Graham Holdings Reports $29.1 Million Net Income and $1.236 Billion Revenue in Q1 2026

Graham Holdings Company reported a net income of $29.1 million, or $6.62 per share, for the first quarter of 2026, marking an increase from $23.9 million, or $5.45 per share, in the same period last year. The company's total revenue for the quarter reached $1.236 billion, a 6% increase from $1.166 billion in the first quarter of 2025. This growth was driven by improved performance across several segments, including education, television broadcasting, healthcare, and manufacturing, although automotive and other businesses experienced declines.

The company's operating income rose to $57.8 million from $47.5 million year-over-year, attributed to better results in television broadcasting and manufacturing. However, the education and healthcare segments saw declines in operating income, with the education division generating $440.5 million in revenue, up 4% from the previous year, but with a decrease in operating income to $32.4 million from $40 million. The healthcare division reported a 20% increase in revenue to $209.3 million, but operating income fell slightly to $17.4 million.

Significant operational changes included the classification of the Kaplan Languages Group (KLG) as held for sale, with an expected closing date of May 1, 2026. This decision resulted in a $19 million impairment charge related to KLG. The company also made strategic acquisitions, including a small healthcare business in March 2026 and a Honda dealership in late 2025, which contributed to its revenue growth. Additionally, Graham Holdings repurchased 32,190 shares of its Class B common stock during the quarter, reflecting ongoing efforts to manage its capital structure.

As of March 31, 2026, Graham Holdings reported total assets of $8.180 billion, down from $8.396 billion at the end of 2025. The company’s cash and cash equivalents decreased to $135.7 million from $267 million, while total debt was reduced to $822 million from $881 million. The company’s liquidity position remains strong, with $149.1 million drawn from its $400 million revolving credit facility, and it expects to fund its capital needs primarily through existing cash balances and internally generated funds.

Looking ahead, Graham Holdings anticipates continued revenue growth across its segments, driven by strategic investments and operational improvements. The company remains focused on enhancing its market position while managing costs effectively, despite challenges in certain areas such as automotive sales and the impact of foreign exchange rates on its international operations.