The Marketing Alliance Announces Financial Results for Fiscal Second Quarter Ended September 30, 2025

Core Viewpoint - The Marketing Alliance, Inc. reported a decline in revenues and net income for the second quarter of fiscal 2026, primarily due to challenges in the construction business and flat insurance revenue growth [3][7][8]. Financial Performance - Revenues from operations were $4,668,836, a decrease of over 6% compared to $4,983,950 in the prior year quarter, with the construction business being the main contributor to this decline [7][8]. - Operating income from continuing operations was $149,507, down from $486,639 in the prior year quarter [7][8]. - Net income for the quarter was $263,407, or $0.04 per share, compared to $401,511, or $0.05 per share in the prior year quarter [7][14]. Revenue Breakdown - The decrease in net operating revenue (gross profit) was $603,264, with the insurance distribution business accounting for 33% of the decline and the construction business for 67% [8]. - Insurance commission and fee revenue remained relatively stable at $4,391,678, while construction revenue dropped to $277,158 from $592,270 in the prior year quarter [16]. Operating Expenses - Operating expenses decreased to $701,648 from $967,780 in the prior year quarter, with a reduction in office and administrative expenses offsetting an increase in compensation expenses [8][14]. - Stock-based compensation expense also saw a decrease compared to the prior year quarter [8]. Share Repurchase Program - The company repurchased 166,146 shares during the quarter and an additional 50,000 shares after the quarter ended, as part of an ongoing share repurchase program [7][14]. Balance Sheet Highlights - As of September 30, 2025, the company had cash and cash equivalents of $2.0 million, working capital of $5.3 million, and shareholders' equity of $5.7 million, compared to $1.4 million, $6.1 million, and $6.4 million, respectively, as of September 30, 2024 [9][19].