GRAHAM HOLDINGS COMPANY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended June 30 Six Months Ended June 30 (in thousands, except per share amounts) 2026 2025 2026 2025 Operating Revenues Sales of services $ 664,565 $ 668,627 $ 1,338,364 $ 1,316,134 Sales of goods 637,941 547,145 1,200,134 1,065,553 1,302,506 1,215,772 2,538,498 2,381,687 Operating Costs and Expenses Cost of services sold (exclusive of items shown below) 384,996 389,316 779,989 775,452 Cost of goods sold (exclusive of items shown below) 525,479 450,122 987,686 883,344 Selling, general and administrative 284,138 276,690 561,619 547,396 Depreciation of property, plant and equipment 18,281 19,652 36,675 40,206 Amortization of intangible assets 5,978 7,241 12,033 15,065 Impairment of goodwill and asset group held for sale — — 19,029 — 1,218,872 1,143,021 2,397,031 2,261,463 Income from Operations 83,634 72,751 141,467 120,224 Equity in (losses) earnings of affiliates, net (19,863) 3,114 14,987 (5,314) Interest income 1,881 2,261 4,356 4,761 Interest expense (17,173) (18,106) (33,402) (100,383) Non-operating pension and postretirement benefit income, net 169,649 28,602 200,722 63,219 Gain (loss) on marketable equity securities, net 101,879 (11,543) 32,956 32,258 Other expense, net (2,531) (16,456) (2,959) (20,521) Income Before Income Taxes 317,476 60,623 358,127 94,244 Provision for Income Taxes 35,100 20,200 45,000 28,100 Net Income 282,376 40,423 313,127 66,144 Net Income Attributable to Noncontrolling Interests (1,273) (3,674) (2,918) (5,501) Net Income Attributable to Graham Holdings Company Common Stockholders $ 281,103 $ 36,749 $ 310,209 $ 60,643 Per Share Information Attributable to Graham Holdings Company Common Stockholders Basic net income per common share $ 65.53 $ 8.43 $ 71.76 $ 13.93 Basic average number of common shares outstanding 4,265 4,333 4,298 4,327 Diluted net income per common share $ 64.86 $ 8.35 $ 71.04 $ 13.81 Diluted average number of common shares outstanding 4,309 4,373 4,342 4,366 See accompanying Notes to Condensed Consolidated Financial Statements. 1 GRAHAM HOLDINGS COMPANY CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended June 30 Six Months Ended June 30 (in thousands) 2026 2025 2026 2025 Net Income $ 282,376 $ 40,423 $ 313,127 $ 66,144 Other Comprehensive (Loss) Income, Before Tax Foreign currency translation adjustments: Translation adjustments arising during the period 125 32,283 (6,123) 46,550 Adjustment for sales of businesses with foreign operations 6,175 646 6,175 646 6,300 32,929 52 47,196 Pension and other postretirement plans: Actuarial loss (89,928) — (89,928) — Amortization of net prior service credit included in net income (497) (521) (993) (1,040) Amortization of net actuarial gain included in net income (258) (380) (516) (759) Settlement gain included in net income (136,955) — (136,955) — (227,638) (901) (228,392) (1,799) Cash flow hedges gain (loss) 640 (364) 1,266 (1,043) Other Comprehensive (Loss) Income, Before Tax (220,698) 31,664 (227,074) 44,354 Income tax benefit related to items of other comprehensive (loss) income 59,049 326 59,083 732 Other Comprehensive (Loss) Income, Net of Tax (161,649) 31,990 (167,991) 45,086 Comprehensive Income 120,727 72,413 145,136 111,230 Comprehensive income attributable to noncontrolling interests (1,273) (3,674) (2,918) (5,501) Total Comprehensive Income Attributable to Graham Holdings Company $ 119,454 $ 68,739 $ 142,218 $ 105,729 See accompanying Notes to Condensed Consolidated Financial Statements. 2 GRAHAM HOLDINGS COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS As of (in thousands) June 30, 2026 December 31, 2025 (Unaudited) Assets Current Assets Cash and cash equivalents $ 156,766 $ 266,988 Restricted cash 51,342 44,417 Investments in marketable equity securities and other investments 1,089,301 1,088,970 Accounts receivable, net 474,687 576,754 Inventories and contracts in progress 333,459 303,370 Prepaid expenses 120,751 124,875 Income taxes receivable 33,404 15,447 Other current assets 11,339 10,274 Total Current Assets 2,271,049 2,431,095 Property, Plant and Equipment, Net 577,861 587,434 Lease Right-of-Use Assets 396,165 404,818 Investments in Affiliates 208,550 229,565 Goodwill, Net 1,600,573 1,585,666 Indefinite-Lived Intangible Assets 170,337 170,805 Amortized Intangible Assets, Net 49,409 61,631 Prepaid Pension Cost 2,723,553 2,772,394 Deferred Income Taxes 8,399 9,690 Deferred Charges and Other Assets 135,213 142,615 Total Assets $ 8,141,109 $ 8,395,713 Liabilities and Equity Current Liabilities Accounts payable, vehicle floor plan payable and accrued liabilities $ 638,583 $ 721,626 Deferred revenue 292,474 411,651 Income taxes payable 23,352 8,995 Mandatorily redeemable noncontrolling interest 6,033 6,874 Current portion of lease liabilities 61,341 64,290 Current portion of long-term debt 191,472 175,138 Dividends declared 8,040 — Total Current Liabilities 1,221,295 1,388,574 Accrued Compensation and Related Benefits 136,740 135,323 Other Liabilities 23,439 28,639 Deferred Income Taxes 850,945 890,984 Mandatorily Redeemable Noncontrolling Interest 1,390 1,527 Lease Liabilities 376,913 377,897 Long-Term Debt 708,901 705,618 Total Liabilities 3,319,623 3,528,562 Commitments and Contingencies (Note 15) Redeemable Noncontrolling Interests 25,386 39,824 Preferred Stock — — Common Stockholders’ Equity Common stock 20,000 20,000 Capital in excess of par value 352,983 379,896 Retained earnings 8,578,539 8,292,681 Accumulated other comprehensive income, net of taxes Cumulative foreign currency translation adjustment (12,210) (12,262) Unrealized gain on pensions and other postretirement plans 432,083 601,064 Cash flow hedges (784) (1,722) Cost of Class B common stock held in treasury (4,609,033) (4,485,632) Total Common Stockholders’ Equity 4,761,578 4,794,025 Noncontrolling Interests 34,522 33,302 Total Equity 4,796,100 4,827,327 Total Liabilities and Equity $ 8,141,109 $ 8,395,713 See accompanying Notes to Condensed Consolidated Financial Statements. 3 GRAHAM HOLDINGS COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended June 30 (in thousands) 2026 2025 Cash Flows from Operating Activities Net Income $ 313,127 $ 66,144 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and goodwill and other asset impairments 67,737 55,271 Amortization of lease right-of-use asset 29,343 28,729 Net pension benefit, settlement gain and early retirement and special separation benefit expense (179,035) (40,985) Gain on marketable equity securities and cost method investments, net of impairment (32,956) (19,579) Loss on disposition of businesses, property, plant and equipment and investments, net 4,669 485 Credit loss expense 2,953 2,125 Stock-based compensation expense, net of forfeitures 3,113 3,111 Foreign exchange loss 561 8,854 Equity in (earnings) losses of affiliates, net of distributions 20,028 11,219 Provision for deferred income taxes 17,442 3,079 Change in operating assets and liabilities: Accounts receivable 80,834 60,739 Inventories (27,198) 33,244 Accounts payable and accrued liabilities (65,799) (55,264) Deferred revenue (90,294) (59,192) Income taxes receivable/payable (4,072) (13,636) Lease liabilities (24,701) (25,615) Other assets and other liabilities, net 3,240 82,088 Other 1,418 (7) Net Cash Provided by Operating Activities 120,410 140,810 Cash Flows from Investing Activities Proceeds from sales of marketable equity securities 49,994 — Net (payment on) proceeds from disposition of businesses, property, plant and equipment and investments (40,050) 7,348 Purchases of property, plant and equipment (39,233) (32,285) Purchases of marketable equity securities (18,696) (4,823) Investments in certain businesses, net of cash acquired (18,237) (2,523) Proceeds from repayment of related party loan 16,273 — Other 1,109 966 Net Cash Used in Investing Activities (48,840) (31,317) Cash Flows from Financing Activities Common shares repurchased (121,985) (3,468) Purchase of noncontrolling interests (17,340) — Dividends paid (16,311) (15,660) Repayments of borrowings (15,194) (13,172) Net borrowings under revolving credit facilities 13,092 75,000 Net repayments of vehicle floor plan payable (1,863) (32,776) Principal payments of finance leases (7,543) (8,446) Distributions paid to noncontrolling interests (4,355) (190,319) Other (963) 329 Net Cash Used in Financing Activities (172,462) (188,512) Effect of Currency Exchange Rate Change (2,405) 10,514 Net Decrease in Cash and Cash Equivalents and Restricted Cash (103,297) (68,505) Beginning Cash and Cash Equivalents and Restricted Cash 311,405 297,853 Ending Cash and Cash Equivalents and Restricted Cash $ 208,108 $ 229,348 See accompanying Notes to Condensed Consolidated Financial Statements. 4 GRAHAM HOLDINGS COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN COMMON STOCKHOLDERS’ EQUITY (UNAUDITED) (in thousands) Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Income Treasury Stock Noncontrolling Interest Total Equity Redeemable Noncontrolling Interest As of December 31, 2025 $ 20,000 $ 379,896 $ 8,292,681 $ 587,080 $ (4,485,632) $ 33,302 $ 4,827,327 $ 39,824 Net income for the period 30,751 30,751 Net income attributable to noncontrolling interests (699) 699 — Net income attributable to redeemable noncontrolling interests (946) (946) 946 Change in redemption value of redeemable noncontrolling interest (8,225) (4) (8,229) 8,250 Distributions to noncontrolling interests (884) (884) (2,251) Dividends on common stock (16,398) (16,398) Repurchase of Class B common stock (34,476) (34,476) Issuance of Class B common stock, net of restricted stock award forfeitures (252) 224 (28) Shares withheld related to net share settlement (434) (434) Amortization of unearned stock compensation and stock option expense 1,525 1,525 Purchase of noncontrolling interest (26,001) 939 (25,062) Other comprehensive loss, net of income taxes (6,342) (6,342) Purchase of redeemable noncontrolling interests — (16,849) As of March 31, 2026 $ 20,000 $ 346,943 $ 8,305,389 $ 580,738 $ (4,520,318) $ 34,052 $ 4,766,804 $ 29,920 Net income for the period 282,376 282,376 Net income attributable to noncontrolling interests (1,348) 1,348 — Net loss attributable to redeemable noncontrolling interests 75 75 (75) Change in redemption value of redeemable noncontrolling interests 4,427 210 4,637 (4,427) Distributions to noncontrolling interests (1,088) (1,088) (32) Dividends on common stock (7,953) (7,953) Repurchase of Class B common stock (88,718) (88,718) Issuance of Class B common stock, net of restricted stock award forfeitures (160) 3 (157) Amortization of unearned stock compensation and stock option expense 1,773 1,773 Other comprehensive loss, net of income taxes (161,649) (161,649) As of June 30, 2026 $ 20,000 $ 352,983 $ 8,578,539 $ 419,089 $ (4,609,033) $ 34,522 $ 4,796,100 $ 25,386 5 (in thousands) Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Income Treasury Stock Noncontrolling Interest Total Equity Redeemable Noncontrolling Interest As of December 31, 2024 $ 20,000 $ 356,919 $ 8,031,750 $ 334,797 $ (4,486,805) $ 30,154 $ 4,286,815 $ 43,821 Net income for the period 25,721 25,721 Net income attributable to noncontrolling interests (1,129) 1,129 — Net income attributable to redeemable noncontrolling interests (698) (698) 698 Change in redemption value of redeemable noncontrolling interests 634 634 8 Noncontrolling interest capital contribution 180 180 Distributions to noncontrolling interests (747) (747) (941) Dividends on common stock (15,662) (15,662) Repurchase of Class B common stock (3,468) (3,468) Issuance of Class B common stock, net of restricted stock award forfeitures 9,431 9,141 18,572 Shares withheld related to net share settlement (402) (402) Amortization of unearned stock compensation and stock option expense 1,724 1,724 Other comprehensive income, net of income taxes 13,096 13,096 As of March 31, 2025 $ 20,000 $ 368,074 $ 8,039,982 $ 347,893 $ (4,481,534) $ 31,350 $ 4,325,765 $ 43,586 Net income for the period 40,423 40,423 Net income attributable to noncontrolling interests (2,030) 2,030 — Net income attributable to redeemable noncontrolling interests (1,644) (1,644) 1,644 Change in redemption value of redeemable noncontrolling interests (4,971) 642 (4,329) 4,977 Distributions to noncontrolling interests (1,371) (1,371) (338) Dividends on common stock (7,846) (7,846) Forfeiture of restricted stock awards, net of Class B common stock issuances (6) (124) (130) Amortization of unearned stock compensation and stock option expense 1,696 1,696 Other comprehensive income, net of income taxes 31,990 31,990 As of June 30, 2025 $ 20,000 $ 364,793 $ 8,068,885 $ 379,883 $ (4,481,658) $ 32,651 $ 4,384,554 $ 49,869 See accompanying Notes to Condensed Consolidated Financial Statements. 6 GRAHAM HOLDINGS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. ORGANIZATION, BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS Graham Holdings Company (the Company), is a diversified holding company whose operations include educational services, television broadcasting, healthcare, manufacturing, automotive dealerships and other businesses. Through Kaplan, Inc. (Kaplan), the Company provides a wide variety of educational services to students, schools, colleges, universities and businesses, both domestically and outside the United States (U.S.). Kaplan’s educational services include academic preparation programs for international students; operations support services for pre-college, certificate, undergraduate and graduate programs; exam preparation for high school and graduate students and for professional certifications and licensures; career and academic advisement services to businesses; and a United Kingdom (U.K.) sixth-form college that prepares students for A-level examinations. The Company’s television broadcasting segment owns and operates seven television broadcasting stations and provides social media management tools designed to connect newsrooms with their users. The Company’s healthcare division provides in-home specialty pharmacy infusion therapies; home health, hospice and palliative services; physician services for allergy, asthma and immunology patients; in-home aesthetics; applied behavior analysis therapy; and healthcare software-as-a-service technology. The Company’s manufacturing companies include a supplier of pressure-treated wood and aluminum cladding products, a manufacturer of electrical solutions, a manufacturer of lifting solutions, and a supplier of parts used in electric utilities and industrial systems. The Company’s automotive business comprises eight dealerships and valet repair services. The Company’s other businesses include restaurants; a custom framing company; a marketing solutions provider; a customer data and analytics software company; Slate and Foreign Policy magazines; a daily local news podcast and newsletter company; a company that provides a software-as-a-service platform that enables podcasters and media companies to monetize audio content through paid subscriptions, memberships, and audiobooks; an online art gallery and in-person art fair business; and an online commerce platform featuring original art and designs on an array of consumer products. On February 1, 2026, Kaplan entered into a Share Purchase Agreement to sell its Kaplan Languages Group (KLG) business, consisting of more than 20 language schools in eight countries. The transaction closed on May 1, 2026. Basis of Presentation – The accompanying condensed consolidated financial statements have been prepared in accordance with: (i) generally accepted accounting principles in the United States of America (GAAP) for interim financial information; (ii) the instructions to Form 10-Q; and (iii) the guidance of Rule 10-01 of Regulation S-X under the Securities and Exchange Act of 1934, as amended, for financial statements required to be filed with the Securities and Exchange Commission (SEC). They include the assets, liabilities, results of operations and cash flows of the Company, including its domestic and foreign subsidiaries that are more than 50% owned or otherwise controlled by the Company. As permitted under such rules, certain notes and other financial information normally required by GAAP have been condensed or omitted. Management believes the accompanying condensed consolidated financial statements reflect all normal and recurring adjustments necessary for a fair statement of the Company’s financial position, results of operations, and cash flows as of and for the periods presented herein. The Company’s results of operations for the three and six months ended June 30, 2026 and 2025 may not be indicative of the Company’s future results. These condensed consolidated financial statements are unaudited and should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. Use of Estimates in the Preparation of the Condensed Consolidated Financial Statements – The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported herein. Management bases its estimates and assumptions on historical experience and on various other factors that are believed to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be affected by changes in those estimates. 7 Recently Adopted and Issued Accounting Pronouncements – In November 2024, the Financial Accounting Standards Board (FASB) issued new guidance that requires disclosures about certain significant expense categories including inventory purchases, employee compensation, depreciation, amortization, and selling expenses. The guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance on the disclosures within its Condensed Consolidated Financial Statements. In September 2025, FASB issued new guidance which updates the accounting for internal-use software by removing references to software development project stages and adding new criteria to determine when an entity is required to start capitalizing internal-use software costs. The guidance is effective for fiscal years and interim periods beginning after December 15, 2027. Early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance on its Condensed Consolidated Financial Statements. 2. ACQUISITIONS AND DISPOSITIONS OF BUSINESSES Acquisitions. In March 2026, the Company acquired one small business which is included in other healthcare businesses. The assets and liabilities of the company acquired were recorded at their estimated fair values at the date of acquisition. During 2025, the Company acquired five businesses: one in education, two in other healthcare businesses, one in manufacturing and one in automotive for $71.2 million in cash and the assumption of floor plan payables and $107.5 million in net pension obligations. The assets and liabilities of the companies acquired were recorded at their estimated fair values at the date of acquisition. In June 2025, Kaplan acquired one small business which is included in its supplemental education division. In July 2025, Hoover acquired 100% of Arconic Architectural Products, LLC, a wholly-owned subsidiary of Arconic Corporation, which manufactures aluminum cladding products and operates within the broader non-residential materials space from its facility in Eastman, GA. A significant portion of the purchase price was funded by the Company’s assumption of certain pension obligations. The acquisition expands Hoover’s product offerings and is included in manufacturing. In October 2025, Graham Healthcare Group (GHG) acquired two small businesses which are included in other healthcare businesses. In October 2025, the Company’s automotive subsidiary acquired a Honda automotive dealership, including the real property for the dealership operations. In addition to a cash payment and the assumption of $4.9 million in floor plan payables, the automotive subsidiary borrowed $38.7 million under the delayed draw term loan to finance the acquisition (see Note 7). The dealership is operated and managed by an entity affiliated with Christopher J. Ourisman, a member of the Ourisman Automotive Group family of dealerships. This acquisition expands the Company’s automotive business operations and is included in automotive. Acquisition-related costs for the acquisitions that closed during the first six months of 2026 and 2025 were expensed as incurred. The aggregate purchase price of the 2025 acquisitions was allocated as follows, based on the acquisition date fair values to the following assets and liabilities: Purchase Price Allocation Year Ended (in thousands) December 31, 2025 Accounts receivable $ 11,641 Inventory 32,731 Property, plant and equipment 35,920 Lease right-of-use assets 3,642 Goodwill 51,943 Indefinite-lived intangible assets 15,500 Amortized intangible assets 41,300 Deferred income taxes 13,947 Other assets 221 Pension liabilities (107,517) Floor plan payables (4,939) Other liabilities (18,371) Current and noncurrent lease liabilities (4,783) Aggregate purchase price, net of cash acquired $ 71,235 8 Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The goodwill recorded due to these acquisitions is attributable to the assembled workforces of the acquired companies and expected synergies. The Company expects to deduct $12.4 million of goodwill for income tax purposes for the acquisitions completed in 2025. The acquired companies were consolidated into the Company’s financial statements starting on their respective acquisition dates. The following unaudited pro forma financial information includes the 2025 acquisitions as if they occurred at the beginning of 2024: Three Months Ended June 30 Six Months Ended June 30 (in thousands) 2025 2025 Operating revenues $ 1,263,248 $ 2,476,640 Net income 42,008 69,343 These pro forma results were based on estimates and assumptions, which the Company believes are reasonable, and include the historical results of operations of the acquired companies and adjustments for depreciation and amortization of identified assets and the effect of pre-acquisition transaction related expenses incurred by the Company and the acquired entities. The pro forma information does not include efficiencies, cost reductions and synergies expected to result from the acquisitions. They are not the results that would have been realized had these entities been part of the Company during the periods presented and are not necessarily indicative of the Company’s consolidated results of operations in future periods. Disposition of Businesses. In May 2026, Kaplan completed the sale of the KLG business, which is included in Kaplan International. As a result of the sale, the Company recorded a non-operating loss of $5.2 million in the second quarter of 2026 (see Note 13). KLG comprised Kaplan International Languages, Alpadia Language Schools, Azurlingua and English as a second language (ESL) Education. The assets and liabilities of KLG had previously been classified as held for sale in the Company’s Condensed Consolidated Balance Sheet as of March 31, 2026. During the first quarter of 2026, upon classifying the KLG disposal group as held for sale, the Company recognized total impairment charges of $19.0 million, consisting of a $1.0 million goodwill impairment charge and an $18.0 million impairment charge related to the asset group held for sale. In early September 2025, the Company ceased operations of the Ourisman Jeep of Bethesda dealership. In April 2025, Kaplan completed the sale of a small business, BridgeU Limited, which was included in Kaplan International. In the first half of 2025, World of Good Brands (WGB) completed the sale of various websites and related businesses that made up the WGB operations, which were included in other businesses. All remaining WGB operations were substantially shut down by the end of the third quarter of 2025. Other Transactions. In March 2026, the Company acquired some of the minority-owned shares of CSI Pharmacy Holding Company, LLC (CSI) for a total amount of $41.0 million. The Company paid cash of $16.4 million and entered into promissory notes with the minority owners for the remaining $24.6 million at an interest rate of 8% per annum. The notes are included in other indebtedness (see Note 7) and payable in quarterly installments with the final payment due on April 1, 2028. Following the redemption, the Company owns 93.4% of CSI. In January 2026, pursuant to the exercise of a put right, the Company purchased some of the minority-owned interest of Clarus for $1.0 million. Following the redemption, the Company owns 97.5% of Clarus. In October 2025, pursuant to the exercise of a put right, the Company purchased some of the minority-owned interest of Clarus for $0.4 million. Following the redemption, the Company owned 95.75% of Clarus. In July 2025, CSI exercised its call option to purchase some of the minority-owned interest of CSI for $1.8 million. On February 25, 2025, the Company and a group of minority shareholders entered into an agreement to settle a significant portion of the mandatorily redeemable noncontrolling interest related to GHC One LLC (GHC One), including CSI, for a total of $205 million, which consisted of approximately $186.25 million in cash and $18.75 million in Graham Holdings Company Class B common stock. The settlement agreement resulted in a $66.2 million increase to the mandatorily redeemable noncontrolling interest obligation, which the Company recorded as interest expense in the first quarter of 2025. The remaining mandatorily redeemable noncontrolling interest obligation related to GHC One and GHC Two LLC (GHC Two) was $7.4 million 9 at June 30, 2026, with $6.0 million included in current liabilities due to the expected dissolution of GHC One within one year. In December 2024, the Company acquired some of the minority-owned shares of CSI for a total estimated amount of $2.0 million. The Company paid cash of $0.6 million and entered into a promissory note with the minority owner for the remaining $1.4 million at an interest rate of 5.5% per annum. The note was included in other indebtedness (see Note 7) and was due and payable on January 31, 2026. Following the redemption, the Company owned 87.5% of CSI. Pursuant to the terms of the purchase agreement, the purchase price was finalized in December 2025, resulting in an additional amount payable of $0.1 million, plus interest at 5.5% per annum, to the minority owner. The note was subsequently paid in the first quarter of 2026. As of June 30, 2026, the Company holds a controlling financial interest in GHC One and GHC Two and therefore includes the assets, liabilities, results of operations and cash flows in its consolidated financial statements. GHC One acquired Clarus during 2019. GHC Two acquired Impact Medical during 2021 and Skin Clique and Surpass in 2022. The Company accounts for the minority ownership of the group of current and former senior managers in GHC One and GHC Two as a mandatorily redeemable noncontrolling interest (see Note 8). 3. INVESTMENTS Money Market Investments. As of June 30, 2026 and December 31, 2025, the Company had money market investments of $7.3 million and $5.3 million, respectively, that are classified as cash and cash equivalents in the Company’s Condensed Consolidated Balance Sheets. Investments in Marketable Equity Securities. Investments in marketable equity securities consist of the following: As of June 30, 2026 December 31, 2025 (in thousands) Total cost $ 271,013 $ 256,897 Gross unrealized gains 828,045 845,889 Gross unrealized losses (15,966) (20,848) Total Fair Value $ 1,083,092 $ 1,081,938 At June 30, 2026 and December 31, 2025, the Company owned 63,793 and 55,430 shares, respectively, in Markel Group Inc. (Markel) valued at $124.6 million and $119.2 million, respectively. The Chief Executive Officer of Markel, Mr. Thomas S. Gayner, is a member of the Company’s Board of Directors. As of June 30, 2026, the Company owned 422 Class A and 481,920 Class B shares in Berkshire Hathaway valued at $557.2 million, which exceeded 5% of the Company’s total assets. The Company purchased $18.7 million and $4.8 million of marketable equity securities during the first six months of 2026 and 2025, respectively. During the first six months of 2026, the gross cumulative realized net gains from the sales of marketable equity securities were $45.5 million. The total proceeds from such sales were $50.0 million. The Company donated marketable equity securities in the first six months of 2026 and recorded a $0.5 million gross cumulative realized gain from the donation. There were no sales of marketable equity securities during the first six months of 2025. The net gain (loss) on marketable equity securities comprised the following: Three Months Ended June 30 Six Months Ended June 30 (in thousands) 2026 2025 2026 2025 Gain (loss) on marketable equity securities, net $ 101,879 $ (11,543) $ 32,956 $ 32,258 Less: Net gains in earnings from marketable equity securities sold and donated (44) — (2,411) — Net unrealized gains (losses) in earnings from marketable equity securities still held at the end of the period $ 101,835 $ (11,543) $ 30,545 $ 32,258 Investments in Affiliates. As of June 30, 2026, the Company’s healthcare subsidiary held investments in several affiliates that GHG actively manages; GHG held a 40% interest in each of the following affiliates: Residential Home Health Illinois, Residential Hospice Illinois, Mary Free Bed at Home, and Allegheny Health Network Healthcare at Home. For the three and six months ended June 30, 2026, the Company recorded $4.3 million and $8.4 million, respectively, in revenue for services provided to the affiliates of GHG. For the three and six months ended June 30, 10 2025, the Company recorded $4.1 million and $7.9 million, respectively, in revenue for services provided to the affiliates of GHG. As of June 30, 2026, the Company held a 50.4%, 41.4% and 25.2% interest in N2K Networks, Realm and Intersection, respectively, on a fully diluted basis, and accounts for these investments under the equity method. The Company holds two of the five seats of N2K Networks’ governing board with the other shareholders retaining substantive participation rights to control the financial and operating decisions of N2K Networks through representation on the board. In May 2024, the Company entered into a convertible promissory note agreement to loan N2K Networks $2.0 million. The convertible promissory note bears interest at a rate of 12% per annum and, subject to conversion provisions, all unpaid interest and principal are due by May 2027. In the second quarter of 2026, the Company recorded an impairment charge of $5.8 million on its investment in Realm following a reduction in the investee’s current and expected growth. The Company had $28.2 million and $30.0 million in its investment account that represents cumulative undistributed income in its investments in affiliates as of June 30, 2026 and December 31, 2025, respectively. Additionally, Kaplan International Holdings Limited (KIHL) held a 45% interest in a joint venture formed with University of York. KIHL loaned the joint venture £22 million, which is repayable over 25 years at an interest rate of 7% and guaranteed by the University of York. The outstanding balance on this loan was £18.8 million as of June 30, 2026. The loan is repayable by December 2041. Cost Method Investments. The Company held investments without readily determinable fair values in a number of equity securities that are accounted for as cost method investments, which are recorded at cost, less impairment, and adjusted for observable price changes for identical or similar investments of the same issuer. The carrying value of these investments was $49.4 million as of June 30, 2026 and December 31, 2025. During the three and six months ended June 30, 2025, the Company recorded impairment losses of $12.7 million to equity securities that are accounted for as cost method investments. 4. ACCOUNTS RECEIVABLE, ACCOUNTS PAYABLE, VEHICLE FLOOR PLAN PAYABLE AND ACCRUED LIABILITIES Accounts receivable consist of the following: As of June 30, 2026 December 31, 2025 (in thousands) Receivables from contracts with customers, less estimated credit losses of $26,015 and $23,164 $ 419,481 $ 519,068 Other receivables 55,206 57,686 $ 474,687 $ 576,754 Credit loss expense was $1.5 million and $1.0 million for the three months ended June 30, 2026 and 2025, respectively. Credit loss expense was $3.0 million and $2.1 million for the six months ended June 30, 2026 and 2025, respectively. Accounts payable, vehicle floor plan payable and accrued liabilities consist of the following: As of June 30, 2026 December 31, 2025 (in thousands) Accounts payable $ 175,672 $ 181,009 Vehicle floor plan payable 117,096 118,959 Accrued compensation and related benefits 135,443 194,972 Other accrued liabilities 210,372 226,686 $ 638,583 $ 721,626 Cash overdrafts of $0.6 million are included in accounts payable as of June 30, 2026 and December 31, 2025. The Company finances new, used and service loaner vehicle inventory through standardized floor plan facilities with Truist Bank and Toyota Motor Credit Corporation and Ford Motor Credit Company. At June 30, 2026, the floor plan facilities bore interest at variable rates that are based on Secured Overnight Financing Rate (SOFR) and prime-based interest rates. The weighted average interest rate for the floor plan facilities was 5.7% for the three and six months ended June 30, 2026. The weighted average interest rate for the floor plan facilities was 6.3% for the three and six months ended June 30, 2025. The Company incurred floor plan interest expense of $1.8 million and $1.9 million for the three months ended June 30, 2026 and 2025, respectively. The Company incurred floor plan 11 interest expense of $3.5 million and $4.1 million for the six months ended June 30, 2026 and 2025, respectively. Changes in the vehicle floor plan payable are reported as cash flows from financing activities in the Condensed Consolidated Statements of Cash Flows. The floor plan facilities are collateralized by vehicle inventory and other assets of the relevant dealership subsidiary, and contain a number of covenants, including, among others, covenants restricting the dealership subsidiary with respect to the creation of liens and changes in ownership, officers and key management personnel. The Company was in compliance with all of these restrictive covenants as of June 30, 2026. The floor plan interest expense related to the vehicle floor plan arrangements is offset by amounts received from manufacturers in the form of floor plan assistance capitalized in inventory and recorded against cost of goods sold in the Condensed Consolidated Statements of Operations when the associated inventory is sold. For the three months ended June 30, 2026 and 2025, the Company recognized a reduction in cost of goods sold of $2.2 million and $2.0 million, respectively, related to manufacturer floor plan assistance. For the six months ended June 30, 2026 and 2025, the Company recognized a reduction in cost of goods sold of $4.1 million and $4.0 million, respectively, related to manufacturer floor plan assistance. As of June 30, 2026 and December 31, 2025, the Company had $99.8 million and $105.9 million, respectively, in obligations outstanding related to floor plan facilities associated with new vehicles. 5. INVENTORIES AND CONTRACTS IN PROGRESS Inventories and contracts in progress consist of the following: As of June 30, 2026 December 31, 2025 (in thousands) Raw materials $ 83,044 $ 77,977 Work-in-process 14,529 12,906 Finished goods 228,447 209,287 Contracts in progress 7,439 3,200 $ 333,459 $ 303,370 6. GOODWILL AND OTHER INTANGIBLE ASSETS During the first quarter of 2026, in connection with the classification of the KLG disposal group as held for sale, the Company recognized a goodwill impairment charge of $1.0 million at Kaplan International (see Note 2). Amortization of intangible assets for the three months ended June 30, 2026 and 2025, was $6.0 million and $7.2 million, respectively. Amortization of intangible assets for the six months ended June 30, 2026 and 2025, was $12.0 million and $15.1 million, respectively. Amortization of intangible assets is estimated to be approximately $11 million for the remainder of 2026, $9 million in 2027, $6 million in 2028, $5 million in 2029, $5 million in 2030 and $13 million thereafter. The changes in the carrying amount of goodwill, by segment, were as follows: (in thousands) Education Television Broadcasting Healthcare Manufacturing Automotive Other Businesses Total As of December 31, 2025 Goodwill $ 1,181,284 $ 190,815 $ 136,637 $ 272,523 $ 140,832 $ 108,943 $ 2,031,034 Accumulated impairment losses (331,151) — — (82,062) — (32,155) (445,368) 850,133 190,815 136,637 190,461 140,832 76,788 1,585,666 Acquisition — — 17,996 — — — 17,996 Impairment (976) — — — — — (976) Disposition — — — — — — — Foreign currency exchange rate changes (2,113) — — — — — (2,113) As of June 30, 2026 Goodwill 1,178,195 190,815 154,633 272,523 140,832 108,943 2,045,941 Accumulated impairment losses (331,151) — — (82,062) — (32,155) (445,368) $ 847,044 $ 190,815 $ 154,633 $ 190,461 $ 140,832 $ 76,788 $ 1,600,573 12 The changes in carrying amount of goodwill at the Company’s education and healthcare divisions were as follows: (in thousands) Kaplan International Higher Education Supplemental Education Total Education CSI Other Healthcare Total Healthcare As of December 31, 2025 Goodwill $ 614,096 $ 174,564 $ 392,624 $ 1,181,284 $ 87,140 $ 49,497 $ 136,637 Accumulated impairment losses — (111,324) (219,827) (331,151) — — — 614,096 63,240 172,797 850,133 87,140 49,497 136,637 Acquisition — — — — — 17,996 17,996 Impairment (976) — — (976) — — — Disposition — — — — — — — Foreign currency exchange rate changes (2,049) — (64) (2,113) — — — As of June 30, 2026 Goodwill 611,071 174,564 392,560 1,178,195 87,140 67,493 154,633 Accumulated impairment losses — (111,324) (219,827) (331,151) — — — $ 611,071 $ 63,240 $ 172,733 $ 847,044 $ 87,140 $ 67,493 $ 154,633 Other intangible assets consist of the following: As of June 30, 2026 As of December 31, 2025 (in thousands) Useful Life Range Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized Intangible Assets Student and customer relationships 2–10 years $ 296,900 $ 263,999 $ 32,901 $ 307,312 $ 266,453 $ 40,859 Trade names and trademarks 2–10 years 107,337 94,370 12,967 114,227 98,147 16,080 Network affiliation agreements 10 years 17,400 16,457 943 17,400 15,588 1,812 Databases and technology 3–6 years 30,496 28,568 1,928 32,376 30,293 2,083 Other 1–8 years 38,063 37,393 670 38,063 37,266 797 $ 490,196 $ 440,787 $ 49,409 $ 509,378 $ 447,747 $ 61,631 Indefinite-Lived Intangible Assets Franchise agreements $ 97,002 $ 97,002 Trade names and trademarks 62,185 62,653 FCC licenses 11,000 11,000 Other 150 150 $ 170,337 $ 170,805 7. DEBT The Company’s borrowings consist of the following: As of (in thousands) Maturities Stated Interest Rate Effective Interest Rate June 30, 2026 December 31, 2025 Unsecured notes (1) 2033 5.625% 5.625% $ 493,760 $ 493,625 Revolving credit facility 2030 5.00% - 7.13% 5.11% 231,159 222,466 Real estate term loan (2) 2028 5.37% - 5.45% 5.48% 89,356 91,836 Capital term loan (3) 2028 6.12% - 6.20% 6.22% 60,228 64,079 Other indebtedness 2026 - 2028 6.25% - 8.00% 25,870 8,750 Total Debt 900,373 880,756 Less: current portion (191,472) (175,138) Total Long-Term Debt $ 708,901 $ 705,618 ___________ (1) The carrying value is net of $6.2 million and $6.4 million of unamortized debt issuance costs as of June 30, 2026 and December 31, 2025, respectively. (2) The carrying value is net of $0.1 million of unamortized debt issuance costs as of June 30, 2026 and December 31, 2025. (3) The carrying value is net of $0.4 million and $0.5 million of unamortized debt issuance costs as of June 30, 2026 and December 31, 2025, respectively. 13 On November 24, 2025, the Company issued $500 million of 5.625% unsecured eight-year fixed-rate notes due December 1, 2033 (the Notes). Interest is paid semi-annually on June 1 and December 1. Also on November 24, 2025, the Company used the net proceeds from the sale of the Notes, together with the borrowings under the revolving credit agreement, to (i) redeem the $400 million of 5.75% unsecured notes due June 1, 2026, (ii) refinance outstanding revolving loans under the existing revolving credit facility, and (iii) repay all amounts outstanding under the Company’s existing $150 million term loan. On October 21, 2025, the automotive subsidiary borrowed $38.7 million under the delayed draw term loan to finance the acquisition of a Honda automotive dealership, including the real property for the dealership operations. In combination with the issuance of the Notes, the Company amended and restated the Second Amended and Restated Five Year Credit Agreement, dated as of May 3, 2022, to, among other things, (i) increase the Company’s borrowing capacity by replacing the existing revolving commitments with a new revolving credit facility in the aggregate principal amount of $400 million, (ii) extend the maturity of the facility to November 24, 2030, and (iii) increase the letter of credit sublimit to $40 million. At June 30, 2026 and December 31, 2025, the fair value of the Company’s 5.625% unsecured notes, based on quoted market prices (Level 2 fair value assessment), totaled $496.4 million and $504.0 million, respectively. The outstanding balance on the Company’s $400 million unsecured revolving credit facility was $231.2 million as of June 30, 2026, consisting of U.S. dollar borrowings of $165.0 million with interest payable at SOFR plus 1.375% or prime rate plus 0.375%, and British Pound borrowings of £50 million with interest payable at Daily Sterling Overnight Index Average (SONIA) plus 1.375%. The fair value of the Company’s other debt, which is based on Level 2 inputs, approximates its carrying value as of June 30, 2026 and December 31, 2025. The Company is in compliance with all financial covenants of the revolving credit facility and term loans as of June 30, 2026. During the three months ended June 30, 2026 and 2025, the Company had average borrowings outstanding of approximately $899.4 million and $886.4 million, respectively, at average annual interest rates of approximately 5.7% and 6.0%, respectively. During the three months ended June 30, 2026 and 2025, the Company incurred net interest expense of $15.3 million and $15.8 million, respectively. During the six months ended June 30, 2026 and 2025, the Company had average borrowings outstanding of approximately $895.5 million and $828.7 million, respectively, at average annual interest rates of approximately 5.7% and 6.0%, respectively. During the six months ended June 30, 2026 and 2025, the Company incurred net interest expense of $29.0 million and $95.6 million, respectively. During the three and six months ended June 30, 2026, the Company recorded a reduction in interest expense of $0.2 million and $0.9 million, respectively, to adjust the fair value of the mandatorily redeemable noncontrolling interest. During the three and six months ended June 30, 2025, the Company recorded interest expense of $1.2 million and $67.6 million, respectively, to adjust the fair value of the mandatorily redeemable noncontrolling interest. The fair value of the mandatorily redeemable noncontrolling interest was based on the fair value of the underlying subsidiaries owned by GHC One and GHC Two, after taking into account any debt and other noncontrolling interests of its subsidiary investments. The fair value of the owned subsidiaries is determined by reference to either a discounted cash flow or EBITDA multiple, which approximates fair value (Level 3 fair value assessment) (See Note 2 and 8). 14 8. FAIR VALUE MEASUREMENTS The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows: As of June 30, 2026 (in thousands) Level 1 Level 2 Level 3 Total Assets Money market investments (1) $ — $ 7,285 $ — $ 7,285 Marketable equity securities (2) 1,083,092 — — 1,083,092 Other current investments (3) — 6,209 — 6,209 Total Financial Assets $ 1,083,092 $ 13,494 $ — $ 1,096,586 Liabilities Interest rate swaps (4) $ — $ 1,033 $ — $ 1,033 Mandatorily redeemable noncontrolling interest (5) — — 7,423 7,423 Total Financial Liabilities $ — $ 1,033 $ 7,423 $ 8,456 As of December 31, 2025 (in thousands) Level 1 Level 2 Level 3 Total Assets Money market investments (1) $ — $ 5,251 $ — $ 5,251 Marketable equity securities (2) 1,081,938 — — 1,081,938 Other current investments (3) — 7,032 — 7,032 Total Financial Assets $ 1,081,938 $ 12,283 $ — $ 1,094,221 Liabilities Contingent consideration liabilities (6) $ — $ — $ 1,526 $ 1,526 Interest rate swaps (4) — 2,289 — 2,289 Mandatorily redeemable noncontrolling interest (5) — — 8,401 8,401 Total Financial Liabilities $ — $ 2,289 $ 9,927 $ 12,216 ____________ (1) The Company’s money market investments are included in cash and cash equivalents and the value considers the liquidity of the counterparty. (2) The Company’s investments in marketable equity securities are held in common shares of U.S. corporations that are actively traded on U.S. stock exchanges. Price quotes for these shares are readily available. (3) Includes mutual funds, which are valued using a market approach based on the quoted market prices of the security or inputs that include quoted market prices for similar instruments. (4) Included in Other Liabilities. The Company utilized a market approach model using the notional amount of the interest rate swaps multiplied by the observable inputs of time to maturity and market interest rates. (5) The fair value of the mandatorily redeemable noncontrolling interest is based on the fair value of the underlying subsidiaries owned by GHC One and GHC Two, after taking into account any debt and other noncontrolling interests of its subsidiary investments. The fair value of the owned subsidiaries is determined using enterprise value analyses which include an equal weighing between guideline public company and discounted cash flow analyses. (6) Included in Accounts payable, vehicle floor plan payable and accrued liabilities and Other Liabilities. The Company determined the fair value of the contingent consideration liabilities using either a Monte Carlo simulation, Black-Scholes model, or probability-weighted analysis depending on the type of target included in the contingent consideration requirements (revenue, EBITDA, client retention). All analyses included estimated financial projections for the acquired businesses and acquisition-specific discount rates. 15 The following tables provide a reconciliation of changes in the Company’s financial liabilities measured at fair value on a recurring basis, using Level 3 inputs: (in thousands) Contingent consideration liabilities Mandatorily redeemable noncontrolling interest As of December 31, 2025 $ 1,526 $ 8,401 Changes in fair value (1) — (882) Capital contributions — 4 Accretion of value included in net income (1) 28 — Settlements or distributions (299) (100) Foreign currency exchange rate changes (2) — Disposition of business (1,253) — As of June 30, 2026 $ — $ 7,423 (in thousands) Contingent consideration liabilities Mandatorily redeemable noncontrolling interest As of December 31, 2024 $ 1,419 $ 159,548 Changes in fair value (1) — 67,560 Capital contributions — 80 Accretion of value included in net income (1) 100 — Settlements or distributions (317) (205,672) Foreign currency exchange rate changes 147 — As of June 30, 2025 $ 1,349 $ 21,516 ____________ (1) Changes in fair value and accretion of value of contingent consideration liabilities are included in Selling, general and administrative expenses and the changes in fair value of mandatorily redeemable noncontrolling interest is included in Interest expense in the Company’s Condensed Consolidated Statements of Operations. Mandatorily Redeemable Noncontrolling Interest. The mandatorily redeemable noncontrolling interest represents the ownership portion of a group of minority shareholders, consisting of a group of current and former senior managers of the healthcare business, in subsidiaries of GHG. The Company established GHC One and GHC Two as vehicles to invest in a portfolio of healthcare businesses together with the group of senior managers of GHG. As the holder of preferred units, the Company is obligated to contribute 95% of the capital required for the acquisition of portfolio investments with the remaining 5% of the capital coming from the group of senior managers. The operating agreements of GHC One and GHC Two require the dissolution of the entities on March 31, 2026, and March 31, 2029, respectively, at which time the net assets will be distributed to its members. As a preferred unit holder, the Company will receive an amount up to its contributed capital plus a preferred annual return of 8% (guaranteed return) after the group of senior managers has received the redemption of their 5% interest in net assets (manager return). All distributions in excess of the manager and guaranteed return will be paid to common unit holders, which currently comprise the group of senior managers of GHG. The Company may convert its preferred units to common units at any time after which it will receive 80% of all distributions in excess of the manager return, with the remaining 20% of excess distributions going to the group of senior managers as holders of the other common units. The mandatorily redeemable noncontrolling interest related to GHC One is reported as a current liability at June 30, 2026 and December 31, 2025 in the Condensed Consolidated Balance Sheets. The mandatorily redeemable noncontrolling interest related to GHC Two is reported as a noncurrent liability at June 30, 2026 and December 31, 2025 in the Condensed Consolidated Balance Sheets. Other. During the six months ended June 30, 2026, in connection with the sale of the KLG disposal group, the Company recognized total impairment charges of $19.0 million, consisting of a $1.0 million goodwill impairment charge and an $18.0 million impairment charge related to the disposal group. The Company used a market approach to estimate the fair value of KLG disposal group (see Note 2 and 6). During the three and six months ended June 30, 2026, the Company recorded an impairment charge of $5.8 million on one of its investments in affiliates (see Note 3). The Company used a market approach to determine the estimated fair value of its investment in affiliate. During the three and six months ended June 30, 2025, the Company recorded impairment losses of $12.7 million to equity securities that are accounted for as cost method investments. 9. INCOME TAXES The Company recognized a U.S. income tax benefit of $69.6 million during the six months ended June 30, 2026, in connection with the restructuring and sale of the KLG business. No corresponding tax benefit was recognized in any 16 other jurisdiction. The Company continues to monitor relevant developments, including any forthcoming Internal Revenue Service guidance, that could affect the ultimate realization of this benefit. As a result of the significant U.S. income tax benefit recorded related to the KLG business, the Company has recorded a Pillar Two top-up income tax accrual and expense of $19.2 million. In January 2026, the Organization for Economic Co-operation and Development (OECD) published administrative guidance introducing a Side-by-Side (SbS) Safe Harbor that would effectively exempt U.S. parent multinational groups from Pillar Two top-up tax on their U.S. source income. The SbS Safe Harbor is only effective to the extent participating countries have enacted legislation adopting the guidance. The Company has assessed current law and administrative guidance in relevant non-U.S. jurisdictions. Currently, not all participating countries have enacted legislation to adopt the SbS Safe Harbor, including the U.K. The Company will continue to monitor local implementation and guidance as non-U.S. countries adopt the SbS Safe Harbor into domestic law. The enactment of such legislation in the U.K. and other jurisdictions would have a favorable impact on the Pillar Two top-up tax accrued for 2026, and could result in a complete reversal of the $19.2 million accrued amount without payment. The Company's effective tax rate for the first six months of 2026 and 2025 was 12.6% and 29.8%, respectively. 10. REVENUE FROM CONTRACTS WITH CUSTOMERS The Company generated 80% and 79% of its revenue from U.S. domestic sales for the three and six months ended June 30, 2026, respectively. The remaining 20% and 21% of revenue was generated from non-U.S. sales for the three and six months ended June 30, 2026, respectively. For the three and six months ended June 30, 2025, 78% of revenue was from U.S. domestic sales and the remaining 22% of revenue was generated from non-U.S. sales. For the three and six months ended June 30, 2026, the Company recognized 51% and 52%, respectively, of its revenue over time as control of the services and goods transferred to the customer, and the remaining 49% and 48% at a point in time, when the customer obtained control of the promised goods. For the three and six months ended June 30, 2025, the Company recognized 54% of its revenue over time, and the remaining 46% at a point in time. Contract Assets. As of June 30, 2026, the Company recognized a contract asset of $33.2 million related to a contract at a Kaplan International business, of which $5.9 million is included in Other current assets and $27.3 million is included in Deferred Charges and Other Assets. The Company expects to recognize an additional $199.8 million related to the remaining performance obligation in the contract over the next three years. As of December 31, 2025, the contract asset was $36.5 million, of which $4.4 million was included in Other current assets and $32.1 million was included in Deferred Charges and Other Assets. Additional contract assets of $2.8 million and $3.0 million are included in Other current assets on the Company’s Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025, respectively. Deferred Revenue. The Company records deferred revenue when cash payments are received or due in advance of the Company’s performance which includes some payments that are refundable due to the contractual right of the customer to cancel the agreement. As of June 30, 2026 and December 31, 2025, 23% and 22%, respectively, of the Company’s deferred revenue consisted of prepaid amounts which are refundable. The following table presents the change in the Company’s deferred revenue balance: As of June 30, 2026 December 31, 2025 % (in thousands) Change Deferred revenue $ 297,288 $ 418,090 (29) The majority of the change in the deferred revenue balance is related to the cyclical nature of services in the Kaplan International division and the derecognition of deferred revenue associated with the sale of the KLG businesses in May 2026 (see Note 2). During the six months ended June 30, 2026, the Company recognized $319.0 million related to the Company’s deferred revenue balance as of December 31, 2025, including $59.1 million of prepaid amounts which were refundable at the prior year-end. Revenue allocated to remaining performance obligations represents deferred revenue amounts that will be recognized as revenue in future periods. As of June 30, 2026, the deferred revenue balance related to certain medical and nursing qualifications with an original contract length greater than twelve months at Kaplan Supplemental Education was $4.1 million. Kaplan Supplemental Education expects to recognize 68% of this revenue over the next twelve months and the remainder thereafter. 17 Costs to Obtain a Contract. The following table presents changes in the Company’s costs to obtain a contract asset: (in thousands) Balance at Beginning of Period Costs associated with new contracts Less: Costs amortized during the period Other Balance at End of Period 2026 $ 42,404 $ 29,742 $ (48,917) $ (1,575) $ 21,654 The majority of other activity was related to the derecognition of costs to obtain contract assets associated with the sale of the KLG business in May 2026 (see Note 2) and currency translation adjustments for the six months ended June 30, 2026. 11. 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 June 30 Six Months Ended June 30 (in thousands, except per share amounts) 2026 2025 2026 2025 Numerator: Numerator for basic earnings per share: Net income attributable to Graham Holdings Company common stockholders $ 281,103 $ 36,749 $ 310,209 $ 60,643 Less: Dividends paid-common stock outstanding and unvested restricted shares (7,953) (7,846) (24,351) (23,508) Undistributed earnings 273,150 28,903 285,858 37,135 Percent allocated to common stockholders 99.43 % 99.39 % 99.43 % 99.39 % 271,589 28,726 284,225 36,908 Add: Dividends paid-common stock outstanding 7,908 7,798 24,214 23,364 Numerator for basic earnings per share $ 279,497 $ 36,524 $ 308,439 $ 60,272 Add: Additional undistributed earnings due to dilutive stock options 16 2 16 2 Numerator for diluted earnings per share $ 279,513 $ 36,526 $ 308,455 $ 60,274 Denominator: Denominator for basic earnings per share: Weighted average shares outstanding 4,265 4,333 4,298 4,327 Add: Effect of dilutive stock options 44 40 44 39 Denominator for diluted earnings per share 4,309 4,373 4,342 4,366 Graham Holdings Company Common Stockholders: Basic earnings per share $ 65.53 $ 8.43 $ 71.76 $ 13.93 Diluted earnings per share $ 64.86 $ 8.35 $ 71.04 $ 13.81 ____________ Earnings per share amounts may not recalculate due to rounding. 18 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 June 30 Six Months Ended June 30 (in thousands) 2026 2025 2026 2025 Weighted average restricted stock 18 13 18 13 The diluted earnings per share amounts for each of the three and six months ended June 30, 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 and six months ended June 30, 2026, the Company declared regular dividends totaling $1.88 and $5.64 per common share, respectively. In the three and six months ended June 30, 2025, the Company declared regular dividends totaling $1.80 and $5.40 per common share, respectively. 12. PENSION PLANS Defined Benefit Plans. The total benefit arising from the Company’s defined benefit pension plans consists of the following components: Three Months Ended June 30 Six Months Ended June 30 (in thousands) 2026 2025 2026 2025 Service cost $ 11,922 $ 11,699 $ 23,502 $ 23,891 Interest cost 7,597 6,956 16,292 13,377 Expected return on assets (44,538) (41,881) (88,818) (83,852) Amortization of prior service credit (497) (521) (993) (1,040) Net Periodic Benefit (25,516) (23,747) (50,017) (47,624) Settlement (136,955) — (136,955) — Early retirement and separation program costs 3,837 6,015 7,937 6,639 Total Benefit $ (158,634) $ (17,732) $ (179,035) $ (40,985) In June 2026, the Company purchased an irrevocable group annuity contract from an insurance company for $113.9 million to settle $124.3 million of the outstanding defined benefit pension obligation related to certain retirees and beneficiaries. The purchase of the group annuity contract was funded from the assets of the Company’s pension plan. As a result of this transaction, the Company was relieved of all responsibility for these pension obligations and the insurance company is now required to pay and administer the retirement benefits owed to approximately 1,080 retirees and beneficiaries, with no change to the amount, timing or form of monthly retirement benefit payments. As a result, the Company remeasured the accumulated and projected benefit obligation as of June 17, 2026 and recorded a one-time pre-tax settlement gain of $137.0 million. The new measurement basis was used for the recognition of the Company’s pension benefit following the remeasurement. The settlement gain is included in non-operating pension and postretirement benefit income on the Condensed Consolidated Statements of Operations. In the second quarter of 2026, the Company recorded $2.0 million in expenses related to a Voluntary Retirement Incentive Program (VRIP) for certain Dekko employees. Also in the second quarter of 2026, the Company recorded $1.9 million in expenses related to Separation Incentive Programs (SIPs) for certain Kaplan, Graham Media Group (GMG), Code3 and Slate employees. In the first quarter of 2026, the Company recorded $4.1 million in expenses related to SIPs for certain Kaplan, GMG, Joyce, Dekko, Framebridge, Code3, Slate and Corporate employees. The VRIP and SIPs were funded from the assets of the Company’s pension plans. In the second quarter of 2025, the Company recorded $6.0 million in expenses related to SIPs for certain Kaplan, GMG, WGB, Saatchi Art, Society6, Code3 and Decile employees. In the first quarter of 2025, the Company recorded $0.6 million in expenses related to a SIP for certain WGB employees. These SIPs were funded from the assets of the Company’s pension plans. 19 The total cost arising from the Company’s Supplemental Executive Retirement Plan (SERP) consists of the following components: Three Months Ended June 30 Six Months Ended June 30 (in thousands) 2026 2025 2026 2025 Service cost $ 290 $ 238 $ 579 $ 477 Interest cost 1,155 1,197 2,310 2,394 Net Periodic Cost $ 1,445 $ 1,435 $ 2,889 $ 2,871 Defined Benefit Plan Assets. The Company’s defined benefit pension obligations are funded by a portfolio made up of private investment funds and a relatively small number of stocks and high-quality fixed-income securities that are held by a third-party trustee. The assets of the Company’s pension plans were allocated as follows: As of June 30, 2026 December 31, 2025 U.S. equities 64 % 63 % Private investment funds 17 % 17 % International equities 16 % 16 % U.S. fixed income 3 % 4 % 100 % 100 % The Company manages approximately 41% of the pension assets internally, of which the majority is invested in Berkshire Hathaway stock, with the remaining investments in private investment funds, Markel stock, and short-term fixed-income securities. The remaining 59% of plan assets are managed by two investment companies. The goal of the investment managers is to produce moderate long-term growth in the value of these assets, while protecting them against large decreases in value. Both investment managers may invest in a combination of equity and fixed-income securities and cash. The managers are not permitted to invest in securities of the Company or in alternative investments. One investment manager cannot invest more than 15% of the assets at the time of purchase in each of the stocks of Alphabet and Berkshire Hathaway, and no more than 50% of the assets it manages in specified international exchanges at the time the investment is made. The other investment manager cannot invest more than 20% of the assets at the time of purchase in the stock of Berkshire Hathaway and no more than 15% of the assets it manages in specified international exchanges at the time the investment is made. Excluding the exceptions noted above, the investment managers cannot invest more than 10% of the assets in the securities of any other single issuer, except for obligations of the U.S. Government, without receiving prior approval from the Plan administrator. In determining the expected rate of return on plan assets, the Company considers the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes and economic and other indicators of future performance. In addition, the Company may consult with and consider the input of financial and other professionals in developing appropriate return benchmarks. The Company evaluated its defined benefit pension plan asset portfolio for the existence of significant concentrations (defined as greater than 10% of plan assets) of credit risk as of June 30, 2026. Types of concentrations that were evaluated include, but are not limited to, investment concentrations in a single entity, type of industry, foreign country and individual fund. At June 30, 2026, the pension plan held investments in one common stock and one private investment fund that exceeded 10% of total plan assets, valued at $1,232.0 million, or approximately 37% of total plan assets. At December 31, 2025, the pension plan held investments in one common stock and one private investment fund that exceeded 10% of total plan assets, valued at $1,267.4 million, or approximately 37% of total plan assets. Assets also included $113.3 million and $124.7 million of Markel shares at June 30, 2026 and December 31, 2025, respectively. 20 13. OTHER NON-OPERATING EXPENSE A summary of non-operating expense is as follows: Three Months Ended June 30 Six Months Ended June 30 (in thousands) 2026 2025 2026 2025 (Loss) gain on sales of businesses $ (5,151) $ 371 $ (5,151) $ 371 Foreign currency gain (loss), net 663 (4,475) (561) (8,854) Gain on sale of cost method investment — — 484 — Impairment of a cost method investment — (12,679) — (12,679) Other gain, net 1,957 327 2,269 641 Total Other Non-Operating Expense $ (2,531) $ (16,456) $ (2,959) $ (20,521) In the second quarter of 2026, the Company recorded a $5.2 million loss related to Kaplan’s sale of KLG (see Note 2). 14. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The other comprehensive income (loss) consists of the following components: Three Months Ended June 30 2026 2025 Before-Tax Income After-Tax Before-Tax Income After-Tax (in thousands) Amount Tax Amount Amount Tax Amount Foreign currency translation adjustments: Translation adjustments arising during the period $ 125 $ — $ 125 $ 32,283 $ — $ 32,283 Adjustment for sales of businesses with foreign operations 6,175 — 6,175 646 — 646 6,300 — 6,300 32,929 — 32,929 Pension and other postretirement plans: Actuarial loss (89,928) 23,393 (66,535) — — — Amortization of net prior service credit included in net income (497) 129 (368) (521) 133 (388) Amortization of net actuarial gain included in net income (258) 67 (191) (380) 98 (282) Settlement gain included in net income (136,955) 35,625 (101,330) — — — (227,638) 59,214 (168,424) (901) 231 (670) Cash flow hedges: Gain (loss) for the period 640 (165) 475 (364) 95 (269) Other Comprehensive (Loss) Income $ (220,698) $ 59,049 $ (161,649) $ 31,664 $ 326 $ 31,990 Six Months Ended June 30 2026 2025 Before-Tax Income After-Tax Before-Tax Income After-Tax (in thousands) Amount Tax Amount Amount Tax Amount Foreign currency translation adjustments: Translation adjustments arising during the period $ (6,123) $ — $ (6,123) $ 46,550 $ — $ 46,550 Adjustment for sales of businesses with foreign operations 6,175 — 6,175 646 — 646 52 — 52 47,196 — 47,196 Pension and other postretirement plans: Actuarial loss (89,928) 23,393 (66,535) — — — Amortization of net prior service credit included in net income (993) 259 (734) (1,040) 266 (774) Amortization of net actuarial gain included in net income (516) 134 (382) (759) 195 (564) Settlement gain included in net income (136,955) 35,625 (101,330) — — — (228,392) 59,411 (168,981) (1,799) 461 (1,338) Cash flow hedges: Gain (loss) for the period 1,266 (328) 938 (1,043) 271 (772) Other Comprehensive (Loss) Income $ (227,074) $ 59,083 $ (167,991) $ 44,354 $ 732 $ 45,086 21 The accumulated balances related to each component of other comprehensive income (loss) are as follows: (in thousands, net of taxes) Cumulative Foreign Currency Translation Adjustment Unrealized Gain on Pensions and Other Postretirement Plans Cash Flow Hedges Accumulated Other Comprehensive Income As of December 31, 2025 $ (12,262) $ 601,064 $ (1,722) $ 587,080 Other comprehensive (loss) income before reclassifications (6,123) (66,535) 604 (72,054) Net amount reclassified from accumulated other comprehensive income (loss) 6,175 (102,446) 334 (95,937) Net other comprehensive (loss) income 52 (168,981) 938 (167,991) As of June 30, 2026 $ (12,210) $ 432,083 $ (784) $ 419,089 The amounts and line items of reclassifications out of Accumulated Other Comprehensive Income (Loss) are as follows: Three Months Ended June 30 Six Months Ended June 30 Affected Line Item in the Condensed Consolidated Statements of Operations (in thousands) 2026 2025 2026 2025 Foreign Currency Translation Adjustments: Adjustment for sales of businesses with foreign operations $ 6,175 $ 646 $ 6,175 $ 646 Other expense, net Pension and Other Postretirement Plans: Amortization of net prior service credit (497) (521) (993) (1,040) (1) Amortization of net actuarial gain (258) (380) (516) (759) (1) Settlement gain (136,955) — (136,955) — (1) (137,710) (901) (138,464) (1,799) Before tax 35,821 231 36,018 461 Provision for Income Taxes (101,889) (670) (102,446) (1,338) Net of Tax Cash Flow Hedges 170 61 334 121 Interest expense Total reclassification for the period $ (95,544) $ 37 $ (95,937) $ (571) Net of Tax ____________ (1) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and postretirement plan cost (see Note 12) and are included in non-operating pension and postretirement benefit income in the Company’s Condensed Consolidated Statements of Operations. 15. CONTINGENCIES Litigation, Legal and Other Matters. The Company and its subsidiaries are subject to complaints and administrative proceedings and are defendants in various civil lawsuits that have arisen in the ordinary course of their businesses, including contract disputes; actions alleging negligence, libel, defamation and invasion of privacy; trademark, copyright and patent infringement; real estate lease and sublease disputes; violations of employment laws and applicable wage and hour laws; and statutory or common law claims involving current and former students and employees. Although the outcomes of the legal claims and proceedings against the Company cannot be predicted with certainty, based on currently available information, management believes that there are no existing claims or proceedings that are likely to have a material effect on the Company’s business, financial condition, results of operations or cash flows. However, based on currently available information, management believes it is reasonably possible that future losses from existing and threatened legal, regulatory and other proceedings in excess of the amounts recorded could reach approximately $20 million. 16. BUSINESS SEGMENTS The Company has seven reportable segments: Kaplan International, Kaplan Higher Education, Kaplan Supplemental Education, Television Broadcasting, CSI, Manufacturing and Automotive. As of June 30, 2026, Kaplan had a total outstanding accounts receivable balance of $25.5 million from Purdue Global related to amounts due for reimbursements for services. Included in this total, Kaplan has a $3.7 million short-term receivable balance due from Purdue Global at June 30, 2026 related to the advance of $20.0 million during the initial KU Transaction. 22 The Company’s segment information is as follows: Three Months Ended June 30, 2026 (in thousands) Education Television Broadcasting Healthcare Manufacturing Automotive Total Segments Operating Revenues $ 417,808 $ 109,630 $ 247,651 $ 133,280 $ 301,352 $ 1,209,721 Reconciliation of Revenue Other Businesses and Corporate Office Revenues (1) 93,562 Intersegment Elimination (777) Total Consolidated Revenues $ 1,302,506 Less: Significant Expenses (2) Cost of Revenue (3) 159,247 162,496 98,107 254,956 674,806 Payroll and Fringe Benefits Expense (4) 113,770 27,745 21,086 162,601 Occupancy Expense 25,497 2,009 27,506 Advertising and Marketing Expense 19,569 19,569 Networking and Programming Expense 29,846 29,846 Management Services (5) 2,325 2,325 Other Segment Items (6) 38,875 16,232 56,899 20,037 10,918 142,961 Earnings Before Interest, Income Taxes, Depreciation, Amortization and Pension Service Cost (EBITDAP) $ 60,850 $ 35,807 $ 28,256 $ 15,136 $ 10,058 $ 150,107 Pension Service Cost 4,672 1,619 1,643 1,255 51 9,240 Depreciation Expense 5,659 2,345 1,913 3,037 1,937 14,891 Income from Operations before Amortization of Intangible Assets $ 50,519 $ 31,843 $ 24,700 $ 10,844 $ 8,070 $ 125,976 Other Businesses (7) (16,650) Corporate Costs (19,714) Amortization of Intangible Assets (5,978) Income from Operations $ 83,634 Equity in Losses of Affiliates, Net (19,863) Interest Expense, Net (15,292) Non-Operating Pension and Postretirement Benefit Income, Net 169,649 Gain on Marketable Equity Securities, Net 101,879 Other Expense, Net (2,531) Income Before Income Taxes $ 317,476 Capital Expenditures $ 4,003 $ 1,758 $ 3,568 $ 2,391 $ 666 $ 12,386 Reconciliation of Capital Expenditures Other Businesses and Corporate Office Capital Expenditures (8) 7,364 Total Capital Expenditures $ 19,750 (1) Revenue from segments below the quantitative thresholds is attributable to Other Businesses and the Corporate Office, as described above. None of these operating segments meet the quantitative thresholds for determining reportable segments. (2) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker (CODM). (3) Cost of revenue reflects the amounts reported and provided to the CODM and does not necessarily reconcile to the Company's Consolidated Statement of Operations or align across reportable segments. Cost of revenue excludes charges related to depreciation, which is shown separately above. (4) Excludes pension service cost, which is shown separately above. Excludes any payroll and related benefits costs captured in cost of revenue. (5) Management and operating services provided by Christopher J. Ourisman and his team of industry professionals. (6) Other segment items for each reportable segment include: (a) Education (includes Kaplan International, Kaplan Higher Education and Kaplan Supplemental Education) - training and employment expense, travel meals and entertainment expense, operating fees and other general and administrative (G&A) expenses. (b) Television Broadcasting - other broadcast expenses, facilities expenses, third-party commission costs and other selling, general and administrative (SG&A) expenses. (c) Healthcare - indirect costs (e.g. payroll and benefits expenses, G&A expenses) and other SG&A expenses. (d) Manufacturing - payroll and fringe benefits expense (SG&A) and other SG&A expenses. (e) Automotive - advertising and marketing expense and other G&A expenses. (7) Profit or loss from operating segments below the quantitative thresholds attributable to Other Businesses as described above. These operating segments did not meet any of the quantitative thresholds for determining reportable segments. (8) Capital Expenditures from operating segments below the quantitative thresholds are attributable to Other Businesses and the Corporate Office, as described above. None of these operating segments meet the quantitative thresholds for determining reportable segments. 23 The Company’s education division segment information is as follows: Three Months Ended June 30, 2026 (in thousands) Kaplan International Higher Education Supplemental Education Kaplan Corporate and Other Intersegment Elimination Total Education Operating Revenues $ 252,375 $ 86,293 $ 79,476 $ 284 $ (620) $ 417,808 Less: Significant Expenses (1) Cost of Revenue (2) 85,092 61,158 13,220 (223) 159,247 Payroll and Fringe Benefits Expense (3) 72,089 3,962 32,701 5,101 (83) 113,770 Occupancy Expense 24,436 159 808 363 (269) 25,497 Advertising and Marketing Expense 7,320 1,919 10,202 128 19,569 Other Segment Items (4) 25,914 115 11,243 1,919 (316) 38,875 EBITDAP $ 37,524 $ 18,980 $ 11,302 $ (7,227) $ 271 $ 60,850 Pension Service Cost 50 2,032 2,060 530 4,672 Depreciation Expense 4,611 300 738 10 5,659 Income (Loss) from Operations before Amortization of Intangible Assets $ 32,863 $ 16,648 $ 8,504 $ (7,767) $ 271 $ 50,519 Capital Expenditures $ 2,940 $ 601 $ 457 $ 5 $ 4,003 (1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. (2) Cost of revenue reflects the amounts reported and provided to the CODM and does not necessarily reconcile to the Company's Consolidated Statement of Operations or align across reportable segments. Cost of revenue excludes charges related to depreciation, which is shown separately above. (3) Excludes pension service cost, which is shown separately above. Excludes any payroll and related benefits costs captured in cost of revenue. (4) Other segment items for each reportable segment include: (a) Kaplan international - travel meals and entertainment expense, training and employment expense, operating fees and other G&A expenses. (b) Higher education - training and employment expense, operating fees and other G&A expenses. (c) Supplemental education - training and employment expense, operating fees and other G&A expenses. The Company’s healthcare division segment information is as follows: Three Months Ended June 30, 2026 (in thousands) CSI Other Healthcare Total Healthcare Operating Revenues $ 148,523 $ 99,128 $ 247,651 Less: Significant Expenses (1) Cost of Revenue (2) 115,040 47,456 162,496 Other Segment Items (3) 20,664 36,235 56,899 EBITDAP $ 12,819 $ 15,437 $ 28,256 Pension Service Cost — 1,643 1,643 Depreciation Expense 301 1,612 1,913 Income from Operations before Amortization of Intangible Assets $ 12,518 $ 12,182 $ 24,700 Capital Expenditures $ 1,220 $ 2,348 $ 3,568 (1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. (2) Cost of revenue reflects the amounts reported and provided to the CODM and does not necessarily reconcile to the Company's Consolidated Statement of Operations. Cost of revenue excludes charges related to depreciation, which is shown separately. (3) Other segment items for CSI include indirect costs (e.g. payroll and benefits expenses, G&A expenses) and other SG&A expenses. 24 The Company’s segment information is as follows: Three Months Ended June 30, 2025 (in thousands) Education Television Broadcasting Healthcare Manufacturing Automotive Total Segments Operating Revenues $ 436,813 $ 105,984 $ 202,219 $ 96,218 $ 285,572 $ 1,126,806 Reconciliation of Revenue Other Businesses and Corporate Office Revenues (1) 89,591 Intersegment Elimination (625) Total Consolidated Revenues $ 1,215,772 Less: Significant Expenses (2) Cost of Revenue (3) 159,017 121,952 65,368 241,639 587,976 Payroll and Fringe Benefits Expense (4) 120,627 26,818 19,627 167,072 Occupancy Expense 29,024 1,857 30,881 Advertising and Marketing Expense 21,191 21,191 Networking and Programming Expense 31,207 31,207 Management Services (5) 2,059 2,059 Other Segment Items (6) 47,245 14,502 51,337 17,545 9,363 139,992 EBITDAP $ 59,709 $ 33,457 $ 28,930 $ 13,305 $ 11,027 $ 146,428 Pension Service Cost 4,413 1,532 1,993 654 21 8,613 Depreciation Expense 7,412 2,625 1,723 2,654 1,708 16,122 Income from Operations before Amortization of Intangible Assets $ 47,884 $ 29,300 $ 25,214 $ 9,997 $ 9,298 $ 121,693 Other Businesses (7) (25,666) Corporate Costs (16,035) Amortization of Intangible Assets (7,241) Income from Operations $ 72,751 Equity in Earnings of Affiliates, Net 3,114 Interest Expense, Net (15,845) Non-Operating Pension and Postretirement Benefit Income, Net 28,602 Loss on Marketable Equity Securities, Net (11,543) Other Expense, Net (16,456) Income Before Income Taxes $ 60,623 Capital Expenditures $ 5,376 $ 1,284 $ 4,449 $ 2,686 $ 1,492 $ 15,287 Reconciliation of Capital Expenditures Other Businesses and Corporate Office Capital Expenditures (8) 4,533 Total Capital Expenditures $ 19,820 (1) Revenue from segments below the quantitative thresholds is attributable to Other Businesses and the Corporate Office, as described above. None of these operating segments meet the quantitative thresholds for determining reportable segments. (2) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. (3) Cost of revenue reflects the amounts reported and provided to the CODM and does not necessarily reconcile to the Company's Consolidated Statement of Operations or align across reportable segments. Cost of revenue excludes charges related to depreciation, which is shown separately above. (4) Excludes pension service cost, which is shown separately above. Excludes any payroll and related benefits costs captured in cost of revenue. (5) Management and operating services provided by Christopher J. Ourisman and his team of industry professionals. (6) Other segment items for each reportable segment include: (a) Education (includes Kaplan International, Kaplan Higher Education and Kaplan Supplemental Education) - training and employment expense, travel meals and entertainment expense, operating fees and other G&A expenses. (b) Television Broadcasting - other broadcast expenses, facilities expenses, third-party commission costs and other SG&A expenses. (c) Healthcare - indirect costs (e.g. payroll and benefits expenses, G&A expenses) and other SG&A expenses. (d) Manufacturing - payroll and fringe benefits expense (SG&A) and other SG&A expenses. (e) Automotive - advertising and marketing expense and other G&A expenses. (7) Profit or loss from operating segments below the quantitative thresholds attributable to Other Businesses as described above. These operating segments did not meet any of the quantitative thresholds for determining reportable segments. (8) Capital Expenditures from operating segments below the quantitative thresholds are attributable to Other Businesses and the Corporate Office, as described above. None of these operating segments meet the quantitative thresholds for determining reportable segments. 25 The Company’s education division segment information is as follows: Three Months Ended June 30, 2025 (in thousands) Kaplan International Higher Education Supplemental Education Kaplan Corporate and Other Intersegment Elimination Total Education Operating Revenues $ 272,171 $ 84,738 $ 80,161 $ 23 $ (280) $ 436,813 Less: Significant Expenses (1) Cost of Revenue (2) 89,421 56,721 13,117 (242) 159,017 Payroll and Fringe Benefits Expense (3) 76,656 5,242 33,345 5,406 (22) 120,627 Occupancy Expense 27,540 184 1,228 72 29,024 Advertising and Marketing Expense 8,758 2,131 10,180 122 21,191 Other Segment Items (4) 33,320 216 12,282 1,428 (1) 47,245 EBITDAP $ 36,476 $ 20,244 $ 10,009 $ (7,005) $ (15) $ 59,709 Pension Service Cost 146 1,889 1,972 406 4,413 Depreciation Expense 6,393 383 631 5 7,412 Income (Loss) from Operations before Amortization of Intangible Assets $ 29,937 $ 17,972 $ 7,406 $ (7,416) $ (15) $ 47,884 Capital Expenditures $ 3,713 $ 492 $ 1,164 $ 7 $ 5,376 (1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. (2) Cost of revenue reflects the amounts reported and provided to the CODM and does not necessarily reconcile to the Company's Consolidated Statement of Operations or align across reportable segments. Cost of revenue excludes charges related to depreciation, which is shown separately above. (3) Excludes pension service cost, which is shown separately above. Excludes any payroll and related benefits costs captured in cost of revenue. (4) Other segment items for each reportable segment include: (a) Kaplan international - travel meals and entertainment expense, training and employment expense, operating fees and other G&A expenses. (b) Higher education - training and employment expense, operating fees and other G&A expenses. (c) Supplemental education - training and employment expense, operating fees and other G&A expenses. The Company’s healthcare division segment information is as follows: Three Months Ended June 30, 2025 (in thousands) CSI Other Healthcare Total Healthcare Operating Revenues $ 113,415 $ 88,804 $ 202,219 Less: Significant Expenses (1) Cost of Revenue (2) 82,047 39,905 121,952 Other Segment Items (3) 17,154 34,183 51,337 EBITDAP $ 14,214 $ 14,716 $ 28,930 Pension Service Cost — 1,993 1,993 Depreciation Expense 183 1,540 1,723 Income from Operations before Amortization of Intangible Assets $ 14,031 $ 11,183 $ 25,214 Capital Expenditures $ 238 $ 4,211 $ 4,449 (1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. (2) Cost of revenue reflects the amounts reported and provided to the CODM and does not necessarily reconcile to the Company's Consolidated Statement of Operations. Cost of revenue excludes charges related to depreciation, which is shown separately. (3) Other segment items for CSI include indirect costs (e.g. payroll and benefits expenses, G&A expenses) and other SG&A expenses. 26 The Company’s segment information is as follows: Six Months Ended June 30, 2026 (in thousands) Education Television Broadcasting Healthcare Manufacturing Automotive Total Segments Operating Revenues $ 858,287 $ 221,183 $ 456,991 $ 258,314 $ 568,976 $ 2,363,751 Reconciliation of Revenue Other Businesses and Corporate Office Revenues (1) 176,161 Intersegment Elimination (1,414) Total Consolidated Revenues $ 2,538,498 Less: Significant Expenses (2) Cost of Revenue (3) 326,674 296,432 186,321 481,699 1,291,126 Payroll and Fringe Benefits Expense (4) 231,427 55,030 41,078 327,535 Occupancy Expense 52,874 4,041 56,915 Advertising and Marketing Expense 38,998 38,998 Networking and Programming Expense 59,969 59,969 Management Services (5) 4,617 4,617 Other Segment Items (6) 85,246 31,250 110,981 40,749 20,308 288,534 EBITDAP $ 123,068 $ 74,934 $ 49,578 $ 31,244 $ 17,233 $ 296,057 Pension Service Cost 9,111 3,107 3,529 2,485 68 18,300 Depreciation Expense 11,713 4,681 3,827 6,172 3,782 30,175 Income from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Asset Group Held for Sale $ 102,244 $ 67,146 $ 42,222 $ 22,587 $ 13,383 $ 247,582 Other Businesses (7) (40,250) Corporate Costs (34,803) Amortization of Intangible Assets (12,033) Impairment of Goodwill and Asset Group Held for Sale (19,029) Income from Operations $ 141,467 Equity in Earnings of Affiliates, Net 14,987 Interest Expense, Net (29,046) Non-Operating Pension and Postretirement Benefit Income, Net 200,722 Gain on Marketable Equity Securities, Net 32,956 Other Expense, Net (2,959) Income Before Income Taxes $ 358,127 Capital Expenditures $ 8,453 $ 4,694 $ 5,733 $ 4,079 $ 6,799 $ 29,758 Reconciliation of Capital Expenditures Other Businesses and Corporate Office Capital Expenditures (8) 10,861 Total Capital Expenditures $ 40,619 (1) Revenue from segments below the quantitative thresholds is attributable to Other Businesses and the Corporate Office, as described above. None of these operating segments meet the quantitative thresholds for determining reportable segments. (2) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. (3) Cost of revenue reflects the amounts reported and provided to the CODM and does not necessarily reconcile to the Company's Consolidated Statement of Operations or align across reportable segments. Cost of revenue excludes charges related to depreciation, which is shown separately above. (4) Excludes pension service cost, which is shown separately above. Excludes any payroll and related benefits costs captured in cost of revenue. (5) Management and operating services provided by Christopher J. Ourisman and his team of industry professionals. (6) Other segment items for each reportable segment include: (a) Education (includes Kaplan International, Kaplan Higher Education and Kaplan Supplemental Education) - training and employment expense, travel meals and entertainment expense, operating fees and other G&A expenses. (b) Television Broadcasting - other broadcast expenses, facilities expenses, third-party commission costs and other SG&A expenses. (c) Healthcare - indirect costs (e.g. payroll and benefits expenses, G&A expenses) and other SG&A expenses. (d) Manufacturing - payroll and fringe benefits expense (SG&A) and other SG&A expenses. (e) Automotive - advertising and marketing expense and other G&A expenses. (7) Profit or loss from operating segments below the quantitative thresholds attributable to Other Businesses as described above. These operating segments did not meet any of the quantitative thresholds for determining reportable segments. (8) Capital Expenditures from operating segments below the quantitative thresholds are attributable to Other Businesses and the Corporate Office, as described above. None of these operating segments meet the quantitative thresholds for determining reportable segments. 27 The Company’s education division segment information is as follows: Six Months Ended June 30, 2026 (in thousands) Kaplan International Higher Education Supplemental Education Kaplan Corporate and Other Intersegment Elimination Total Education Operating Revenues $ 524,011 $ 178,696 $ 156,340 $ 555 $ (1,315) $ 858,287 Less: Significant Expenses (1) Cost of Revenue (2) 175,093 127,401 24,742 (562) 326,674 Payroll and Fringe Benefits Expense (3) 148,481 7,767 65,733 9,603 (157) 231,427 Occupancy Expense 50,714 317 1,642 737 (536) 52,874 Advertising and Marketing Expense 15,519 3,839 19,419 221 38,998 Other Segment Items (4) 60,199 516 23,426 1,155 (50) 85,246 EBITDAP $ 74,005 $ 38,856 $ 21,378 $ (11,161) $ (10) $ 123,068 Pension Service Cost 176 3,952 4,046 937 9,111 Depreciation Expense 9,579 567 1,548 19 11,713 Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-lived Assets $ 64,250 $ 34,337 $ 15,784 $ (12,117) $ (10) $ 102,244 Capital Expenditures $ 6,240 $ 1,416 $ 792 $ 5 $ 8,453 (1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. (2) Cost of revenue reflects the amounts reported and provided to the CODM and does not necessarily reconcile to the Company's Consolidated Statement of Operations or align across reportable segments. Cost of revenue excludes charges related to depreciation, which is shown separately above. (3) Excludes pension service cost, which is shown separately above. Excludes any payroll and related benefits costs captured in cost of revenue. (4) Other segment items for each reportable segment include: (a) Kaplan international - travel meals and entertainment expense, training and employment expense, operating fees and other G&A expenses. (b) Higher education - training and employment expense, operating fees and other G&A expenses. (c) Supplemental education - training and employment expense, operating fees and other G&A expenses. The Company’s healthcare division segment information is as follows: Six Months Ended June 30, 2026 (in thousands) CSI Other Healthcare Total Healthcare Operating Revenues $ 266,304 $ 190,687 $ 456,991 Less: Significant Expenses (1) Cost of Revenue (2) 206,184 90,248 296,432 Other Segment Items (3) 40,675 70,306 110,981 EBITDAP $ 19,445 $ 30,133 $ 49,578 Pension Service Cost — 3,529 3,529 Depreciation Expense 594 3,233 3,827 Income from Operations before Amortization of Intangible Assets $ 18,851 $ 23,371 $ 42,222 Capital Expenditures $ 2,787 $ 2,946 $ 5,733 (1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. (2) Cost of revenue reflects the amounts reported and provided to the CODM and does not necessarily reconcile to the Company's Consolidated Statement of Operations. Cost of revenue excludes charges related to depreciation, which is shown separately. (3) Other segment items for CSI include indirect costs (e.g. payroll and benefits expenses, G&A expenses) and other SG&A expenses. 28 The Company’s segment information is as follows: Six Months Ended June 30, 2025 (in thousands) Education Television Broadcasting Healthcare Manufacturing Automotive Total Segments Operating Revenues $ 861,544 $ 209,538 $ 375,960 $ 194,223 $ 566,563 $ 2,207,828 Reconciliation of Revenue Other Businesses and Corporate Office Revenues (1) 175,108 Intersegment Elimination (1,249) Total Consolidated Revenues $ 2,381,687 Less: Significant Expenses (2) Cost of Revenue (3) 325,104 222,067 135,105 481,946 1,164,222 Payroll and Fringe Benefits Expense (4) 233,947 54,582 39,056 327,585 Occupancy Expense 56,946 3,728 60,674 Advertising and Marketing Expense 40,411 40,411 Networking and Programming Expense 62,564 62,564 Management Services (5) 4,111 4,111 Other Segment Items (6) 91,288 29,130 101,743 34,123 18,442 274,726 EBITDAP $ 113,848 $ 63,262 $ 52,150 $ 24,995 $ 19,280 $ 273,535 Pension Service Cost 8,636 2,951 4,992 1,730 48 18,357 Depreciation Expense 15,176 5,253 3,509 5,357 3,437 32,732 Income from Operations before Amortization of Intangible Assets $ 90,036 $ 55,058 $ 43,649 $ 17,908 $ 15,795 $ 222,446 Other Businesses (7) (55,113) Corporate Costs (32,044) Amortization of Intangible Assets (15,065) Income from Operations $ 120,224 Equity in Losses of Affiliates, Net (5,314) Interest Expense, Net (95,622) Non-Operating Pension and Postretirement Benefit Income, Net 63,219 Gain on Marketable Equity Securities, Net 32,258 Other Expense, Net (20,521) Income Before Income Taxes $ 94,244 Capital Expenditures $ 10,117 $ 1,482 $ 5,066 $ 6,059 $ 1,972 $ 24,696 Reconciliation of Capital Expenditures Other Businesses and Corporate Office Capital Expenditures (8) 9,227 Total Capital Expenditures $ 33,923 (1) Revenue from segments below the quantitative thresholds is attributable to Other Businesses and the Corporate Office, as described above. None of these operating segments meet the quantitative thresholds for determining reportable segments. (2) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. (3) Cost of revenue reflects the amounts reported and provided to the CODM and does not necessarily reconcile to the Company's Consolidated Statement of Operations or align across reportable segments. Cost of revenue excludes charges related to depreciation, which is shown separately above. (4) Excludes pension service cost, which is shown separately above. Excludes any payroll and related benefits costs captured in cost of revenue. (5) Management and operating services provided by Christopher J. Ourisman and his team of industry professionals. (6) Other segment items for each reportable segment include: (a) Education (includes Kaplan International, Kaplan Higher Education and Kaplan Supplemental Education) - training and employment expense, travel meals and entertainment expense, operating fees and other G&A expenses. (b) Television Broadcasting - other broadcast expenses, facilities expenses, third-party commission costs and other SG&A expenses. (c) Healthcare - indirect costs (e.g. payroll and benefits expenses, G&A expenses) and other SG&A expenses. (d) Manufacturing - payroll and fringe benefits expense (SG&A) and other SG&A expenses. (e) Automotive - advertising and marketing expense and other G&A expenses. (7) Profit or loss from operating segments below the quantitative thresholds attributable to Other Businesses as described above. These operating segments did not meet any of the quantitative thresholds for determining reportable segments. (8) Capital Expenditures from operating segments below the quantitative thresholds are attributable to Other Businesses and the Corporate Office, as described above. None of these operating segments meet the quantitative thresholds for determining reportable segments. 29 The Company’s education division segment information is as follows: Six Months Ended June 30, 2025 (in thousands) Kaplan International Higher Education Supplemental Education Kaplan Corporate and Other Intersegment Elimination Total Education Operating Revenues $ 533,427 $ 173,225 $ 155,564 $ 35 $ (707) $ 861,544 Less: Significant Expenses (1) Cost of Revenue (2) 177,518 123,383 24,872 (669) 325,104 Payroll and Fringe Benefits Expense (3) 147,322 9,719 66,512 10,416 (22) 233,947 Occupancy Expense 54,565 360 1,886 135 56,946 Advertising and Marketing Expense 16,943 4,008 19,210 250 40,411 Other Segment Items (4) 63,852 440 24,467 2,493 36 91,288 EBITDAP $ 73,227 $ 35,315 $ 18,617 $ (13,259) $ (52) $ 113,848 Pension Service Cost 286 3,697 3,859 794 8,636 Depreciation Expense 12,942 839 1,384 11 15,176 Income (Loss) from Operations before Amortization of Intangible Assets $ 59,999 $ 30,779 $ 13,374 $ (14,064) $ (52) $ 90,036 Capital Expenditures $ 6,500 $ 665 $ 2,945 $ 7 $ 10,117 (1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. (2) Cost of revenue reflects the amounts reported and provided to the CODM and does not necessarily reconcile to the Company's Consolidated Statement of Operations or align across reportable segments. Cost of revenue excludes charges related to depreciation, which is shown separately above. (3) Excludes pension service cost, which is shown separately above. Excludes any payroll and related benefits costs captured in cost of revenue. (4) Other segment items for each reportable segment include: (a) Kaplan international - travel meals and entertainment expense, training and employment expense, operating fees and other G&A expenses. (b) Higher education - training and employment expense, operating fees and other G&A expenses. (c) Supplemental education - training and employment expense, operating fees and other G&A expenses. The Company’s healthcare division segment information is as follows: Six Months Ended June 30, 2025 (in thousands) CSI Other Healthcare Total Healthcare Operating Revenues $ 203,663 $ 172,297 $ 375,960 Less: Significant Expenses (1) Cost of Revenue (2) 146,021 76,046 222,067 Other Segment Items (3) 33,576 68,167 101,743 EBITDAP $ 24,066 $ 28,084 $ 52,150 Pension Service Cost — 4,992 4,992 Depreciation Expense 359 3,150 3,509 Income from Operations before Amortization of Intangible Assets $ 23,707 $ 19,942 $ 43,649 Capital Expenditures $ 536 $ 4,530 $ 5,066 (1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. (2) Cost of revenue reflects the amounts reported and provided to the CODM and does not necessarily reconcile to the Company's Consolidated Statement of Operations. Cost of revenue excludes charges related to depreciation, which is shown separately. (3) Other segment items for CSI include indirect costs (e.g. payroll and benefits expenses, G&A expenses) and other SG&A expenses. 30 Asset information for the Company’s business segments is as follows: As of (in thousands) June 30, 2026 December 31, 2025 Identifiable Assets Kaplan international $ 1,312,886 $ 1,551,682 Higher education 115,230 174,738 Supplemental education 231,555 247,181 Kaplan corporate and other 28,364 34,973 Education 1,688,035 2,008,574 Television broadcasting 381,276 393,097 CSI 201,786 128,170 Other healthcare 194,926 227,457 Healthcare 396,712 355,627 Manufacturing 553,100 535,006 Automotive 587,305 582,715 Total Segments 3,606,428 3,875,019 Other businesses 366,190 357,408 Corporate office 153,296 79,389 Investments in Marketable Equity Securities 1,083,092 1,081,938 Investments in Affiliates 208,550 229,565 Prepaid Pension Cost 2,723,553 2,772,394 Total Assets $ 8,141,109 $ 8,395,713 31