Earnings Per Share

3 Months Ended

Mar. 31, 2025

EARNINGS PER SHARE

The Company’s unvested restricted stock awards contain nonforfeitable rights to dividends and, therefore, are considered participating securities for purposes of computing earnings per share pursuant to the two-class method. The diluted earnings per share computed under the two-class method is lower than the diluted earnings per share computed under the treasury stock method, resulting in the presentation of the lower amount in diluted earnings per share. The computation of the earnings per share under the two-class method excludes the income attributable to the unvested restricted stock awards from the numerator and excludes the dilutive impact of those underlying shares from the denominator.

The following reflects the Company’s net income and share data used in the basic and diluted earnings per share computations using the two-class method:


	Three Months Ended March 31
(in thousands, except per share amounts)		2025			2024
Numerator:
Numerator for basic earnings per share:
Net income attributable to Graham Holdings Company common stockholders		$	23,894		$	124,380
Less: Dividends paid-common stock outstanding and unvested restricted shares		(15,662)			(15,352)
Undistributed earnings		8,232			109,028
Percent allocated to common stockholders		99.38		%	99.33		%
		8,182			108,295
Add: Dividends paid-common stock outstanding		15,563			15,250
Numerator for basic earnings per share		$	23,745		$	123,545
Add: Additional undistributed earnings due to dilutive stock options		—			4
Numerator for diluted earnings per share		$	23,745		$	123,549
Denominator:
Denominator for basic earnings per share:
Weighted average shares outstanding		4,320			4,432
Add: Effect of dilutive stock options		38			25
Denominator for diluted earnings per share		4,358			4,457
Graham Holdings Company Common Stockholders:
Basic earnings per share		$	5.50		$	27.87
Diluted earnings per share		$	5.45		$	27.72

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Earnings per share amounts may not recalculate due to rounding.

Diluted earnings per share excludes the following weighted average potential common shares, as the effect would be antidilutive, as computed under the treasury stock method:


	Three Months Ended March 31
(in thousands)		2025	2024
Weighted average restricted stock		12	18

The diluted earnings per share amounts for the three months ended March 31, 2025 excludes the effect of 1,000 contingently issuable shares outstanding as their inclusion would have been antidilutive due to a market condition. The diluted earnings per share amounts for the three months ended March 31, 2024 exclude the effect of 105,000 stock options and contingently issuable shares outstanding as their inclusion would have been antidilutive due to a market condition.

In the three months ended March 31, 2025 and 2024, the Company declared regular dividends totaling $3.60 and $3.44 per common share, respectively.