Graham Holdings Company

Item 1A. Risk Factors.

The Company faces a number of significant risks and uncertainties in connection with its operations. The most significant of these are described below. These risks and uncertainties may not be the only ones facing the Company. Additional risks and uncertainties not presently known, or currently deemed immaterial, may adversely affect the Company in the future. In addition to the other information included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and the subsequently filed information included on Forms 10-Q, investors should carefully consider the following risk factors. If any of the events or developments described below occurs, it could have a material adverse effect on the Companys business, financial condition or results of operations.

Changes in International Laws and Regulations, Travel Restrictions and Related Policy Announcements, Have Materially Adversely Affected, and Together with Changes in Immigration Laws or Sanctions, Could Continue to Materially Adversely Affect International Student Enrollments and Kaplans Business.

Kaplan is subject to a wide range of laws and regulations relating to its international operations. These include domestic laws with extraterritorial reach, such as the U.S. Foreign Corrupt Practices Act, international laws such as the U.K. Bribery Act, as well as the local regulatory regimes of the countries in which Kaplan operates. These laws and regulations change frequently. Failure to comply with these laws and regulations could result in significant penalties or the revocation of Kaplans authority to operate in the applicable jurisdiction, each of which could have a material adverse effect on Kaplans operating results.

In response to the COVID-19 pandemic, many governments imposed student travel restrictions (applicable to exit and entry), made recommendations for their students to return home and closed physical campus locations, and many state and professional bodies postponed or canceled examination dates related to state examinations and professional education programs, all of which have materially adversely affected Kaplan Internationals operations and resulted in significant losses at Kaplan Languages Group during the pandemic. The emergence of new pandemics and consequential changes to travel and study arrangements in one or more countries could negatively affect Kaplan International and its operating results.

Further changes to the regulatory environment, including changes to government policy or practice in oversight and enforcement, or other factors, including war, civil unrest, geopolitical instability, imposition or extension of international sanctions, a natural disaster or a pandemic in either the students countries of origin or countries in which they desire to study, could continue to negatively affect Kaplans ability to attract and retain students and negatively affect Kaplans operating results. Increasingly, governments have begun imposing sales taxes on digital services, such as education, offered in their jurisdictions by foreign providers. Any significant changes to the availability of government funding for education or training, visa policies for students and their dependents, or other administrative immigration requirements, or the tax environment, including changes to tax laws, policies and practices, in any one or more countries in which KI operates or makes its services available could negatively affect its operating results. KIs operations, institutions and programs in the U.S. may be subject to state-level regulation and oversight by state regulatory agencies, whose approval or exemption from approval is necessary to allow an institution to operate in the state. These agencies may establish standards for instruction, qualifications of faculty, location and nature of facilities, financial policies and responsibilities and other operational matters. Institutions that seek to admit international students are required to be federally certified and legally authorized to operate in the state in which the institution is physically located in order to be allowed to issue the relevant documentation to permit international students to obtain a visa. Agencies at both local and national levels in other countries may also impose similar requirements on Kaplan Internationals operations outside the U.S.

A substantial portion of KIs revenue comes from programs that prepare international students to study and travel in English-speaking countries. In 2024, university preparation programs were principally delivered in Australia, New Zealand, Singapore and the U.K. KIs ability to enroll students in these programs is directly dependent on its ability to comply with complex regulatory environments.

KIs ability to enroll international students in programs in the U.K., U.S., Singapore, Australia, New Zealand, Canada and other countries and to recruit students for study with KIs partners is directly dependent on the laws and regulations governing student immigration. Changes to student immigration rules in a number of countries have impacted, and will continue to impact, KIs ability to recruit students for study at its own colleges and its partner universities. Overall, there is a trend of tightening of student immigration regulations and access to student visas worldwide. Since entering office in January 2025, the new U.S. presidential administration has issued executive orders and announced policy changes that may affect international student entry to, or ability to study in, the U.S., including increased visa vetting for individuals seeking to enter the U.S. and restrictions on conduct while in the U.S. Negative perceptions regarding travel to the U.S., as well as the legal and regulatory environments susceptibility to change by the new administration, could have a negative impact on KIs ability to recruit international students, which could materially adversely affect Kaplans U.S. Pathways business as well as the U.S.-based Kaplan

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Languages Group. Changes to visa policies and practices have had a negative impact on students ability to travel to the U.S. to begin their courses, and this has significantly adversely affected those Kaplan International businesses.

Changes to levels of direct and indirect government funding for international education programs would also materially affect the success of KIs operations. For example, if access to student loans or other funding were to be lost for KI operations that admit students who are entitled to receive the benefit of this funding, Kaplans operating results could be materially adversely affected. The U.K. government has announced that it will reduce funding for the Level 7 apprenticeship (L7) effective in 2026. Presently, these apprenticeships, equivalent to masters degree level study, can be funded from U.K. employer apprenticeship levy payments. The apprenticeship levy funds are payments to the government by U.K. employers of a certain minimum size calculated as a percentage of the employers wage bill. Beginning on January 1, 2026, the U.K. government will limit the use of levy funds primarily to individuals aged 21 or under at the start of their apprenticeships. This change will impact Kaplan Financial (a division of Kaplan Professional UK), an apprenticeship training provider whose U.K. apprenticeship business is a meaningful part of Kaplan Professional UKs business. Kaplan Financial expects that the majority of the L7 revenues would now also be supported through an increased number of self-funded commercial transactions. Apprenticeships already enrolled prior to January 1, 2026, will still benefit from the levy funded model through the term of their apprenticeship. However, enrollments after that date will be impacted.