Earnings Per Share

3 Months Ended

Mar. 31, 2026

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)		2026			2025
Numerator:
Numerator for basic earnings per share:
Net income attributable to Graham Holdings Company common stockholders		$	29,106		$	23,894
Less: Dividends paid-common stock outstanding and unvested restricted shares		(16,398)			(15,662)
Undistributed earnings		12,708			8,232
Percent allocated to common stockholders		99.44		%	99.38		%
		12,636			8,182
Add: Dividends paid-common stock outstanding		16,306			15,563
Numerator for basic earnings per share		$	28,942		$	23,745
Add: Additional undistributed earnings due to dilutive stock options		1			—
Numerator for diluted earnings per share		$	28,943		$	23,745
Denominator:
Denominator for basic earnings per share:
Weighted average shares outstanding		4,331			4,320
Add: Effect of dilutive stock options		44			38
Denominator for diluted earnings per share		4,375			4,358
Graham Holdings Company Common Stockholders:
Basic earnings per share		$	6.68		$	5.50
Diluted earnings per share		$	6.62		$	5.45

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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)		2026	2025
Weighted average restricted stock		17	12

The diluted earnings per share amounts for each of the three months ended March 31, 2026 and 2025 excludes the effect of 1,000 contingently issuable shares outstanding as their inclusion would have been antidilutive due to a market condition.

In the three months ended March 31, 2026 and 2025, the Company declared regular dividends totaling $3.76 and $3.60 per common share, respectively.