Shares of Daily Journal Corporation (DJCO) have gained 1.9% since the company reported its earnings for the quarter ended Dec. 31, 2025. This compares with the S&P 500 index’s 1% growth over the same time frame. However, over the past month, the stock has declined 18.9%, underperforming the S&P 500’s 1% drop.For the first quarter of fiscal 2026, Daily Journal incurred a net loss of $5.79 per share against a net income of $7.91 per share in the prior-year period.Total consolidated revenues of $19.5 million i ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2025 OR 915 East First Street Los Angeles, California (Address of principal executive offices) 90012 (Zip Code) Registrant's telephone number, including area code: (213) 229-5300 Securities registered pursuant to Section 12(b) of the Act: | Title of each class | Trading Symbol(s) | Na ...

Revenue Performance - Total consolidated revenue for Q1 Fiscal 2026 was $19.5 million, a 10% increase from $17.7 million in the prior-year quarter[1] - Journal Technologies revenue reached $15.2 million, marking a 12% increase over $13.6 million in the prior-year quarter, driven by higher public service fees and license revenues[4] - The Traditional Business reported advertising and circulation revenues of $4.4 million, reflecting a 6% increase from $4.1 million in the prior-year quarter[4] Net Income and Loss - Net loss for Q1 Fiscal 2026 was $8.0 million, or ($5.79) per share, compared to net income of $10.9 million, or $7.91 per share, in the prior-year quarter[4] - The decline in net income was primarily due to net unrealized losses on marketable securities of $11.7 million, compared to net unrealized gains of $13.4 million in the prior-year quarter[4] Marketable Securities - As of December 31, 2025, the fair market value of marketable securities was $481.3 million, with accumulated pretax unrealized gains of $342.2 million[4] Cash Flow and Operating Activities - Net cash used in operating activities during Q1 Fiscal 2026 was $1.9 million, compared to net cash provided of $2.2 million in the prior-year quarter[4] - Income from operations for Q1 Fiscal 2026 was $0.5 million, down from $0.7 million in the prior-year quarter, attributed to higher personnel costs and increased accounting fees[4] Strategic Focus - The company remains focused on expanding recurring revenue and investing in modernization and implementation capacity[2] - Daily Journal Corporation operates through its subsidiary, Journal Technologies, providing case management software across approximately 37 states and internationally[5]

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 Tech ...

Group 1: Microcap Market Overview - Microcaps have rallied nearly 20% over the last 2 months, contrasting with the flat performance of the S&P 500 [1] - Microcaps are sensitive to interest rates and macroeconomic conditions, with a notable valuation gap compared to large caps attracting investor interest [2] - Microcaps are approximately twice as volatile as large caps, which may deter risk-averse investors [3] Group 2: Interest Rate and Inflation Concerns - The primary risk for microcaps is the uncertainty surrounding interest rates, with concerns that inflation may resurface in 2026, potentially halting rate decreases by the Federal Reserve [4] - Factors such as tariff pass-throughs, tighter labor supply, and fiscal spending contribute to inflationary pressures that could impact rate policies [5] Group 3: Company Highlights - Motorsport Games Inc. (MSGM) is a racing video game developer with significant revenue growth and a high gross margin of 80% last quarter, indicating strong market reception [6][10] - Daily Journal Corporation (DJCO) has transitioned its focus from newspaper publishing to its software business, Journal Technologies, which now accounts for 80% of revenue and grew by 32% in the past fiscal year [11][12] - DJCO holds nearly $500 million in marketable securities, providing potential for acquisitions or further investment in growth [13]

Core Viewpoint - The company has achieved record revenue through its Journal Technologies business and emphasizes a commitment to long-term value creation while urging shareholders to support its current board against a self-serving campaign by Buxton Helmsley [1][2][5]. Financial Performance - In fiscal year 2025, Journal Technologies generated approximately $70 million in revenue, a 32% increase from $53.1 million in fiscal 2024 [7]. - Operating expenses for Journal Technologies rose by about 12% to $56.9 million, resulting in a pre-tax income of approximately $13.1 million, up from $2.5 million in fiscal 2024 [7]. - Recurring license fees grew by about 12% to $31.7 million, while consulting and implementation revenues increased roughly 51% to $22.7 million, and other public service fees, including e-filing fees, rose about 59% to $15.5 million [10][11]. Business Strategy - The company aims to modernize its platform and improve implementation performance to grow its installed customer base and recurring revenue [2][28]. - The Traditional Publishing business saw revenues increase to about $17.9 million, up roughly 6% from the prior year, primarily due to higher advertising revenues [15]. - The company maintains a strong balance sheet with a concentrated portfolio of marketable securities valued at approximately $493 million as of September 30, 2025, up from $358.7 million a year earlier [18]. Governance and Shareholder Engagement - The company is focused on strengthening internal controls over financial reporting and has made significant progress in addressing previously identified weaknesses [25]. - Shareholders are urged to vote for the re-election of the current board of directors to maintain the company's strategic focus and counteract the disruptive actions of Buxton Helmsley [5][26][27].

Core Viewpoint - Daily Journal Corporation (DJCO) has been upgraded from a "Neutral" to an "Outperform" rating, indicating growing investor optimism regarding its transformation from a legacy publishing business to a tech-forward enterprise [1] Group 1: Journal Technologies Performance - Journal Technologies now accounts for nearly 80% of DJCO's total revenues, with a 32% increase in revenue to $69.9 million for the fiscal year ended Sept. 30, 2025 [2] - Pretax income for Journal Technologies rose from $2.5 million to $12.7 million year over year, an increase of over 400%, driven by stronger consulting revenues and growth in software license and maintenance contracts [2] Group 2: Financial Strength and Capital Management - DJCO's balance sheet is strong, holding approximately $493 million in marketable securities with unrealized gains of $134 million and interest and dividend income of $7.4 million in fiscal 2025 [3] - The company reduced its outstanding margin loan by $5.5 million, demonstrating a conservative capital management strategy [3] Group 3: Global Expansion and AI Integration - DJCO's technology products are deployed in around 37 U.S. states and several international markets, including Australia and Canada [4] - The company is enhancing its platforms with AI features to improve user experience and automate workflows, responding to the demand for digital modernization in court systems [4] Group 4: Challenges and Risks - The legacy publishing business saw a 4% decline in circulation revenue in FY2025, primarily due to falling print subscriptions and pricing adjustments [5] - Journal Technologies faces risks related to its client base, which consists mainly of government agencies that favor larger vendors for statewide deployments [6] Group 5: Outlook - The upgrade to "Outperform" reflects a positive sentiment as DJCO successfully repositions itself as a software and services company while maintaining a strong financial structure [7] - Despite challenges in the traditional publishing business and competitive pressures, DJCO is well-positioned for continued growth if it can sustain momentum in software and manage its capital effectively [8]

Company Overview - Daily Journal (DJCO) is valued at $802 million and publishes newspapers in California, Washington, Arizona, Colorado, and Nevada, including the California Lawyer magazine and specialized information services [1] - The company also publishes The Code of Colorado Regulations and specializes in public notice advertising [1] Stock Performance - DJCO has recently achieved a new 52-week high of $594.82 on January 9 [4] - The stock has gained 25.11% since the Trend Seeker issued a new "Buy" signal on November 25 [2] - Over the past month, shares are up nearly 25% and have made 16 new highs, with a total gain of 23.9% [6][7] - The stock recently traded at $591.80, with a 50-day moving average of $467.11 [7] Technical Indicators - DJCO maintains a 100% "Buy" technical opinion from Barchart [6][7] - The stock has a Weighted Alpha of +36.09 and a Relative Strength Index (RSI) of 72.97 [7] - There is a technical support level around $566.83 [7] Financial Performance - DJCO has experienced increases in both revenue and earnings for the past three years, although specific projections are not available as the stock is not covered by Wall Street [8]

Core Insights - Daily Journal Corporation's shares have declined 5.7% since the earnings report for the fiscal year ended September 30, 2025, underperforming the S&P 500 index, which declined by 1.1% during the same period [1] Financial Performance - The company reported a net income of $81.41 per share for the fiscal year, up from $56.73 per share in the previous year [2] - Total revenue reached $87.7 million, marking a 25% increase from $69.9 million in the prior year [2] - Net income rose to $112.1 million compared to $78.1 million in the prior year, driven by operational growth and strong investment returns [3] Segment Performance - Journal Technologies accounted for approximately 80% of total revenue, with a 32% year-over-year revenue increase to $69.9 million, up from $53.1 million [4] - Consulting fees surged by 51% to $22.7 million, while licensing and maintenance fees rose 12% to $31.7 million [4] - The Traditional Business segment saw a slight revenue increase of 6% to $17.8 million, but recorded a pretax loss of $0.2 million, reversing a $2 million profit from the prior year [5] Management Insights - Management emphasized the importance of Journal Technologies in driving growth, with nearly all customers being government agencies [6] - The company plans to continue investing in product development and modernizing its platform while facing challenges in the Traditional Business segment [6] - Following the death of Charles T. Munger, the company will not initiate new equity investments in unrelated public securities, focusing instead on supporting operations within Journal Technologies [7] Investment Portfolio - The investment portfolio contributed significantly to net income, with $134.3 million in unrealized gains on marketable securities, up from $96.1 million in the prior year [8] - The fair market value of the investment portfolio was $493 million as of September 30, 2025, including $353.9 million in cumulative unrealized gains [8] Operating Expenses - Operating expenses increased by 19% to $78.2 million, driven by higher personnel costs and increased legal and accounting fees [9] - The company undertook initiatives to strengthen internal controls, which contributed to rising legal and accounting costs [9] Debt Management - Daily Journal improved its balance sheet by paying down $5.5 million on its margin loan, reducing the outstanding balance to $22 million [10]

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