First Quarter Fiscal 2026 Revenue of $19.5 Million,
Reflecting a 10% Increase Year Over Year
LOS ANGELES, Feb. 17, 2026 (GLOBE NEWSWIRE) -- Daily Journal Corporation (Nasdaq: DJCO), a publishing and technology company, today announced financial results for the three months ended December 31, 2025. Total consolidated revenue for the quarter was $19.5 million, representing a 10% increase from the $17.7 million reported in the prior-year quarter, driven primarily by growth at Journal Technologies.
"Journal Technologies continued to deliver solid year-over-year growth in the first quarter of fiscal 2026, driven by higher e-filing and other public service fees and recurring license and maintenance revenues," said Steven Myhill-Jones, Chairman of the Board and Chief Executive Officer of Daily Journal Corporation. "We remain focused on expanding recurring revenue, maintaining low churn, and investing in modernization and implementation capacity. Our reported net results for the quarter were materially impacted by mark-to-market changes in our investment portfolio."
Financial Highlights:
- Total consolidated revenue for the three months ended December 31, 2025 was $19.5 million, representing a 10% increase from the $17.7 million reported in the prior-year quarter.
- Journal Technologies reported revenue of $15.2 million for the three months ended December 31, 2025, marking a 12% increase over the $13.6 million recorded in the prior-year quarter. This growth was primarily driven by increases in other public service fees and license and maintenance fees, partially offset by lower consulting fees.
- The Traditional Business reported advertising and circulation revenues of $4.4 million, reflecting a 6% increase over the $4.1 million reported in the prior-year quarter.
- Income from operations for the three months ended December 31, 2025 was $0.5 million, compared to $0.7 million in the prior-year quarter. The decline was primarily attributable to higher personnel costs from annual compensation adjustments and incremental staffing, as well as increased accounting fees to strengthen and modernize our accounting function and our internal control over financial reporting, and higher legal and professional expenses associated with proxy solicitation and stockholder outreach activities.
- Net loss for the three months ended December 31, 2025 was $8.0 million, or ($5.79) per basic and diluted share, compared to net income of $10.9 million, or $7.91 per diluted share, in the prior-year quarter. The year-over-year change was primarily driven by net unrealized losses on marketable securities of $11.7 million, representing a pre-tax loss of approximately ($8.48) per basic and diluted share, compared to net unrealized gains of $13.4 million in the prior-year quarter, representing a pre-tax gain of approximately $9.74 per basic and diluted share.
- As of December 31, 2025, the Company's marketable securities had a total fair market value of $481.3 million and included accumulated pretax unrealized gains of $342.2 million.
- Net cash used in operating activities during the three months ended December 31, 2025 was $1.9 million, compared to net cash provided by operating activities of $2.2 million during the prior-year quarter.
About Daily Journal Corporation
Daily Journal Corporation, based in Los Angeles, publishes news for California and Arizona, produces specialized publications, and handles public notice advertising. Its subsidiary, Journal Technologies, Inc., provides case management software to courts, justice agencies, and government organizations across about 37 states and internationally, supporting electronic case management and related online services like e-filing and fee payments.
Forward-looking Statements
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain statements contained in this press release are "forward-looking" statements that involve risks and uncertainties that may cause actual future events or results to differ materially from those described in the forward-looking statements. Words such as "expects," "intends," "anticipates," "should," "believes," "will," "plans," "estimates," "may," variations of such words and similar expressions are intended to identify such forward-looking statements. We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments, or otherwise. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to have been correct. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in documents we file with the Securities and Exchange Commission.
For further information please contact us at:
ir@dailyjournal.com
| DAILY JOURNAL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands except share amounts) | ||||
| December 31, 2025 | September 30, 2025 | |||
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | - | 16,562 | - | 20,569 |
| Restricted cash | 2,289 | 2,269 | ||
| Marketable securities at fair value | 481,316 | 492,995 | ||
| Accounts receivable, net | 17,121 | 21,011 | ||
| Prepaid expenses and other current assets | 1,088 | 959 | ||
| Total current assets | 518,376 | 537,803 | ||
| Property and equipment, net | 8,946 | 8,930 | ||
| Non-qualified deferred compensation plan - trust account asset value | 2,157 | 1,385 | ||
| Total assets | - | 529,479 | - | 548,118 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable | - | 7,640 | - | 7,071 |
| Accrued liabilities | 5,003 | 12,518 | ||
| Note payable collateralized by real estate | 171 | 169 | ||
| Income taxes payable | 1,015 | 879 | ||
| Deferred revenue | 17,956 | 18,169 | ||
| Total current liabilities | 31,785 | 38,806 | ||
| Investment margin account borrowings | 20,000 | 22,000 | ||
| Long-term note payable collateralized by real estate | 743 | 787 | ||
| Long-term deferred revenue | 864 | 994 | ||
| Long-term accrued liabilities | 5,661 | 5,547 | ||
| Accrued non-qualified deferred compensation | 2,168 | 1,590 | ||
| Deferred income taxes | 85,138 | 87,333 | ||
| Total liabilities | 146,359 | 157,057 | ||
| Commitments and contingencies (Note 8) | ||||
| Stockholders' Equity | ||||
| Common stock, $0.01 par value; 5,000,000 shares authorized; 1,805,149 and 1,805,053 shares issued and outstanding, and 427,427 and 427,627 treasury shares, as of December 31, 2025 and September 30, 2025, respectively. | 14 | 14 | ||
| Additional paid-in capital | 2,133 | 2,097 | ||
| Retained earnings | 380,973 | 388,950 | ||
| Total stockholders' equity | 383,120 | 391,061 | ||
| Total liabilities and stockholders' equity | - | 529,479 | - | 548,118 |
| DAILY JOURNAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (in thousands, except share and per share amounts) | ||||||
| Three Months Ended December 31, | ||||||
| 2025 | 2024 | |||||
| Revenues | ||||||
| Advertising | - | 3,265 | - | 3,011 | ||
| Circulation | 1,085 | 1,080 | ||||
| Licensing and maintenance fees | 8,507 | 7,525 | ||||
| Consulting fees | 2,160 | 2,599 | ||||
| Other public service fees | 4,521 | 3,489 | ||||
| Total revenues | 19,538 | 17,704 | ||||
| Operating expenses: | ||||||
| Salaries and employee benefits | 12,971 | 11,875 | ||||
| Agency commissions | 328 | 299 | ||||
| Outside services | 2,576 | 1,810 | ||||
| Postage and delivery expenses | 191 | 199 | ||||
| Newsprint and printing expenses | 164 | 164 | ||||
| Equipment maintenance and software | 163 | 602 | ||||
| Credit card merchant discount fees | 600 | 565 | ||||
| Other general and administrative expenses | 2,068 | 1,448 | ||||
| Total operating expenses | 19,061 | 16,962 | ||||
| Income from operations | 477 | 742 | ||||
| Other income (expenses) | ||||||
| Dividends and interest income | 1,302 | 1,184 | ||||
| Net realized and unrealized gains (losses) on marketable securities | (11,679 | - | 13,413 | |||
| Net unrealized gains (losses) on non-qualified compensation plan | 49 | (50 | - | |||
| Interest expense | (255 | - | (385 | - | ||
| Other income (expense) | 9 | (9 | - | |||
| Income (loss) before taxes | (10,097 | - | 14,895 | |||
| Income tax benefit (expense) | 2,120 | (4,000 | - | |||
| Net income (loss) and comprehensive income (loss) | - | (7,977 | - | - | 10,895 | |
| Weighted average number of common shares outstanding - basic | 1,377,722 | 1,376,852 | ||||
| Basic net income (loss) per share | - | (5.79 | - | - | 7.91 | |
| Weighted average number of common shares outstanding - diluted | 1,377,722 | 1,376,852 | ||||
| Diluted net income (loss) per share | - | (5.79 | - | - | 7.91 | |
