Value Line(VALU) - 2026 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION Item 1. Consolidated Condensed Financial Statements This section presents Value Line, Inc.'s unaudited consolidated condensed financial statements for the period ended July 31, 2025, including balance sheets, income statements, comprehensive income statements, cash flow statements, and statements of changes in shareholders' equity, along with detailed notes explaining accounting policies, investments, related party transactions, and other financial disclosures Consolidated Condensed Balance Sheets | Metric | July 31, 2025 (in thousands) | April 30, 2025 (in thousands) | | :------------------------------------------ | :----------------------------- | :---------------------------- | | Total current assets | $83,471 | $79,883 | | Total long term assets | $64,732 | $64,650 | | Total assets | $148,203 | $144,533 | | Total current liabilities | $23,723 | $23,653 | | Total long term liabilities | $21,444 | $21,202 | | Total liabilities | $45,167 | $44,855 | | Total shareholders' equity | $103,036 | $99,678 | - Total assets increased by $3,670 thousand (2.5%) from April 30, 2025, to July 31, 2025, primarily driven by an increase in current assets[9] - Shareholders' equity increased by $3,358 thousand (3.4%) from April 30, 2025, to July 31, 2025[9] Consolidated Condensed Statements of Income | Metric | Three Months Ended July 31, 2025 (in thousands) | Three Months Ended July 31, 2024 (in thousands) | Change (%) | | :------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :--------- | | Total publishing revenues | $8,606 | $8,884 | -3.1% | | Total expenses | $7,110 | $7,037 | 1.0% | | Income from operations | $1,496 | $1,847 | -19.0% | | Revenues and profits interests in EAM Trust | $5,121 | $4,241 | 20.7% | | Investment gains/(losses) | $2,019 | $1,709 | 18.1% | | Income before income taxes | $8,636 | $7,797 | 10.8% | | Income tax provision | $2,176 | $1,910 | 13.9% | | Net income | $6,460 | $5,887 | 9.7% | | Earnings per share, basic & fully diluted | $0.69 | $0.62 | 11.3% | - Net income increased by 9.7% to $6,460 thousand, and EPS increased by 11.3% to $0.69 for the three months ended July 31, 2025, compared to the same period in 2024[12] - Income from operations decreased by 19.0%, while revenues and profits interests from EAM Trust increased by 20.7%, significantly contributing to the overall income growth[12] Consolidated Condensed Statements of Comprehensive Income | Metric | Three Months Ended July 31, 2025 (in thousands) | Three Months Ended July 31, 2024 (in thousands) | | :------------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Net income | $6,460 | $5,887 | | Change in unrealized gains/(losses) on Fixed Income securities, net of tax | $15 | $177 | | Comprehensive income | $6,475 | $6,064 | - Comprehensive income increased by 6.8% to $6,475 thousand for the three months ended July 31, 2025, compared to $6,064 thousand in the prior year[15] - The change in unrealized gains on Fixed Income securities, net of tax, significantly decreased from $177 thousand in 2024 to $15 thousand in 2025[15] Consolidated Condensed Statements of Cash Flows | Cash Flow Activity | Three Months Ended July 31, 2025 (in thousands) | Three Months Ended July 31, 2024 (in thousands) | | :--------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Net cash provided by operating activities | $5,560 | $4,771 | | Net cash provided by/(used in) investing activities | $(2,811) | $9,473 | | Net cash used in financing activities | $(3,118) | $(3,006) | | Net change in cash and cash equivalents | $(369) | $11,238 | | Cash, cash equivalents and restricted cash at end of period | $34,013 | $15,933 | - Net cash provided by operating activities increased by 16.5% to $5,560 thousand for the three months ended July 31, 2025[18] - Investing activities shifted from a net inflow of $9,473 thousand in 2024 to a net outflow of $2,811 thousand in 2025, primarily due to changes in purchases and sales of securities[18] - Net change in cash and cash equivalents was a decrease of $369 thousand in 2025, a significant change from an increase of $11,238 thousand in 2024[18] Consolidated Condensed Statement of Changes in Shareholders' Equity (July 31, 2025) | Metric | April 30, 2025 (in thousands) | July 31, 2025 (in thousands) | | :-------------------------------- | :---------------------------- | :--------------------------- | | Retained earnings | $113,400 | $116,802 | | Treasury stock, at cost (shares) | (588,997) | (590,478) | | Treasury stock, at cost (amount) | $(15,647) | $(15,706) | | Accumulated other comprehensive income | $(66) | $(51) | | Total shareholders' equity | $99,678 | $103,036 | - Shareholders' equity increased from $99,678 thousand to $103,036 thousand during the three months ended July 31, 2025, driven by net income of $6,460 thousand, partially offset by dividends declared of $3,058 thousand and treasury stock purchases of $59 thousand[20] - Dividends declared per common share were $0.325 for the three months ending July 31, 2025[20] Consolidated Condensed Statement of Changes in Shareholders' Equity (July 31, 2024) | Metric | April 30, 2024 (in thousands) | July 31, 2024 (in thousands) | | :-------------------------------- | :---------------------------- | :--------------------------- | | Retained earnings | $104,249 | $107,311 | | Treasury stock, at cost (shares) | (577,517) | (581,926) | | Treasury stock, at cost (amount) | $(15,194) | $(15,373) | | Accumulated other comprehensive income | $(253) | $(76) | | Total shareholders' equity | $90,793 | $93,853 | - Shareholders' equity increased from $90,793 thousand to $93,853 thousand during the three months ended July 31, 2024, primarily due to net income of $5,887 thousand, partially offset by dividends declared of $2,825 thousand and treasury stock purchases of $179 thousand[24] - Dividends declared per common share were $0.30 for the three months ending July 31, 2024[24] Notes to Consolidated Condensed Financial Statements Note 1 - Organization and Summary of Significant Accounting Policies - Value Line, Inc. (VLI) primarily produces investment periodicals and research, and licenses its proprietary information to third parties, holding a significant non-voting interest in Eulav Asset Management LLC (EAM)[27] - The Company accounts for its investment in EAM under the equity method, as it is not deemed the primary beneficiary of this Variable Interest Entity (VIE)[31] - Subscription revenues are recognized ratably over the subscription life, while copyright fees are recognized monthly based on asset-based agreements[32][33] - Recent accounting pronouncements include ASU 2023-07 (Improvements to Reportable Segment Disclosures), ASU 2023-09 (Improvements to Income Tax Disclosures), and ASU 2024-03 (Income Statement-Reporting Comprehensive Income- Expense Disaggregation Disclosures), which the company is evaluating or has adopted[39][40][41] Note 2 - Investments - The Company's investments include equity securities (ETFs for dividend yield) and available-for-sale fixed income securities (government debt and CDs), all classified as current assets[52][53][57] | Investment Type | July 31, 2025 Fair Value (in thousands) | April 30, 2025 Fair Value (in thousands) | | :------------------------ | :-------------------------------------- | :--------------------------------------- | | Equity securities | $22,126 | $20,879 | | Available-for-sale fixed income securities | $25,362 | $22,435 | - Proceeds from sales of equity securities were $215 thousand for the three months ended July 31, 2025, up from $90 thousand in the prior year[55] - The average yield on Government debt securities classified as available-for-sale was 4.2% at July 31, 2025, slightly down from 4.3% at April 30, 2025[62] Note 3 - Variable Interest Entity - EAM is considered a Variable Interest Entity (VIE) in relation to Value Line, but the Company does not consolidate it as it lacks the power to direct EAM's most significant economic activities[72][73] - Value Line's maximum exposure to loss from EAM is limited to its initial investment and undistributed revenues/profits interests, as it has no obligation to fund EAM in the future[75] | Metric | July 31, 2025 (in thousands) | April 30, 2025 (in thousands) | | :-------------------------------- | :---------------------------- | :---------------------------- | | EAM's total assets | $64,443 | $63,699 | | Value Line Investment in EAM Trust | $61,220 | $60,807 | | Maximum Exposure to Loss | $61,220 | $60,807 | Note 4 - Supplementary Cash Flows Information | Metric | Three Months Ended July 31, 2025 (in thousands) | Three Months Ended July 31, 2024 (in thousands) | | :------------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Cash and cash equivalents | $33,708 | $15,628 | | Restricted cash | $305 | $305 | | Total cash, cash equivalents, and restricted cash | $34,013 | $15,933 | | Income Tax Payments | Three Months Ended July 31, 2025 (in thousands) | Three Months Ended July 31, 2024 (in thousands) | | :-------------------------- | :---------------------------------------------- | :---------------------------------------------- | | State and local income tax payments | $122 | $91 | | Federal income tax payments | $- | $- | Note 5 - Employees' Profit Sharing and Savings Plan - The estimated profit sharing plan contributions for the three months ended July 31, 2025, and July 31, 2024, were $96,000 for both periods, included in salaries and employee benefits[80] Note 6 - Comprehensive Income - Comprehensive income includes net income and other comprehensive income, such as changes in unrealized gains/losses on available-for-sale fixed income securities, net of tax[81][82] | Component | Three Months Ended July 31, 2025 (in thousands) | Three Months Ended July 31, 2024 (in thousands) | | :------------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Change in unrealized gains/(losses) on available-for-sale fixed income securities, net of tax | $15 | $177 | Note 7 - Related Party Transactions - Value Line receives non-voting revenues and non-voting profits interests from EAM, ranging from 41% to 55% of EAM's investment management fee revenues and 50% of residual profits[87][88] | Interest Type | Three Months Ended July 31, 2025 (in thousands) | Three Months Ended July 31, 2024 (in thousands) | | :-------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Non-voting revenues interest from EAM | $4,488 | $3,680 | | Non-voting profits interest from EAM | $633 | $561 | | Total | $5,121 | $4,241 | - The Company was reimbursed $58,000 and $60,000 for services provided to its Parent Company, Arnold Bernhard and Co., Inc., for the three months ended July 31, 2025 and 2024, respectively[90] - As of July 31, 2025, the Parent owned 91.76% of the outstanding common stock of Value Line[92] Note 8 - Federal, State and Local Income Taxes | Tax Component | Three Months Ended July 31, 2025 (in thousands) | Three Months Ended July 31, 2024 (in thousands) | | :-------------------- | :---------------------------------------------- | :---------------------------------------------- | | Current tax expense | $1,781 | $1,595 | | Deferred tax expense (benefit) | $395 | $315 | | Income tax provision | $2,176 | $1,910 | - The overall effective income tax rate increased to 25.20% for the three months ended July 31, 2025, from 24.50% in the prior year, primarily due to an increase in state and local income tax rates[94] | Deferred Tax Liability Component | July 31, 2025 (in thousands) | April 30, 2025 (in thousands) | | :--------------------------------------- | :---------------------------- | :---------------------------- | | Federal tax liability | $11,059 | $10,772 | | State and local tax liabilities | $2,423 | $2,423 | | Deferred tax liability, long-term | $13,482 | $13,195 | Note 9 - Property and Equipment | Property and Equipment (net) | July 31, 2025 (in thousands) | April 30, 2025 (in thousands) | | :--------------------------------- | :---------------------------- | :---------------------------- | | Building and leasehold improvements | $652 | $652 | | Operating lease - right-of-use asset | $2,764 | $3,037 | | Furniture and equipment | $2,430 | $2,430 | | Accumulated depreciation and amortization | $(2,675) | $(2,644) | | Total property and equipment, net | $3,171 | $3,475 | - Total property and equipment, net, decreased by $304 thousand from April 30, 2025, to July 31, 2025, primarily due to a decrease in the operating lease right-of-use asset[101] Note 10 - Accounting for the Costs of Computer Software Developed for Internal Use - The Company capitalizes costs associated with developing or purchasing internal-use software and amortizes them over an estimated useful life of 3 to 5 years[102] - Total amortization expenses for internal-use software were $11,000 for the three months ended July 31, 2025, down from $14,000 in the prior year[102] - No expenditures related to third-party programmers' costs or internal costs to develop software for internal use were capitalized during the three months ended July 31, 2025 or 2024[103] Note 11 - Treasury Stock and Repurchase Program - The Board of Directors approved a share repurchase program in October 2022, authorizing repurchases up to $3,000,000[104] | Metric | April 30, 2025 | July 31, 2025 | | :-------------------------------- | :------------- | :------------ | | Treasury stock shares | 588,997 | 590,478 | | Treasury stock amount (in thousands) | $15,647 | $15,706 | | Remaining under program (in thousands) | $758 | $699 | - During the three months ended July 31, 2025, the Company repurchased 1,481 shares for $59,000, leaving $699,000 remaining under the authorized program[105][106] Note 12 - Lease Commitments - The Company leases office space in New York, NY, under an operating lease agreement ending November 29, 2027, with an annual base rent increasing by 2.25% each year[107] - The Company adopted ASU 2016-02 (Leases) in May 2019, recognizing a right-of-use asset and lease liability for its operating lease[109][110][111] | Fiscal Year Ended April 30, | Undiscounted Future Minimum Lease Payments (in thousands) | | :-------------------------- | :-------------------------------------------------------- | | 2026 | $1,099 | | 2027 | $1,493 | | 2028 | $882 | | Total | $3,474 | - The weighted-average remaining lease term is 2.33 years, with a weighted-average discount rate of 5.25% as of July 31, 2025[117] Note 13 - Restricted Cash and Deposits - Restricted money market investment of $305,000 secures a letter of credit for the Company's New York City leased corporate office facility[118] Note 14 - Concentration - During the three months ended July 31, 2025, 28.7% of total publishing revenues ($8,606,000) were derived from a single customer[119] Note 15 - Concentration of Credit Risk - The Company's cash deposits are subject to concentration of credit risk, with $1,259,000 in excess of the FDIC insured limit as of July 31, 2025[120] - Management believes the excess over the FDIC limit does not represent a material risk due to the creditworthiness of the counterparties[120] Note 16 - Business Segments - The Company operates as a single reportable business segment, 'Publishing,' which includes investment periodicals, related publications, and copyright services[122][139] - The Company's products and services fall into four categories: comprehensive research services, niche newsletters, investment analysis software, and copyright services[123][124][125][126] - The investment management business (EAM) is not considered a reportable segment because the CEO does not regularly review its operating results for resource allocation decisions[132] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on the Company's financial performance, condition, and future outlook, including an executive summary of its business, an analysis of the operating environment, detailed results of operations, liquidity and capital resources, and critical accounting policies Cautionary Statement Regarding Forward-Looking Information - The report contains forward-looking statements subject to various risks and uncertainties, including maintaining subscription revenue, changes in economic conditions, intellectual property protection, and dependence on EAM[134] - Other risks include fluctuations in EAM's assets under management, potential changes in customer revenues, competition, government regulation, and the impact of global conflicts or widespread illnesses[134] - The Company has no duty to update these statements, and actual results may differ materially from projections[135] Executive Summary of the Business - Value Line's core business is producing investment publications and research, and licensing its proprietary information (e.g., Value Line Proprietary Ranks) to third parties for investment products[136] - Target audiences include individual investors, colleges, libraries, and investment management professionals[137] - The Company's Publishing segment is its only reportable business segment, encompassing investment publications and copyright services[139] - Value Line maintains non-voting revenue and profit interests in EULAV Asset Management Trust (EAM), which manages Value Line Funds, but has no voting authority or control over EAM's business[140] Business Environment - The U.S. economy experienced uneven performance in the first half of 2025, with a 0.5% GDP contraction in Q1 followed by a 3.3% rebound in Q2, resulting in an overall annualized growth rate of 1.4%[141] - Inflation remains unsettled, with the PCE Price Index and core PCE rising 2.6% and 2.9% respectively in July, still above the Federal Reserve's 2.0% target[143] - The Federal Reserve is poised to resume cutting interest rates due to a softening job market and slowing economy, which could spark stock market volatility despite strong corporate earnings[143][145] Results of Operations for the Three Months Ended July 31, 2025 and 2024 | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (%) | | :------------------------------------------ | :------------------ | :------------------ | :--------- | | Income from operations | $1,496 | $1,847 | -19.0% | | Non-voting revenues and non-voting profits interests from EAM Trust | $5,121 | $4,241 | 20.7% | | Income from operations plus non-voting revenues and non-voting profits interests from EAM Trust | $6,617 | $6,088 | 8.7% | | Operating expenses | $7,110 | $7,037 | 1.0% | | Investment gains/(losses) | $2,019 | $1,709 | 18.1% | | Income before income taxes | $8,636 | $7,797 | 10.8% | | Net income | $6,460 | $5,887 | 9.7% | | Earnings per share | $0.69 | $0.62 | 9.8% | - Net income increased by 9.7% to $6,460,000, and EPS rose by 9.8% to $0.69, despite a 19.0% decrease in income from operations[148] - The increase in net income was primarily driven by a 20.7% increase in non-voting revenues and non-voting profits interests from EAM Trust and an 18.1% increase in investment gains[148] Total operating revenues | Revenue Type | 2025 (in thousands) | 2024 (in thousands) | Change (%) | | :-------------------------- | :------------------ | :------------------ | :--------- | | Investment publications | $6,140 | $6,287 | -2.3% | | Copyright fees | $2,466 | $2,597 | -5.0% | | Total publishing revenues | $8,606 | $8,884 | -3.1% | - Total publishing revenues decreased by 3.1% to $8,606,000 for the three months ended July 31, 2025, compared to the prior fiscal year[151] - New sales of print publications increased as a percentage of total gross sales, while conversion and renewal sales orders decreased[152] - Unearned subscription revenue decreased by 3.3% from April 30, 2025, but increased by 2.3% from July 31, 2024[153] Investment publications revenues - Investment publications revenues decreased by 2.3% to $6,140,000, reflecting weak investor sentiment and a shift from print to digital services[154][155] - Total product line circulation decreased by 1.8% at July 31, 2025, compared to the prior year[154] - Sales of higher-priced, higher-profit publications have been stronger, offsetting some of the dip in print circulation[155] Copyright fees - Copyright fees decreased by 5.0% to $2,466,000 for the three months ended July 31, 2025, compared to the prior fiscal year[158] - The Value Line Proprietary Ranks, a component of The Value Line Investment Survey, are utilized in the Company's copyright business and provided to EAM without charge[157] Investment management fees and services – (unconsolidated) - Total assets in the Value Line Funds managed and/or distributed by EAM increased by 8.8% to $5.01 billion at July 31, 2025, from $4.60 billion at July 31, 2024[159] | Fund Type | As of July 31, 2025 (in millions) | As of July 31, 2024 (in millions) | Change (%) | | :------------------ | :-------------------------------- | :-------------------------------- | :--------- | | Equity and hybrid funds | $4,974 | $4,565 | 9.0% | | Fixed income funds | $35 | $37 | -6.2% | | Total EAM managed net assets | $5,009 | $4,602 | 8.8% | EAM Trust - Results of operations before distribution to interest holders - EAM's total investment management fees earned from Value Line Funds increased to $8,302,000 in 2025 from $7,376,000 in 2024[161][162] - EAM's net income was $1,266,000 in 2025, after Value Line's non-voting revenues interest of $4,488,000, compared to $1,122,000 in 2024[161][162] - Equity and hybrid funds represent 99.3% of total EAM AUM, increasing by 9.0% year-over-year, while fixed income AUM decreased by 6.2%[164] EAM - The Company's non-voting revenues and non-voting profits interests | Interest Type | 2025 (in thousands) | 2024 (in thousands) | Change (%) | | :-------------------------- | :------------------ | :------------------ | :--------- | | Non-voting revenues interest | $4,488 | $3,680 | 22.0% | | Non-voting profits interest | $633 | $561 | 12.8% | | Total | $5,121 | $4,241 | 20.7% | - Total non-voting revenues and non-voting profits interests from EAM increased by 20.7% to $5,121,000 for the three months ended July 31, 2025[165] Operating expenses | Expense Category | 2025 (in thousands) | 2024 (in thousands) | Change (%) | | :------------------------- | :------------------ | :------------------ | :--------- | | Advertising and promotion | $717 | $860 | -16.6% | | Salaries and employee benefits | $3,616 | $3,543 | 2.1% | | Production and distribution | $1,631 | $1,489 | 9.5% | | Office and administration | $1,146 | $1,145 | 0.1% | | Total expenses | $7,110 | $7,037 | 1.0% | - Total operating expenses increased by 1.0% to $7,110,000 for the three months ended July 31, 2025[166] Advertising and promotion - Advertising and promotion expenses decreased by 16.6% to $717,000, primarily due to reductions in direct mail and other promotion costs[167] Salaries and employee benefits - Salaries and employee benefits increased by 2.1% to $3,616,000 for the three months ended July 31, 2025[168] Production and distribution - Production and distribution expenses increased by 9.5% to $1,631,000, mainly due to outsourcing internal distribution operations in May 2024[169] Office and administration - Office and administrative expenses remained comparable at $1,146,000 for the three months ended July 31, 2025[170] Concentration - A single customer accounted for 28.7% of total publishing revenues of $8,606,000 during the three months ended July 31, 2025[171] Investment gains / (losses) | Component | 2025 (in thousands) | 2024 (in thousands) | Change (%) | | :------------------------------------------ | :------------------ | :------------------ | :--------- | | Dividend income | $161 | $147 | 9.5% | | Interest income | $514 | $545 | -5.7% | | Investment gains/(losses) recognized on sale of equity securities during the period | $2 | $- | N/A | | Unrealized gains/(losses) recognized on equity securities held at the end of the period | $1,342 | $950 | 41.3% | | Other | $- | $67 | -100.0% | | Total investment gains/(losses) | $2,019 | $1,709 | 18.1% | - Total investment gains increased by 18.1% to $2,019,000, primarily driven by a 41.3% increase in unrealized gains on equity securities[173] Effective income tax rate - The effective income tax rate increased to 25.20% for the three months ended July 31, 2025, from 24.50% in the prior year, mainly due to changes in state and local income tax allocations[175] Lease Commitments - The Company's New York City office lease runs until November 29, 2027, with annual rent increases of 2.25%[176] - The lease for the Lyndhurst, NJ warehouse ended on April 30, 2024, with distribution functions now outsourced[177] Liquidity and Capital Resources | Metric | July 31, 2025 (in thousands) | April 30, 2025 (in thousands) | | :-------------------------- | :---------------------------- | :---------------------------- | | Working capital | $59,748 | $56,230 | | Cash and short-term securities | $81,196 | $77,391 | | Retained earnings | $116,802 | $113,400 | - Working capital increased to $59,748,000 at July 31, 2025, from $56,230,000 at April 30, 2025[178] - Management believes current liquid assets and future cash flows from operations and EAM interests will be sufficient to meet liquidity needs for the next twelve months and beyond[184] Cash from operating activities - Cash inflows from operating activities increased to $5,560,000 for the three months ended July 31, 2025, from $4,771,000 in the prior year[180] - This change was due to increased unrealized gains on equity securities and decreased accounts receivable, partially offset by a smaller decline in unearned revenue[180] Cash from investing activities - Cash outflows from investing activities were $2,811,000 for the three months ended July 31, 2025, a significant shift from inflows of $9,473,000 in the prior year[181] - The shift was due to strategic decisions in the previous year to invest proceeds from fixed income securities into higher-yield money market funds[181] Cash from financing activities - Cash outflows from financing activities increased to $3,118,000 for the three months ended July 31, 2025, from $3,006,000 in the prior year[182] - This was primarily due to higher quarterly dividend payments of $0.325 per share ($3,059,000) in fiscal year 2026, compared to $0.30 per share ($2,827,000) in fiscal year 2025[182] Debt and Liquid Assets - The Company's retained earnings were $116,802,000 and liquid assets were $81,196,000 as of July 31, 2025[184] - Management does not anticipate making any borrowings during the next twelve months and has no off-balance-sheet arrangements[184] Seasonality - Cash flows from operating activities are minimally seasonal, mainly influenced by the timing of customer payments for annual subscriptions and renewals[185] Recent Accounting Pronouncements - The Company adopted ASU 2023-07 (Improvements to Reportable Segment Disclosures) and is evaluating ASU 2023-09 (Improvements to Income Tax Disclosures) and ASU 2024-03 (Income Statement-Reporting Comprehensive Income- Expense Disaggregation Disclosures)[186][187][188] Critical Accounting Estimates and Policies - The Company's critical accounting policy relates to the valuation of EAM, with no material changes during the three months ended July 31, 2025[190] - Financial statements require management to make estimates and judgments, which are based on historical experience and reasonable assumptions, with actual results potentially differing[189] Contractual Obligations | Fiscal Year Ended April 30, | Estimated Operating Lease Payments (in thousands) | | :-------------------------- | :------------------------------------------------ | | 2026 | $1,099 | | 2027 | $1,493 | | 2028 | $882 | | Total | $3,474 | Item 3. Quantitative and Qualitative Disclosures About Market Risk This section details the Company's exposure to market risks, primarily interest rate risk and equity price risk, associated with its investment activities, outlining strategies to mitigate these risks and providing hypothetical scenarios for potential impacts on fair values Market Risk Disclosures - The Company's balance sheet includes assets whose fair values are subject to market risks, primarily from interest rates and equity prices[193] Interest Rate Risk - The Company invests primarily in short-term debt obligations maturing within one year to limit price fluctuations from interest rate changes[195] | Interest Rate Change | July 31, 2025 Estimated Fair Value (in thousands) | April 30, 2025 Estimated Fair Value (in thousands) | | :------------------- | :------------------------------------------------ | :------------------------------------------------- | | Fair Value | $25,362 | $22,435 | | 50 bp increase | $25,066 | $22,043 | | 50 bp decrease | $25,454 | $22,480 | | 100 bp increase | $24,875 | $21,830 | | 100 bp decrease | $25,652 | $22,702 | Equity Price Risk - The Company's equity investment strategy involves acquiring diversified equity securities, primarily ETFs held for dividend yield[202] - To maintain liquidity, the Company's policy is to hold no more than 5% of the approximate average daily trading volume in any one issue[202] | Equity Price Change | July 31, 2025 Estimated Fair Value (in thousands) | April 30, 2025 Estimated Fair Value (in thousands) | | :------------------ | :------------------------------------------------ | :------------------------------------------------- | | Fair Value | $22,126 | $20,879 | | 30% increase | $28,764 | $27,143 | | 30% decrease | $15,488 | $14,615 | - A hypothetical 30% increase in equity prices would result in a 5.09% increase in shareholders' equity as of July 31, 2025, while a 30% decrease would result in a 5.09% decrease[204] Item 4. Controls and Procedures This section confirms the effectiveness of the Company's disclosure controls and procedures and states that there have been no material changes in internal control over financial reporting during the last fiscal quarter - The Company's disclosure controls and procedures were effective as of July 31, 2025, ensuring timely and accurate reporting of information to the SEC[205] - No material changes in internal control over financial reporting occurred during the last fiscal quarter[205] PART II. OTHER INFORMATION Item 1. Legal Proceedings This section states that there are no legal proceedings to report for the Company - There are no legal proceedings to report[206] Item 1A. Risk Factors This section refers to the risk factors disclosed in the Company's Annual Report on Form 10-K, with any updates or changes reflected in Part I, Item 2 of this Quarterly Report - Risk factors are detailed in the Company's Annual Report on Form 10-K for the year ended April 30, 2025, with updates in Part I, Item 2 of this 10-Q[207] - Any new risk factors reflect ongoing analysis of the business environment, not specific events[207] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds This section provides information on the Company's common stock repurchases during the fiscal quarter ended July 31, 2025, under its authorized share repurchase program | Month Ended | Total Shares Purchased | Average Price Paid per Share | Maximum Value Remaining Under Program (in thousands) | | :------------ | :--------------------- | :--------------------------- | :--------------------------------------------------- | | May 31, 2025 | 500 | $39.33 | $738 | | June 30, 2025 | 981 | $38.96 | $699 | | July 31, 2025 | - | $- | $699 | | Total | 1,481 | $38.82 | $699 | - The Company repurchased 1,481 shares of common stock for an aggregate average price of $38.82 per share during the quarter[211] - As of July 31, 2025, $699,000 remains available under the $3,000,000 share repurchase program approved in October 2022[211] Item 3. Defaults Upon Senior Securities This section states that there are no defaults upon senior securities to report - Not applicable; there are no defaults upon senior securities[212] Item 4. Mine Safety Disclosures This section states that there are no mine safety disclosures to report - Not applicable; there are no mine safety disclosures[212] Item 5. Other Information This section confirms that Value Line has not adopted a Rule 10b5-1 trading arrangement and that no directors or executive officers adopted or terminated such arrangements during the fiscal quarter - Value Line has never adopted a Rule 10b5-1 trading arrangement[213] - No directors or executive officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fiscal quarter ended July 31, 2025[213] Item 6. Exhibits This section lists the exhibits filed with the Form 10-Q, including certifications required by the Sarbanes-Oxley Act and Inline XBRL documents - Exhibits include Section 302 and 906 certifications under the Sarbanes-Oxley Act[217] - Inline XBRL documents (Instance, Schema, Calculation, Definition, Label, Presentation Linkbase Documents) are also filed[217] Signatures This section contains the duly authorized signatures of Value Line, Inc.'s Principal Executive Officer and Principal Financial Officer, certifying the filing of the report - The report is signed by Howard A. Brecher, Chief Executive Officer (Principal Executive Officer), and Stephen R. Anastasio, Vice President & Treasurer (Principal Financial Officer)[220] - The report was dated September 15, 2025[220]