Value Line(VALU) - 2026 Q2 - Quarterly Report

Financial Performance - For the six months ended October 31, 2025, the company's net income was $12,142,000, or $1.29 per share, representing a 4.9% increase from $11,572,000, or $1.23 per share, in the same period of 2024[146]. - The company's income from operations for the six months ended October 31, 2025, was $3,008,000, which is 16.2% lower than the $3,591,000 reported for the same period in 2024[146]. - During the three months ended October 31, 2025, the company's net income was $5,682,000, or $0.60 per share, slightly below the $5,685,000, or $0.60 per share, for the same period in 2024[147]. - The company's income from operations for the three months ended October 31, 2025, was $1,512,000, a decrease of 13.3% from $1,744,000 in the same period of 2024[147]. - Total expenses for the six months ended October 31, 2025, were $14,154,000, slightly above the $14,134,000 reported in the previous year[165]. Revenue Breakdown - Total publishing revenues for the six months ended October 31, 2025, were $17,162,000, a decrease of 3.2% compared to $17,725,000 in the prior fiscal year[165]. - Investment periodicals and related publications revenues were $12,194,000 for the six months ended October 31, 2025, down 2.2% from $12,469,000 in the previous year[153]. - Digital revenues for the six months ended October 31, 2025, were $7,828,000, reflecting a 2.8% decline from $8,055,000 in the prior fiscal year[154]. - Print publication revenues decreased to $4,366,000 for the six months ended October 31, 2025, a 1.1% drop from $4,414,000 in the same period last year[154]. - Non-voting revenues and non-voting profits interests from EAM Trust increased by 11.3% to $5,154,000 for the three months ended October 31, 2025, compared to $4,630,000 in 2024[145]. Investment Gains - Investment gains for the six months ended October 31, 2025, were $3,201,000, reflecting a 10.6% increase from $2,895,000 in 2024[145]. - Total investment gains for the six months ended October 31, 2025, were $3,201,000, an increase of 10.6% compared to the prior fiscal year, primarily from unrealized gains on equity securities[172]. Cash Flow and Assets - Cash inflows from operating activities during the six months ended October 31, 2025, were $8,512,000, up from $7,844,000 in the same period of 2024[179]. - Cash inflows from investing activities increased to $7,353,000 for the six months ended October 31, 2025, compared to $4,889,000 for the same period in 2024[180]. - The company had working capital of $62,530,000 as of October 31, 2025, compared to $56,230,000 as of April 30, 2025[177]. - Cash and short-term securities amounted to $81,427,000 as of October 31, 2025, an increase from $77,391,000 as of April 30, 2025[178]. - Total assets in the Value Line Funds managed by EAM were $4.76 billion as of October 31, 2025, slightly down from $4.78 billion a year earlier[158]. Shareholder Information - The company's average common shares outstanding during the six months ended October 31, 2025, were 9,408,597, compared to 9,419,006 in the same period of 2024[148]. - Quarterly dividend payments for fiscal year 2026 totaled $6,117,000, compared to $5,652,000 for fiscal year 2025[181]. - The company expects to continue financing activities with cash for dividend payments in the foreseeable future, with 9,408,597 common shares outstanding as of October 31, 2025[182]. Tax and Expenses - The effective income tax rate for the six months ended October 31, 2025, was 26.34%, up from 24.65% in 2024, primarily due to an increase in state and local income taxes[174]. - Operating expenses for the three months ended October 31, 2025, were $7,044,000, a slight decrease of 0.7% from $7,097,000 in the same period of 2024[145]. Market and Economic Conditions - The U.S. GDP contracted by an annualized rate of 0.6% in the first quarter of 2025 but rebounded with a growth of 3.8% in the second quarter[139]. - Unearned subscription revenue as of October 31, 2025, was $20,329,000, which is 8.8% lower than $22,290,000 as of April 30, 2025[152]. Investment Strategy - The company maintains a policy to invest no more than 5% of the average daily trading volume in any single equity issue to ensure liquidity[202]. - The company regularly monitors the maturity structure of its investments in debt securities to manage price risk associated with interest rate changes[199]. - The company’s equity investment strategy focuses on acquiring a diverse range of equity securities to mitigate risks associated with market fluctuations[202]. - The portfolio includes ETFs aimed at dividend yield, primarily from financial institutions, diversifying across various industry groups[202].