Graham Holdings Company — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 revenue was $1,326.0 million, up 4% from $1,278.9 million in the third quarter of 2025.
• First nine months 2026 revenue was $3,864.5 million, up 6% from $3,660.5 million in the first nine months of 2025.
• Third quarter 2026 operating income was $85.5 million, compared to $67.1 million in the third quarter of 2025.
• First nine months 2026 operating income was $227.0 million, compared to $187.4 million in the first nine months of 2025.
• Third quarter 2026 adjusted operating cash flow (non-GAAP) was $121.8 million, compared to $110.1 million in the third quarter of 2025.
• First nine months 2026 adjusted operating cash flow (non-GAAP) was $354.5 million, compared to $309.5 million in the first nine months of 2025.
• Third quarter 2026 net income attributable to common shares was $75.1 million ($17.60 per diluted share), compared to $122.9 million ($27.91 per diluted share) in the third quarter of 2025.
• First nine months 2026 net income attributable to common shares was $385.3 million ($88.92 per diluted share), compared to $183.6 million ($41.75 per diluted share) in the first nine months of 2025.
• Excluding certain items, third quarter 2026 net income attributable to common shares was $80.2 million ($18.77 per diluted share), compared to $62.0 million ($14.08 per diluted share) in the third quarter of 2025.
• Excluding certain items, first nine months 2026 net income attributable to common shares was $238.2 million ($54.98 per diluted share), compared to $176.1 million ($40.05 per diluted share) in the first nine months of 2025.
• Capital expenditures were $39.6 million in the third quarter of 2026 and $80.2 million for the first nine months of 2026.
• The company recognized $15.0 million in net losses on marketable equity securities in the third quarter of 2026, compared to $84.8 million in net gains in the third quarter of 2025.
• The company recognized $17.9 million in net gains on marketable equity securities for the first nine months of 2026, compared to $117.0 million in net gains in the first nine months of 2025.

Business Segments and Product Lines:

• Revenue increased at television broadcasting, healthcare, manufacturing, automotive, and other businesses, partially offset by a decline at education.
• Education revenue declined 14% in the third quarter of 2026 to $404.3 million and 5% for the first nine months to $1,262.6 million.
• Television broadcasting revenue increased 19% in the third quarter of 2026 to $125.3 million and 10% for the first nine months to $346.5 million.
• Healthcare revenue increased 25% in the third quarter of 2026 to $260.3 million and 23% for the first nine months to $717.2 million.
• Manufacturing revenue increased 19% in the third quarter of 2026 to $147.6 million and 27% for the first nine months to $405.9 million.
• Automotive revenue increased 5% in the third quarter of 2026 to $299.1 million and 2% for the first nine months to $868.0 million.
• Other businesses revenue increased 7% in the third quarter of 2026 to $89.4 million and 3% for the first nine months to $264.2 million.
• Adjusted operating cash flow increased at television broadcasting, manufacturing, automotive, and other businesses, partially offset by declines at education and healthcare.

Other Key Points:

• In the third quarter of 2026, Kaplan entered an agreement to sell Dublin Business School (DBS) to China Chunlai Education Group Co., Ltd. for $127.5 million; the transaction closed on October 27, 2026.
• At September 30, 2026, the Company had $853.4 million in borrowings outstanding at an average interest rate of 5.8%, including $186.2 million on its $400 million revolving credit facility.
• Cash, marketable equity securities, and other investments totaled $1,246.2 million at September 30, 2026, excluding DBS cash classified as held for sale.
• During the first nine months of 2026, the Company purchased 176,529 shares of its Class B common stock at a cost of $198.6 million.
• As of September 30, 2026, there were 4,185,665 shares of Class B common stock outstanding, with remaining authorization to acquire 285,953 shares under the Board's September 12, 2024 authorization.