Daily Journal Corporation Announces First Quarter Fiscal 2026 Financial Results

Rhea-AI Summary

Daily Journal Corporation (Nasdaq: DJCO) reported Q1 FY2026 revenue of $19.5 million, a 10% year-over-year increase driven by Journal Technologies. Journal Technologies revenue rose to $15.2 million (+12%); Traditional business revenue was $4.4 million (+6%).

Income from operations was $0.5 million/b}; the quarter showed a (loss per share $5.79), primarily due to $11.7 million net unrealized losses on marketable securities. Marketable securities fair value totaled $481.3 million with accumulated pretax unrealized gains of $342.2 million.

Positive

• Total revenue increased 10% to $19.5 million
• Journal Technologies revenue +12% to $15.2 million
• Marketable securities fair value of $481.3 million
• Accumulated pretax unrealized gains of $342.2 million

Negative

• Net loss of $8.0 million (loss per share $5.79)
• Net unrealized losses on marketable securities of $11.7 million
• Income from operations down to $0.5 million from $0.7 million
• Net cash used in operations $1.9 million versus $2.2 million provided

News Market Reaction – DJCO

-6.95%

28 alerts

-6.95% News Effect

-8.5% Trough in 5 hr

-$50M Valuation Impact

$674M Market Cap

1.2x Rel. Volume

On the day this news was published, DJCO declined 6.95%, reflecting a notable negative market reaction. Argus tracked a trough of -8.5% from its starting point during tracking. Our momentum scanner triggered 28 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $50M from the company's valuation, bringing the market cap to $674M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q1 2026 revenue: $19.5M Journal Technologies revenue: $15.2M Traditional Business revenue: $4.4M +5 more

8 metrics

Q1 2026 revenue $19.5M Three months ended December 31, 2025; 10% YoY increase from $17.7M

Journal Technologies revenue $15.2M Three months ended December 31, 2025; 12% YoY growth from $13.6M

Traditional Business revenue $4.4M Advertising and circulation; 6% YoY increase from $4.1M

Income from operations $0.5M Three months ended December 31, 2025; down from $0.7M prior-year quarter

Net loss $8.0M ($5.79/share) Three months ended December 31, 2025; vs net income $10.9M ($7.91/share) prior year

Unrealized securities loss $11.7M Net unrealized losses on marketable securities; approx. ($8.48) per share pre-tax

Marketable securities value $481.3M Fair market value as of December 31, 2025; pretax unrealized gains $342.2M

Operating cash flow -$1.9M Net cash used in operating activities; vs +$2.2M provided in prior-year quarter

Market Reality Check

Price: $522.52 Vol: Volume 104,949 vs 20-day ...

high vol

$522.52 Last Close

Volume Volume 104,949 vs 20-day average 68,755 (relative volume 1.53x) ahead of this report. high

Technical Price $512.56 is trading above the 200-day MA at $455.40, indicating a pre-news uptrend.

Peers on Argus

DJCO showed a pre-news gain of 0.98% while momentum peers like ALTS and HKD were...

2 Down

DJCO showed a pre-news gain of 0.98% while momentum peers like ALTS and HKD were down (median move -3.8%), pointing to stock-specific dynamics.

Previous Earnings Reports

5 past events · Latest: Dec 29 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 29	Full-year earnings	Positive	-1.8%	Strong FY2025 revenue and net income growth driven by Journal Technologies.
Aug 14	Nine-month earnings	Positive	-0.8%	Revenues up to $59.3M and higher pretax income at Journal Technologies.
May 20	Six-month earnings	Positive	+1.6%	Higher consolidated revenues and net income boosted by securities gains.
Feb 18	Quarterly earnings	Positive	-2.9%	Q4 2024 revenue growth with larger investment portfolio and solid income.
Dec 30	Full-year earnings	Positive	+2.1%	Fiscal 2024 revenue growth and strong net income from securities gains.

Pattern Detected

Earnings releases have generally been positive fundamentally, but price reactions have skewed mildly negative, with three divergences vs two alignments in the last five reports.

Recent Company History

Over the past year, DJCO’s earnings releases on Feb 18, 2025, May 20, 2025, Aug 14, 2025, Dec 30, 2024, and the fiscal 2025 report on Dec 29, 2025 have highlighted steady revenue growth and expanding contributions from Journal Technologies. Marketable securities have remained a major value driver, with sizable unrealized gains affecting net income. Price reactions have often been muted or negative despite positive fundamentals, framing today’s Q1 2026 update within a pattern of cautious market responses to earnings.

Historical Comparison

-0.3% avg move · Past 5 earnings releases moved the stock by an average of -0.34%, often despite positive revenue and...

earnings

-0.3%

Average Historical Move earnings

Past 5 earnings releases moved the stock by an average of -0.34%, often despite positive revenue and portfolio metrics, underscoring historically cautious reactions.

Earnings have shown a progression from fiscal 2024 into fiscal 2025 with rising revenues and larger marketable securities values, followed by quarterly updates that emphasize Journal Technologies growth and the significant impact of unrealized gains and losses on reported net income.

Market Pulse Summary

The stock moved -7.0% in the session following this news. A negative reaction despite revenue growth...

Analysis

The stock moved -7.0% in the session following this news. A negative reaction despite revenue growth would have fit a pattern where earnings days averaged around -0.34% over the last five reports. The Q1 fiscal 2026 update paired 10% higher revenue with a $8.0M net loss driven by $11.7M in unrealized securities losses, so a sharp decline would have reflected market focus on portfolio volatility and weaker operating leverage versus top-line gains.

Key Terms

mark-to-market, investment portfolio, marketable securities, unrealized gains, +3 more

7 terms

mark-to-market financial

"Our reported net results for the quarter were materially impacted by mark-to-market changes in our investment portfolio."

"Mark-to-market" is a method of valuing assets or investments based on their current market price, rather than their original cost or value. It helps investors see the most up-to-date worth of their holdings, much like checking the latest price of a stock before deciding to buy or sell. This approach ensures that financial statements reflect real-time value, providing a clearer picture of overall financial health.

investment portfolio financial

"Our reported net results for the quarter were materially impacted by mark-to-market changes in our investment portfolio."

An investment portfolio is a collection of financial assets—such as stocks, bonds, cash and other holdings—owned by an individual or organization to achieve specific financial goals. It matters because the mix and size of those holdings determine both potential returns and risk exposure: like a balanced meal affecting your health, a well-chosen portfolio aims to grow wealth while reducing the chance of severe loss, and choices about allocation, timing and costs shape long-term outcomes.

marketable securities financial

"As of December 31, 2025, the Company’s marketable securities had a total fair market value of $481.3 million..."

Marketable securities are financial assets — such as publicly traded stocks, bonds, and short-term government bills — that a company can quickly sell for cash at a known price. Investors watch them because they show how much ready cash a company can access without selling core operations, like keeping money in a highly liquid savings account versus being tied up in a house, and they affect short-term risk, financial flexibility, and balance-sheet strength.

unrealized gains financial

"included accumulated pretax unrealized gains of $342.2 million."

An unrealized gain is the increase in value of an asset you still own that hasn’t been sold, so the profit exists on paper but hasn’t been converted into cash. It matters to investors because it changes the apparent wealth of a portfolio and can influence decisions about selling, risk-taking and taxes—like a house that’s worth more now but won’t pay you until you sell it.

unrealized losses financial

"primarily driven by net unrealized losses on marketable securities of $11.7 million..."

Unrealized losses are the drop in value of an investment you still own — the “on-paper” loss you would have if you sold it right now. Think of it like a car that’s worth less than what you paid: the loss exists, but it only becomes real if you sell. Investors care because unrealized losses reduce net worth, can lead to margin calls or forced selling, and affect financial reporting without triggering taxes until a sale.

basic and diluted share financial

"Net loss ... or ($5.79) per basic and diluted share..."

Basic shares are the actual number of company shares currently outstanding, while diluted shares add in any securities that could become shares in the future (like options, warrants or convertibles), showing a potential larger share count. Think of a pie that’s already sliced versus the same pie if extra people claim future slices; diluted shares show the “worst-case” slice size and help investors judge per-share earnings and ownership dilution.

proxy solicitation regulatory

"higher legal and professional expenses associated with proxy solicitation and stockholder outreach activities."

Proxy solicitation is the process of asking shareholders for permission to vote their shares on corporate matters, usually by sending voting forms or requests by mail, email or phone. Investors should watch proxy solicitations because they signal attempts to change control, influence board elections or approve big deals — like neighbors organizing votes on a shared building project — and the outcome can materially affect a company’s strategy and stock value.

AI-generated analysis. Not financial advice.

02/17/2026 - 06:00 AM

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:  
ir@dailyjournal.com

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

FAQ

What were Daily Journal (DJCO) Q1 FY2026 revenue and year-over-year growth?

Daily Journal reported $19.5 million in Q1 FY2026 revenue, a 10% year-over-year increase. According to the company, growth was driven primarily by Journal Technologies, which saw higher e-filing, public service fees, and recurring license and maintenance revenues.

Why did DJCO report a net loss of $8.0 million in Q1 FY2026?

The net loss was driven mainly by $11.7 million net unrealized losses on marketable securities. According to the company, unrealized mark-to-market changes materially impacted reported net results despite operating revenue growth.

How did Journal Technologies perform in Daily Journal's Q1 FY2026 results (DJCO)?

Journal Technologies reported $15.2 million in revenue, a 12% increase year-over-year. According to the company, growth came from higher e-filing and other public service fees plus recurring license and maintenance revenues.

What is the value of Daily Journal's marketable securities as of December 31, 2025 (DJCO)?

As of December 31, 2025, marketable securities had a fair value of $481.3 million. According to the company, these holdings included accumulated pretax unrealized gains of $342.2 million.

How did operating cash flow change for Daily Journal in Q1 FY2026 (DJCO)?

Net cash used in operating activities was $1.9 million for the quarter, compared with net cash provided of $2.2 million in the prior-year quarter. According to the company, operating cash weakened versus the prior period.

What drove the decline in Daily Journal's income from operations in Q1 FY2026 (DJCO)?

Income from operations fell to $0.5 million, down from $0.7 million year-over-year. According to the company, higher personnel costs, increased accounting fees, and legal and professional expenses reduced operating income.