	)		—
	$	1,302,506			$	1,215,772			7			$	2,538,498			$	2,381,687			7
Operating Expenses
Education	$	367,532			$	390,628			(6	)		$	775,629			$	775,326			0
Television broadcasting		79,147				78,044			1				156,757				157,200			0
Healthcare		223,041				177,122			26				414,955				332,546			25
Manufacturing		126,179				88,652			42				243,213				181,177			34
Automotive		293,287				276,279			6				555,603				550,778			1
Other businesses		110,026				116,265			(5	)			216,090				232,400			(7	)
Corporate office		20,437				16,656			23				36,198				33,285			9
Intersegment elimination		(777	)			(625	)		—				(1,414	)			(1,249	)		—
	$	1,218,872			$	1,143,021			7			$	2,397,031			$	2,261,463			6
Operating Income (Loss)
Education	$	50,276			$	46,185			9			$	82,658			$	86,218			(4	)
Television broadcasting		30,483				27,940			9				64,426				52,338			23
Healthcare		24,610				25,097			(2	)			42,036				43,414			(3	)
Manufacturing		7,101				7,566			(6	)			15,101				13,046			16
Automotive		8,065				9,293			(13	)			13,373				15,785			(15	)
Other businesses		(17,187	)			(27,295	)		37				(41,324	)			(58,533	)		29
Corporate office		(19,714	)			(16,035	)		(23	)			(34,803	)			(32,044	)		(9	)
	$	83,634			$	72,751			15			$	141,467			$	120,224			18
Amortization of Intangible Assets and Impairment of Goodwill and Asset Group Held for Sale
Education	$	243			$	1,699			(86	)		$	19,586			$	3,818			—
Television broadcasting		1,360				1,360			—				2,720				2,720			—
Healthcare		90				117			(23	)			186				235			(21	)
Manufacturing		3,743				2,431			54				7,486				4,862			54
Automotive		5				5			—				10				10			—
Other businesses		537				1,629			(67	)			1,074				3,420			(69	)
Corporate office		—				—			—				—				—			—
	$	5,978			$	7,241			(17	)		$	31,062			$	15,065			—
Operating Income (Loss) before Amortization of Intangible Assets and Impairment of Goodwill and Asset Group Held for Sale
Education	$	50,519			$	47,884			6			$	102,244			$	90,036			14
Television broadcasting		31,843				29,300			9				67,146				55,058			22
Healthcare		24,700				25,214			(2	)			42,222				43,649			(3	)
Manufacturing		10,844				9,997			8				22,587				17,908			26
Automotive		8,070				9,298			(13	)			13,383				15,795			(15	)
Other businesses		(16,650	)			(25,666	)		35				(40,250	)			(55,113	)		27
Corporate office		(19,714	)			(16,035	)		(23	)			(34,803	)			(32,044	)		(9	)
	$	89,612			$	79,992			12			$	172,529			$	135,289			28
	Three Months Ended											Six Months Ended
	June 30								%			June 30								%
(in thousands)		2026				2025			Change				2026				2025			Change
Depreciation
Education	$	5,659			$	7,412			(24	)		$	11,713			$	15,176			(23	)
Television broadcasting		2,345				2,625			(11	)			4,681				5,253			(11	)
Healthcare		1,913				1,723			11				3,827				3,509			9
Manufacturing		3,037				2,654			14				6,172				5,357			15
Automotive		1,937				1,708			13				3,782				3,437			10
Other businesses		3,223				3,353			(4	)			6,161				7,142			(14	)
Corporate office		167				177			(6	)			339				332			2
	$	18,281			$	19,652			(7	)		$	36,675			$	40,206			(9	)
Pension Expense
Education	$	4,672			$	4,413			6			$	9,111			$	8,636			6
Television broadcasting		1,619				1,532			6				3,107				2,951			5
Healthcare		1,643				1,993			(18	)			3,529				4,992			(29	)
Manufacturing		1,255				654			92				2,485				1,730			44
Automotive		51				21			—				68				48			42
Other businesses		1,938				2,295			(16	)			3,725				4,011			(7	)
Corporate office		744				791			(6	)			1,477				1,523			(3	)
	$	11,922			$	11,699			2			$	23,502			$	23,891			(2	)
Adjusted Operating Cash Flow (non-GAAP)(1)
Education	$	60,850			$	59,709			2			$	123,068			$	113,848			8
Television broadcasting		35,807				33,457			7				74,934				63,262			18
Healthcare		28,256				28,930			(2	)			49,578				52,150			(5	)
Manufacturing		15,136				13,305			14				31,244				24,995			25
Automotive		10,058				11,027			(9	)			17,233				19,280			(11	)
Other businesses		(11,489	)			(20,018	)		43				(30,364	)			(43,960	)		31
Corporate office		(18,803	)			(15,067	)		(25	)			(32,987	)			(30,189	)		(9	)
	$	119,815			$	111,343			8			$	232,706			$	199,386			17

____________
(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											Six Months Ended
	June 30								%			June 30								%
(in thousands)	2026				2025				Change			2026				2025				Change
Operating Revenues
Kaplan international	$	252,375			$	272,171			(7	)		$	524,011			$	533,427			(2	)
Higher education		86,293				84,738			2				178,696				173,225			3
Supplemental education		79,476				80,161			(1	)			156,340				155,564			0
Kaplan corporate and other		284				23			—				555				35			—
Intersegment elimination		(620	)			(280	)		—				(1,315	)			(707	)		—
	$	417,808			$	436,813			(4	)		$	858,287			$	861,544			0
Operating Expenses
Kaplan international	$	219,512			$	242,234			(9	)		$	459,761			$	473,428			(3	)
Higher education		69,645				66,766			4				144,359				142,446			1
Supplemental education		70,972				72,755			(2	)			140,556				142,190			(1	)
Kaplan corporate and other		8,051				7,439			8				12,672				14,099			(10	)
Amortization of intangible assets		243				1,699			(86	)			557				3,818			(85	)
Impairment of goodwill and asset group held for sale		—				—			—				19,029				—			—
Intersegment elimination		(891	)			(265	)		—				(1,305	)			(655	)		—
	$	367,532			$	390,628			(6	)		$	775,629			$	775,326			0
Operating Income (Loss)
Kaplan international	$	32,863			$	29,937			10			$	64,250			$	59,999			7
Higher education		16,648				17,972			(7	)			34,337				30,779			12
Supplemental education		8,504				7,406			15				15,784				13,374			18
Kaplan corporate and other		(7,767	)			(7,416	)		(5	)			(12,117	)			(14,064	)		14
Amortization of intangible assets		(243	)			(1,699	)		86				(557	)			(3,818	)		85
Impairment of goodwill and asset group held for sale		—				—			—				(19,029	)			—			—
Intersegment elimination		271				(15	)		—				(10	)			(52	)		—
	$	50,276			$	46,185			9			$	82,658			$	86,218			(4	)
Operating Income (Loss) before Amortization of Intangible Assets and Impairment of Goodwill and Asset Group Held for Sale
Kaplan international	$	32,863			$	29,937			10			$	64,250			$	59,999			7
Higher education		16,648				17,972			(7	)			34,337				30,779			12
Supplemental education		8,504				7,406			15				15,784				13,374			18
Kaplan corporate and other		(7,767	)			(7,416	)		(5	)			(12,117	)			(14,064	)		14
Intersegment elimination		271				(15	)		—				(10	)			(52	)		—
	$	50,519			$	47,884			6			$	102,244			$	90,036			14
Depreciation
Kaplan international	$	4,611			$	6,393			(28	)		$	9,579			$	12,942			(26	)
Higher education		300				383			(22	)			567				839			(32	)
Supplemental education		738				631			17				1,548				1,384			12
Kaplan corporate and other		10				5			—				19				11			73
	$	5,659			$	7,412			(24	)		$	11,713			$	15,176			(23	)
Pension Expense
Kaplan international	$	50			$	146			(66	)		$	176			$	286			(38	)
Higher education		2,032				1,889			8				3,952				3,697			7
Supplemental education		2,060				1,972			4				4,046				3,859			5
Kaplan corporate and other		530				406			31				937				794			18
	$	4,672			$	4,413			6			$	9,111			$	8,636			6
Adjusted Operating Cash Flow (non-GAAP)(1)
Kaplan international	$	37,524			$	36,476			3			$	74,005			$	73,227			1
Higher education		18,980				20,244			(6	)			38,856				35,315			10
Supplemental education		11,302				10,009			13				21,378				18,617			15
Kaplan corporate and other		(7,227	)			(7,005	)		(3	)			(11,161	)			(13,259	)		16
Intersegment elimination		271				(15	)		—				(10	)			(52	)		—
	$	60,850			$	59,709			2			$	123,068			$	113,848			8

____________
(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											Six Months Ended
	June 30								%			June 30								%
(in thousands)	2026				2025				Change			2026				2025				Change
Operating Revenues
CSI	$	148,523			$	113,415			31			$	266,304			$	203,663			31
Other Healthcare		99,128				88,804			12				190,687				172,297			11
	$	247,651			$	202,219			22			$	456,991			$	375,960			22
Operating Expenses
CSI	$	136,025			$	99,418			37			$	247,494			$	180,023			37
Other Healthcare		87,016				77,704			12				167,461				152,523			10
	$	223,041			$	177,122			26			$	414,955			$	332,546			25
Operating Income
CSI	$	12,498			$	13,997			(11	)		$	18,810			$	23,640			(20	)
Other Healthcare		12,112				11,100			9				23,226				19,774			17
	$	24,610			$	25,097			(2	)		$	42,036			$	43,414			(3	)
Amortization of Intangible Assets
CSI	$	20			$	34			(41	)		$	41			$	67			(39	)
Other Healthcare		70				83			(16	)			145				168			(14	)
	$	90			$	117			(23	)		$	186			$	235			(21	)
Operating Income before Amortization of Intangible Assets
CSI	$	12,518			$	14,031			(11	)		$	18,851			$	23,707			(20	)
Other Healthcare		12,182				11,183			9				23,371				19,942			17
	$	24,700			$	25,214			(2	)		$	42,222			$	43,649			(3	)
Depreciation
CSI	$	301			$	183			64			$	594			$	359			65
Other Healthcare		1,612				1,540			5				3,233				3,150			3
	$	1,913			$	1,723			11			$	3,827			$	3,509			9
Pension Expense
CSI	$	—			$	—			—			$	—			$	—			—
Other Healthcare		1,643				1,993			(18	)			3,529				4,992			(29	)
	$	1,643			$	1,993			(18	)		$	3,529			$	4,992			(29	)
Adjusted Operating Cash Flow (non-GAAP)(1)
CSI	$	12,819			$	14,214			(10	)		$	19,445			$	24,066			(19	)
Other Healthcare		15,437				14,716			5				30,133				28,084			7
	$	28,256			$	28,930			(2	)		$	49,578			$	52,150			(5	)

____________
(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 June 30
	2026												2025
(in thousands, except per share amounts)	Income before income taxes				Income Taxes				Net Income				Income before income taxes				Income Taxes				Net Income
Amounts attributable to Graham Holdings Company Common Stockholders
As reported	$	317,476			$	35,100			$	282,376			$	60,623			$	20,200			$	40,423
Attributable to noncontrolling interests										(1,273	)											(3,674	)
Attributable to Graham Holdings Company Stockholders										281,103												36,749
Adjustments:
Settlement gain related to retiree annuity pension purchase		(136,955	)			(35,625	)			(101,330	)			—				—				—
Charges related to non-operating Separation Incentive Programs and a Voluntary Retirement Incentive Program		3,837				997				2,840				6,015				1,540				4,475
Interest (income) expense related to the fair value adjustment of the mandatorily redeemable noncontrolling interest		(213	)			24				(237	)			1,153				(2,342	)			3,495
Net (gains) losses on marketable equity securities		(101,879	)			(26,025	)			(75,854	)			11,543				2,960				8,583
Net losses of affiliates whose operations are not managed by the Company		17,905				4,574				13,331				413				106				307
Loss on sale of KLG		5,151				(5,274	)			10,425				—				—				—
Non-operating loss from the impairment of equity and cost method investments		5,800				1,482				4,318				12,679				3,206				9,473
Income tax benefit related to the KLG business		—				69,564				(69,564	)			—				—				—
Non-U.S. global minimum corporate income tax expense		—				(19,180	)			19,180				—				—				—
Net Income, adjusted (non-GAAP)									$	84,212											$	63,082
Per share information attributable to Graham Holdings Company Common Stockholders
Diluted income per common share, as reported									$	64.86											$	8.35
Adjustments:
Settlement gain related to retiree annuity pension purchase										(23.38	)											—
Charges related to non-operating Separation Incentive Programs and a Voluntary Retirement Incentive Program										0.66												1.02
Interest (income) expense related to the fair value adjustment of the mandatorily redeemable noncontrolling interest										(0.05	)											0.79
Net (gains) losses on marketable equity securities										(17.50	)											1.95
Net losses of affiliates whose operations are not managed by the Company										3.08												0.07
Loss on sale of KLG										2.41												—
Non-operating loss from the impairment of equity and cost method investments										1.00												2.15
Income tax benefit related to the KLG business										(16.05	)											—
Non-U.S. global minimum corporate income tax expense										4.43												—
Diluted income per common share, adjusted (non-GAAP)									$	19.46											$	14.33
The adjusted diluted per share amounts may not compute due to rounding.

	Six Months Ended June 30
	2026												2025
(in thousands, except per share amounts)	Income before income taxes				Income Taxes				Net Income				Income before income taxes				Income Taxes				Net Income
Amounts attributable to Graham Holdings Company Common Stockholders
As reported	$	358,127			$	45,000			$	313,127			$	94,244			$	28,100			$	66,144
Attributable to noncontrolling interests										(2,918	)											(5,501	)
Attributable to Graham Holdings Company Stockholders									$	310,209											$	60,643
Adjustments:
Impairment charge and loss on sale related to KLG		24,179				(594	)			24,773				—				—				—
Settlement gain related to retiree annuity pension purchase		(136,955	)			(35,625	)			(101,330	)			—				—				—
Charges related to non-operating Separation Incentive Programs and a Voluntary Retirement Incentive Program		7,937				2,064				5,873				6,639				1,700				4,939
Interest (income) expense related to the fair value adjustment of the mandatorily redeemable noncontrolling interest		(882	)			(124	)			(758	)			67,560				13,693				53,867
Net gains on marketable equity securities		(32,956	)			(8,418	)			(24,538	)			(32,258	)			(8,271	)			(23,987	)
Net (earnings) losses of affiliates whose operations are not managed by the Company		(13,062	)			(3,337	)			(9,725	)			12,323				3,160				9,163
Net non-operating loss from impairment and sale of equity and cost method investments		5,316				1,358				3,958				12,679				3,206				9,473
Income tax benefit related to the KLG business		—				69,564				(69,564	)			—				—				—
Non-U.S. global minimum corporate income tax expense		—				(19,180	)			19,180				—				—				—
Net Income, adjusted (non-GAAP)									$	158,078											$	114,098
Per share information attributable to Graham Holdings Company Common Stockholders
Diluted income per common share, as reported									$	71.04											$	13.81
Adjustments:
Impairment charge and loss on sale related to KLG										5.67												—
Settlement gain related to retiree annuity pension purchase										(23.21	)											—
Charges related to non-operating Separation Incentive Programs and a Voluntary Retirement Incentive Program										1.34												1.12
Interest (income) expense related to the fair value adjustment of the mandatorily redeemable noncontrolling interest										(0.17	)											12.26
Net gains on marketable equity securities										(5.62	)											(5.46	)
Net (earnings) losses of affiliates whose operations are not managed by the Company										(2.23	)											2.09
Net non-operating loss from impairment and sale of equity and cost method investments										0.91												2.16
Income tax benefit related to the KLG business										(15.93	)											—
Non-U.S. global minimum corporate income tax expense										4.39												—
Diluted income per common share, adjusted (non-GAAP)									$	36.19											$	25.98
The adjusted diluted per share amounts may not compute due to rounding.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260729686649/en/

Wallace R. Cooney
(703) 345-6470

Source: Graham Holdings Company