Graham Holdings(US:GHC)2025-10-29 12:31Revenue Performance - Revenue for Q3 2025 was $1,278.9 million, a 6% increase from $1,207.2 million in Q3 2024[4] - For the first nine months of 2025, revenue was $3,660.5 million, a 3% increase from $3,545.1 million in the same period of 2024[5] - Overall operating revenues for the company increased by 6% to $1,278,859,000 in Q3 2025 from $1,207,162,000 in Q3 2024[21] - The company reported a 2% increase in total operating revenues for the nine months ended September 30, 2025, reaching $1,334,206,000 compared to $1,283,587,000 in 2024[26] Income and Profitability - Operating income for Q3 2025 was $67.1 million, down 18% from $81.6 million in Q3 2024[4] - Net income attributable to common shares for Q3 2025 was $122.9 million ($27.91 per share), up 70% from $72.5 million ($16.42 per share) in Q3 2024[12] - Operating income for the first nine months of 2025 was $187.4 million, a 31% increase from $143.0 million in the first nine months of 2024[5] - The company reported a total operating income of $67,136,000 in Q3 2025, a decrease of 18% from $81,648,000 in Q3 2024[21] - For the three months ended September 30, 2025, the reported net income attributable to Graham Holdings Company was $126.238 million, compared to $74.506 million for the same period in 2024, representing a 69.5% increase[31] - For the nine months ended September 30, 2025, the reported net income attributable to Graham Holdings Company was $192.382 million, up from $181.018 million in 2024, a growth of 6.8%[32] Cash Flow and Expenses - Adjusted operating cash flow for Q3 2025 was $110.1 million, compared to $126.1 million in Q3 2024[4] - Capital expenditures for Q3 2025 totaled $20.2 million, down from $23.8 million in Q3 2024[4] - Corporate office expenses increased by 25% to $18,290,000 in Q3 2025 compared to $14,657,000 in Q3 2024[21] - The company incurred charges related to non-operating Separation Incentive Programs amounting to $9.185 million for the three months ended September 30, 2025[32] Segment Performance - Operating revenues for the Education segment increased by 8% to $472,662,000 in Q3 2025 from $438,090,000 in Q3 2024[21] - Healthcare segment revenues rose by 34% to $208,415,000 in Q3 2025 compared to $155,413,000 in Q3 2024[21] - Television broadcasting revenues decreased by 28% to $105,087,000 in Q3 2025 from $145,422,000 in Q3 2024[21] - Operating income for the Education segment increased by 41% to $49,052,000 in Q3 2025 from $34,890,000 in Q3 2024[21] - Operating income for the Automotive segment reported a 1% decrease in revenues to $285,228,000 in Q3 2025 from $289,392,000 in Q3 2024[21] Marketable Securities and Other Gains - The company recognized net gains on marketable equity securities of $84.8 million in Q3 2025, compared to $30.5 million in Q3 2024[10] - The company reported net gains on marketable equity securities of $(84.768) million for the three months ended September 30, 2025, compared to $(22.688) million in 2024, showing a significant decline[31] Debt and Borrowings - As of September 30, 2025, the company had $731.9 million in borrowings at an average interest rate of 5.9%[9] - Interest expense related to the fair value adjustment of the mandatorily redeemable noncontrolling interest was $68.278 million for the three months ended September 30, 2025[32] Adjusted Income Metrics - The adjusted net income (non-GAAP) for the same period in 2025 was $61.992 million, while it was $76.144 million in 2024, indicating a decrease of 18.5%[31] - The adjusted net income (non-GAAP) for the nine months ended September 30, 2025, was $176.090 million, slightly down from $183.460 million in 2024, a decrease of 4.1%[32] - The diluted income per common share, as reported, was $27.91 for 2025, compared to $16.42 for 2024, reflecting a 70.1% increase[31] - The diluted income per common share, adjusted (non-GAAP), was $40.05 for 2025, compared to $41.20 for 2024, indicating a decline of 2.8%[32]