Structural margin compression is evident as gross margins declined from a 32.1% peak in 2024Q4 to 27.0% by 2025Q3, reflecting persistent challenges in maintaining pricing power.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 3.75B | 4.91B | 4.79B | 4.41B | 3.92B | 3.19B | 2.89B | 2.93B | 2.7B | 2.59B | 2.48B | 2.59B | 2.74B | 2.6B | 3.37B | 3.53B | 4.59B | 4.39B | 4.46B | 4.18B | 3.9B | 3.55B | 3.3B | 2.84B | 2.58B | 2.41B | 2.41B | 2.22B | 2.11B | 1.96B | 1.85B |
| Revenue Growth % | -22.03% | 2.52% | 8.52% | 12.5% | 23.18% | 10.27% | -1.47% | 8.76% | 4.02% | 4.43% | -4.03% | -5.51% | 5.25% | -22.89% | -4.35% | -23.12% | 4.56% | -1.68% | 6.73% | 7.05% | 9.88% | 7.69% | 16.25% | 9.86% | 7.18% | 0.06% | 8.76% | 4.98% | 7.88% | 5.55% | 7.79% |
| Cost of Goods Sold | 2.71B | 3.55B | 3.32B | 3.1B | 2.66B | 2.11B | 1.91B | 1.95B | 1.59B | 1.45B | 1.27B | 1.21B | 1.26B | 1.21B | 1.54B | 1.97B | 1.92B | 1.87B | 2.02B | 1.88B | 2.04B | 1.91B | 1.72B | 1.55B | 1.37B | 1.39B | 1.31B | 1.19B | 1.14B | 1.02B | 1.01B |
| COGS % of Revenue | - | 72.36% | 69.39% | 70.28% | 67.72% | 66.37% | 66.18% | 66.45% | 58.85% | 56.11% | 51.17% | 46.64% | 46.1% | 46.56% | 45.52% | 55.96% | 41.85% | 42.6% | 45.36% | 45.04% | 52.3% | 53.73% | 52.03% | 54.57% | 53.01% | 57.53% | 54.18% | 53.7% | 53.98% | 52.13% | 54.34% |
| Gross Profit | 1.04B | 1.36B | 1.47B | 1.31B | 1.27B | 1.07B | 977.01M | 983.85M | 1.11B | 1.14B | 1.21B | 1.38B | 1.48B | 1.39B | 1.84B | 2.24B | 2.8B | 2.52B | 2.44B | 2.3B | 1.86B | 1.64B | 1.58B | 1.29B | 1.21B | 1.02B | 1.1B | 1.03B | 971.2M | 936.4M | 846.3M |
| Gross Margin % | 27.75% | 27.64% | 30.61% | 29.72% | 32.28% | 33.63% | 33.82% | 33.55% | 41.15% | 43.89% | 48.83% | 53.36% | 53.9% | 53.44% | 54.48% | 63.58% | 61.14% | 57.4% | 54.64% | 54.96% | 47.7% | 46.27% | 47.97% | 45.43% | 46.99% | 42.47% | 45.82% | 46.3% | 46.02% | 47.87% | 45.66% |
| Gross Profit Growth % | - | -7.43% | 11.77% | 3.57% | 18.23% | 9.67% | -0.69% | -11.31% | -2.48% | -6.14% | -12.18% | -6.46% | 6.16% | -24.36% | -18.04% | -20.06% | 11.37% | 3.28% | 6.11% | 23.35% | 13.27% | 3.87% | 22.75% | 6.21% | 18.59% | -7.26% | 7.62% | 5.63% | 3.72% | 10.65% | 9.72% |
| Operating Expenses | 1.11B | 1.11B | 1.25B | 1.24B | 1.18B | 994.08M | 876.61M | 839.31M | 863.17M | 1B | 988.99M | 1.46B | 1.24B | 1.24B | 1.69B | 1.22B | 2.06B | 2.26B | 2.26B | 1.82B | 1.4B | 1.13B | 1.02B | 925.83M | 836.66M | 803.99M | 764.21M | 637.4M | 592.2M | 555.1M | 509.2M |
| OpEx % of Revenue | - | 22.51% | 26.11% | 28.14% | 30.14% | 31.2% | 30.34% | 28.62% | 32.02% | 38.63% | 39.85% | 56.49% | 45.4% | 47.69% | 50.07% | 34.56% | 45% | 51.52% | 50.73% | 43.55% | 35.92% | 31.78% | 30.91% | 32.61% | 32.38% | 33.35% | 31.71% | 28.77% | 28.06% | 28.38% | 27.47% |
| Selling, General & Admin | 1.11B | 1.11B | 1.08B | 1.01B | 921.74M | 831.85M | 715.4M | 717.66M | 750.93M | 887.79M | 896.1M | 1.1B | 1.13B | 1.12B | 1.32B | 1.38B | 1.87B | 1.92B | 1.84B | 1.58B | 1.18B | 931.34M | 835.37M | 792.29M | 664.1M | 586.76M | 583.62M | 474.6M | 453.1M | 450M | 414.3M |
| SG&A % of Revenue | - | 22.51% | 22.48% | 22.82% | 23.49% | 26.11% | 24.76% | 24.48% | 27.85% | 34.25% | 36.11% | 42.7% | 41.36% | 43.22% | 39.06% | 39.24% | 40.76% | 43.68% | 41.24% | 37.83% | 30.23% | 26.21% | 25.31% | 27.91% | 25.7% | 24.34% | 24.22% | 21.42% | 21.47% | 23% | 22.35% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 173.99M | 235.17M | 261.14M | 162.22M | 161.21M | 121.65M | 112.25M | 113.31M | 92.89M | 356.62M | 110.4M | 116.34M | 371.24M | -164.95M | 194.83M | 343.71M | 423.57M | 238.81M | 222.2M | 198.02M | 184.67M | 133.54M | 172.56M | 217.23M | 180.58M | 162.8M | 139.1M | 105.1M | 94.9M |
| Operating Income | 264.22M | 251.81M | 215.5M | 69.39M | 83.9M | 77.38M | 100.41M | 144.55M | 246.16M | 136.4M | 222.87M | -80.83M | 232.72M | 149.43M | 148.61M | 334.12M | 602.86M | 257.88M | 174.21M | 477.02M | 459.8M | 514.91M | 563.01M | 363.82M | 377.59M | 219.93M | 339.88M | 388.5M | 379M | 381.3M | 337.1M |
| Operating Margin % | 7.05% | 5.13% | 4.5% | 1.57% | 2.14% | 2.43% | 3.48% | 4.93% | 9.13% | 5.26% | 8.98% | -3.13% | 8.5% | 5.75% | 4.41% | 9.48% | 13.14% | 5.88% | 3.9% | 11.41% | 11.77% | 14.49% | 17.06% | 12.82% | 14.61% | 9.12% | 14.11% | 17.53% | 17.96% | 19.49% | 18.19% |
| Operating Income Growth % | - | 16.85% | 210.56% | -17.29% | 8.43% | -22.94% | -30.54% | -41.28% | 80.47% | -38.8% | 375.74% | -134.73% | 55.73% | 0.55% | -55.52% | -44.58% | 133.78% | 48.03% | -63.48% | 3.74% | -10.7% | -8.54% | 54.75% | -3.65% | 71.68% | -35.29% | -12.51% | 2.51% | -0.6% | 13.11% | 24.44% |
| EBITDA | 393.89M | 423.97M | 452.74M | 372.3M | 412.6M | 313.35M | 351.57M | 350.38M | 358.41M | 249.71M | 315.76M | 347.61M | 482.18M | 414.29M | 440.05M | 620.43M | 882.51M | 580.39M | 462.34M | 715.83M | 672.14M | 712.93M | 747.68M | 539.1M | 550.15M | 437.17M | 520.46M | 551.3M | 518.1M | 486.4M | 432M |
| EBITDA Margin % | 10.52% | 8.63% | 9.45% | 8.43% | 10.51% | 9.84% | 12.17% | 11.95% | 13.29% | 9.63% | 12.72% | 13.44% | 17.62% | 15.93% | 13.05% | 17.6% | 19.24% | 13.23% | 10.36% | 17.12% | 17.21% | 20.06% | 22.66% | 18.99% | 21.29% | 18.13% | 21.6% | 24.88% | 24.55% | 24.86% | 23.31% |
| EBITDA Growth % | -13.82% | -6.36% | 21.61% | -9.77% | 31.67% | -10.87% | 0.34% | -2.24% | 43.53% | -20.92% | -9.16% | -27.91% | 16.39% | -5.85% | -29.07% | -29.7% | 52.05% | 25.53% | -35.41% | 6.5% | -5.72% | -4.65% | 38.69% | -2.01% | 25.85% | -16% | -5.59% | 6.41% | 6.52% | 12.59% | 17.33% |
| D&A (Non-Cash Add-back) | 129.67M | 172.16M | 237.24M | 302.9M | 328.71M | 235.98M | 251.16M | 205.83M | 112.25M | 113.31M | 92.89M | 428.44M | 249.46M | 264.86M | 291.44M | 286.31M | 279.65M | 322.51M | 288.13M | 238.81M | 212.34M | 198.02M | 184.67M | 175.28M | 172.56M | 217.23M | 180.58M | 162.8M | 139.1M | 105.1M | 94.9M |
| EBIT | 206.39M | 251.81M | 1.21B | 362.31M | 176.14M | 483.57M | 445.58M | 456.26M | 361.41M | 216.68M | 286.05M | -88.24M | 1.11B | 141.16M | 160.64M | 289.01M | 608.82M | 244.25M | 169.85M | 505.15M | 459.8M | 514.91M | 563.01M | 363.82M | 377.59M | 219.93M | 339.88M | 388.5M | 379M | 381.3M | 337.1M |
| Net Interest Income | -30.99M | -110.83M | -176.28M | -56.18M | -51.18M | -30.53M | -34.44M | -23.63M | -32.55M | -27.3M | -32.3M | -30.75M | -33.4M | -33.67M | -32.55M | -29.08M | -27.93M | -28.97M | -18.99M | -12.71M | 10.43M | 3.38M | 1.62M | 953K | 332K | 2.17M | 967K | 0 | 0 | 0 | 0 |
| Interest Income | 8.23M | 8.26M | 9.87M | 7.12M | 3.23M | 3.41M | 3.87M | 6.15M | 5.35M | 6.58M | 3.09M | 1.91M | 2.14M | 2.26M | 3.39M | 4.15M | 2.58M | 2.6M | 5.67M | 11.34M | 10.43M | 3.38M | 1.62M | 953K | 332K | 2.17M | 967K | 0 | 0 | 0 | 0 |
| Interest Expense | 20.52M | 119.08M | 186.15M | 63.3M | 54.4M | 33.94M | 38.31M | 29.78M | 37.9M | 33.89M | 35.39M | 32.65M | 35.53M | 36.07M | 35.94M | 33.23M | 30.5M | 31.57M | 24.66M | 24.05M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 190.83M | 197.85M | 809.21M | 229.61M | 37.84M | 372.25M | 306.86M | 281.93M | 77.35M | 46.39M | 27.79M | -40.06M | 938.78M | 25.3M | -28M | -86.43M | -30.34M | -109.08M | -29.01M | 4.09M | 59.33M | -15.27M | -20.57M | 18.77M | -23.92M | 167.61M | -110.01M | -13.1M | 289.1M | 81.8M | 23.1M |
| Pretax Income | 455.05M | 449.67M | 1.02B | 299M | 121.73M | 449.63M | 407.27M | 426.48M | 323.51M | 182.79M | 250.66M | -120.89M | 1.17B | 174.73M | 120.61M | 247.69M | 572.52M | 148.8M | 145.2M | 481.11M | 519.13M | 499.64M | 542.43M | 382.59M | 353.67M | 387.54M | 229.87M | 375.4M | 668.1M | 463.1M | 360.2M |
| Pretax Margin % | 12.15% | 9.16% | 21.39% | 6.77% | 3.1% | 14.11% | 14.1% | 14.55% | 12% | 7.05% | 10.1% | -4.67% | 42.8% | 6.72% | 3.58% | 7.02% | 12.48% | 3.39% | 3.25% | 11.51% | 13.29% | 14.06% | 16.44% | 13.48% | 13.69% | 16.07% | 9.54% | 16.94% | 31.66% | 23.67% | 19.43% |
| Income Tax | 148.4M | 146.4M | 292.1M | 87.3M | 51.3M | 96.3M | 107.3M | 98.6M | 52.1M | -119.7M | 81.2M | 20.5M | 406.1M | 110M | 71.6M | 96.3M | 216.6M | 57.6M | 79.4M | 192.5M | 189.6M | 185.3M | 209.7M | 141.5M | 137.3M | 157.9M | 93.4M | 149.6M | 250.8M | 181.5M | 139.4M |
| Effective Tax Rate % | 32.61% | 32.56% | 28.51% | 29.2% | 42.14% | 21.42% | 26.35% | 23.12% | 16.1% | -65.49% | 32.39% | -16.96% | 34.66% | 62.95% | 59.36% | 38.88% | 37.83% | 38.71% | 54.68% | 40.01% | 36.52% | 37.09% | 38.66% | 36.98% | 38.82% | 40.74% | 40.63% | 39.85% | 37.54% | 39.19% | 38.7% |
| Net Income | 297.5M | 292.29M | 724.63M | 205.29M | 67.08M | 352.07M | 300.37M | 327.86M | 271.21M | 302.04M | 168.59M | -100.66M | 1.29B | 236.87M | 132.11M | 117.15M | 278.11M | 92.77M | 65.72M | 288.61M | 324.46M | 314.34M | 332.73M | 241.09M | 204.27M | 229.64M | 136.47M | 225.8M | 417.3M | 281.6M | 220.8M |
| Net Margin % | 7.94% | 5.95% | 15.13% | 4.65% | 1.71% | 11.05% | 10.4% | 11.18% | 10.06% | 11.65% | 6.79% | -3.89% | 47.27% | 9.11% | 3.92% | 3.32% | 6.06% | 2.11% | 1.47% | 6.9% | 8.31% | 8.85% | 10.08% | 8.49% | 7.9% | 9.52% | 5.66% | 10.19% | 19.77% | 14.39% | 11.91% |
| Net Income Growth % | -52.33% | -59.66% | 252.98% | 206.04% | -80.95% | 17.22% | -8.38% | 20.89% | -10.21% | 79.16% | 267.49% | -107.78% | 446.24% | 79.29% | 12.77% | -57.88% | 199.78% | 41.16% | -77.23% | -11.05% | 3.22% | -5.53% | 38.01% | 18.03% | -11.05% | 68.27% | -39.56% | -45.89% | 48.19% | 27.54% | 16.15% |
| Net Income (Continuing) | 306.65M | 303.27M | 732.61M | 211.7M | 70.43M | 353.33M | 299.97M | 327.88M | 271.41M | 302.49M | 169.46M | -141.39M | 765.4M | 64.73M | 49.01M | 151.39M | 355.92M | 91.2M | 65.8M | 288.61M | 329.53M | 314.34M | 332.73M | 241.09M | 216.37M | 229.64M | 136.47M | 225.8M | 417.3M | 281.6M | 220.8M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 42.17M | 527.86M | 172.61M | 2.28M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 6.03M | 73.13M | 73.97M | 91.08M | 43.1M | 26.4M | 28.26M | 14.04M | 4.35M | 10.33M | 12.58M | 25.96M | 476K | 221K | 190K | 6.74M | 6.73M | 471K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 44940.03 | 66.47 | 163.40 | 43.82 | 13.79 | 70.46 | 58.13 | 61.21 | 50.50 | 53.89 | 29.80 | -17.58 | 195.03 | 32.05 | 17.39 | 14.70 | 31.04 | 9.78 | 6.87 | 30.19 | 33.68 | 32.59 | 34.59 | 25.12 | 21.34 | 24.06 | 14.32 | 22.30 | 41.10 | 26.15 | 20.05 |
| EPS Growth % | 3065.27% | -59.32% | 272.89% | 217.77% | -80.43% | 21.21% | -5.03% | 21.21% | -6.29% | 80.84% | 269.51% | -109.01% | 508.52% | 84.3% | 18.3% | -52.64% | 217.38% | 42.36% | -77.24% | -10.36% | 3.34% | -5.78% | 37.7% | 17.71% | -11.31% | 68.02% | -35.78% | -45.74% | 57.17% | 30.42% | 16.91% |
| EPS (Basic) | - | 67.11 | 164.62 | 43.96 | 13.83 | 70.66 | 58.30 | 61.69 | 50.85 | 54.24 | 29.95 | -17.58 | 195.81 | 32.10 | 17.39 | 14.70 | 31.06 | 9.78 | 6.89 | 30.31 | 33.81 | 32.66 | 34.69 | 25.19 | 21.38 | 24.10 | 14.34 | 22.35 | 41.27 | 26.23 | 20.08 |
| Diluted Shares Outstanding | 6.62K | 4.37M | 4.41M | 4.65M | 4.84M | 4.96M | 5.14M | 5.33M | 5.37M | 5.55M | 5.59M | 5.73M | 6.56M | 7.33M | 7.4M | 7.91M | 8.93M | 9.39M | 9.43M | 9.53M | 9.6M | 9.62M | 9.59M | 9.56M | 9.52M | 9.5M | 9.46M | 10.08M | 10.13M | 10.73M | 10.98M |
| Basic Shares Outstanding | 4.33M | 4.33M | 4.37M | 4.64M | 4.82M | 4.95M | 5.12M | 5.29M | 5.33M | 5.52M | 5.56M | 5.73M | 6.47M | 7.24M | 7.36M | 7.83M | 8.87M | 9.32M | 9.41M | 9.49M | 9.57M | 9.59M | 9.56M | 9.53M | 9.51M | 9.48M | 9.45M | 10.06M | 10.09M | 10.7M | 10.96M |
| Dividend Payout Ratio | - | 10.73% | 4.19% | 15.08% | 45.78% | 8.56% | 9.98% | 9.01% | 10.55% | 9.38% | 16.21% | - | 5.26% | 0.36% | 111.52% | 64.44% | 29.52% | 88.14% | 125.01% | 27.38% | 23.39% | 22.9% | 20.11% | 23.35% | 26.56% | 23.59% | 38.12% | 23.61% | 12.32% | 18.68% | 23.19% |
Conglomerate margin dilution risk
According to reported financial statements, Graham Holdings experienced a deceleration in revenue growth, culminating in a 100% decline in the most recent quarter, following a period where quarterly growth rates hovered between 0.4% and 11.7% throughout the 2024 and 2025 fiscal periods.
The revenue trajectory suggests that the company's reliance on disparate business segments, including automotive and manufacturing, may be masking the underlying performance of its core education and media assets. Investors should monitor whether the recent lack of reported revenue indicates a structural shift in reporting or a significant operational disruption within the conglomerate's diverse portfolio.
Based on the provided income statement data, GHC's gross margins have trended downward from a peak of 32.1% in 2024Q4 to 27.0% by 2025Q3, suggesting that the company's service-heavy cost structure is struggling to maintain pricing power against inflationary pressures in its labor-intensive segments.
The thin operating margins, which averaged roughly 5% over the observed period, indicate that the high-margin media business is likely being offset by lower-margin transactional segments. This margin profile appears to be under structural pressure, warranting further investigation into whether the company can achieve better operating leverage as it integrates its newer acquisitions.
As reported in recent filings, GHC's operating income has shown significant volatility, fluctuating from a low of $25.9 million in 2024Q2 to a high of $81.6 million in 2024Q3, reflecting a lack of consistent scalability in the company's fixed-cost-heavy operating model.
The inability of operating income to consistently outpace gross profit growth suggests that SG&A expenses remain a significant drag on overall profitability. This may indicate that the company's decentralized management structure is incurring high administrative overhead that prevents the realization of meaningful operational efficiencies across its diverse business units.
Analysis of the income statement reveals that net income has been highly erratic, with a notable spike to $548.8 million in 2024Q4 followed by a sharp decline, suggesting that non-operating items or accounting adjustments are significantly distorting the company's reported earnings quality.
The wide variance in EPS, ranging from negative figures to over $120 per share, implies that investors should look past headline net income to evaluate the underlying cash-generating capacity of the core segments. The presence of stock-based compensation and potential pension-related income suggests that reported earnings may not accurately reflect the company's true operational performance.
While management emphasizes a patient capital allocation strategy, the recent expansion into automotive and restaurant sectors appears to contradict the core competency thesis, potentially leading to a 'diworsification' risk that short-sellers may target due to the dilution of the company's historically high-margin media and education segments.
The market's persistent valuation discount may be a rational response to the complexity of GHC's sprawling portfolio, which requires significant management bandwidth. Investors should remain cautious, as the lack of transparency in segment-level cost structures makes it difficult to determine if the company is effectively deploying capital or merely masking underperforming assets.
Quick answers to the most common questions about buying GHC stock.
For fiscal year 2025, Graham Holdings Company (GHC) reported total revenue of $4.91B. This represents a 165.0% increase compared to $1.85B in 1996.
Graham Holdings Company (GHC) is profitable, generating $292.3M in net income for the fiscal year ending 2025 with a net profit margin of 6.0%.
Graham Holdings Company (GHC) reported an operating income of $251.8M, resulting in an operating profit margin of 5.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Graham Holdings Company (GHC) generated $1.36B in gross profit for the year, representing a gross profit margin of 27.6%. This demonstrates the company's core pricing power and production efficiency.