Graham Holdings Company · NYSE:GHC
Graham — Investor Day (December 2025)
31 slides from Graham's investor day presentation, Dec 9, 2025
Slide 1: Investor Day December 9, 2025
Investor Day December 9, 2025 Remarks by Timothy J. O’Shaughnessy Chief Executive Officer Graham Holdings Company
Slide 2: Welcome to the 2025 Virtual Investor Day
Hello, everyone. Welcome to the 2025 Graham Holdings Company Virtual Investor Day. We are delighted you’ve chosen to spend an hour or two with us to learn more about the business. I am Tim O’Shaughnessy, the CEO of Graham Holdings, and I will be your master of ceremonies for today. My colleagues And
Slide 3: 2025 has been a very good year for the company
2025 has been a very good year for the company. Our biggest businesses have performed at or above our expectations and our largest investment stage business has started to gather steam. We continue to manage the business with a focus on driving cash flow on a per share basis over the long term, incl
Slide 4: Acquisitions to add to free cash flow per share
4) Acquisitions – over time, we can add to free cash flow per share by acquiring businesses. This occurs in two ways. We may occasionally add a new “platform” business, but most of our acquisition capital is likely to go to “bolt-on” acquisitions that help us grow our existing segments. Many of you
Slide 5: Key updates from the year
Let’s talk about a few key updates from the year. ● In February, we spent a little over $200 million to redeem the majority of the mandatorily redeemable noncontrolling interest, or MRNCI. In layman’s terms, this means we spent quite a bit of money buying shares from a group of minority shareholders
Slide 6: Key personnel updates
● And finally, a few key personnel updates. ○ Spiro Roiniotis joined our corporate staff this summer as Chief Technology Officer. Spiro has worked at different units of the company since 2009. I asked him to consider joining our corporate office as CTO to help our organizations think through their t
Slide 7: Year-to-date results and adjusted operating cash flow
Results year-to-date have shown how the business has evolved to be less impacted by the cyclicality of election cycles at Graham Media Group. Through Q3, our adjusted operating cash flow has increased by $3 million, from $307 million to $310 million. This is despite a $45 million year-to-date reduct
Slide 8: Kaplan has had an excellent year
Kaplan has had an excellent year, navigating visa complexity at Kaplan International to minimize impacts on both students and financial results, and continuing to strengthen our product offerings at KNA. Revenue has increased 4% year to date; adjusted operating cash flow has increased 18%. I’d like
Slide 9: Kaplan Supplemental business turnaround
the end of the 2010s. The team has spent much of the last five years repurposing our skill sets and capabilities to become the online leader in test preparation and professional certifications. While the team was brilliant at carefully managing costs, unfortunately, the revenue was leaking faster th
Slide 10: Graham Media Group manages the changing landscape
Graham Media Group continues to manage the changing landscape. In 2025, the anticipated decline in cash flow due largely to reduced political spend has materialized. In addition, other challenges remain. In preparation for this event, I reviewed last year’s remarks and noted we discussed several neg
Slide 11: Local broadcast regulation and network relationships
current regulatory framework. Society and regulators should ask: would we rather have one or two news operations in a market that have a fighting chance to continue to serve their local communities for the foreseeable future? Or would we rather have four that may be destined to fail? The current top
Slide 12: Inflection point for the broadcast industry
industry. Foolish cross-ownership rules that stayed in place far too long accelerated the decline of the newspaper industry not too long ago. The inflection point for the industry is upon us. Absent substantial regulatory changes occurring in short order, with timely subsequent transaction approvals
Slide 13: Healthcare segment growth
Our healthcare segment has continued its admirable growth rate year to date, with revenue increasing 36% and adjusted operating cash flow increasing 46%. JV income has been flat. As mentioned previously, we’re thrilled Dee Grein has joined to lead Graham Healthcare Group, our home health and hospice
Slide 14: CSI expansion and investment
home is hard. Doing both of these things well is challenging and requires great operations, both clinically and pharmacologically. We are still relatively early in our CSI journey. Many of our more recent areas of geographical expansion are still underpenetrated relative to some of our more mature m
Slide 15: Manufacturing operations
Our manufacturing operations have improved, with adjusted operating cash flow increasing year to date from $30 million to $40 million. Capital expenditures have also come down meaningfully as our facility expansion at Joyce was completed. Our general trends have been improving, with the exception of
Slide 16: Automotive operations
The automotive operations continue to perform well. Adjusted operating cash flow decreased from $34 million to $28 million through Q3. As expected, we are below peak earnings achieved in the early years of the decade and corresponding supply chain disruptions. The results are also down this year due
Slide 17: Other businesses
Our other businesses continue to be a mix of profitable, unprofitable and investment stage businesses. As always, the mix within this segment evolves over time. Year to date, the segment has been roughly flat on both revenue and adjusted operating cash flow; however, what’s going on under the hood i
Slide 18: Society6, Clyde's and Framebridge
● Society6 is in the midst of the last stage of its cost structure evolution, which when completed, will result in a business where the downside has been minimized. We expect 2026 results will show sizable improvements. ● Clyde’s Restaurant Group has a large presence in downtown DC and extended gove
Slide 19: Framebridge core metrics
The core metrics at Framebridge are mostly headed in the right direction. ● Revenue is up both online and in retail due to new locations and positive comps at existing stores; ● Gross margin has expanded; ● Customer NPS remains near or at all-time highs; ● We increased our store count by about 40% i
Slide 20: Framebridge scaling investments
The first is the corporate function. This covers SG&A costs such as technology, marketing, merchandising, finance and other related areas. While these costs will continue to grow somewhat from here, they are now scaling at rates substantially below the growth rates of both revenue and gross profit.
Slide 21: Framebridge long-term economic profile and regional pods
store openings in 2026 and our retail expansion costs are now scaling at rates substantially below our revenue and gross profit growth rates. Let me spend a bit more time about why I’m optimistic about the long-term economic profile of Framebridge. First, as a reminder, we believe we provide a super
Slide 22: Framebridge store footprint and expansion
Here is a map of where Framebridge has stores today. If you notice what I notice, there is a lot of empty space. What do Miami, Denver, Seattle, Phoenix, Tampa, Detroit, and Orlando have in common? They are all top 15 DMAs that currently have zero Framebridge retail locations. In fact, New York and
Slide 23: Framebridge scale ambition
We have not been investing or building Framebridge to be a small business. If we thought the realistic annual revenue for Framebridge at maturity would be in the low or mid hundreds of millions, we would have taken a different approach. As we enter 2026, we expect Framebridge to continue to drive op
Slide 24: Balance sheet and liquidity
Now that we’ve covered operations, let’s spend a bit of time on the balance sheet. As of 9/30, we had $1.236 billion in cash and securities against $732 million in debt, leaving us with a net cash and security position of $504 million. In short, we feel very comfortable with our current liquidity.
Slide 25: New bond offering and revolving credit facility
We also recently did something we don’t do very often: accessed the credit markets. In November, we closed on a new $500 million bond offering and a $400 million revolving credit facility, the proceeds of which were used to pay off $400 million in Notes due in June of 2026, as well as pay off our Te
Slide 26: Hoover Architectural Solutions acquisition
Earlier, I referenced the acquisition of what we now call Hoover Architectural Solutions. We love this type of transaction. We acquired a complementary business to one of our existing operations and the majority of the purchase price was funded by the assumption of approximately $107 million in pens
Slide 27: Pension funding ratio
Post transaction, our pension plan funding ratio was not materially changed but the cash flow profile and earnings power of Hoover certainly was. To put a finer point on it, you can see our estimated funding ratio and estimated absolute funding levels as of September 30, post the transaction. This c
Slide 28: Appendix: Non-GAAP Adjustments
GRAHAM HOLDINGS COMPANY — INVESTOR DAY December 9, 2025 Hoover GRAHAM = mm CSiten” KAPLAN) QD |cRsHaM Ig = DEK KO SOVEE, SFoRNEY (joven GADES RESTAURINT’ Fk AMEBRIDGE cea ann SOCILYG CODES SLATE FEY decile fete city cast (GG Hera HOLpINGs APPENDIX Non-Gaap ADJUSTMENTS Hoover GRAHAM a ee CA - 7 ( > H
Slide 29: Non-GAAP Adjustments
GRAHAM HOLDINGS COMPANY Non-GAAP Adjustments $in mil Other —_ Corporate 2024 Education Broadcasting Healthcare Manufacturing Automotive _ Businesses Office Total Operating Income (Loss) ‘$101 $201 $51 $18 $38 (135) ($59) $216 ‘Add: Amortization / Impairment 33 5 2 1" 0 36 - 87 ‘Add: Depreciation 35
Slide 30: Non-GAAP Adjustments (Education)
GRAHAM HOLDINGS COMPANY Non-GAAP Adjustments $in millions 2024 Kaplan International Higher u Kaplan Corps Total Education Operating Income (Loss) $102 $41 $27 ($69) $101 Add: Amortization / Impairment - - - 33 33 Add: Depreciation 29 3 3 oO 35 Add: Pension Expense 1 8 8 2 18 Adjusted Operating Cash
Slide 31: Graham Holdings Company Investor Day
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