Value Line(VALU) - 2026 Q3 - Quarterly Report

Financial Performance - For the three months ended January 31, 2026, the company's net income was $5,910,000, or $0.63 per share, representing a 14.5% increase from $5,163,000, or $0.55 per share, for the same period in 2025[150]. - For the nine months ended January 31, 2026, the company's net income was $18,052,000, or $1.92 per share, which is 7.9% higher than $16,735,000, or $1.78 per share, for the same period in 2025[149]. - The company's income before income taxes for the three months ended January 31, 2026, was $7,943,000, an increase of 11.3% from $7,136,000 in 2025[148]. - EAM's net income for the nine months ended January 31, 2026, was $3,648,000, an increase from $3,384,000 in the same period of the previous year[164]. Operational Income - The company's income from operations for the three months ended January 31, 2026, was $1,004,000, a decrease of 35.8% compared to $1,564,000 for the same period in 2025[150]. - The company's income from operations for the nine months ended January 31, 2026, was $4,012,000, down 22.2% from $5,155,000 for the same period in 2025[149]. Revenue and Expenses - Non-voting revenues and non-voting profits interests from EAM Trust for the three months ended January 31, 2026, were $4,761,000, a decrease of 3.0% from $4,910,000 in 2025[148]. - The company's total operating expenses for the three months ended January 31, 2026, were $7,272,000, a slight decrease of 1.8% from $7,403,000 in 2025[148]. - Total operating revenues for the nine months ended January 31, 2026, were $25,438,000, a decrease of 4.7% compared to $26,692,000 in the prior fiscal year[156]. - Total expenses for the nine months ended January 31, 2026, were $21,426,000, slightly below the $21,537,000 reported in the prior fiscal year[168]. Investment Gains - Investment gains for the three months ended January 31, 2026, were $2,178,000, an increase of 229.0% compared to $662,000 in 2025[148]. - Total investment gains increased by 51.2% to $5,379,000 for the nine months ended January 31, 2026, primarily from unrealized gains on equity securities[174]. Cash Flow - Cash inflows from operating activities decreased to $13,801,000 for the nine months ended January 31, 2026, down from $14,703,000 in the prior year[181]. - Cash inflows from investing activities were $8,626,000 for the nine months ended January 31, 2026, compared to $16,475,000 in the same period of 2025[183]. - Cash outflows from financing activities increased to $10,041,000 for the nine months ended January 31, 2026, compared to $8,752,000 in the prior year[184]. Tax and Working Capital - The effective income tax rate rose to 26.10% for the nine months ended January 31, 2026, up from 25.60% in the previous year, due to increased state and local income taxes[176]. - Working capital increased to $65,716,000 as of January 31, 2026, compared to $56,230,000 as of April 30, 2025[179]. Shareholder Information - The average common shares outstanding during the nine months ended January 31, 2026, were 9,402,966, compared to 9,418,527 for the same period in 2025[151]. - The Company had 9,402,966 common shares outstanding as of January 31, 2026, a slight decrease from 9,418,527 shares a year earlier[185]. Asset Management - Total assets in the Value Line Funds managed by EAM were $4.20 billion as of January 31, 2026, a decrease of 15.6% from $4.97 billion a year earlier[161]. - The aggregate cost and fair value of fixed income securities classified as available-for-sale were $12,552,000 and $12,546,000, respectively, as of January 31, 2026[199]. - The aggregate cost of equity securities as of January 31, 2026, is $16,916,000, with a fair value of $25,541,000, representing a 51.1% increase in value[205]. Investment Strategy - The company's equity investment strategy focuses on acquiring a diverse range of equity securities, primarily through ETFs for dividend yield[204]. - The company maintains a policy to invest no more than 5% of the average daily trading volume in any single security to ensure liquidity[204]. - Management regularly monitors the maturity structure of debt securities to manage price risk associated with interest rate changes[201].