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
-------------- -----
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