Company: GHC
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001628280-25-046925
Chunk: 106

Company: Graham Holdings Co
Filing Date: 2025-10-29
Form: 10-Q
Item: Part I, Item 8
Chunk 106
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 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 greater than twelve months at Kaplan Supplemental Education was $6.8 million. Kaplan Supplemental Education expects to recognize 65% of this revenue over the next twelve months and the remainder thereafter. 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 PeriodCosts associated with new contractsLess: Costs amortized during the periodOtherBalance at End of Period2025$42,121 $84,293 $(72,775)$2,113 $55,752 The majority of other activity was related to currency translation adjustments for the nine months ended September 30, 2025.

10.    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 

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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