Company: GHC
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001628280-25-046925
Chunk: 27

Company: Graham Holdings Co
Filing Date: 2025-10-29
Form: 10-Q
Item: Part I, Item 1
Chunk 27
---
 services and goods transferred to the customer, and the remaining 49% and 47% at a point in time, when the customer obtained control of the promised goods. For the three and nine months ended September 30, 2024, the Company recognized 54% of its revenue over time, and the remaining 46% at a point in time.Contract Assets.  As of September 30, 2025, the Company recognized a contract asset of $31.2 million related to a contract at a Kaplan International business, which is included in Deferred Charges and Other Assets. The Company expects to recognize an additional $244.4 million related to the remaining performance obligation in the contract over the next four years. As of December 31, 2024, the contract asset was $36.6 million, of which $1.9 million was included in Other current assets and $34.7 million was included in Deferred Charges and Other Assets. Additional contract assets of $3.0 million and $3.1 million are included in Other current assets on the Company’s Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024, 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 September 30, 2025 and December 31, 2024, 18% and 19%, 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 ofSeptember 30,2025December 31,2024%(in thousands)ChangeDeferred revenue$432,335 $397,435 9The majority of the change in the deferred revenue balance is related to increases within the Kaplan International and Supplemental Education divisions due to the cyclical nature of services. During the nine months ended September 30, 2025, the Company recognized $329.8 million related to the Company’s deferred revenue balance as of December 31, 2024, including $49.3 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 September 30, 2025, the deferred revenue balance related to certain medical and nursing qualifications with an original contract length