Graham Holdings Co (GHC)
SIC breadcrumb: Services > SIC Major Group 82 > SIC 8200 Services-Educational Services
SEC company page: https://www.sec.gov/edgar/browse/?CIK=104889. Latest filing source: 0001628280-26-011405.
Informational only. Descriptive public-record data — not a rating, forecast, or investment advice. See Disclaimer.
At a glance
- Revenue
- 4,911,563,000 USD verified
- Net income
- 292,291,000 USD verified
- Assets
- 8,395,713,000 USD verified
- Free cash flow
- 275,304,000 USD computed
- Net margin
- 5.95% computed
- Operating margin
- 4.78% computed
- Revenue YoY
- +2.52% computed
- ROE
- 6.10% computed
Peer & cluster context
Peer percentile fingerprint
Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 8200 Services-Educational Services, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.
Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
|---|---|---|---|---|
| Revenue | 4,911,563,000 | USD | 2025 | 2026-02-25 |
| Net income | 292,291,000 | USD | 2025 | 2026-02-25 |
| Assets | 8,395,713,000 | USD | 2025 | 2026-02-25 |
Financials
Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000104889.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.
| Metric | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 2,481,890,000 | 2,591,846,000 | 2,695,966,000 | 2,932,099,000 | 2,889,121,000 | 3,185,974,000 | 3,924,493,000 | 4,414,877,000 | 4,790,904,000 | 4,911,563,000 | ||
| Net income | 168,590,000 | 302,044,000 | 271,206,000 | 327,855,000 | 300,365,000 | 352,075,000 | 67,079,000 | 205,288,000 | 724,634,000 | 292,291,000 | ||
| Operating income | 222,869,000 | 136,403,000 | 246,161,000 | 144,546,000 | 100,407,000 | 77,375,000 | 83,898,000 | 69,393,000 | 215,504,000 | 234,947,000 | ||
| Diluted EPS | 29.80 | 53.89 | 50.20 | 61.21 | 58.13 | 70.45 | 13.79 | 43.82 | 163.40 | 66.47 | ||
| Operating cash flow | 261,256,000 | 268,055,000 | 287,019,000 | 165,164,000 | 210,663,000 | 202,426,000 | 235,604,000 | 259,875,000 | 406,988,000 | 347,185,000 | ||
| Capital expenditures | 66,612,000 | 60,358,000 | 98,192,000 | 93,504,000 | 69,591,000 | 162,537,000 | 82,684,000 | 93,447,000 | 82,912,000 | 71,881,000 | ||
| Share buybacks | 108,948,000 | 50,770,000 | 118,030,000 | 2,103,000 | 161,829,000 | 55,683,000 | 71,386,000 | 193,160,000 | 114,101,000 | 3,468,000 | ||
| Assets | 4,432,670,000 | 4,937,823,000 | 4,764,041,000 | 5,931,236,000 | 6,444,119,000 | 7,425,525,000 | 6,553,377,000 | 7,187,730,000 | 7,677,205,000 | 8,395,713,000 | ||
| Liabilities | 1,979,679,000 | 2,018,071,000 | 1,842,913,000 | 2,598,785,000 | 2,665,798,000 | 2,999,545,000 | 2,778,889,000 | 3,161,677,000 | 3,346,569,000 | 3,528,562,000 | ||
| Stockholders' equity | 3,140,299,000 | 2,490,698,000 | 2,916,782,000 | 3,319,239,000 | 3,759,302,000 | 4,399,583,000 | 3,731,383,000 | 3,975,737,000 | 4,256,661,000 | 4,794,025,000 | ||
| Cash and cash equivalents | 648,885,000 | 390,014,000 | 253,256,000 | 200,165,000 | 413,991,000 | 145,886,000 | 169,319,000 | 169,897,000 | 260,852,000 | 266,988,000 | ||
| Free cash flow | 194,644,000 | 207,697,000 | 188,827,000 | 71,660,000 | 141,072,000 | 39,889,000 | 152,920,000 | 166,428,000 | 324,076,000 | 275,304,000 |
Ratios
| Metric | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net margin | 6.79% | 11.65% | 10.06% | 11.18% | 10.40% | 11.05% | 1.71% | 4.65% | 15.13% | 5.95% | ||
| Operating margin | 8.98% | 5.26% | 9.13% | 4.93% | 3.48% | 2.43% | 2.14% | 1.57% | 4.50% | 4.78% | ||
| Return on equity | 9.30% | 9.88% | 7.99% | 8.00% | 1.80% | 5.16% | 17.02% | 6.10% | ||||
| Return on assets | 3.80% | 6.12% | 5.69% | 5.53% | 4.66% | 4.74% | 1.02% | 2.86% | 9.44% | 3.48% | ||
| Liabilities / equity | 0.63 | 0.78 | 0.71 | 0.68 | 0.74 | 0.80 | 0.79 | 0.74 | ||||
| Current ratio | 2.29 | 1.98 | 1.89 | 1.60 | 1.87 | 1.58 | 1.47 | 1.50 | 1.75 | 1.75 |
Industry Peer Context
Net margin peer context
Operating margin peer context
ROE peer context
ROA peer context
Financial Bridges
Free cash flow = operating cash flow - capital expenditures
Figure provenance: SEC companyfacts FY 2025. Operating cash flow: accession 0001628280-26-011405; concept NetCashProvidedByUsedInOperatingActivities; source concepts us-gaap:NetCashProvidedByUsedInOperatingActivities | Capital expenditures: accession 0001628280-26-011405; concept PaymentsToAcquirePropertyPlantAndEquipment; source concepts us-gaap:PaymentsToAcquirePropertyPlantAndEquipment | Free cash flow: accession 0001628280-26-011405; concept NetCashProvidedByUsedInOperatingActivities - PaymentsToAcquirePropertyPlantAndEquipment; source concepts us-gaap:NetCashProvidedByUsedInOperatingActivities; us-gaap:PaymentsToAcquirePropertyPlantAndEquipment
Financial Charts
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001628280-26-011405; filed 2026-02-25. Concept: RevenueFromContractWithCustomerExcludingAssessedTax. Source concepts: us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001628280-26-011405; filed 2026-02-25. Concept: NetIncomeLoss. Source concepts: us-gaap:NetIncomeLoss.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001628280-26-011405; filed 2026-02-25. Concept: OperatingIncomeLoss. Source concepts: us-gaap:OperatingIncomeLoss.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001628280-26-011405; filed 2026-02-25. Concept: EarningsPerShareDiluted. Source concepts: us-gaap:EarningsPerShareDiluted.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001628280-26-011405; filed 2026-02-25. Concept: NetCashProvidedByUsedInOperatingActivities. Source concepts: us-gaap:NetCashProvidedByUsedInOperatingActivities.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001628280-26-011405; filed 2026-02-25. Concept: PaymentsToAcquirePropertyPlantAndEquipment. Source concepts: us-gaap:PaymentsToAcquirePropertyPlantAndEquipment.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001628280-26-011405; filed 2026-02-25. Concept: PaymentsForRepurchaseOfCommonStock. Source concepts: us-gaap:PaymentsForRepurchaseOfCommonStock.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001628280-26-011405; filed 2026-02-25. Concept: Assets. Source concepts: us-gaap:Assets.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001628280-26-011405; filed 2026-02-25. Concept: Liabilities. Source concepts: us-gaap:Liabilities.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001628280-26-011405; filed 2026-02-25. Concept: StockholdersEquity. Source concepts: us-gaap:StockholdersEquity.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001628280-26-011405; filed 2026-02-25. Concept: CashAndCashEquivalentsAtCarryingValue. Source concepts: us-gaap:CashAndCashEquivalentsAtCarryingValue.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001628280-26-011405; filed 2026-02-25. Concept: NetCashProvidedByUsedInOperatingActivities - PaymentsToAcquirePropertyPlantAndEquipment. Source concepts: us-gaap:NetCashProvidedByUsedInOperatingActivities; us-gaap:PaymentsToAcquirePropertyPlantAndEquipment.
As-reported value updates
Quarterly
Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000104889.json.
| Quarter | End Date | Revenue | Net Income | Diluted EPS | Method |
|---|---|---|---|---|---|
| 2022-Q2 | 2022-06-30 | -13.95 | reported discrete quarter | ||
| 2022-Q3 | 2022-09-30 | 6.76 | reported discrete quarter | ||
| 2023-Q1 | 2023-03-31 | 10.88 | reported discrete quarter | ||
| 2023-Q2 | 2023-06-30 | 1,104,999,000 | 122,788,000 | 25.89 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 1,111,519,000 | -23,031,000 | -5.02 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 1,166,813,000 | 53,259,000 | derived Q4 = FY annual - nine-month YTD | |
| 2024-Q1 | 2024-03-31 | 1,152,662,000 | 124,380,000 | 27.72 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 1,185,280,000 | -21,040,000 | -4.79 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 1,207,162,000 | 72,503,000 | 16.42 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 1,245,800,000 | 548,791,000 | derived Q4 = FY annual - nine-month YTD | |
| 2025-Q1 | 2025-03-31 | 1,165,915,000 | 23,894,000 | 5.45 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 1,215,772,000 | 36,749,000 | 8.35 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 1,278,859,000 | 122,925,000 | 27.91 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 1,251,017,000 | 108,723,000 | derived Q4 = FY annual - nine-month YTD | |
| 2026-Q2 | 2026-06-30 | 1,302,506,000 | 281,103,000 | 64.86 | reported discrete quarter |
Quarterly Charts
Figure provenance: SEC companyfacts. Latest point: FY 2026 ended 2026-06-30; accession 0001628280-26-050826; filed 2026-07-30. Concept: RevenueFromContractWithCustomerExcludingAssessedTax. Source concepts: us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax.
Figure provenance: SEC companyfacts. Latest point: FY 2026 ended 2026-06-30; accession 0001628280-26-050826; filed 2026-07-30. Concept: NetIncomeLoss. Source concepts: us-gaap:NetIncomeLoss.
Figure provenance: SEC companyfacts. Latest point: FY 2026 ended 2026-06-30; accession 0001628280-26-050826; filed 2026-07-30. Concept: EarningsPerShareDiluted. Source concepts: us-gaap:EarningsPerShareDiluted.
Business
Read GHC's verbatim Item 1 Business section from its latest 10-K: Business.
Risk Factors
Read GHC's verbatim Item 1A Risk Factors from its latest 10-K: Risk Factors.
Latest quarter (10-Q)
Latest 10-Q source: 0001628280-26-050826.
Item 2. Management’s Discussion and Analysis of Results of Operations and Financial Condition.
This analysis should be read in conjunction with the condensed consolidated financial statements and the notes thereto.
Results of Operations
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.
Items included in the Company’s net income for the second quarter of 2026:
•a $137.0 million settlement gain related to a retiree annuity pension purchase (after-tax impact of $101.3 million, or $23.38 per share);
•$3.8 million in non-operating expenses related to Separation Incentive Programs (SIPs) and a Voluntary Retirement Incentive Program (VRIP) at the education, television broadcasting and manufacturing divisions, and other businesses (after-tax impact of $2.8 million, or $0.66 per share);
•$0.2 million in interest income to adjust the fair value of the mandatorily redeemable noncontrolling interest (after-tax impact of $0.2 million, or $0.05 per share);
•$101.9 million in net gains on marketable equity securities (after-tax impact of $75.9 million, or $17.50 per share);
•$17.9 million in net losses of affiliates whose operations are not managed by the Company (after-tax impact of $13.3 million, or $3.08 per share);
•a $5.2 million loss on the sale of Kaplan Languages Group (KLG) (after-tax impact of $10.4 million, or $2.41 per share);
•a non-operating loss of $5.8 million from the impairment of an equity method investment (after-tax impact of $4.3 million, or $1.00 per share);
•a $69.6 million income tax benefit related to the KLG business ($16.05 per share); and
•$19.2 million in income tax expense recorded in connection with global minimum corporate income tax obligations in non-U.S. jurisdictions ($4.43 per share).
Items included in the Company’s net income for the second quarter of 2025:
•$6.0 million in non-operating expenses related to SIPs at other businesses and the education and television broadcasting divisions (after-tax impact of $4.5 million, or $1.02 per share);
•$1.2 million in interest expense to adjust the fair value of the mandatorily redeemable noncontrolling interest (after-tax impact of $3.5 million, or $0.79 per share);
•$11.5 million in net losses on marketable equity securities (after-tax impact of $8.6 million, or $1.95 per share);
•$0.4 million in net losses of affiliates whose operations are not managed by the Company (after-tax impact of $0.3 million, or $0.07 per share); and
•a non-operating loss of $12.7 million from the impairment of a cost method investment (after-tax impact of $9.5 million, or $2.15 per share).
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.
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.
32
Items included in the Company’s net income for the first six months of 2026:
•$24.2 million of impairment charges and loss on sale related to KLG (after-tax impact of $24.8 million, or $5.67 per share);
•a $137.0 million settlement gain related to a retiree annuity pension purchase (after-tax impact of $101.3 million, or $23.21 per share);
•$7.9 million in non-operating expenses related to SIPs and a VRIP at education, television broadcasting and manufacturing divisions, other businesses and the corporate office (after-tax impact of $5.9 million, or $1.34 per share);
•$0.9 million in interest income to adjust the fair value of the mandatorily redeemable noncontrolling interest (after-tax impact of $0.8 million, or $0.17 per share);
•$33.0 million in net gains on marketable equity securities (after-tax impact of $24.5 million, or $5.62 per share);
•$13.1 million in net earnings of affiliates whose operations are not managed by the Company (after-tax impact of $9.7 million, or $2.23 per share);
•net non-operating gains of $5.3 million from earnings, sales and impairments of equity and cost method investments (after-tax impact of $4.0 million, or $0.91 per share);
•a $69.6 million income tax benefit related to the KLG business ($15.93 per share); and
•$19.2 million in income tax expense recorded in connection with global minimum income tax obligations in non- U.S. jurisdictions ($4.39 per share).
Items included in the Company’s net income for the first six months of 2025:
•$6.6 million in non-operating expenses related to a SIPs at other businesses and the education and television broadcasting divisions (after-tax impact of $4.9 million, or $1.12 per share);
•$67.6 million in interest expense to adjust the fair value of the mandatorily redeemable noncontrolling interest (after-tax impact of $53.9 million, or $12.26 per share);
•$32.3 million in net gains on marketable equity securities (after-tax impact of $24.0 million, or $5.46 per share);
•$12.3 million in net losses of affiliates whose operations are not managed by the Company (after-tax impact of $9.2 million, or $2.09 per share); and
•a non-operating loss of $12.7 million from the impairment of a cost method investment (after-tax impact of $9.5 million, or $2.16 per share).
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.
Division Results
Education
Education division revenue totaled $417.8 million for the second quarter of 2026, down 4% from $436.8 million for the same period of 2025. Kaplan reported operating income of $50.3 million for the second quarter of 2026, compared to $46.2 million for the second quarter of 2025.
For the first six months of 2026, education division revenue totaled $858.3 million, down slightly from $861.5 million for the same period of 2025. Kaplan reported operating income of $82.7 million for the first six months of 2026, compared to $86.2 million for the first six months of 2025.
33
A summary of Kaplan’s operating results is as follows:
| Three Months Ended | Six Months Ended | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30 | June 30 | |||||||||||||||||||
| (in thousands) | 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||
| Revenue | ||||||||||||||||||||
| 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 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) |
In the first quarter of 2026, the Company entered into an agreement to sell KLG included in Kaplan International and recorded a $19.0 million pre-tax impairment charge. Excluding the impairment charge, Kaplan’s operating income was up significantly in the first six months of 2026. The transaction closed on May 1, 2026 and the Company recorded a $5.2 million non-operating pre-tax loss on the sale of the business in the second quarter of 2026.
Kaplan International includes postsecondary education and professional training businesses largely outside the United States (U.S.). Kaplan International revenue decreased 7% for the second quarter of 2026 (10% decrease on a constant currency basis) and decreased 2% for the first six months of 2026 (7% decrease on a constant currency basis) due to the sale of KLG and declines at Pathways, partially offset by increases at Singapore and UK Professional. Kaplan International reported operating income of $32.9 million in the second quarter of 2026, compared to $29.9 million in the second quarter of 2025. Operating income increased to $64.3 million in the first six months of 2026, compared to $60.0 million in the first six months of 2025. Operating results at Singapore, Kaplan Open Learning, UK Professional and Australia grew as a result of strong enrollment growth. The increase was partially offset by broad declines at the Pathways businesses in the United Kingdom (U.K.), Australia and the U.S.
Higher Education includes the results of Kaplan as a service provider to higher education institutions. Higher Education revenue increased 2% and 3% for the second quarter and first six months of 2026, respectively, due primarily to an increase in the Purdue Global fee recorded. Enrollments at Purdue Global, the largest institutional client, increased 5% for the first six months of 2026 compared to the first six months of 2025. For the second quarters and first six months of 2026 and 2025, Kaplan recorded the full fee from Purdue Global. The Company will continue to assess the fee it records from Purdue Global on a quarterly basis to make a determination as to whether to record all or part of the fee in the future and whether to adjust fee amounts recognized in earlier periods. Higher Education operating results declined in the second quarter of 2026, as operating results in the second quarter of 2025 included a portion of the Purdue Global full fee recognition related to the first quarter of 2025. Higher Education operating results improved in the first six months of 2026 due to an increase in the Purdue Global fee recorded, and a decline in higher education development costs.
Supplemental Education includes Kaplan’s standardized test preparation programs and domestic professional and other continuing education businesses. Supplemental Education revenue was up slightly in the first half of 2026 due to growth in some of its professional preparation program offerings, offset by softness in publishing sales volume. Operating results increased in the second quarter and first six mon
[Excerpt truncated for page length; source filing is linked above.]
Latest 10-K MD&A (excerpt)
Latest 10-K Item 7 source: 0001628280-26-011405. The complete FY 2025 MD&A is published at /company/GHC/mda/fy2025/.
OVERVIEW
Graham Holdings Company (the Company) is a diversified holding company whose operations include educational services, television broadcasting, healthcare, manufacturing and automotive dealerships. The Company has five business divisions, seven reportable segments and a group of companies that make up Other Businesses. The Company’s business units are diverse and subject to different trends and risks.
Education is the largest operating division of the Company, making up 35% of the Company’s consolidated revenues in 2025 and having the largest operating income in 2025. Through its subsidiary Kaplan, Inc., the Company provides extensive worldwide education services for individuals, schools and businesses. The Company has devoted significant resources and attention to this division for many years, given its geographic and product diversity, the investment opportunities and growth prospects during this time, and challenges related to government regulation. Kaplan is organized into the following three operating segments: Kaplan International (KI), Kaplan Higher Education (KHE) and Supplemental Education.
KI reported revenue and operating income growth for 2025 due largely to increases at UK Professional and Singapore, partially offset by declines at Pathways and Languages. KHE revenue and operating income improved due to an increase in the fees from Purdue University Global (Purdue Global). Supplemental Education revenues and operating results improved in 2025 due to growth in most of the program offerings.
Television broadcasting was the Company’s second largest business in 2025 from an operating income standpoint. The Company’s television broadcasting division reported lower revenues and operating income in 2025, due largely to a significant decrease in political advertising revenue from the 2024 election cycle and declines in local and digital advertising revenue. Retransmission revenues, net of network fee expense, declined in 2025 with this trend expected to continue in the future due largely to adverse subscriber trends from cord cutting.
The healthcare division has grown substantially over the last few years and provided meaningful operating cash flow from internal growth and acquisitions. Since 2019, the healthcare division has expanded from its home health and hospice operations into new lines of business. The largest of these is CSI Pharmacy Holding Company, LLC (CSI), which provides nursing care and prescription services for patients receiving in-home infusion treatments. CSI reported significant revenue growth and substantially higher operating results in 2025 from an expansion of infusion treatment offerings and patient service areas in 2025. Healthcare’s home health and hospice revenue and operating results have also grown substantially in recent years, with investments to streamline operations and enhance patient care, along with a reduction in pension expense in 2025.
The Company’s manufacturing division has provided meaningful operating cash flow over the last few years, with Dekko experiencing improved revenues and operating results in 2025, and declines at Hoover in recent years. In July 2025, Hoover acquired Arconic Architectural Products, LLC, which manufactures aluminum cladding products and operates within the broader non-residential materials space. Automotive revenues and operating results declined in 2025 due largely to lower new and used vehicle sales and a decline in sales of finance and insurance products offerings, partially offset by the Honda of Woodbridge acquisition in October 2025 as well as sales growth for services and parts.
The Company’s other businesses include several investment stage businesses as well as investments into new lines of business over the last few years. In total, there are ten operating business units that make up this group in three categories: specialty, retail and media. The largest of these businesses from a revenue standpoint is Clyde’s Restaurant Group (CRG) and Framebridge, a custom framing service company. In 2025, CRG and Foreign Policy each reported positive operating income, Code3 reported break-even results, and the other businesses each reported operating losses, which were significant at Framebridge.
The Company generates a significant amount of cash from its businesses that is used to support its operations, pay down debt and fund capital expenditures, share repurchases, dividends, acquisitions and other investments.
51
RESULTS OF OPERATIONS
Net income attributable to common shares was $292.3 million ($66.47 per share) for the year ended December 31, 2025, compared to $724.6 million ($163.40 per share) for the year ended December 31, 2024.
Items included in the Company’s net income for 2025 are listed below:
•$12.3 million in intangible and other long-lived asset impairment charges (after-tax impact of $9.5 million, or $2.16 per share);
•$9.2 million in non-operating expenses related to Separation Incentive Programs (SIPs) at other businesses, the education, television broadcasting and manufacturing divisions and the corporate office (after-tax impact of $6.8 million, or $1.55 per share);
•$54.5 million in interest expense to adjust the fair value of the mandatorily redeemable noncontrolling interest (after-tax impact of $51.2 million, or $11.63 per share);
•$200.2 million in net gains on marketable equity securities (after-tax impact of $149.0 million, or $33.90 per share);
•$16.7 million in net losses of affiliates whose operations are not managed by the Company (after-tax impact of $12.4 million, or $2.83 per share);
•net non-operating gains of $8.9 million from earnings, sales and impairments of equity and cost method investments (after-tax impact of $6.6 million, or $1.50 per share); and
•a $9.9 million deferred tax expense arising from a change in the estimated deferred state income tax rate related to the Company’s pension and other postretirement plans ($2.26 per share).
Items included in the Company’s net income for 2024 are listed below:
•$49.8 million in goodwill and other long-lived asset impairment charges (after-tax impact of $39.4 million, or $8.89 per share);
•a $653.4 million fourth quarter settlement gain related to a retiree annuity pension purchase (after-tax impact of $486.1 million, or $109.62 per share);
•$21.0 million in non-operating expenses related to a Voluntary Retirement Incentive Program (VRIP) at the television broadcasting division and the corporate office, and SIPs at Kaplan, manufacturing and other businesses (after-tax impact of $15.6 million, or $3.52 per share);
•$119.3 million in interest expense to adjust the fair value of the mandatorily redeemable noncontrolling interest (after-tax impact of $113.7 million, or $25.65 per share);
•$181.3 million in net gains on marketable equity securities (after-tax impact of $134.9 million, or $30.41 per share);
•$3.5 million in net losses of affiliates whose operations are not managed by the Company (after-tax impact of $2.6 million, or $0.59 per share);
•a non-operating gain of $7.2 million on the sale of certain businesses and websites (after-tax impact of $5.3 million, or $1.19 per share); and
•a net non-operating loss of $16.7 million from the impairments and valuation adjustments of equity and cost method investments (after-tax impact of $12.4 million, or $2.80 per share).
Revenue for 2025 was $4,911.6 million, up 3% from $4,790.9 million in 2024. Revenues increased at education, healthcare, manufacturing and other businesses, partially offset by declines at television broadcasting and automotive. Operating costs and expenses for the year increased to $4,676.6 million in 2025, from $4,575.4 million in 2024. Expenses in 2025 increased at healthcare and manufacturing, partially offset by a decrease at television broadcasting, automotive, other businesses and education. The Company reported operating income for 2025 of $234.9 million, compared to $215.5 million in 2024. Excluding goodwill and other long-lived asset impairment charges, operating results were down in 2025, due to declines at television broadcasting and automotive, partially offset by increases at education, healthcare, manufacturing and other businesses.
Division Results
Education
Education division revenue in 2025 totaled $1,744.3 million, up 3% from $1,691.8 million in 2024. Kaplan reported operating income of $159.9 million for 2025, an increase from $100.8 million in 2024. Excluding long-lived asset impairment charges, operating results improved significantly in 2025.
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A summary of Kaplan’s operating results is as follows:
| Year Ended December 31 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (in thousands) | 2025 | 2024 | % Change | ||||||
| Revenue | |||||||||
| Kaplan international | $ | 1,079,570 | $ | 1,074,207 | 0 | ||||
| Higher education | 349,211 | 324,815 | 8 | ||||||
| Supplemental education | 317,159 | 291,630 | 9 | ||||||
| Kaplan corporate and other | 585 | 5,761 | (90) | ||||||
| Intersegment elimination | (2,193) | (4,635) | — | ||||||
| $ | 1,744,332 | $ | 1,691,778 | 3 | |||||
| Operating Income (Loss) | |||||||||
| Kaplan international | $ | 113,402 | $ | 101,699 | 12 | ||||
| Higher education | 56,410 | 40,750 | 38 | ||||||
| Supplemental education | 33,392 | 26,934 | 24 | ||||||
| Kaplan corporate and other | (37,388) | (35,148) | (6) | ||||||
| Amortization of intangible assets | (6,123) | (10,487) | 42 | ||||||
| Impairment of long-lived assets | — | (22,930) | — | ||||||
| Intersegment elimination | 180 | 11 | — | ||||||
| $ | 159,873 | $ | 100,829 | 59 |
KI includes postsecondary education, professional training and language training businesses largely outside the United States. KI revenue increased slightly in 2025 (2% decrease on a constant currency basis). The increase in 2025 is due largely to growth at UK Professional and Singapore, offset by lower student enrollments in US Pathways, Languages and UK Pathways. KI reported operating income of $113.4 million in 2025, compared to $101.7 million in 2024. The increase is due largely to improved results at Australia, Singapore and UK Professional, partially offset by declines at Languages, US Pathways and Mander Portman Woodward (MPW). US Pathways revenues and operating results were down significantly in 2025, due to changes in U.S. visa policies and practices for international students recruited by Kaplan to study in the U.S.
KHE includes the results of Kaplan as a service provider to higher education institutions. KHE revenue increased 8% in 2025 due to an increase in fees from Purdue Global and growth in other higher education programs. Average enrollments at Purdue Global, the largest institutional client, were up 4% for 2025 compared to 2024. In 2025, Kaplan recorded the full fee with Purdue Global, whereas in 2024, Kaplan recorded a portion of the fee. The Company will continue to assess the fee it records from Purdue Global on a quarterly basis to make a determination as to whether to record all or part of the fee in the future and whether to make adjustments to fee amounts recognized in earlier periods. During 2025 and 2024, Kaplan recorded $70.0 million and $54.5 million, respectively, in fees from Purdue Global in its KHE operating results. KHE results improved in 2025 due to an increase in the Purdue Global fee recorded.
Supplemental Education includes Kaplan’s standardized test preparation programs and domestic professional and other continuing education businesses. Most of the program offerings in Supplemental Education experienced growth in 2025 leading to a 9% revenue increase. Operating results improved in 2025 due largely to revenue growth.
In the second and third quarters of 2025, the Company offered SIPs to certain employees at KHE and Supplemental Education, $2.0 million in related non-operating pension expense was recorded. In
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