Daily Journal Corporation Announces First Quarter Fiscal 2026 Financial Results

First Quarter Fiscal 2026 Revenue of $19.5 Million,
Reflecting a 10% Increase Year Over Year

LOS ANGELES, Feb. 17, 2026 (GLOBE NEWSWIRE) -- Daily Journal Corporation (Nasdaq: DJCO), a publishing and technology company, today announced financial results for the three months ended December 31, 2025. Total consolidated revenue for the quarter was $19.5 million, representing a 10% increase from the $17.7 million reported in the prior-year quarter, driven primarily by growth at Journal Technologies.

“Journal Technologies continued to deliver solid year-over-year growth in the first quarter of fiscal 2026, driven by higher e-filing and other public service fees and recurring license and maintenance revenues,” said Steven Myhill-Jones, Chairman of the Board and Chief Executive Officer of Daily Journal Corporation. “We remain focused on expanding recurring revenue, maintaining low churn, and investing in modernization and implementation capacity. Our reported net results for the quarter were materially impacted by mark-to-market changes in our investment portfolio.”

Financial Highlights:

Total consolidated revenue for the three months ended December 31, 2025 was $19.5 million, representing a 10% increase from the $17.7 million reported in the prior-year quarter. Journal Technologies reported revenue of $15.2 million for the three months ended December 31, 2025, marking a 12% increase over the $13.6 million recorded in the prior-year quarter. This growth was primarily driven by increases in other public service fees and license and maintenance fees, partially offset by lower consulting fees. The Traditional Business reported advertising and circulation revenues of $4.4 million, reflecting a 6% increase over the $4.1 million reported in the prior-year quarter. Income from operations for the three months ended December 31, 2025 was $0.5 million, compared to $0.7 million in the prior-year quarter. The decline was primarily attributable to higher personnel costs from annual compensation adjustments and incremental staffing, as well as increased accounting fees to strengthen and modernize our accounting function and our internal control over financial reporting, and higher legal and professional expenses associated with proxy solicitation and stockholder outreach activities. Net loss for the three months ended December 31, 2025 was $8.0 million, or ($5.79) per basic and diluted share, compared to net income of $10.9 million, or $7.91 per diluted share, in the prior-year quarter. The year-over-year change was primarily driven by net unrealized losses on marketable securities of $11.7 million, representing a pre-tax loss of approximately ($8.48) per basic and diluted share, compared to net unrealized gains of $13.4 million in the prior-year quarter, representing a pre-tax gain of approximately $9.74 per basic and diluted share. As of December 31, 2025, the Company’s marketable securities had a total fair market value of $481.3 million and included accumulated pretax unrealized gains of $342.2 million. Net cash used in operating activities during the three months ended December 31, 2025 was $1.9 million, compared to net cash provided by operating activities of $2.2 million during the prior-year quarter.

About Daily Journal Corporation

Daily Journal Corporation, based in Los Angeles, publishes news for California and Arizona, produces specialized publications, and handles public notice advertising. Its subsidiary, Journal Technologies, Inc., provides case management software to courts, justice agencies, and government organizations across about 37 states and internationally, supporting electronic case management and related online services like e-filing and fee payments.

Forward-looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain statements contained in this press release are “forward-looking” statements that involve risks and uncertainties that may cause actual future events or results to differ materially from those described in the forward-looking statements. Words such as “expects,” “intends,” “anticipates,” “should,” “believes,” “will,” “plans,” “estimates,” “may,” variations of such words and similar expressions are intended to identify such forward-looking statements. We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments, or otherwise. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to have been correct. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in documents we file with the Securities and Exchange Commission.

For further information please contact us at:
[email protected]

DAILY JOURNAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands except share amounts) December 31, 2025 September 30, 2025ASSETS Current assets: Cash and cash equivalents$16,562$20,569Restricted cash 2,289 2,269Marketable securities at fair value 481,316 492,995Accounts receivable, net 17,121 21,011Prepaid expenses and other current assets 1,088 959Total current assets 518,376 537,803Property and equipment, net 8,946 8,930Non-qualified deferred compensation plan – trust account asset value 2,157 1,385Total assets$529,479$548,118 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable$7,640$7,071Accrued liabilities 5,003 12,518Note payable collateralized by real estate 171 169Income taxes payable 1,015 879Deferred revenue 17,956 18,169Total current liabilities 31,785 38,806Investment margin account borrowings 20,000 22,000Long-term note payable collateralized by real estate 743 787Long-term deferred revenue 864 994Long-term accrued liabilities 5,661 5,547Accrued non-qualified deferred compensation 2,168 1,590Deferred income taxes 85,138 87,333Total liabilities 146,359 157,057Commitments and contingencies (Note 8) Stockholders’ Equity Common stock, $0.01 par value; 5,000,000 shares authorized; 1,805,149 and 1,805,053 shares issued and outstanding, and 427,427 and 427,627 treasury shares, as of December 31, 2025 and September 30, 2025, respectively. 14 14Additional paid-in capital 2,133 2,097Retained earnings 380,973 388,950Total stockholders’ equity 383,120 391,061Total liabilities and stockholders’ equity$529,479$548,118

DAILY JOURNAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
(in thousands, except share and per share amounts) Three Months Ended December 31, 2025 2024 Revenues Advertising$3,265 $3,011 Circulation 1,085 1,080 Licensing and maintenance fees 8,507 7,525 Consulting fees 2,160 2,599 Other public service fees 4,521 3,489 Total revenues 19,538 17,704 Operating expenses: Salaries and employee benefits 12,971 11,875 Agency commissions 328 299 Outside services 2,576 1,810 Postage and delivery expenses 191 199 Newsprint and printing expenses 164 164 Equipment maintenance and software 163 602 Credit card merchant discount fees 600 565 Other general and administrative expenses 2,068 1,448 Total operating expenses 19,061 16,962 Income from operations 477 742 Other income (expenses) Dividends and interest income 1,302 1,184 Net realized and unrealized gains (losses) on marketable securities (11,679) 13,413 Net unrealized gains (losses) on non-qualified compensation plan 49 (50)Interest expense (255) (385)Other income (expense) 9 (9)Income (loss) before taxes (10,097) 14,895 Income tax benefit (expense) 2,120 (4,000)Net income (loss) and comprehensive income (loss)$(7,977)$10,895 Weighted average number of common shares outstanding – basic 1,377,722 1,376,852 Basic net income (loss) per share$(5.79)$7.91 Weighted average number of common shares outstanding – diluted 1,377,722 1,376,852 Diluted net income (loss) per share$(5.79)$7.91