Core Viewpoint - Value Line, Inc. reported a strong fiscal year ending April 30, 2025, with significant increases in net income, investment gains, and retained earnings, indicating robust financial health and growth potential for investors [1][9]. Financial Performance - The company's net income for the fiscal year was $20,686,000, or $2.20 per share, representing an 8.8% increase from $19,016,000, or $2.02 per share, in the previous year [9]. - Total receipts from non-voting revenues and profits interest in EAM increased by $5,036,000, or 37.9%, totaling $18,318,000 [9]. - Total investment gains reached $3,238,000, up by $474,000, or 17.2%, from last year's $2,764,000 [9]. - The company declared total dividends of $1.225 per share for fiscal year 2025, with a quarterly dividend of $0.325 per share in April 2025, marking the eleventh consecutive year of dividend increases [9]. - Retained earnings increased to $113,400,000, an 8.8% rise compared to the previous year [9]. - Liquid assets grew to $77,391,000, reflecting a 13.2% increase from the prior year [9]. - Shareholders' equity reached $99,678,000, a 9.8% increase from $90,793,000 as of April 30, 2024 [9]. Investment Research Services - Value Line offers a variety of proprietary investment research services, including: - Value Line Select, which recommends one exceptional stock monthly [3]. - The Value Line Special Situations Service, focusing on small and mid-cap stocks with high return potential [4]. - Value Line Select ETFs, identifying the best-positioned ETFs for market outperformance [4]. - Value Line Select: Dividend Income & Growth, providing two stock recommendations for above-average income and long-term growth [5]. - The Value Line M&A Service, highlighting potential acquisition candidates [6]. - The Value Line Climate Change Investing Service, targeting investment opportunities related to climate change [7]. - The Value Line Options Survey, covering over 600,000 options on stocks [7]. - The Value Line Fund Adviser Plus, analyzing 20,000 funds across various investment objectives [8]. Accessibility - Value Line's products are available to individual investors through their website and by mail, with institutional services offered through dedicated platforms [11][12].

PART I [Business](index=6&type=section&id=Item%201.%20BUSINESS.) Value Line produces investment periodicals, research, and licenses proprietary information, holding interests in EULAV Asset Management - Value Line's core business involves producing investment periodicals and research, and licensing Value Line copyrights, trademarks, and proprietary ranks to third parties for use in investment products[19](index=19&type=chunk) - The company holds substantial non-voting revenue and profit interests in EULAV Asset Management (EAM), which provides investment management services to the Value Line Funds[19](index=19&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk) - Value Line's products and services are marketed under well-known brands such as Value Line®, The Value Line Investment Survey®, and Smart Research, Smarter Investing™[19](index=19&type=chunk) [A. Investment Related Periodicals & Publications](index=6&type=section&id=A.%20Investment%20Related%20Periodicals%20%26%20Publications) Value Line Publishing offers diverse investment periodicals, research, software, and financial databases in print and digital formats - VLP offers comprehensive research services (e.g., The Value Line Investment Survey, Small and Mid-Cap, Fund Advisor Plus) providing statistical and text coverage with proprietary research and ranks[22](index=22&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) - Niche newsletters cover specific interests like dividend income, ETFs, special situations, M&A, and climate change investing[23](index=23&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) - Digital versions of most products are available via www.valueline.com, with The Value Line Research Center offering packaged access to multiple services[25](index=25&type=chunk)[44](index=44&type=chunk) - Institutional customers are provided with investment analysis software (e.g., Value Line Investment Analyzer) and current/historical financial databases (e.g., DataFile, Estimates & Projections, Mutual Fund DataFile)[26](index=26&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) [B. Copyright Programs](index=12&type=section&id=B.%20Copyright%20Programs) Value Line licenses its proprietary Ranking System and information to third parties for investment products, with fees based on asset market value - The Company's copyright services involve licensing proprietary Ranking System results and other information to third parties for use in their investment products[58](index=58&type=chunk) - Copyright fees are primarily based on the market value of assets invested in products utilizing Value Line's proprietary data, resulting in fluctuating payments[58](index=58&type=chunk) [C. Investment Management Services](index=12&type=section&id=C.%20Investment%20Management%20Services) Value Line holds non-voting interests in EAM, adviser to Value Line Funds, with assets under management increasing to **$4.68 billion** in fiscal 2025 - Value Line holds non-voting revenue and profit interests in EAM, entitling it to **41%-55%** of EAM's non-distribution revenues and **50%** of its residual profits[61](index=61&type=chunk) - EAM acts as the investment adviser to the Value Line Funds, utilizing Value Line's proprietary Ranking System information[62](index=62&type=chunk)[65](index=65&type=chunk)[67](index=67&type=chunk) Total Assets in Value Line Funds Managed by EAM | Metric | April 30, 2025 (in billions) | April 30, 2024 (in billions) | Change (YoY) | | :----- | :--------------------------- | :--------------------------- | :----------- | | Total Assets | $4.68 | $4.17 | +12.0% | [D. Wholly-Owned Operating Subsidiaries](index=14&type=section&id=D.%20Wholly-Owned%20Operating%20Subsidiaries) Value Line's subsidiaries include Value Line Publishing, Vanderbilt Advertising, and Value Line Distribution Center, which outsourced print operations - Wholly-owned subsidiaries include Value Line Publishing LLC (VLP), Vanderbilt Advertising Agency, Inc., and Value Line Distribution Center, Inc. (VLDC)[68](index=68&type=chunk)[74](index=74&type=chunk) - VLDC's print distribution operations were outsourced to third parties in the U.S. after April 30, 2024[74](index=74&type=chunk) [E. Trademarks](index=14&type=section&id=E.%20Trademarks) Value Line holds numerous global trademark and service mark registrations, which are significant assets for marketing its products, services, and funds - Value Line holds trademark and service mark registrations for various names and logos in multiple countries[68](index=68&type=chunk) - These trademarks are considered significant assets, crucial for marketing the Company's products, services, and the Value Line Funds[68](index=68&type=chunk) [F. Investments](index=14&type=section&id=F.%20Investments) Value Line held **$43.314 million** in investment assets as of April 30, 2025, primarily equity and fixed income securities, down from **$63.955 million** in 2024 Total Investment Assets (excluding EAM interests) | Metric | April 30, 2025 (in thousands) | April 30, 2024 (in thousands) | | :----- | :---------------------------- | :---------------------------- | | Total Investment Assets | $43,314 | $63,955 | - Investments include equity securities (SPDR Series Trust S&P Dividend ETF, First Trust Value Line Dividend Index ETF, ProShares Trust S&P 500 Dividend Aristocrats ETF, IShares DJ Select Dividend ETF, other ETFs, and common stock) and available-for-sale fixed income securities (U.S. federal government securities and bank certificates of deposit)[69](index=69&type=chunk) [G. Employees](index=14&type=section&id=G.%20Employees) Value Line and its subsidiaries employed **117 people** as of April 30, 2025, with policies to prevent analyst conflicts of interest - The Company and its subsidiaries employed **117 people** as of April 30, 2025[70](index=70&type=chunk) - Policies are in place to prevent conflicts of interest, including prohibiting analysts from owning covered securities and restricting trading based on rank changes[71](index=71&type=chunk) [H. Principal Business Segments](index=14&type=section&id=H.%20Principal%20Business%20Segments) Information on Value Line's principal business segments is incorporated by reference, with Publishing identified as the sole reportable segment - Information on principal business segments is incorporated by reference to Note 18 of the Consolidated Financial Statements[72](index=72&type=chunk) - The Publishing segment, which includes investment periodicals, related publications, and copyright services, is the Company's only reportable business segment[120](index=120&type=chunk)[375](index=375&type=chunk) [I. Competition](index=14&type=section&id=I.%20Competition) Value Line and EAM face intense competition in investment information, publishing, and asset management, including from larger firms and free online research - The investment information, publishing, and investment management businesses are highly competitive, with many firms and diverse product offerings[73](index=73&type=chunk) - Competition is intensified by larger firms with greater financial resources, the availability of free/low-cost online research, and the ease of asset transfer in the mutual fund industry[73](index=73&type=chunk)[88](index=88&type=chunk) [J. Executive Officers of the Registrant](index=15&type=section&id=J.%20Executive%20Officers%20of%20the%20Registrant) Value Line's executive officers include Howard A. Brecher (Chairman and CEO) and Stephen R. Anastasio (VP and Treasurer), both with extensive company experience - Howard A. Brecher serves as Chairman and Chief Executive Officer, with over **25 years** of experience as an officer[76](index=76&type=chunk) - Stephen R. Anastasio is the Vice President and Treasurer, having been an officer for over **20 years**[76](index=76&type=chunk) [Risk Factors](index=16&type=page&id=ITEM%201A.%20RISK%20FACTORS) Value Line faces risks from key personnel, EAM revenue fluctuations, single customer reliance, declining print subscriptions, intellectual property, competition, and cyber threats - The Company's success depends on retaining and recruiting qualified executives and professionals; the loss of key personnel could have an adverse effect[79](index=79&type=chunk) - A significant portion of cash flow is derived from EAM, making the Company vulnerable to decreases in EAM's revenue due to market conditions, fund performance, or investor decisions[80](index=80&type=chunk)[81](index=81&type=chunk) - The Company relies on a single significant customer for a substantial portion of its publishing revenues, and a decrease from this customer could adversely affect cash flow and financial condition[83](index=83&type=chunk) - Expected continued decline in retail print subscription revenue, with uncertainty if digital revenue growth will offset this trend[85](index=85&type=chunk) - Cyber risks pose a threat to continuous and secure operation of computer systems, potentially leading to loss or misuse of sensitive information and increased security costs[94](index=94&type=chunk) [Item 1B. Unresolved Staff Comments](index=19&type=section&id=Item%201B.%20UNRESOLVED%20STAFF%20COMMENTS.) There are no unresolved staff comments to report for Value Line, Inc - No unresolved staff comments[96](index=96&type=chunk) [Item 1C. Cybersecurity](index=19&type=section&id=Item%201C.%20CYBERSECURITY) Value Line considers information security critical, maintaining a continuously assessed cybersecurity program with management and Audit Committee oversight, and has not encountered material events - Information security is a critical component of the business strategy, with a continuously assessed and strengthened cybersecurity program[97](index=97&type=chunk) - Management, chaired by the Executive Director of Information Technology, is responsible for day-to-day risk administration, including identification, analysis, and response to risks[98](index=98&type=chunk) - Third-party services are regularly engaged for security control evaluations, including penetration testing and independent audits[99](index=99&type=chunk) - The Audit Committee oversees the Company's risk management program, including technology and cybersecurity risks[101](index=101&type=chunk) - The Company has not encountered a cybersecurity event that has had a material impact on its business[102](index=102&type=chunk) [Item 2. Properties](index=20&type=section&id=Item%202.%20PROPERTIES.) Value Line leases 24,726 square feet of New York office space until November 2027, with print distribution operations outsourced after April 2024 - The Company leases **24,726 square feet** of office space at 551 Fifth Avenue, New York, NY, with a sublease agreement ending November 29, 2027[103](index=103&type=chunk)[104](index=104&type=chunk) - Annual base rent for the New York office space is **$1,126,000**, with a **2.25%** annual increase[104](index=104&type=chunk) - The New Jersey warehouse facility, previously used for print distribution, was vacated after April 30, 2024, with operations outsourced to third parties[103](index=103&type=chunk) [Item 3. Legal Proceedings](index=20&type=section&id=Item%203.%20LEGAL%20PROCEEDINGS.) Value Line, Inc. has no legal proceedings to report - No legal proceedings[106](index=106&type=chunk) [Item 4. Mine Safety Disclosures](index=20&type=section&id=Item%204.%20MINE%20SAFETY%20DISCLOSURES.) Mine Safety Disclosures are not applicable to Value Line, Inc - Not applicable[108](index=108&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=21&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities.) Value Line's common stock trades on NASDAQ, with **9.41 million shares outstanding** and increasing quarterly dividends; the company repurchased **$453,000** in shares in fiscal 2025 - Value Line's Common Stock is traded on NASDAQ under the symbol "VALU"[109](index=109&type=chunk) - As of April 30, 2025, the closing stock price was **$40.90**, and **9,409,522 shares** of Common Stock were outstanding at June 30, 2025[7](index=7&type=chunk)[109](index=109&type=chunk) Regular Dividend Declared Per Share | Quarter Ended | Regular Dividend Declared Per Share | | :------------ | :---------------------------------- | | April 30, 2025 | $0.325 | | January 31, 2025 | $0.30 | | October 31, 2024 | $0.30 | | July 31, 2024 | $0.30 | | April 30, 2024 | $0.30 | | January 31, 2024 | $0.28 | | October 31, 2023 | $0.28 | | July 31, 2023 | $0.28 | Issuer Purchases of Equity Securities (Fiscal Year Ended April 30, 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Maximum Dollar Value Remaining Under Program (in thousands) | | :--------------------------------- | :------------------------------- | :--------------------------- | :---------------------------------------------------------- | | February 1, 2025 - April 30, 2025 | 4,961 | $36.40 | $758 | | Fiscal 2025 (aggregate) | 11,480 | $39.46 | N/A | - A share repurchase program authorized on October 21, 2022, allows for repurchases up to **$3 million**, with **$758,000** remaining as of April 30, 2025[112](index=112&type=chunk)[366](index=366&type=chunk) [Item 6. [Reserved]](index=22&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section discusses Value Line's financial performance for fiscal years 2025-2023, highlighting an **8.8% increase in net income** driven by EAM interests and investment gains - Value Line's core business is producing investment periodicals and research, and licensing proprietary information, with a significant non-voting interest in EAM Trust for investment management services[117](index=117&type=chunk) - The U.S. economy experienced a weak start in calendar 2025 due to tariffs, but hard data suggested a return to growth in Q2, with S&P 500 companies showing double-digit earnings growth in Q1 2025, partly driven by AI-related stocks[124](index=124&type=chunk)[126](index=126&type=chunk)[128](index=128&type=chunk) Key Financial Highlights (Fiscal Years Ended April 30) | Metric (in thousands) | 2025 | 2024 | 2023 | Change '25 vs. '24 | Change '24 vs. '23 | | :-------------------- | :-------- | :-------- | :-------- | :----------------- | :----------------- | | Income from operations | $5,985 | $9,141 | $11,470 | -34.5% | -20.3% |\ | Non-voting revenues and non-voting profits interests from EAM Trust | $18,318 | $13,282 | $11,131 | 37.9% | 19.3% |\ | Income from operations plus EAM interests | $24,303 | $22,423 | $22,601 | 8.4% | -0.8% |\ | Operating expenses | $29,094 | $28,346 | $28,225 | 2.6% | 0.4% |\ | Investment gains | $3,238 | $2,764 | $1,174 | 17.1% | 135.4% |\ | Income before income taxes | $27,541 | $25,187 | $23,775 | 9.3% | 5.9% |\ | Net income | $20,686 | $19,016 | $18,069 | 8.8% | 5.2% |\ | Earnings per share | $2.20 | $2.02 | $1.91 | 8.9% | 5.6% | [Executive Summary of the Business](index=23&type=section&id=Executive%20Summary%20of%20the%20Business) Value Line's core business involves producing investment periodicals and research, licensing proprietary information, and holding a significant non-voting investment in EAM Trust - The Company's core business is producing investment periodicals and research, and making available Value Line copyrights, trademarks, and proprietary ranks to third parties[117](index=117&type=chunk) - Value Line maintains a significant non-voting investment in EAM Trust, from which it receives payments based on non-voting revenues and profits interests[117](index=117&type=chunk) - Target audiences include individual investors, colleges, libraries, and investment management professionals, with revenue from subscriptions recognized ratably over the subscription life[118](index=118&type=chunk)[119](index=119&type=chunk) [Asset Management and Mutual Fund Distribution Businesses](index=24&type=section&id=Asset%20Management%20and%20Mutual%20Fund%20Distribution%20Businesses) Value Line holds non-voting revenue and profit interests in EAM, the investment adviser to Value Line Funds, receiving **41%-55%** of non-distribution revenues and **50%** of residual profits - Value Line holds non-voting revenue and profit interests in EAM, entitling it to **41%-55%** of EAM's non-distribution revenues and **50%** of its residual profits[123](index=123&type=chunk) - The Company has no voting authority over EAM's trustees or control over its business[122](index=122&type=chunk) - At least **90%** of EAM's profits are distributed each fiscal quarter to interest holders[123](index=123&type=chunk) [Business Environment](index=24&type=section&id=Business%20Environment) The U.S. economy saw a Q1 2025 GDP contraction but likely resumed growth in Q2, with easing inflation, a resilient job market, and S&P 500 earnings growth driven by AI stocks - U.S. GDP contracted by an estimated **0.5%** in Q1 2025, attributed to pre-tariff buying, but the economy likely returned to growth in Q2[124](index=124&type=chunk)[126](index=126&type=chunk) - The Federal Reserve kept the federal funds rate steady (**4.25%-4.50%**) in H1 2025 due to global uncertainties, with concerns about tariffs leading to stagflation[125](index=125&type=chunk) - Inflation eased, the job market remained resilient (unemployment at **4.1%** in June), and manufacturing activity improved, suggesting the stagflation scenario has not materialized[126](index=126&type=chunk) - A new budget deal and potential Fed rate cuts in H2 2025 may boost corporate and consumer spending, while S&P 500 companies saw double-digit earnings growth in Q1 2025, driving major averages to record highs, partly due to AI-related stocks[127](index=127&type=chunk)[128](index=128&type=chunk) [Results of Operations for Fiscal Years 2025, 2024 and 2023](index=25&type=section&id=Results%20of%20Operations%20for%20Fiscal%20Years%202025%2C%202024%20and%202023) Value Line's net income increased **8.8%** to **$20.686 million** in fiscal 2025, driven by EAM interests and investment gains, despite declining operating income and revenues Consolidated Income Statement Summary (in thousands, except EPS) | Metric | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | YoY Change (25 vs 24) | YoY Change (24 vs 23) | | :------------------------------------------------ | :-------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | Income from operations | $5,985 | $9,141 | $11,470 | -34.5% | -20.3% |\ | Non-voting revenues and non-voting profits interests from EAM Trust | $18,318 | $13,282 | $11,131 | 37.9% | 19.3% |\ | Investment gains | $3,238 | $2,764 | $1,174 | 17.1% | 135.4% |\ | Net income | $20,686 | $19,016 | $18,069 | 8.8% | 5.2% |\ | Earnings per share (EPS) | $2.20 | $2.02 | $1.91 | 8.9% | 5.6% | - Net income increased by **8.8%** in fiscal 2025, primarily due to significant increases in EAM interests and investment gains, offsetting a decline in operating income[130](index=130&type=chunk) Total Operating Revenues (in thousands) | Revenue Category | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | YoY Change (25 vs 24) | YoY Change (24 vs 23) | | :--------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | Investment periodicals and related publications | $24,682 | $25,420 | $26,232 | -2.9% | -3.1% |\ | Copyright fees | $10,397 | $12,067 | $13,463 | -13.8% | -10.4% |\ | Total operating revenues | $35,079 | $37,487 | $39,695 | -6.4% | -5.6% | - Total operating revenues decreased by **6.4%** in fiscal 2025, mainly due to a **13.8% decline** in copyright fees and a **2.9% decrease** in investment periodicals and related publications revenue[139](index=139&type=chunk) Operating Expenses (in thousands) | Expense Category | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | YoY Change (25 vs 24) | YoY Change (24 vs 23) | | :---------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | Advertising and promotion | $3,797 | $2,955 | $3,049 | 28.5% | -3.1% |\ | Salaries and employee benefits | $14,455 | $14,851 | $15,203 | -2.7% | -2.3% |\ | Production and distribution | $5,987 | $5,455 | $5,210 | 9.8% | 4.7% |\ | Office and administration | $4,855 | $5,085 | $4,763 | -4.5% | 6.8% |\ | Total expenses | $29,094 | $28,346 | $28,225 | 2.6% | 0.4% | - Total operating expenses increased by **2.6%** in fiscal 2025, driven by higher advertising and promotion (**28.5%**) and production and distribution (**9.8%**) costs, partially offset by a decrease in salaries and employee benefits (**-2.7%**) due to reduced headcount and outsourcing[165](index=165&type=chunk)[168](index=168&type=chunk)[171](index=171&type=chunk)[175](index=175&type=chunk) Investment Gains/(Losses) (in thousands) | Metric | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | YoY Change (25 vs 24) | YoY Change (24 vs 23) | | :------------------------------------------------ | :-------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | Dividend income | $553 | $551 | $595 | 0.4% | -7.4% |\ | Interest income | $2,126 | $1,934 | $706 | 9.9% | 173.9% |\ | Investment gains/(losses) recognized on sale of equity securities | $(123) | $(1) | $(81) | -12200.0% | 98.8% |\ | Unrealized gains/(losses) recognized on equity securities held at period end | $682 | $288 | $(45) | 136.8% | 740.0% |\ | Other | $- | $(8) | $(1) | 100.0% | -700.0% |\ | Total investment gains/(losses) | $3,238 | $2,764 | $1,174 | 17.1% | 135.4% | - Total investment gains increased by **17.1%** to **$3.238 million** in fiscal 2025, primarily from unrealized gains on equity securities and increased interest income[183](index=183&type=chunk) Effective Income Tax Rate | Fiscal Year | Effective Income Tax Rate (%) | | :---------- | :---------------------------- | | 2025 | 24.89 |\ | 2024 | 24.50 |\ | 2023 | 24.00 | - The effective income tax rate increased to **24.89%** in fiscal 2025 from **24.50%** in fiscal 2024, mainly due to an increase in the state and local tax rate[185](index=185&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) Value Line's working capital increased to **$56.230 million** in fiscal 2025, with strong cash flows from operations and investing activities, maintaining liquidity Working Capital and Liquid Assets (in thousands) | Metric | April 30, 2025 (in thousands) | April 30, 2024 (in thousands) | | :---------------------- | :---------------------------- | :---------------------------- | | Working capital | $56,230 | $48,770 |\ | Cash and short-term securities | $77,391 | $68,345 | Cash Flows from Activities (in thousands) | Activity | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | | :---------------------- | :-------------------- | :-------------------- | :-------------------- | | Operating activities | $20,243 | $17,932 | $18,178 |\ | Investing activities | $21,200 | $(10,048) | $(26,116) |\ | Financing activities | $(11,756) | $(11,084) | $(14,175) | - Significant cash inflows from investing activities in fiscal 2025 (**$21.2 million**) were due to investing proceeds from fixed income maturities into higher-yield U.S. Government money market funds[189](index=189&type=chunk) - Financing outflows included **$453,000** for share repurchases (**11,480 shares**) and **$11.303 million** for quarterly dividend payments in fiscal 2025[190](index=190&type=chunk) - Management believes current cash and liquid assets, along with future cash flows from operations and EAM interests, will be sufficient to meet liquidity needs for the foreseeable future[192](index=192&type=chunk) [Recent Accounting Pronouncements](index=34&type=section&id=Recent%20Accounting%20Pronouncements) Value Line adopted ASU 2023-07 in fiscal 2025 and is evaluating ASU 2023-09 and ASU 2024-03 for future impacts on financial statement disclosures - Adopted ASU 2023-07, "Improvements to Reportable Segment Disclosures," in fiscal 2025, requiring disclosures of significant expenses by segment and interim disclosures[194](index=194&type=chunk)[290](index=290&type=chunk) - Evaluating ASU 2023-09, "Improvements to Income Tax Disclosures," effective for fiscal years beginning after December 15, 2024, which requires additional tax rate reconciliations and income taxes paid disclosures[195](index=195&type=chunk)[291](index=291&type=chunk) - Evaluating ASU 2024-03, "Income Statement-Reporting Comprehensive Income- Expense Disaggregation Disclosures," effective for fiscal years beginning after December 15, 2026, which requires additional disclosure of expense nature[196](index=196&type=chunk)[292](index=292&type=chunk) [Critical Accounting Estimates and Policies](index=35&type=section&id=Critical%20Accounting%20Estimates%20and%20Policies) Value Line's critical accounting policies involve significant estimates, particularly for the equity method valuation of its EAM Trust investment, annually assessed for impairment - The Company prepares financial statements in accordance with U.S. GAAP, requiring estimates and judgments affecting reported amounts[197](index=197&type=chunk)[281](index=281&type=chunk) - The investment in EAM Trust is accounted for using the equity method, with an annual impairment assessment based on an independent valuation[198](index=198&type=chunk)[199](index=199&type=chunk)[288](index=288&type=chunk) - Contractual obligations include lease payments for office space, totaling **$3.836 million** over the next four fiscal years[200](index=200&type=chunk)[357](index=357&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Value Line's market risks primarily relate to interest rates and equity prices, managed through short-term debt investments and diversified equity portfolios - The Company's primary market risks are associated with interest rates and equity prices[202](index=202&type=chunk) - Interest rate risk is mitigated by investing primarily in short-term debt obligations maturing within one year[204](index=204&type=chunk) Estimated Fair Value of Fixed Income Securities after Hypothetical Interest Rate Changes (in thousands) | As of April 30, 2025 | Fair Value (in thousands) | 50 bp increase (in thousands) | 50 bp decrease (in thousands) | 100 bp increase (in thousands) | 100 bp decrease (in thousands) | | :------------------- | :------------------------ | :---------------------------- | :---------------------------- | :----------------------------- | :----------------------------- | | Fixed maturities | $22,435 | $22,043 | $22,480 | $21,830 | $22,702 |\ | As of April 30, 2024 | Fair Value (in thousands) | 50 bp increase (in thousands) | 50 bp decrease (in thousands) | 100 bp increase (in thousands) | 100 bp decrease (in thousands) | | :------------------- | :------------------------ | :---------------------------- | :---------------------------- | :----------------------------- | :----------------------------- | | Fixed maturities | $47,611 | $46,554 | $46,935 | $46,363 | $47,126 | - Equity investment strategy involves acquiring equity securities across diverse industry groups, primarily ETFs held for dividend yield[211](index=211&type=chunk) - The Company limits its holdings to no more than **5%** of the approximate average daily trading volume in any one issue to maintain liquidity[211](index=211&type=chunk) Estimated Fair Value of Equity Securities after Hypothetical Price Changes (in thousands) | As of April 30, 2025 | Fair Value (in thousands) | Hypothetical Price Change | Estimated Fair Value after Change (in thousands) | Hypothetical % Change in Shareholders' Equity | | :------------------- | :------------------------ | :------------------------ | :----------------------------------------------- | :-------------------------------------------- | | Equity Securities and ETFs | $20,879 | 30% increase | $27,143 | 4.96% |\ | | | 30% decrease | $14,615 | -4.96% |\ | As of April 30, 2024 | Fair Value (in thousands) | Hypothetical Price Change | Estimated Fair Value after Change (in thousands) | Hypothetical % Change in Shareholders' Equity | | :------------------- | :------------------------ | :------------------------ | :----------------------------------------------- | :-------------------------------------------- | | Equity Securities and ETFs | $16,344 | 30% increase | $21,247 | 4.27% |\ | | | 30% decrease | $11,441 | -4.27% | [Item 8. Financial Statements and Supplementary Data](index=38&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Value Line's audited consolidated financial statements for fiscal years 2025-2023, prepared under U.S. GAAP, with an unqualified opinion - The consolidated financial statements for Value Line, Inc. and its subsidiaries are included, covering fiscal years ended April 30, 2025, 2024, and 2023[214](index=214&type=chunk)[256](index=256&type=chunk) - The independent auditors, Horowitz & Ullmann, P.C., issued an unqualified opinion, stating the financial statements present fairly the financial position and results of operations in conformity with U.S. GAAP[256](index=256&type=chunk) - A critical audit matter identified was the significant judgments made by management in estimating the fair value of the investment in the unconsolidated entity (EAM Trust)[261](index=261&type=chunk)[262](index=262&type=chunk) [Report of Independent Auditors](index=50&type=section&id=Report%20of%20independent%20auditors%20%28PCAOB%20ID%20No.%20921%29) Horowitz & Ullmann, P.C. issued an unqualified opinion on Value Line's financial statements, noting significant judgment in valuing the EAM Trust investment - The independent auditors issued an unqualified opinion on the consolidated financial statements for the three-year period ended April 30, 2025[256](index=256&type=chunk) - A critical audit matter involved the significant judgments and audit effort in evaluating management's estimation of the fair value of the investment in the unconsolidated EAM Trust[261](index=261&type=chunk)[262](index=262&type=chunk) [Consolidated Balance Sheets](index=52&type=section&id=Consolidated%20balance%20sheets%20at%20April%2030%2C%202025%20and%202024) As of April 30, 2025, Value Line's total assets increased to **$144.533 million**, driven by higher cash and equity securities, with shareholders' equity rising to **$99.678 million** Consolidated Balance Sheet Highlights (in thousands) | Metric | April 30, 2025 (in thousands) | April 30, 2024 (in thousands) | | :-------------------------------------------- | :---------------------------- | :---------------------------- | | **Assets:** | | |\ | Cash and cash equivalents | $34,077 | $4,390 |\ | Equity securities | $20,879 | $16,344 |\ | Available-for-sale Fixed Income securities | $22,435 | $47,611 |\ | Total current assets | $79,883 | $71,024 |\ | Investment in EAM Trust | $60,807 | $60,134 |\ | Total assets | $144,533 | $136,035 |\ | **Liabilities:** | | |\ | Total current liabilities | $23,653 | $22,254 |\ | Total long term liabilities | $21,202 | $22,988 |\ | Total liabilities | $44,855 | $45,242 |\ | **Shareholders' Equity:** | | |\ | Retained earnings | $113,400 | $104,249 |\ | Total shareholders' equity | $99,678 | $90,793 | - Total assets increased by **$8.498 million**, driven by a significant increase in cash and cash equivalents and equity securities, partially offset by a decrease in fixed income securities[266](index=266&type=chunk) - Shareholders' equity increased by **$8.885 million**, primarily due to an increase in retained earnings[266](index=266&type=chunk) [Consolidated Statements of Income](index=54&type=section&id=Consolidated%20statements%20of%20income%20for%20the%20fiscal%20years%20ended%20April%2030%2C%202025%2C%202024%20and%202023) Value Line's net income for fiscal 2025 was **$20.686 million** (**$2.20 EPS**), an **8.8% increase**, supported by EAM interests and investment gains Consolidated Statements of Income (in thousands, except share & per share amounts) | Metric | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | | :-------------------------------------------- | :-------------------- | :-------------------- | :-------------------- | | Investment periodicals and related publications | $24,682 | $25,420 | $26,232 |\ | Copyright fees | $10,397 | $12,067 | $13,463 |\ | Total publishing revenues | $35,079 | $37,487 | $39,695 |\ | Total expenses | $29,094 | $28,346 | $28,225 |\ | Income from operations | $5,985 | $9,141 | $11,470 |\ | Revenues interest in EAM Trust | $16,183 | $11,900 | $10,397 |\ | Profits interest in EAM Trust | $2,135 | $1,382 | $734 |\ | Investment gains | $3,238 | $2,764 | $1,174 |\ | Income before income taxes | $27,541 | $25,187 | $23,775 |\ | Income tax provision | $6,855 | $6,171 | $5,706 |\ | Net income | $20,686 | $19,016 | $18,069 |\ | Earnings per share, basic & fully diluted | $2.20 | $2.02 | $1.91 |\ | Weighted average number of common shares | 9,417,097 | 9,428,379 | 9,458,605 | - Net income increased by **8.8%** in fiscal 2025, driven by higher revenues and profits interests from EAM Trust and investment gains, despite a decrease in total publishing revenues and income from operations[268](index=268&type=chunk) [Consolidated Statements of Comprehensive Income](index=55&type=section&id=Consolidated%20statements%20of%20comprehensive%20income%20for%20the%20fiscal%20years%20ended%20April%2030%2C%202025%2C%202024%20and%202023) Value Line reported comprehensive income of **$20.873 million** in fiscal 2025, including net income and **$187,000** in other comprehensive income Consolidated Statements of Comprehensive Income (in thousands) | Metric | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | | :-------------------------------------------- | :-------------------- | :-------------------- | :-------------------- | | Net income | $20,686 | $19,016 | $18,069 |\ | Change in unrealized gains/(losses) on Fixed Income securities, net of taxes | $187 | $(627) | $398 |\ | Other comprehensive income/(loss) | $187 | $(627) | $398 |\ | Comprehensive income | $20,873 | $18,389 | $18,467 | - Comprehensive income for fiscal 2025 was **$20.873 million**, reflecting net income and a positive change in unrealized gains on fixed income securities[270](index=270&type=chunk) [Consolidated Statements of Cash Flows](index=56&type=section&id=Consolidated%20statements%20of%20cash%20flows%20for%20the%20fiscal%20years%20ended%20April%2030%2C%202025%2C%202024%20and%202023) Value Line generated **$20.243 million** cash from operations and **$21.200 million** from investing activities in fiscal 2025, increasing cash and cash equivalents Consolidated Statements of Cash Flows (in thousands) | Cash Flow Category | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | | :-------------------------------------- | :-------------------- | :-------------------- | :-------------------- | | Net cash provided by operating activities | $20,243 | $17,932 | $18,178 |\ | Net cash provided by/(used in) investing activities | $21,200 | $(10,048) | $(26,116) |\ | Net cash used in financing activities | $(11,756) | $(11,084) | $(14,175) |\ | Net change in cash and cash equivalents | $29,687 | $(3,200) | $(22,113) |\ | Cash, cash equivalents and restricted cash at end of year | $34,382 | $4,695 | $7,895 | - Operating cash inflows increased due to higher cash receipts from EAM and publication subscription sales, and lower income tax payments[188](index=188&type=chunk) - Investing activities shifted from significant outflows to a **$21.2 million** inflow in fiscal 2025, driven by re-investing fixed income maturities into higher-yield money market funds[189](index=189&type=chunk)[272](index=272&type=chunk) - Financing activities primarily consisted of dividend payments (**$11.303 million**) and treasury stock repurchases (**$453,000**) in fiscal 2025[190](index=190&type=chunk)[272](index=272&type=chunk) [Consolidated Statement of Changes in Shareholders' Equity](index=57&type=section&id=Consolidated%20statement%20of%20changes%20in%20shareholders'%20equity%20for%20the%20fiscal%20years%20ended%20April%2030%2C%202025%2C%202024%20and%202023) Value Line's shareholders' equity increased to **$99.678 million** in fiscal 2025, driven by net income and unrealized gains, offset by dividends and share repurchases Consolidated Statement of Changes in Shareholders' Equity (in thousands) | Metric | April 30, 2025 (in thousands) | April 30, 2024 (in thousands) | April 30, 2023 (in thousands) | | :-------------------------------------------- | :---------------------------- | :---------------------------- | :---------------------------- | | Balance as of April 30 | $99,678 | $90,793 | $83,673 |\ | Net income | $20,686 | $19,016 | $18,069 |\ | Change in unrealized gains/(losses) on Fixed Income securities, net of taxes | $187 | $(627) | $398 |\ | Purchase of treasury stock | $(453) | $(523) | $(4,704) |\ | Dividends declared | $(11,535) | $(10,746) | $(9,735) |\ | Retained earnings | $113,400 | $104,249 | $95,979 | - Shareholders' equity increased by **$8.885 million** in fiscal 2025, driven by net income and unrealized gains, partially offset by dividends and treasury stock repurchases[276](index=276&type=chunk)[277](index=277&type=chunk) - Dividends declared per share increased to **$0.325** for the quarter ended April 30, 2025, from **$0.30** in the prior year[277](index=277&type=chunk) [Notes to the Consolidated Financial Statements](index=59&type=section&id=Notes%20to%20the%20consolidated%20financial%20statements) These notes detail Value Line's accounting policies, related party transactions, investments, income taxes, and lease commitments, including EAM equity method and fair value measurements - The Company's financial statements are prepared in conformity with U.S. GAAP, requiring management to make estimates and assumptions[281](index=281&type=chunk) - Revenue from subscriptions is recognized ratably over the subscription life, while copyright fees are recognized monthly based on asset-based contractual arrangements[284](index=284&type=chunk)[285](index=285&type=chunk) - The investment in EAM Trust is accounted for using the equity method, as Value Line does not have a controlling financial interest despite significant non-voting revenue and profit interests[283](index=283&type=chunk)[288](index=288&type=chunk)[289](index=289&type=chunk)[335](index=335&type=chunk) - Investments are classified as equity securities and available-for-sale fixed income securities, valued at market, with unrealized gains/losses recognized in income or comprehensive income, respectively[293](index=293&type=chunk) - The effective income tax rate for fiscal 2025 was **24.89%**, an increase from **24.50%** in 2024, primarily due to higher state and local tax rates[341](index=341&type=chunk) [Note 1 - Organization and Summary of Significant Accounting Policies](index=59&type=section&id=Note%201-Organization%20and%20Summary%20of%20Significant%20Accounting%20Policies%3A) Value Line's core business involves investment periodicals and licensing, with its EAM Trust investment accounted for by the equity method as a VIE - Value Line's core business is producing investment periodicals and research, and licensing proprietary information, with a significant non-voting interest in EAM[280](index=280&type=chunk) - The Company accounts for its investment in EAM using the equity method, as it is a Variable Interest Entity (VIE) where Value Line is not the primary beneficiary and does not have a controlling financial interest[282](index=282&type=chunk)[283](index=283&type=chunk)[288](index=288&type=chunk)[335](index=335&type=chunk) - Subscription revenues are recognized ratably over the subscription life, and copyright fees are recognized monthly based on asset-based contractual arrangements[284](index=284&type=chunk)[285](index=285&type=chunk) - Recent ASUs (2023-07, 2023-09, 2024-03) on segment disclosures, income tax disclosures, and expense disaggregation are being adopted or evaluated[290](index=290&type=chunk)[291](index=291&type=chunk)[292](index=292&type=chunk) Fair Value Measurements of Investments (in thousands) | As of April 30, 2025 | Level 1 (in thousands) | Level 2 (in thousands) | Level 3 (in thousands) | Total (in thousands) | | :------------------- | :--------------------- | :--------------------- | :--------------------- | :------------------- | | Cash equivalents | $33,615 | $- | $- | $33,615 |\ | Equity securities | $20,879 | $- | $- | $20,879 |\ | Available-for-sale fixed income securities | $22,435 | $- | $- | $22,435 |\ | Total | $76,929 | $- | $- | $76,929 |\ | As of April 30, 2024 | Level 1 (in thousands) | Level 2 (in thousands) | Level 3 (in thousands) | Total (in thousands) | | :------------------- | :--------------------- | :--------------------- | :--------------------- | :------------------- | | Cash equivalents | $4,136 | $- | $- | $4,136 |\ | Equity securities | $16,344 | $- | $- | $16,344 |\ | Available-for-sale fixed income securities | $47,361 | $250 | $- | $47,611 |\ | Total | $67,841 | $250 | $- | $68,091 | [Note 2 - Supplementary Cash Flow Information](index=65&type=section&id=Note%202%20-%20Supplementary%20Cash%20Flow%20Information%3A) This note reconciles cash, cash equivalents, and restricted cash to **$34.382 million** at April 30, 2025, and details income tax payments Reconciliation of Cash, Cash Equivalents, and Restricted Cash (in thousands) | Metric | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | | :-------------------------------------------- | :-------------------- | :-------------------- | :-------------------- | | Cash and cash equivalents | $34,077 | $4,390 | $7,590 |\ | Restricted cash | $305 | $305 | $305 |\ | Total cash, cash equivalents, and restricted cash | $34,382 | $4,695 | $7,895 | Income Tax Payments (in thousands) | Tax Type | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | | :---------------------------- | :-------------------- | :-------------------- | :-------------------- | | State and local income tax payments | $1,179 | $1,090 | $923 |\ | Federal income tax payments | $5,058 | $5,448 | $4,425 | [Note 3 - Related Party Transactions](index=65&type=section&id=Note%203%20-%20Related%20Party%20Transactions%3A) Value Line has significant non-voting revenue and profit interests in EAM, with EAM-managed assets increasing to **$4.68 billion**, and engages in transactions with its Parent, AB&Co. - Value Line holds non-voting revenue and profit interests in EAM, entitling it to **41%-55%** of EAM's non-distribution revenues and **50%** of its residual profits, with quarterly distributions[310](index=310&type=chunk)[312](index=312&type=chunk) Non-voting Revenues and Profits Interests in EAM (in thousands) | Metric | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | | :-------------------------- | :-------------------- | :-------------------- | :-------------------- | | Non-voting revenues interest in EAM | $16,183 | $11,900 | $10,397 |\ | Non-voting profits interest in EAM | $2,135 | $1,382 | $734 |\ | Total | $18,318 | $13,282 | $11,131 | - Total assets in Value Line Funds managed by EAM increased by **12.0%** to **$4.68 billion** at April 30, 2025[309](index=309&type=chunk) - The Company was reimbursed **$356,000** by AB&Co. in fiscal 2025 for services and made federal income tax payments of **$5.058 million** to AB&Co. under a tax-sharing arrangement[314](index=314&type=chunk)[315](index=315&type=chunk) - AB&Co., the Parent, owned **91.74%** of Value Line's outstanding common stock as of April 30, 2025[316](index=316&type=chunk) [Note 4 - Investments](index=67&type=section&id=Note%204%20-%20Investments%3A) Value Line's investments include equity securities (**$20.879 million** fair value) and fixed income securities (**$22.435 million** fair value), with **$3.238 million** in investment gains - Investments consist of equity securities (ETFs) and available-for-sale fixed income securities (government debt, CDs), classified as current assets[317](index=317&type=chunk)[318](index=318&type=chunk)[321](index=321&type=chunk) Equity Securities (in thousands) | Metric | April 30, 2025 (in thousands) | April 30, 2024 (in thousands) | | :-------------- | :---------------------------- | :---------------------------- | | Aggregate Cost | $15,513 | $11,663 |\ | Fair Value | $20,879 | $16,344 |\ | Gross Unrealized Gains (2025) | $5,450 | N/A |\ | Gross Unrealized Losses (2025) | $(84) | N/A | Fixed Income Securities (in thousands) | Metric | April 30, 2025 (in thousands) | April 30, 2024 (in thousands) | | :-------------- | :---------------------------- | :---------------------------- | | Aggregate Cost | $22,518 | $47,931 |\ | Fair Value | $22,435 | $47,611 |\ | Average Yield (%) | 5.99 | 4.40 | Investment Gains/(Losses) (in thousands) | Metric | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | | :------------------------------------------------ | :-------------------- | :-------------------- | :-------------------- | | Dividend income | $553 | $551 | $595 |\ | Interest income | $2,126 | $1,934 | $706 |\ | Investment gains/(losses) recognized on sales of equity securities | $(123) | $(1) | $(81) |\ | Unrealized gains/(losses) recognized on equity securities held at period end | $682 | $288 | $(45) |\ | Total investment gains/(losses) | $3,238 | $2,764 | $1,174 | - The investment in EAM Trust was **$60.807 million** at April 30, 2025, and is monitored for impairment, with no losses recorded in fiscal 2025 or 2024[328](index=328&type=chunk)[331](index=331&type=chunk) [Note 5 - Variable Interest Entity](index=71&type=section&id=Note%205%20-%20Variable%20Interest%20Entity%3A) EAM is a Variable Interest Entity (VIE) not consolidated by Value Line due to lack of control, with maximum exposure to loss limited to its **$60.807 million** investment - EAM is considered a Variable Interest Entity (VIE) in relation to Value Line[334](index=334&type=chunk) - Value Line does not consolidate EAM because it lacks the power to direct EAM's most significant economic activities, holding only non-voting interests and protective rights[335](index=335&type=chunk) Value Line's Exposure to EAM (in thousands) | Metric | April 30, 2025 (in thousands) | April 30, 2024 (in thousands) | | :-------------------------------------------- | :---------------------------- | :---------------------------- | | VIE Assets (EAM's total assets) | $63,699 | $63,076 |\ | Value Line Investment in EAM Trust | $60,807 | $60,134 |\ | Maximum Exposure to Loss | $60,807 | $60,134 | - Value Line's maximum exposure to loss from EAM is limited to its initial investment and any undistributed revenues and profits interests retained in EAM[337](index=337&type=chunk) [Note 6 - Property and Equipment](index=72&type=section&id=Note%206%20-%20Property%20and%20Equipment%3A) Net property and equipment totaled **$3.475 million** at April 30, 2025, carried at cost and depreciated, including a right-of-use asset for operating leases - Property and equipment are carried at cost, with depreciation and amortization provided using the straight-line method[339](index=339&type=chunk) Property and Equipment, Net (in thousands) | Metric | April 30, 2025 (in thousands) | April 30, 2024 (in thousands) | | :-------------------------------------------- | :---------------------------- | :---------------------------- | | Building and leasehold improvements | $652 | $652 |\ | Operating lease - right-of-use asset | $3,037 | $4,090 |\ | Furniture and equipment | $2,430 | $2,274 |\ | Total (gross) | $6,119 | $7,016 |\ | Accumulated depreciation and amortization | $(2,644) | $(2,576) |\ | Total property and equipment, net | $3,475 | $4,440 | [Note 7 - Federal, State and Local Income Taxes](index=72&type=section&id=Note%207%20-%20Federal%2C%20State%20and%20Local%20Income%20Taxes%3A) Value Line's income tax provision was **$6.855 million** in fiscal 2025, with an effective tax rate of **24.89%**, primarily due to increased state and local tax rates Income Tax Provision (in thousands) | Tax Type | FY2025 (in thousands) | FY2024 (in thousands) | FY2023 (in thousands) | | :---------------------------- | :-------------------- | :-------------------- | :-------------------- | | Current tax expense | $6,572 | $6,079 | $5,686 |\ | Deferred tax expense (benefit) | $283 | $92 | $20 |\ | Income tax provision | $6,855 | $6,171 | $5,706 | Effective Income Tax Rate | Fiscal Year | Effective Income Tax Rate (%) | | :---------- | :---------------------------- | | 2025 | 24.89 |\ | 2024 | 24.50 |\ | 2023 | 24.00 | - The increase in the effective tax rate in fiscal 2025 was primarily due to an increase in the state and local tax rate from **3.72%** to **4.09%**[341](index=341&type=chunk) Long-Term Deferred Tax Liability (in thousands) | Component | April 30, 2025 (in thousands) | April 30, 2024 (in thousands) | | :-------------------------------------------- | :---------------------------- | :---------------------------- | | Federal tax liability (benefit) | $10,772 | $10,596 |\ | State and local tax liabilities (benefits) | $2,423 | $2,297 |\ | Deferred tax liability, long-term | $13,195 | $12,893 | - The deferred tax liability is primarily from the deferred gain on deconsolidation of the Company's asset management and mutual fund distribution subsidiaries[342](index=342&type=chunk) [Note 8 - Employees' Profit Sharing and Savings Plan](index=73&type=section&id=Note%208%20-%20Employees'%20Profit%20Sharing%20and%20Savings%20Plan%3A) Value Line maintains a contributory Profit Sharing and Savings Plan for employees, with a discretionary annual contribution estimated at **$422,000** for fiscal 2025 - The Company maintains a qualified, contributory Profit Sharing and Savings Plan for substantially all employees[346](index=346&type=chunk) - The annual Company contribution is discretionary, based on eligible employee salaries and consolidated net operating income[346](index=346&type=chunk) Estimated Profit Sharing Plan Contribution (in thousands) | Fiscal Year | Contribution (in thousands) | | :---------- | :-------------------------- | | 2025 | $422 |\ | 2024 | $411 |\ | 2023 | $410 | [Note 9 - Lease Commitments](index=75&type=section&id=Note%209%20-%20Lease%20Commitments%3A) Value Line leases New York office space until November 2027, recognizing a right-of-use asset and lease liability under ASU 2016-02, with **$1.276 million** in lease expense - The Company leases office space in New York, NY, under an operating lease agreement ending November 29, 2027[348](index=348&type=chunk)[352](index=352&type=chunk) - ASU 2016-02, "Leases (Topic 842)," was adopted in May 2019, requiring recognition of a right-of-use asset and lease liability for leases longer than one year[350](index=350&type=chunk)[351](index=351&type=chunk) - As of April 30, 2025, the long-term lease asset was **$3.037 million**, and total operating lease liabilities were **$3.579 million**[354](index=354&type=chunk)[357](index=357&type=chunk) - Lease expense for fiscal 2025 was **$1.276 million**, and **$1.428 million** was paid in rent, classified within operating activities[355](index=355&type=chunk)[356](index=356&type=chunk) Undiscounted Future Minimum Lease Payments (in thousands) | Fiscal years ended April 30, | Amount (in thousands) | | :--------------------------- | :-------------------- | | 2026 | $1,461 |\ | 2027 | $1,493 |\ | 2028 | $882 |\ | Total | $3,836 | [Note 10 - Disclosure of Credit Risk of Financial Instruments with Off-Balance Sheet Risk](index=77&type=section&id=Note%2010%20-%20Disclosure%20of%20Credit%20Risk%20of%20Financial%20Instruments%20with%20Off-Balance%20Sheet%20Risk%3A) A single customer accounted for **29.6%** of Value Line's publishing revenues in fiscal 2025, representing a significant concentration and credit risk - A single customer accounted for a significant portion of total publishing revenues[359](index=359&type=chunk) Publishing Revenues from Single Customer | Fiscal Year | Percentage of Total Publishing Revenues (%) | | :---------- | :------------------------------------------ | | 2025 | 29.6 |\ | 2024 | 32.2 |\ | 2023 | 33.9 | [Note 11 - Comprehensive Income](index=77&type=section&id=Note%2011%20-%20Comprehensive%20Income%3A) Value Line reports comprehensive income, including net income and other comprehensive income (OCI) of **$187,000** from unrealized gains on fixed income securities - Comprehensive income includes net income and other comprehensive income (OCI)[360](index=360&type=chunk) - The change in valuation of fixed income securities, net of deferred income taxes, is recorded in Accumulated Other Comprehensive Income[361](index=361&type=chunk) Components of Comprehensive Income (in thousands) | Fiscal Year Ended April 30, 2025 | Amount Before Tax (in thousands) | Tax (Expense) / Benefit (in thousands) | Amount Net of Tax (in thousands) | | :------------------------------- | :------------------------------- | :------------------------------------- | :------------------------------- | | Change in unrealized gains on available-for-sale fixed income securities | $237 | $(50) | $187 |\ | Fiscal Year Ended April 30, 2024 | Amount Before Tax (in thousands) | Tax (Expense) / Benefit (in thousands) | Amount Net of Tax (in thousands) | | :------------------------------- | :------------------------------- | :------------------------------------- | :------------------------------- | | Change in unrealized losses on available-for-sale fixed income securities | $(793) | $166 | $(627) |\ | Fiscal Year Ended April 30, 2023 | Amount Before Tax (in thousands) | Tax (Expense) / Benefit (in thousands) | Amount Net of Tax (in thousands) | | :------------------------------- | :------------------------------- | :------------------------------------- | :------------------------------- | | Change in unrealized gains on available-for-sale fixed income securities | $503 | $(105) | $398 | [Note 12 - Accounting for the Costs of Computer Software Developed for Internal Use](index=79&type=section&id=No

Company Overview - Value Line, Inc. is a leading provider of investment research, known for its widely used Value Line Investment Survey, which offers independent equity research [2][3] - The company publishes proprietary investment research in both print and digital formats, catering to individual and institutional investors [2][11] Recent Financial Announcement - On July 18, 2025, Value Line's Board of Directors declared a quarterly cash dividend of $0.325 per common share, payable on August 11, 2025, to stockholders of record on July 28, 2025 [1] Investment Research Services - Value Line offers a variety of specialized investment research services, including: - Value Line Select, which recommends one exceptional stock each month with superior profit potential [2] - The Value Line Special Situations Service, focusing on small and mid-cap stocks with high return potential [3] - Value Line Select ETFs, identifying one ETF each month expected to outperform the market [3] - Value Line Select: Dividend Income & Growth, recommending two stocks expected to provide above-average current income and long-term dividend growth [4] - The Value Line M&A Service, highlighting one company each month that may be acquired at a premium [5] - The Value Line Climate Change Investing Service, targeting investments related to climate change [6] Comprehensive Research Tools - Value Line provides extensive research tools, including: - The Value Line Research Center, an online system for structuring diversified portfolios [10] - The Value Line Investment Analyzer, covering approximately 6,000 equities [10] - Various digital services that provide in-depth analysis on large, mid, and small-cap stocks, covering about 90% of the U.S. stock market [9][10]

Core Viewpoint - Value Line, Inc. has announced an 8.3% increase in its quarterly dividend, marking the 11th consecutive yearly increase, with the new dividend set at $0.325 per common share, payable on May 12, 2025 [1] Company Overview - Value Line is a prominent provider of investment research, with its Investment Survey being one of the most widely utilized sources of independent equity research [2] - The company publishes proprietary investment research in both print and digital formats [2] Specialized Services - Value Line Select: Monthly recommendations of one exceptional stock with superior profit potential and a favorable risk/reward ratio [3] - Value Line Special Situations Service: Monthly recommendations of small and mid-cap stocks expected to deliver returns above the market average [3] - Value Line Select ETFs: Monthly identification of one ETF positioned to outperform the market [3] - Value Line Select: Dividend Income & Growth: Monthly recommendations of two stocks expected to provide above-average current income and long-term dividend growth [4] - New Value Line ETFs Service: Analysis on over 2,800 ETFs to assist subscribers in portfolio selection [4] - Value Line M&A Service: Monthly highlight of one company as a potential acquisition target at a material premium [5] - Value Line Information You Should Know: Focuses on financial planning and investment issues relevant to today's investors [5] - Value Line Climate Change Investing Service: Targets climate change as a critical issue expected to transform the global economy [6] Research Products - Value Line Investment Survey: Provides financial information and quantitative analysis on approximately 1,800 small and mid-cap companies [8] - Value Line 600: In-depth research on 600 large and prominent companies [8] - Value Line Investment Survey–Selection & Opinion: Weekly economic and stock market commentary with actively managed model portfolios [8] - Value Line Investment Analyzer: Covers large, mid, and small-cap stocks, comprising about 90% of the U.S. stock market [10]

Group 1: Bank of America Corporation (BAC) - Bank of America shares have gained +2.5% over the past year, underperforming the Zacks Financial - Investment Bank industry's gain of +20.4% [3] - Non-interest income is projected to rise only 3.4% in 2025, while total non-interest expenses are expected to increase by 3% [4] - Net interest income (NII) is anticipated to grow at a CAGR of 5.3% over the next three years, with total revenues projected to increase by 4.8% in 2025 [5] Group 2: Chevron Corporation (CVX) - Chevron shares have declined -6.2% over the past six months, compared to the Zacks Oil and Gas - Integrated - International industry's decline of -11.9% [6] - The planned acquisition of Hess Corporation is expected to enhance Chevron's presence in oil-rich Guyana, although the company faces challenges from oil price fluctuations and high valuation [7] Group 3: Stryker Corporation (SYK) - Stryker shares have gained +4.3% over the past year, slightly underperforming the Zacks Medical - Products industry's gain of +5.5% [8] - Growth drivers include rising demand for robotic-assisted procedures, hospital capital expenditures, and international expansion, supported by the Mako SmartRobotics platform [9] - However, foreign exchange volatility and supply chain disruptions may impact earnings, alongside increasing competition in the MedTech sector [10] Group 4: Value Line, Inc. (VALU) - Value Line shares have outperformed the Zacks Financial - Investment Management industry over the past year, with a gain of +10% compared to +6.4% [11] - The company has robust cash generation, with cash balances increasing to $27.1 million from $6.1 million year-over-year, supporting dividends and growth investments [11] - However, core publishing revenue declined to $26.7 million, and customer concentration poses a risk [13] Group 5: Sypris Solutions, Inc. (SYPR) - Sypris Solutions shares have gained +3.6% over the past year, underperforming the Zacks Electronics - Miscellaneous Services industry's gain of +36.3% [14] - The company benefits from a long-term supply agreement with a global OEM, providing stable revenues as a sole-source supplier [14] - However, liquidity challenges and rising costs may constrain financial flexibility, while competitive pressures in aerospace heighten vulnerability [16]

Core Viewpoint - Value Line, Inc. (VALU) experienced an 8.4% decline in share price following its earnings report for the quarter ended January 31, 2025, contrasting with a 1.6% growth in the S&P 500 index during the same period [1] Financial Performance - For the quarter ended January 31, 2025, Value Line reported earnings per share (EPS) of 55 cents, down from 62 cents in the same quarter last year [2] - Total publishing revenues decreased slightly to $9 million from $9.1 million in the prior-year period [2] - Net income fell to $5.2 million from $5.9 million, reflecting a 12.3% decline [2] Revenue Breakdown - Revenues from investment periodicals and related publications remained stable at $6.31 million compared to $6.32 million in the prior-year period [3] - Copyright fees declined to $2.7 million from $2.8 million [3] - Income from Value Line's interest in Eulav Asset Management (EAM) increased to $4.9 million from $3.5 million, marking a 40.7% rise [3] Operating Metrics - Total expenses rose by 7.3% year over year to $7.4 million, driven by higher advertising and promotional costs, which increased to $1 million from $0.8 million [4] - Production and distribution expenses increased to $1.5 million from $1.2 million, while office and administration costs rose to $1.4 million from $1.2 million [4] - Salaries and employee benefits slightly decreased to $3.6 million from $3.7 million [5] - Income from operations fell to $1.6 million, down from $2.2 million in the prior-year quarter, representing a 30% decrease [5] Management Commentary - The decline in EPS and net income was attributed to rising costs in marketing and production, as well as lower publishing revenues [6] - The company emphasized its focus on operational efficiencies and maintaining its subscription-based business model [6] Factors Influencing Results - Earnings were impacted by a decline in copyright fees, which fluctuate based on licensing agreements and market conditions [7] - Investment gains fell significantly to $0.7 million from $2 million in the prior-year period, reflecting less favorable market conditions for the investment portfolio [7] - The positive contribution from EAM helped offset some softness in core publishing revenues, highlighting the firm's reliance on asset management interests [7] Outlook - Management noted that macroeconomic uncertainties and evolving market dynamics could continue to affect subscription demand and copyright-related revenue streams [8] - Value Line plans to focus on digital content expansion and client engagement strategies to sustain long-term growth [8] Other Developments - During the quarter, the company repurchased 2,110 shares of its common stock at an average price of $45.25 per share [9] - As of January 31, 2025, the company had $0.9 million remaining under its current repurchase authorization [9]

Core Viewpoint - Value Line, Inc. reported strong financial results for the nine months ended January 31, 2025, showcasing significant growth in net income and investment gains [5]. Financial Performance - The company's net income for the nine months was $16,735,000, or $1.78 per share, representing a 17.6% increase from $14,232,000, or $1.51 per share, for the same period in the previous year [5]. - Non-voting revenues from Eulav Asset Management increased by $4,440,000, or 47.5%, totaling $13,781,000 for the nine months ended January 31, 2025 [5]. - Total investment gains reached $3,557,000, an increase of $1,872,000, or 111.1%, compared to the prior fiscal year [5]. - Retained earnings as of January 31, 2025, were $112,508,000, up 7.9% from $104,300,000 as of April 30, 2024 [5]. - Shareholders' equity increased to $98,950,000, a 9.0% rise from $90,793,000 as of April 30, 2024 [5]. Company Overview - Value Line, Inc. is a prominent provider of investment research based in New York, known for its widely used Value Line Investment Survey [2]. - The company offers a variety of proprietary investment research products in both print and digital formats, including services related to Mutual Funds, ETFs, and Options [2]. - Specialized products include Value Line Select, The Value Line Special Situations Service, and various Value Line ETFs [2].

Financial Performance - For the three months ended January 31, 2025, the company's net income was $5,163,000, a decrease of 12.3% compared to $5,885,000 for the same period in 2024[146]. - The company's income from operations for the nine months ended January 31, 2025, was $5,155,000, down 32.6% from $7,653,000 in the prior year[146]. - Total publishing revenues decreased by 1.8% to $8,967,000 for the three months ended January 31, 2025, from $9,131,000 in 2024[150]. - The company's operating expenses increased by 7.3% to $7,403,000 for the three months ended January 31, 2025, compared to $6,899,000 in 2024[146]. - Total operating expenses for the nine months ended January 31, 2025, were $21,537,000, a 3.4% increase from $20,831,000 in the previous year[168]. - The company experienced a 3.4% decrease in print publication revenues to $6,750,000 during the nine months ended January 31, 2025, compared to $6,987,000 in the prior year[155]. Revenue Sources - Non-voting revenues and non-voting profits interests from EAM Trust increased by 40.7% to $4,910,000 for the three months ended January 31, 2025, compared to $3,489,000 in 2024[146]. - Subscription sales orders from print and digital products are a key revenue driver, with total investment periodicals and related publications showing a slight decline of 0.1% for the three months ended January 31, 2025[150]. - Investment periodicals and related publications revenues were $18,782,000, a decrease of 2.0% compared to $19,174,000 in the prior fiscal year[154]. - New sales of print publications increased to 14.8% of total gross sales during the nine months ended January 31, 2025, while renewal and conversion sales decreased to 85.2%[151]. - 29.6% of total publishing revenues of $26,692,000 were derived from a single customer during the nine months ended January 31, 2025[173]. Investment Gains - The company reported a significant increase in investment gains, with a 209.9% rise to $662,000 for the three months ended January 31, 2025, compared to $2,009,000 in 2024[146]. - Total investment gains for the nine months ended January 31, 2025, were $3,557,000, an increase of 111.1% compared to $1,685,000 in the prior year[175]. - Non-voting revenues interest from EAM increased by 43.6% to $12,089,000 during the nine months ended January 31, 2025, compared to $8,420,000 in the prior year[167]. Economic Context - The U.S. GDP expanded by an estimated 2.8% during 2024, nearly matching the 2.9% gain recorded in 2023, driven by strong consumer spending[140]. - The company anticipates challenges in sustaining earnings growth due to potential changes in fiscal policies and the Federal Reserve's monetary policy stance[144]. Cash Flow and Capital - Cash inflows from operating activities were $14,703,000 for the nine months ended January 31, 2025, compared to $14,169,000 for the same period in 2024, driven by increased unrealized gains on equity securities[182]. - Cash inflows from investing activities were $16,475,000 for the nine months ended January 31, 2025, a significant increase from cash outflows of $7,719,000 for the same period in 2024[184]. - Cash outflows from financing activities were $8,752,000 for the nine months ended January 31, 2025, compared to $8,260,000 for the same period in 2024, with quarterly dividend payments of $0.30 per share totaling $8,478,000[185]. - The Company had working capital of $55,483,000 as of January 31, 2025, compared to $48,770,000 as of April 30, 2024, including short-term unearned revenue of $16,634,000[180]. Securities and Dividends - As of January 31, 2025, the aggregate cost and fair value of fixed income securities classified as available-for-sale were $27,269,000 and $27,167,000, respectively[200]. - The aggregate cost of equity securities was $15,509,000 as of January 31, 2025, with a fair value of $21,808,000, compared to a cost of $11,663,000 and fair value of $16,344,000 as of April 30, 2024[207]. - The dividend yield for equity securities as of January 31, 2025, is 5.22%[208]. - The dividend yield for equity securities as of April 30, 2024, is 4.27%[208]. - A hypothetical 30% decrease in equity securities value as of January 31, 2025, would result in a fair value of $15,266,000[208]. - A hypothetical 30% decrease in equity securities value as of April 30, 2024, would result in a fair value of $11,441,000[208]. Future Outlook - The Company expects to finance current and forecasted liquidity needs for the next twelve months and beyond without making any borrowings[187]. - The Company is required to make estimated lease payments totaling $4,198,000 over the next four fiscal years[193]. - The Company has adopted ASU 2023-07, which requires disclosures of significant expenses by segment, effective for fiscal years beginning after December 15, 2023[189]. - As of January 31, 2025, the estimated fair value of equity securities held is $21,808,000, reflecting a 30% increase in dividend yield[208]. - As of April 30, 2024, the estimated fair value of equity securities held is $16,344,000, with a potential 30% increase leading to a value of $21,247,000[208].

Dividend Announcement - Value Line Inc declared a quarterly cash dividend of $0 30 per common share payable on February 10 2025 to stockholders of record on January 27 2025 [1] - The company has 9,417,264 shares of common stock outstanding as of January 17 2025 [1] Company Overview - Value Line Inc is a leading New York-based provider of investment research known for its widely used Value Line Investment Survey [2] - The company offers a range of proprietary investment research in print and digital formats covering Mutual Funds ETFs and Options [2] - Specialized products include Value Line Select The Value Line Special Situations Service Value Line Select ETFs and The Value Line Climate Change Investing Service among others [2] - Products are available to individual investors via mail website or phone and institutional-level services are offered through dedicated platforms [2] Forward-Looking Statements - The report contains forward-looking statements that depend on future events or conditions and are subject to risks and uncertainties [4] - Factors that could affect actual results include changes in investment trends economic conditions Federal Reserve policies and global financial issues [4] - Other risks include competition in publishing and investment management government regulation and the availability of free or low-cost investment information [4] - The company acknowledges that other unknown or unpredictable factors could also impact future results [5] Contact Information - Howard A Brecher is the contact person for Value Line Inc with the phone number 212-907-1500 [6] - The company's websites include www valueline com www ValueLinePro com and www ValueLineLibrary com [6]

Core Insights - Value Line, Inc. (VALU) reported a net income of 60 cents per share for the fiscal second quarter, marking a 62% increase from 37 cents per share in the same quarter last year [1] - The company's overall net income rose to $5.7 million, up from $3.5 million in the previous year [3] - Revenue from non-voting revenues and profits interests in EULAV Asset Management (EAM) increased by 54.6% year-over-year to $4.6 million [2] Financial Performance - Retained earnings reached $110.2 million as of October 31, 2024, reflecting a 5.7% increase from April 30, 2024 [5] - Shareholders' equity grew by 6.5% to $96.7 million from $90.8 million as of April 30, 2024 [5] - Investment gains for the fiscal second quarter amounted to $1.2 million, a significant recovery from a loss of $1.1 million in the same period last year [8] Revenue Drivers - The substantial growth in EAM revenues and the reversal of prior investment losses into gains were key factors driving the increases in net income and revenues [7] - EAM-related revenue contributed to over 50% growth during the quarter, highlighting its importance to the company's financial performance [7] Management Insights - Management attributed the strong performance to the significant increase in EAM revenues and robust investment gains, emphasizing the strength of the asset management business [6] - The consistent growth in EAM-related revenue streams is seen as a critical component of Value Line's financial stability [6] Strategic Focus - Value Line is committed to enhancing its research offerings, with proprietary services attracting a diverse range of individual and institutional investors [9] - The company's ongoing investment in digital products and expanded service offerings underscores its dedication to maintaining market leadership [9]