Graham Holdings Company (GHC): Business Model Canvas [Dec-2025 Updated]

You're looking for the real blueprint behind Graham Holdings Company (GHC), and after two decades analyzing complex structures, I can tell you this one is a true hybrid: part education powerhouse via Kaplan, part essential healthcare provider, and part local media operator. It's a company that, by Q3 2025, was pulling in $208.4 million from healthcare services while actively managing legacy risks, like that big pension liability transfer back in 2024. To truly value GHC, you need to see the mechanics-how they allocate capital across everything from FCC licenses to specialized pharmacy infusion networks-so dive in below to see the full Business Model Canvas we've mapped out for you.

Graham Holdings Company (GHC) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep Graham Holdings Company (GHC) running smoothly across its diverse segments. These aren't just casual connections; they are deep, financially significant arrangements that underpin revenue and manage major liabilities.

Purdue University Global for Kaplan North America's Online Education Services

The arrangement with Purdue University Global, which absorbed the former Kaplan University assets, is structured as a long-term service agreement where Kaplan, Inc. provides essential non-academic support. This partnership is directly tied to Purdue University Global's financial success. Kaplan receives a fee equal to 12.5% of Purdue University Global's revenue, which is set to increase to 13% beginning with the fiscal year ending June 30, 2023, and continuing through the fiscal year ending June 30, 2027. To kickstart the new entity, Kaplan previously advanced $20 million, representing priority payments for fiscal years ending June 30, 2019, and June 30, 2020.

Institutional Investors

A significant portion of Graham Holdings Company is held by institutions, which signals a level of established credibility in the investment community. As of early 2025, institutions held a 58% stake in Graham Holdings Company (NYSE:GHC). You should keep an eye on the largest holders, as their decisions carry weight.

It's worth noting that while Mackenzie Financial Corp. was mentioned in your outline, the latest data shows other major players like Prudential Financial actively adjusting their positions.

Local and National Advertisers for Graham Media Group's Television Stations

The media segment relies heavily on advertising revenue, which can be cyclical, as seen with political ad spending. For the fourth quarter of 2024, Graham Media Group saw revenue climb 30% to $161.7 million, largely due to a $49.7 million increase in political advertising revenue and digital ad revenue. For the full year of 2024, Graham Holdings Company's total revenue climbed to $535.68 million. However, Q3 2025 results indicated that revenue and operating income were down on tough comparisons.

• Graham Media Group owns seven local television stations in top-70 markets.
• Digital operations include Graham Digital and Omne, which focus on data-driven marketing solutions.
• The segment relies on local initiatives and public service projects to serve communities.

MassMutual for a Pension Liability Transfer in 2024

Graham Holdings Company actively managed its defined benefit obligation risk in 2024. In the fourth quarter of 2024, the Company purchased an irrevocable group annuity contract from an insurance company to settle a defined benefit obligation of $457.9 million for a cost of $461.3 million. This transaction relieved GHC of all responsibility for those specific pension obligations. The accounting impact was significant: the Company recorded a one-time, pre-tax, noncash settlement gain of $653.4 million in Q4 2024. This action contributed to the Company reporting a total pension surplus of $2,510.5 million as of December 31, 2024.

Healthcare Providers and Medicare/Medicaid for Reimbursement of Home Health Services

The Graham Healthcare Group (GHG) is a key partner for health systems, delivering care transitions and post-acute services. This segment showed strong growth in Q2 2025, with revenue accelerating 37% year-over-year to $202.2 million, and operating income jumping 97% to $25.1 million. The reimbursement environment from Medicare/Medicaid remains a critical external factor. For Calendar Year 2025, CMS estimates that aggregate Medicare payments to Home Health Agencies (HHAs) would decrease by 1.7%, or $280 million. The national base rate was projected to decrease from $2,038.13 in CY 2024 to $2,008.12 in CY 2025, if finalized as proposed.

Finance: draft 13-week cash view by Friday.

Graham Holdings Company (GHC) - Canvas Business Model: Key Activities

You're looking at the core engine room of Graham Holdings Company (GHC) as of late 2025. The key activities here aren't just about running the businesses; they're about the constant, active management of a complex, multi-industry portfolio. It's a balancing act between nurturing high-growth areas and managing legacy assets.

Managing a diversified portfolio of operating companies and capital allocation is the top-level activity. This means deciding where capital goes and how much risk to take across education, media, healthcare, and manufacturing. For the first nine months of 2025, GHC posted total revenues of $3,660.5 million, with operating income reaching $187.4 million. This portfolio management is supported by a strong liquidity position; as of September 30, 2025, GHC held $1,242.9 million in cash, marketable equity securities, and other investments against $731.9 million in borrowings outstanding at an average interest rate of 5.9%. Capital allocation also involves returning capital to shareholders, evidenced by the $3.5 million spent on share repurchases in the first half of 2025.

Here's a quick look at the capital structure as of the end of the third quarter:

The second major activity is delivering online and in-person education services globally via Kaplan. This division is definitely the growth engine you want to see performing. In the second quarter of 2025, the education segment's operating income jumped 31% year-over-year to $46.2 million. This growth is broad-based, showing that the focus on digital and supplemental learning is paying off. You can see the specific momentum in the subsegments for Q2 2025:

• Supplemental education climbed 10% in revenue.
• Higher education revenue increased by 5%.
• Kaplan International revenue saw a 2% increase.

Honestly, this division is carrying a lot of the weight when other areas struggle.

Next up is operating and monetizing local television broadcasting in six US markets. This is the legacy media piece, and it's facing headwinds, which is typical in this environment. For the second quarter of 2025, television broadcasting revenue dropped 8% year-over-year, and its operating income saw a decline of 10.3% compared to the prior year's second quarter. The softness in advertising demand definitely shows up here.

A critical, more recent activity is executing strategic M&A, like Hoover's July 2025 acquisition of Arconic Architectural Products. This move by the Hoover Treated Wood Products subsidiary is about portfolio diversification, moving into exterior aluminum cladding. The deal, closed on July 15, 2025, was partially funded by GHC's assumption of approximately $105 million in net pension obligations related to the acquired business. This is a clear action to expand product offerings beyond their core treated wood business.

Finally, providing specialized home healthcare and pharmacy infusion services through Graham Healthcare Group (GHG) is another high-growth area, though it's navigating management transitions. In Q2 2025, this segment accelerated significantly: revenue was up 37% year-over-year to $202.2 million, and operating income nearly doubled, surging 97% to $25.1 million. This performance reflects continued demand for home health services, supported by Medicare reimbursement. It's worth noting that a major capital event for this segment-the $205 million settlement of a mandatorily redeemable noncontrolling interest-was finalized earlier in the year, on February 25, 2025, resolving a long-standing valuation issue.

Finance: draft 13-week cash view by Friday.

Graham Holdings Company (GHC) - Canvas Business Model: Key Resources

You're looking at the core assets Graham Holdings Company (GHC) relies on to execute its diversified strategy. These aren't just line items; they are the engines of the business, from education dominance to broadcast reach.

Kaplan's Global Brand and Intellectual Property in Test Preparation

The intellectual property underpinning Kaplan is a massive resource, especially given its global footprint. Kaplan's global presence spans over 30 countries, which is a key differentiator in the education services space. This brand equity allows GHC to command a substantial market share in specialized educational services, particularly in language instruction and test preparation.

Financial Assets

Liquidity and investment capacity are significant resources for Graham Holdings Company, providing flexibility for capital allocation, including share repurchases and acquisitions. As of the third quarter of 2025, the balance sheet capacity was quite strong.

The company also had $67.2 million outstanding on its $300 million revolving credit facility at that time. Honestly, that cash pile gives management a lot of dry powder.

Broadcast Infrastructure and Licenses

The licenses and physical infrastructure supporting the Television Broadcasting segment represent a regulated, hard-to-replicate asset base. Graham Media Group operates its media assets based on these critical FCC licenses.

• Number of US television stations operated: six.
• The segment's operations include local television stations across key U.S. markets.

Healthcare Service Network

Graham Healthcare Group (GHG), a subsidiary, is a nationally recognized leader in home health, palliative, and hospice services. This network is built on established local operations and joint ventures that provide a continuum of care.

Here's the quick math on the scale of the healthcare operations as of late 2025:

• GHG and its companies employ more than 3,000 dedicated professionals.
• The network serves approximately 19,000 patients daily.
• The service centers include wholly owned subsidiaries like Residential Home Health and Residential Hospice.

What this estimate hides is the geographic spread, which includes operations in Florida, Illinois, Kansas, Michigan, Missouri, Ohio, and Pennsylvania.

Controlling Ownership Structure

The structure of ownership ensures long-term focus, a core belief of the company. The Graham family maintains a significant degree of control over the direction of Graham Holdings Company through its equity holdings.

The Graham family's control via supervoting shares translates to approximately 25% of the total voting power. This structure means that while institutional investors own a large portion of the equity, the family retains outsized influence on governance matters, like the election of directors.

Graham Holdings Company (GHC) - Canvas Business Model: Value Propositions

For Graham Holdings Company (GHC), the value propositions are deeply tied to the performance and strategic focus of its diverse segments, with Education and Healthcare acting as primary growth engines as of late 2025.

Education: Career advancement and academic success through flexible, high-quality training.

The education segment, led by Kaplan, delivered dependable revenue growth and significant profitability improvements. For the second quarter of 2025, Education revenue rose 3% year-over-year, while operating income jumped 31% year-over-year. For the first quarter of 2025, this division generated revenue of $424.7 million and an operating income of $40.0 million. The third quarter of 2025 saw the education segment's operating income increase by 41% compared to the prior year period.

The value proposition is realized through performance across its subsegments:

• Kaplan International generated a 2% revenue increase in Q2 2025.
• Higher Education revenue was up 5% in Q2 2025.
• Supplemental Education climbed 10% in Q2 2025.

Healthcare: Critical, life-enhancing treatments delivered conveniently in the home setting.

Graham Healthcare Group is a star performer, benefiting from continued demand for home health services supported by Medicare reimbursement. In the second quarter of 2025, healthcare revenue grew 37% year-over-year, and operating income nearly doubled, increasing 97% to $25.1 million. For the first quarter of 2025, the segment's revenue was $173.7 million, with operating income reaching $18.3 million. The segment's strength is partly attributed to the acquisition of CSI Pharmacy Holding Company.

Broadcasting: Local news, community engagement, and targeted advertising reach.

The television broadcasting segment faces structural headwinds, including declining ad revenue and cord-cutting pressures. For the second quarter of 2025, revenue was down 8% year-over-year, and operating income saw a 10.3% decline. The third quarter of 2025 also saw both revenue and operating income decline on tough year-over-year comparisons.

Manufacturing: Specialty treated wood and aluminum architectural products for construction.

This segment showed an interesting dynamic in Q2 2025, with revenue dropping 7% year-over-year to $96.2 million, yet operating income rose 77% year-over-year to $7.5 million, achieving a margin of 7.8%. A key event was the acquisition of Arconic Architectural Products, which involved assuming approximately $105 million in pension liabilities.

Automotive: Full-service new and used vehicle sales and maintenance via dealerships.

The automotive segment continues to face pressure from weak unit sales and margin compression. For the second quarter of 2025, revenue declined 8% (GAAP), with a corresponding 9% decline in operating income.

The relative performance of these segments in Q2 2025 highlights where Graham Holdings Company (GHC) is delivering its strongest value:

Graham Holdings Company (GHC) - Canvas Business Model: Customer Relationships

You're looking at how Graham Holdings Company (GHC) manages its diverse customer base across healthcare, education, and automotive. The relationship strategy is segmented, reflecting the very different needs of a hospice patient versus an online test-taker.

High-touch, local service model for home health and hospice patients

For Graham Healthcare Group (GHG), the relationship is intensely personal, requiring high-touch, local coordination. GHG and its companies employ more than 3,000 dedicated professionals. These teams serve approximately 19,000 patients daily across skilled home health, palliative, and hospice care in states like Florida, Illinois, Kansas, Michigan, Missouri, Ohio, and Pennsylvania. This local focus seems to resonate with employees, as Residential Home Health and Hospice received Top Workplaces honors for 2025 by the Chicago Tribune and secured the Detroit Free Press Top Workplaces Award for the 15th year in a row. That kind of consistency suggests a strong internal culture supporting external patient relationships. The healthcare segment's Q3 2025 revenue accelerated by 34% year-over-year to $208.4 million, showing growth in service delivery.

Automated, self-service digital platforms for Kaplan's online students

Kaplan's relationship with its online students leans heavily on digital self-service, backed by quality assurance. For its Digital Pathways students, survey results from Spring intake in 2025 showed that 100% reported feeling happy with their overall experience. Furthermore, 98% of these online learners felt prepared for their university studies. Kaplan supports this digital interaction by offering preparation for more than 100 standardized tests. This segment's strong performance is clear: Q3 2025 operating income for Education was up 41% year-over-year to $49.1M. The digital experience is defintely a key driver here.

Dedicated sales teams for B2B relationships with university and corporate clients

The B2B side of Kaplan relies on dedicated relationship management with institutions. Kaplan Pathways has forged relationships with more than 25 university partners worldwide. This partnership approach helped recruit over 10,000 students in 2024 alone. Kaplan also focuses on corporate relationships, having been named a winner in Inc.'s third annual Power Partner Awards for helping businesses grow. These institutional relationships are critical to the Education segment's financial health.

Traditional, in-person sales and service at auto dealerships

The automotive group maintains a traditional, in-person sales and service relationship model across its dealerships. However, this segment faced headwinds in the third quarter of 2025. Revenue for the Automotive segment was down 1% year-over-year to $285.2 million, and operating income saw a significant drop of 30% to $6.3 million. This was compounded by the company ceasing operations at Ourisman Jeep of Bethesda in early September 2025, directly impacting the physical footprint of customer interaction.

Here's how the customer-facing segments performed financially in Q3 2025, which reflects the success or strain on those relationship models:

The overall customer-facing health of the company is reflected in the consolidated Q3 2025 results:

• Consolidated Revenue: $1,278.9 million.
• Consolidated Operating Income: $67.1 million.
• Net Income Attributable to Common Shares: $122.9 million.
• Adjusted Operating Cash Flow (non-GAAP): $110.1 million.

Graham Holdings Company (GHC) - Canvas Business Model: Channels

You're looking at how Graham Holdings Company (GHC) gets its value propositions to its customers across its diverse segments as of late 2025. It's a mix of digital reach, physical locations, and direct professional networks.

Kaplan's proprietary online learning platforms and international centers.

Kaplan's primary channel for education delivery is heavily digital, using proprietary online learning platforms alongside a physical international footprint. As of October 2025, Kaplan serves about 1.3 million students and professionals and maintains relationships with 2,700 schools, school districts, colleges, and universities worldwide. The company operates in 27 countries/regions. For its international reach, Kaplan International Languages has about 40 schools across the globe, facilitating university pathway programs. In a specific channel success story, Kaplan's All Access License provided free test preparation courses to over 200,000 students in Illinois' public universities and community colleges. For the third quarter of fiscal year 2025, Kaplan delivered revenue of $472.6 million, representing an 8% year-over-year increase. Operating cash flow conversion for that quarter was approximately 13% of revenue, totaling $61.8 million.

• Proprietary online platforms for test prep (SAT, ACT, GRE, GMAT, LSAT, MCAT) and professional certification.
• Immersive online language training in English, French, and German.
• Physical international centers for Kaplan International Languages and Kaplan International Pathways.
• Direct B2B channel via partnerships with 15,000 corporate clients.

Local broadcast airwaves and digital streaming for Graham Media Group.

Graham Media Group uses a multi-platform approach to reach local audiences, extending well beyond traditional over-the-air signals. The group operates seven television broadcast stations across markets including Houston, Detroit, Orlando, San Antonio, Jacksonville, and Roanoke. The channel strategy is deeply integrated with digital, managed by Graham Digital, which focuses on local markets across the Graham Media footprint. The group also uses its subsidiary, Social News Desk, which supports over 2,500+ newsrooms globally, as a channel to monetize social reach through creative sponsorship opportunities. In February 2025, Graham Media Group renewed its Nielsen measurement agreement to cover Local TV and Over The Top (OTT) streaming impressions across its six core markets.

Physical auto dealership locations and associated websites.

The Automotive segment relies on physical, localized points of sale, supported by associated digital presences. Graham Holdings Company owns a total of seven dealerships, all managed by the Ourisman Automotive Group team. These physical locations serve as the primary channel for vehicle sales and service. The company also uses Roda to provide valet service to and from a network of dealership service centers in the Washington, D.C. area. The segment experienced revenue declines in the first quarter of 2025.

The digital channel for this segment is the associated websites for each dealership, which support inventory browsing and service scheduling.

In-home service delivery networks for Graham Healthcare Group.

Graham Healthcare Group (GHG) utilizes an in-home service delivery network channel, working directly with patients and healthcare systems. GHG companies, including Residential Home Health and Residential Hospice, employ more than 3,000 dedicated professionals. This network serves approximately 19,000 patients daily across states like Florida, Illinois, Kansas, Michigan, Missouri, Ohio, and Pennsylvania. This direct-to-patient service model drove significant financial results, with Healthcare segment revenue reaching $208.4 million in Q3 2025, marking a 34% year-on-year increase. The channel is structured through wholly owned subsidiaries and joint ventures, such as Allegheny Health Network Healthcare@Home and Mary Free Bed at Home.

Direct sales force for manufacturing and industrial products.

The Manufacturing segment, which includes businesses like Joyce/Dayton Corp., Hoover Treated Wood Products, and Forney Corporation, relies on a direct sales force and established distribution channels for industrial products. This segment saw strong acceleration in Q3 2025, delivering revenue of $124.2 million, a 30% increase year-over-year. This contrasts with a revenue decline reported in the first quarter of 2025. The channel involves selling specialized equipment like screw jacks, linear actuators, and combustion process controls directly to industrial and utility clients.

Finance: draft 13-week cash view by Friday.

Graham Holdings Company (GHC) - Canvas Business Model: Customer Segments

You're looking at the customer base for Graham Holdings Company (GHC) as of late 2025, which is quite diverse, spanning education, healthcare, media, manufacturing, and auto retail. The company's total revenue for the trailing twelve months ending September 30, 2025, was $4.91 billion.

The customer segments are clearly defined by the company's operating divisions:

• Students and professionals seeking test prep, licensure, and higher education.
• Patients requiring complex infusion, home health, and hospice care.
• Local and regional advertisers in six major US media markets.
• Building contractors and industrial users of specialty wood and aluminum products.
• Local consumers purchasing new and used vehicles.

Here's a breakdown of the revenue contribution and performance indicators for the segments that align with your list, based on the third quarter of 2025 results:

The education segment, driven by Kaplan, remains the largest growth engine, with strong performance across its sub-offerings in the second quarter of 2025:

• Kaplan International revenue: up 2%.
• Higher education revenue: up 5%.
• Supplemental education revenue: up 10%.

The healthcare segment shows significant acceleration, with Q3 2025 revenue surging 37% year-over-year, contributing to an operating margin of 12.3% for that quarter. The manufacturing segment, despite a revenue dip of 7% in Q2 2025, saw its operating profit jump 77% year-over-year in that same quarter, reaching $7.5 million.

Conversely, the television broadcasting segment faces structural headwinds, showing an 8% revenue drop in the second quarter of 2025. The automotive segment is also noted as experiencing declines. The company's overall financial position as of June 30, 2025, included $1.13 billion in cash and investments against $816.4 million in borrowings.

The stock trades at a Price-to-Earnings ratio of 6.3x as of November 9, 2025, which is a significant discount to the US Consumer Services industry average of 15.9x.

Finance: review the Q3 2025 segment operating income against the Automotive and Broadcasting segment revenue trends for the first nine months of 2025 by next Tuesday.

Graham Holdings Company (GHC) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that make up Graham Holdings Company's expenses as of late 2025. This is where the money goes to keep the lights on and the businesses running.

High personnel costs for Kaplan's faculty and Graham Healthcare Group's nurses.

• Education division revenue for the first quarter of 2025 was $424.7 million.
• Education division operating income for the first quarter of 2025 was $40.0 million.
• Healthcare division revenue for the first quarter of 2025 was $173.7 million.
• Healthcare division operating income for the first quarter of 2025 was $18.3 million.

Operating expenses for maintaining broadcast infrastructure and FCC compliance.

• Television Broadcasting revenue declined 8% in the first quarter of 2025 compared to the first quarter of 2024.
• Television Broadcasting operating income declined 18% in the first quarter of 2025 compared to the first quarter of 2024.

Cost of goods sold (COGS) for the Automotive and Manufacturing segments.

• Automotive revenue declined 8% in the first quarter of 2025 compared to the first quarter of 2024.
• Manufacturing revenue declined in the first quarter of 2025 compared to the first quarter of 2024.

The total Operating Expenses for Graham Holdings Company (GHC) for the fiscal year ending 2024-12-31 were $4.58B.

Interest expense, which spiked in Q1 2025 due to the $205 million settlement.

The settlement agreement with Graham Healthcare Group's (GHG) noncontrolling interest was for a total of $205 million on February 25, 2025. This settlement comprised approximately $186.25 million in cash and $18.75 million in Graham Holdings Company Class B common stock.

The interest expense for the first quarter of 2025 included a one-time $66.4 million non-operational interest expense tied to the GHG noncontrolling interest settlement.

Capital expenditures, totaling $33.9 million for the first half of 2025.

Capital expenditures for the second quarter of 2025 were $19.8 million.

Finance: draft 13-week cash view by Friday.

Graham Holdings Company (GHC) - Canvas Business Model: Revenue Streams

The revenue streams for Graham Holdings Company (GHC) reflect its diversified portfolio, with significant contributions from education and healthcare services, while legacy businesses like television broadcasting face headwinds.

Education tuition and fees remains a key growth driver for Graham Holdings Company, with Kaplan's international expansion and demand for supplemental education services fueling performance. For the first quarter of 2025, the education division generated revenue of $424.7 million.

Healthcare service revenue is another strong component of GHC's top line. For the third quarter of 2025, this segment reported revenue at $208.4 million, marking a year-over-year increase.

The advertising revenue from television broadcasting segment is currently experiencing softness. For the third quarter of 2025, television broadcasting revenue was $105.1 million, which represented a year-over-year decline of 28%, attributed to a lack of political spending.

Revenue from the sales of new and used vehicles and related financing/insurance products, under the Automotive segment, also contributes to the total. In the third quarter of 2025, Automotive revenue was $285.2 million, showing a slight year-over-year decline of 1%.

Non-operating income from net gains on marketable equity securities provided a notable boost to overall net income. This figure totaled $117.0 million for the first nine months of 2025.

Overall company performance for the first nine months of 2025 saw total revenue reach $3,660.5 million. The third quarter of 2025 revenue was $1,278.9 million.

Here's a quick look at the reported segment revenues for the third quarter of 2025:

You can see the primary operating revenue drivers below:

• Education revenue for Q1 2025 was $424.7 million.
• Healthcare revenue for Q3 2025 was $208.4 million.
• Net gains on marketable equity securities for the first nine months of 2025 were $117.0 million.
• Total revenue for the first nine months of 2025 was $3,660.5 million.