Company: GHC
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000104889-25-000062
Chunk: 24

Company: Graham Holdings Co
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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lical nature of services, partially offset by increases in the Supplemental Education division. During the six months ended June 30, 2025, the Company recognized $300.9 million related to the Company’s deferred revenue balance as of December 31, 2024, including $45.0 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, 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 $6.1 million. Kaplan Supplemental Education expects to recognize 72% 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 $36,363 $(52,173)$2,682 $28,993 The majority of other activity was related to currency translation adjustments for the six months ended June 30, 2025.

10.    EARNINGS (LOSS) 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.

16

The following reflects the Company’s net income (loss) and share data used in the basic and diluted earnings (loss) per share computations using the two-class method:Three Months Ended  June 30Six Months Ended  June 30(in thousands, except per share amounts)2025202420252024Numerator:Numerator for basic earnings (loss) per share:        Net income (loss) attributable to Graham Holdings Company common stockholders$36,749 $(21,040)$60,643 $103,340 Less: Dividends paid-common