Graham Holdings reported higher revenue and operating income in the third quarter, with growth across several businesses partly offset by weakness in education. Net income attributable to common shares fell year over year. The company also completed the sale of Dublin Business School after quarter-end and reported its cash, debt and share-repurchase activity.
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Third-quarter results improved at the operating level: Revenue rose 4% to $1.326 billion from $1.279 billion a year earlier. Operating income increased to $85.5 million from $67.1 million, while adjusted operating cash flow, a non-GAAP measure, rose to $121.8 million from $110.1 million.
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Growth was broad, but not universal: Television broadcasting, healthcare, manufacturing, automotive and other businesses increased revenue and operating results. Education declined.
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Net income was lower: Net income attributable to common shares was $75.1 million, or $17.60 per share, compared with $122.9 million, or $27.91 per share, in the third quarter of 2025. Graham reported a $15.0 million net loss on marketable equity securities for the quarter, versus an $84.8 million net gain a year earlier.
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Results for the first nine months were also stronger operationally: Revenue increased 6% to $3.865 billion from $3.661 billion, and operating income rose to $227.0 million from $187.4 million. Adjusted operating cash flow increased to $354.5 million from $309.5 million. Revenue and operating results grew in broadcasting, healthcare, manufacturing, automotive and other businesses, while education declined. Adjusted operating cash flow increased in broadcasting, manufacturing, automotive and other businesses, partly offset by declines in education and healthcare.
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Graham sold Dublin Business School for $127.5 million: Kaplan agreed to sell the school during the third quarter, and the sale closed on October 27. The transaction included the shares of the company that operates the school and certain intellectual property.
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Capital spending increased: Capital expenditures were $39.6 million in the quarter, compared with $20.2 million a year earlier. For the first nine months, they totaled $80.2 million, up from $54.1 million.
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Cash and investments exceeded borrowings at quarter-end: Graham had $853.4 million in borrowings outstanding at an average interest rate of 5.8%, including $186.2 million drawn on its $400 million revolving credit facility. Cash, marketable equity securities and other investments totaled $1.246 billion, excluding Dublin Business School’s assets classified as held for sale.
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Investment gains were much smaller than a year earlier: For the first nine months, Graham recorded $17.9 million in net gains on marketable equity securities, compared with $117.0 million in the same period of 2025.
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The company continued repurchasing shares: Graham bought 176,529 shares of its Class B common stock for $198.6 million during the first nine months. At September 30, 4,185,665 Class B shares were outstanding, and authorization remained to repurchase up to 285,953 additional shares.
Overall, the results show improved revenue and operating income alongside a year-over-year decline in reported net income. The comparison in marketable-securities results was a significant difference between the periods; the company reported a quarterly loss on those securities in 2026, versus a substantial gain in 2025.