Second Quarter Fiscal 2026 Total Revenue of $22.7 Million, Reflecting a 25% Increase
Year Over Year
First Half Fiscal 2026 Total Revenue of $42.3 Million, Reflecting
an 18% Increase Year Over Year
LOS ANGELES, May 14, 2026 (GLOBE NEWSWIRE) -- Daily Journal Corporation (Nasdaq: DJCO), a publishing and technology company, today announced financial results for the three and six months ended March 31, 2026. Total consolidated revenue for the second quarter of fiscal 2026 was $22.7 million, representing a 25.0% increase from the $18.2 million reported in the prior-year quarter, driven primarily by strong growth at Journal Technologies, Inc. (JTI). Total consolidated revenue for the first half of fiscal 2026 was $42.3 million, a 17.8% increase from $35.9 million in the prior-year period.
"Journal Technologies delivered strong revenue growth in the second quarter, with total JTI revenue increasing 32% year over year, reflecting continued expansion of e-filing and public service fees, higher recurring license and maintenance revenues, and increased consulting activity,- said Steven Myhill-Jones, Chairman of the Board and Chief Executive Officer of Daily Journal Corporation. - For the first half of fiscal 2026, JTI revenue grew 22% over the prior-year period. Income from operations improved significantly in both the quarter and the first half, reflecting the operating leverage in our technology business as it continues to scale. As always, our consolidated reported net results were materially impacted by mark-to-market changes in our investment portfolio, which reflects broad market movements rather than the underlying performance of our operating businesses..
Financial Highlights:
- Total consolidated revenue for the three months ended March 31, 2026 was $22.7 million, representing a 25.0% increase from the $18.2 million reported in the prior-year quarter.
- Journal Technologies reported revenue of $18.2 million for the three months ended March 31, 2026, a 32.2% increase from the $13.8 million reported in the prior-year quarter. Growth was driven by increases in other public service fees, consulting fees, and license and maintenance fees. For the six months ended March 31, 2026, Journal Technologies revenue was $33.4 million, a 22.0% increase from $27.4 million in the prior-year period.
- The Traditional Business reported advertising and circulation revenues of $4.5 million for the three months ended March 31, 2026, a 2.3% increase from $4.4 million in the prior-year quarter. For the six months ended March 31, 2026, Traditional Business revenue was $8.8 million, a 4.2% increase from $8.5 million in the prior-year period.
- Income from operations for the three months ended March 31, 2026 was $3.0 million, compared to $1.0 million in the prior-year quarter, reflecting strong revenue growth and operating leverage. For the six months ended March 31, 2026, income from operations was $3.5 million, compared to $1.7 million in the prior-year period.
- Net loss for the three months ended March 31, 2026 was $34.6 million, or ($25.14) per basic and diluted share, compared to net income of $44.7 million, or $32.43 per basic and diluted share, in the prior-year quarter. The year-over-year change was primarily driven by net unrealized losses on marketable securities of $51.2 million, representing a pre-tax impact of approximately ($37.17) per basic and diluted share, compared to net unrealized gains of $59.4 million in the prior-year quarter, representing a pre-tax gain of approximately $43.11 per basic and diluted share.
- Net loss for the six months ended March 31, 2026 was $42.6 million, or ($30.93) per basic and diluted share, compared to net income of $55.6 million, or $40.34 per basic and diluted share, in the prior-year period. The year-over-year change was primarily driven by net unrealized losses on marketable securities of $62.9 million in the current period, representing a pre-tax impact of approximately ($45.6) per basic and diluted share, compared to net unrealized gains of $72.8 million in the prior-year period, representing a pre-tax gain of approximately $52.9 per basic and diluted share.
- As of March 31, 2026, the Company's marketable securities had a total fair market value of $430.1 million and included accumulated pretax unrealized gains of $291.0 million.
- Net cash used in operating activities during the three months ended March 31, 2026 was $2.2 million, compared to net cash provided by operating activities of $1.6 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) | ||||||||
| March 31, 2026 | September 30, 2025 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | - | 20,579 | - | 20,569 | ||||
| Restricted cash | 2,309 | 2,269 | ||||||
| Marketable securities at fair value | 430,108 | 492,995 | ||||||
| Accounts receivable, net | 13,609 | 21,011 | ||||||
| Prepaid expenses and other current assets | 2,236 | 959 | ||||||
| Assets held for sale | 3,461 | - | ||||||
| Total current assets | 472,302 | 537,803 | ||||||
| Property and equipment, net | 5,431 | 8,930 | ||||||
| Non-qualified deferred compensation plan - trust account asset value | 2,207 | 1,385 | ||||||
| Total assets | - | 479,940 | - | 548,118 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | - | 7,736 | - | 7,071 | ||||
| Accrued liabilities | 6,044 | 12,518 | ||||||
| Note payable collateralized by real estate | 171 | 169 | ||||||
| Income taxes payable | 278 | 879 | ||||||
| Deferred revenue | 16,394 | 18,169 | ||||||
| Total current liabilities | 30,623 | 38,806 | ||||||
| Investment margin account borrowings | 20,000 | 22,000 | ||||||
| Long-term note payable collateralized by real estate | 701 | 787 | ||||||
| Long-term deferred revenue | 835 | 994 | ||||||
| Long-term accrued liabilities | 4,486 | 5,547 | ||||||
| Accrued non-qualified deferred compensation | 2,239 | 1,590 | ||||||
| Deferred income taxes | 72,540 | 87,333 | ||||||
| Total liabilities | 131,424 | 157,057 | ||||||
| Stockholders' Equity | ||||||||
| Common stock, $0.01 par value; 5,000,000 shares authorized; 1,805,149 and 1,805,053 shares issued, and 427,427 and 427,627 treasury shares, and 1,377,722 and 1,377,426 shares outstanding as of March 31, 2026 and September 30, 2025, respectively. | 14 | 14 | ||||||
| Additional paid-in capital | 2,178 | 2,097 | ||||||
| Accumulated other comprehensive loss | (9 | - | - | |||||
| Retained earnings | 346,333 | 388,950 | ||||||
| Total stockholders' equity | 348,516 | 391,061 | ||||||
| Total liabilities and stockholders' equity | - | 479,940 | - | 548,118 | ||||
| DAILY JOURNAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (in thousands, except share and per share amounts) | ||||||||||||||||
| Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenues | ||||||||||||||||
| Advertising | - | 3,377 | - | 3,333 | - | 6,642 | - | 6,344 | ||||||||
| Circulation | 1,102 | 1,047 | 2,187 | 2,127 | ||||||||||||
| Licensing and maintenance fees | 8,531 | 7,501 | 17,038 | 15,026 | ||||||||||||
| Consulting fees | 4,914 | 2,664 | 7,074 | 5,263 | ||||||||||||
| Other public service fees | 4,793 | 3,631 | 9,314 | 7,120 | ||||||||||||
| Total revenues | 22,717 | 18,176 | 42,255 | 35,880 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Salaries and employee benefits | 13,068 | 12,321 | 26,039 | 24,196 | ||||||||||||
| Agency commissions | 335 | 385 | 663 | 684 | ||||||||||||
| Outside services | 1,735 | 1,802 | 4,311 | 3,612 | ||||||||||||
| Postage and delivery expenses | 333 | 185 | 524 | 384 | ||||||||||||
| Newsprint and printing expenses | 150 | 191 | 314 | 355 | ||||||||||||
| Equipment maintenance and software | 113 | 441 | 276 | 1,043 | ||||||||||||
| Credit card merchant discount fees | 626 | 528 | 1,226 | 1,093 | ||||||||||||
| Other general and administrative expenses | 3,368 | 1,360 | 5,436 | 2,808 | ||||||||||||
| Total operating expenses | 19,728 | 17,213 | 38,789 | 34,175 | ||||||||||||
| Income from operations | 2,989 | 963 | 3,466 | 1,705 | ||||||||||||
| Other income (expenses) | ||||||||||||||||
| Dividends and interest income | 1,303 | 1,178 | 2,605 | 2,362 | ||||||||||||
| Net unrealized gains (losses) on marketable securities | (51,208 | - | 59,386 | (62,887 | - | 72,799 | ||||||||||
| Net unrealized gains (losses) on non-qualified compensation plan | 34 | (3 | - | 83 | (53 | - | ||||||||||
| Interest expense | (208 | - | (351 | - | (463 | - | (745 | - | ||||||||
| Other income | 86 | 97 | 95 | 97 | ||||||||||||
| Income (loss) before taxes | (47,004 | - | 61,270 | (57,101 | - | 76,165 | ||||||||||
| Income tax benefit (expense) | 12,364 | (16,600 | - | 14,484 | (20,600 | - | ||||||||||
| Net income (loss) | (34,640 | - | 44,670 | (42,617 | - | 55,565 | ||||||||||
| Other comprehensive loss: | ||||||||||||||||
| Foreign currency translation adjustments | (9 | - | - | (9 | - | - | ||||||||||
| Net income (loss) and comprehensive income (loss) | - | (34,649 | - | - | 44,670 | - | (42,626 | - | - | 55,565 | ||||||
| Earnings (losses) per share: | ||||||||||||||||
| Basic | - | (25.14 | - | - | 32.43 | - | (30.93 | - | - | 40.34 | ||||||
| Diluted | - | (25.14 | - | - | 32.43 | - | (30.93 | - | - | 40.34 | ||||||
| Shares used in computing earnings (losses) per share: | ||||||||||||||||
| Basic | 1,377,722 | 1,377,426 | 1,377,722 | 1,377,268 | ||||||||||||
| Diluted | 1,377,722 | 1,377,426 | 1,377,722 | 1,377,268 | ||||||||||||
