The stock may react negatively to the significant decline in profitability despite revenue growth, particularly the sharp drop in television broadcasting revenue. However, the strong performance in healthcare and education could provide some support. The debt refinancing at lower interest rates (5.7% vs 6.0%) is a positive for future interest expense. Traders should monitor the sustainability of healthcare growth and whether the automotive segment stabilizes after the impairment charge.
Price Chart
Executive Summary
Graham Holdings (GHC) reported mixed results for 2025 and Q4 2025. Full-year revenue grew 3% to $4.91 billion, but adjusted net income declined 20% to $226.5 million. Q4 results were particularly weak, with operating income down 34% and adjusted EPS halved to $11.45. Growth in education and healthcare was offset by sharp declines in television broadcasting and automotive. The company issued $500 million in new debt to refinance existing obligations.
Key Financial Metrics
Key Facts
- Revenue for 2025 was $4.91 billion, up 3% from $4.79 billion in 2024
- Adjusted net income for 2025 was $226.5 million, down 20% from $282.2 million in 2024
- Q4 2025 adjusted EPS was $11.45, down 49% from $22.58 in Q4 2024
- Television broadcasting revenue declined 32% in Q4 due to $48.4 million drop in political advertising
- Healthcare division revenue grew 28% in Q4, with operating income up 77%
- Company issued $500 million of 5.625% notes and established a $400 million revolving credit facility
- Cash and investments increased to $1.4 billion, while borrowings rose to $880.8 million
Financial Impact
Revenue increased 3% to $4.91 billion, but profitability declined with adjusted net income down 20% to $226.5 million. Q4 adjusted EPS halved to $11.45.
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Education | $1.7B | +3.0% |
| Television broadcasting | $425.1M | -21.0% |
| Healthcare | $815.0M | +33.0% |
| Manufacturing | $436.3M | +10.0% |
| Automotive | $1.1B | -6.0% |
Risk Factors
- Television broadcasting segment remains under pressure with 32% revenue decline in Q4
- Automotive segment recorded a $10.1 million impairment charge and continues to face headwinds
- Adjusted operating cash flow declined 9% for the year, indicating weaker cash generation
- Company has significant exposure to cyclical advertising markets
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-011410 |
| Document: ghc-20260225.htm | 0001628280-26-011410 |
| Document: 0001628280-26-011410-index-headers.html | 0001628280-26-011410 |
| Document: 0001628280-26-011410-index.html | 0001628280-26-011410 |
| Document: 0001628280-26-011410.txt | 0001628280-26-011410 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 14, 2026 10w ago | Institutional Cluster | $1,191.20 | awaiting T+60 | — | $1,190.91 (−0.02%) |
Jul 30, 2026 12w ago | 8-K | $1,225.52 $1,213.48 | ▼ −0.98% | ▼ −3.45% | $1,190.91 (−2.82%) |
Mar 24, 2026 30w ago | DEFA14A | $1,060.80 $1,144.66 | ▲ +7.90% | ▼ −6.42% | $1,190.91 (+12.26%) |
Feb 25, 2026 34w ago | 8-K | $1,049.49 $1,103.73 | ▲ +5.17% | ▼ −1.78% | $1,190.91 (+13.47%) |
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