Daily Journal Corporation Announces Second Quarter and First Half Fiscal 2026 Financial Results
Rhea-AI Summary
Daily Journal (Nasdaq: DJCO) reported strong revenue growth but a net loss for Q2 and first half fiscal 2026.
- Q2 revenue was $22.7M, up 25% year over year; first half revenue was $42.3M, up 17.8%.
- Journal Technologies Q2 revenue rose 32.2% to $18.2M; first half reached $33.4M, up 22%.
- Income from operations improved to $3.0M in Q2 and $3.5M for the first half.
- Q2 net loss was $34.6M and first half net loss was $42.6M, mainly due to net unrealized losses on marketable securities of $51.2M in Q2 and $62.9M for the first half.
- Marketable securities had a fair value of $430.1M with pretax unrealized gains of $291.0M at March 31, 2026.
- Net cash used in operating activities was $2.2M in Q2 2026.
Positive
- Q2 2026 total revenue rose 25% to $22.7M
- First half 2026 total revenue increased 17.8% to $42.3M
- Journal Technologies Q2 revenue grew 32.2% to $18.2M
- Income from operations increased to $3.0M in Q2 from $1.0M
- First half income from operations rose to $3.5M from $1.7M
- Marketable securities fair value stood at $430.1M with $291.0M unrealized gains
Negative
- Q2 2026 net loss was $34.6M or ($25.14) per share
- First half 2026 net loss was $42.6M or ($30.93) per share
- Net unrealized losses on marketable securities were $51.2M in Q2
- Net unrealized losses on marketable securities were $62.9M for first half 2026
- Net cash used in operating activities was $2.2M in Q2 2026
News Market Reaction – DJCO
In the May 15 session, DJCO declined 2.41%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 17 | Q1 2026 earnings | Negative | -7.0% | Revenue growth but net loss driven by securities unrealized losses. |
| Dec 29 | FY 2025 results | Positive | +0.1% | Strong revenue and net income growth led by Journal Technologies. |
| Aug 14 | Nine-month 2025 | Positive | -0.8% | Robust revenue and portfolio gains with higher consolidated net income. |
| May 20 | Six-month 2025 | Positive | +1.6% | Higher revenues and large unrealized gains boosting net income. |
| Feb 18 | Q4 2024 earnings | Negative | -2.9% | Revenue up but net income down versus prior year quarter. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have averaged a -1.78% move, with mostly mild negative or flat reactions even on strong revenue growth, and one notable divergence where positive results saw a slight decline.
Over the past several earnings cycles, Daily Journal has consistently grown consolidated and Journal Technologies revenues, often at double-digit rates, while results were heavily influenced by mark-to-market swings in its securities portfolio. Prior updates for FY2025 and early FY2026 highlighted rising operating income but volatile net income. This announcement continues that pattern: solid top-line and operating improvements alongside sizable unrealized losses on marketable securities shaping reported net results.
Key Terms
mark-to-market financial
marketable securities financial
unrealized losses financial
unrealized gains financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second Quarter Fiscal 2026 Total Revenue of $22.7 Million, Reflecting a
Year Over Year
First Half Fiscal 2026 Total Revenue of $42.3 Million, Reflecting
an
LOS ANGELES, May 14, 2026 (GLOBE NEWSWIRE) -- Daily Journal Corporation (Nasdaq: DJCO), a publishing and technology company, today announced financial results for the three and six months ended March 31, 2026. Total consolidated revenue for the second quarter of fiscal 2026 was
“Journal Technologies delivered strong revenue growth in the second quarter, with total JTI revenue increasing
Financial Highlights:
- Total consolidated revenue for the three months ended March 31, 2026 was
$22.7 million , representing a25.0% increase from the$18.2 million reported in the prior-year quarter. - Journal Technologies reported revenue of
$18.2 million for the three months ended March 31, 2026, a32.2% increase from the$13.8 million reported in the prior-year quarter. Growth was driven by increases in other public service fees, consulting fees, and license and maintenance fees. For the six months ended March 31, 2026, Journal Technologies revenue was$33.4 million , a22.0% increase from$27.4 million in the prior-year period. - The Traditional Business reported advertising and circulation revenues of
$4.5 million for the three months ended March 31, 2026, a2.3% increase from$4.4 million in the prior-year quarter. For the six months ended March 31, 2026, Traditional Business revenue was$8.8 million , a4.2% increase from$8.5 million in the prior-year period. - Income from operations for the three months ended March 31, 2026 was
$3.0 million , compared to$1.0 million in the prior-year quarter, reflecting strong revenue growth and operating leverage. For the six months ended March 31, 2026, income from operations was$3.5 million , compared to$1.7 million in the prior-year period. - Net loss for the three months ended March 31, 2026 was
$34.6 million , or ($25.14) per basic and diluted share, compared to net income of$44.7 million , or$32.43 per basic and diluted share, in the prior-year quarter. The year-over-year change was primarily driven by net unrealized losses on marketable securities of$51.2 million , representing a pre-tax impact of approximately ($37.17) per basic and diluted share, compared to net unrealized gains of$59.4 million in the prior-year quarter, representing a pre-tax gain of approximately$43.11 per basic and diluted share. - Net loss for the six months ended March 31, 2026 was
$42.6 million , or ($30.93) per basic and diluted share, compared to net income of$55.6 million , or$40.34 per basic and diluted share, in the prior-year period. The year-over-year change was primarily driven by net unrealized losses on marketable securities of$62.9 million in the current period, representing a pre-tax impact of approximately ($45.6) per basic and diluted share, compared to net unrealized gains of$72.8 million in the prior-year period, representing a pre-tax gain of approximately$52.9 per basic and diluted share. - As of March 31, 2026, the Company’s marketable securities had a total fair market value of
$430.1 million and included accumulated pretax unrealized gains of$291.0 million . - Net cash used in operating activities during the three months ended March 31, 2026 was
$2.2 million , compared to net cash provided by operating activities of$1.6 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) | ||||||||
| March 31, 2026 | September 30, 2025 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 20,579 | $ | 20,569 | ||||
| Restricted cash | 2,309 | 2,269 | ||||||
| Marketable securities at fair value | 430,108 | 492,995 | ||||||
| Accounts receivable, net | 13,609 | 21,011 | ||||||
| Prepaid expenses and other current assets | 2,236 | 959 | ||||||
| Assets held for sale | 3,461 | — | ||||||
| Total current assets | 472,302 | 537,803 | ||||||
| Property and equipment, net | 5,431 | 8,930 | ||||||
| Non-qualified deferred compensation plan – trust account asset value | 2,207 | 1,385 | ||||||
| Total assets | $ | 479,940 | $ | 548,118 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 7,736 | $ | 7,071 | ||||
| Accrued liabilities | 6,044 | 12,518 | ||||||
| Note payable collateralized by real estate | 171 | 169 | ||||||
| Income taxes payable | 278 | 879 | ||||||
| Deferred revenue | 16,394 | 18,169 | ||||||
| Total current liabilities | 30,623 | 38,806 | ||||||
| Investment margin account borrowings | 20,000 | 22,000 | ||||||
| Long-term note payable collateralized by real estate | 701 | 787 | ||||||
| Long-term deferred revenue | 835 | 994 | ||||||
| Long-term accrued liabilities | 4,486 | 5,547 | ||||||
| Accrued non-qualified deferred compensation | 2,239 | 1,590 | ||||||
| Deferred income taxes | 72,540 | 87,333 | ||||||
| Total liabilities | 131,424 | 157,057 | ||||||
| Stockholders’ Equity | ||||||||
| Common stock, | 14 | 14 | ||||||
| Additional paid-in capital | 2,178 | 2,097 | ||||||
| Accumulated other comprehensive loss | (9 | ) | — | |||||
| Retained earnings | 346,333 | 388,950 | ||||||
| Total stockholders’ equity | 348,516 | 391,061 | ||||||
| Total liabilities and stockholders’ equity | $ | 479,940 | $ | 548,118 | ||||
| DAILY JOURNAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (in thousands, except share and per share amounts) | ||||||||||||||||
| Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenues | ||||||||||||||||
| Advertising | $ | 3,377 | $ | 3,333 | $ | 6,642 | $ | 6,344 | ||||||||
| Circulation | 1,102 | 1,047 | 2,187 | 2,127 | ||||||||||||
| Licensing and maintenance fees | 8,531 | 7,501 | 17,038 | 15,026 | ||||||||||||
| Consulting fees | 4,914 | 2,664 | 7,074 | 5,263 | ||||||||||||
| Other public service fees | 4,793 | 3,631 | 9,314 | 7,120 | ||||||||||||
| Total revenues | 22,717 | 18,176 | 42,255 | 35,880 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Salaries and employee benefits | 13,068 | 12,321 | 26,039 | 24,196 | ||||||||||||
| Agency commissions | 335 | 385 | 663 | 684 | ||||||||||||
| Outside services | 1,735 | 1,802 | 4,311 | 3,612 | ||||||||||||
| Postage and delivery expenses | 333 | 185 | 524 | 384 | ||||||||||||
| Newsprint and printing expenses | 150 | 191 | 314 | 355 | ||||||||||||
| Equipment maintenance and software | 113 | 441 | 276 | 1,043 | ||||||||||||
| Credit card merchant discount fees | 626 | 528 | 1,226 | 1,093 | ||||||||||||
| Other general and administrative expenses | 3,368 | 1,360 | 5,436 | 2,808 | ||||||||||||
| Total operating expenses | 19,728 | 17,213 | 38,789 | 34,175 | ||||||||||||
| Income from operations | 2,989 | 963 | 3,466 | 1,705 | ||||||||||||
| Other income (expenses) | ||||||||||||||||
| Dividends and interest income | 1,303 | 1,178 | 2,605 | 2,362 | ||||||||||||
| Net unrealized gains (losses) on marketable securities | (51,208 | ) | 59,386 | (62,887 | ) | 72,799 | ||||||||||
| Net unrealized gains (losses) on non-qualified compensation plan | 34 | (3 | ) | 83 | (53 | ) | ||||||||||
| Interest expense | (208 | ) | (351 | ) | (463 | ) | (745 | ) | ||||||||
| Other income | 86 | 97 | 95 | 97 | ||||||||||||
| Income (loss) before taxes | (47,004 | ) | 61,270 | (57,101 | ) | 76,165 | ||||||||||
| Income tax benefit (expense) | 12,364 | (16,600 | ) | 14,484 | (20,600 | ) | ||||||||||
| Net income (loss) | (34,640 | ) | 44,670 | (42,617 | ) | 55,565 | ||||||||||
| Other comprehensive loss: | ||||||||||||||||
| Foreign currency translation adjustments | (9 | ) | — | (9 | ) | — | ||||||||||
| Net income (loss) and comprehensive income (loss) | $ | (34,649 | ) | $ | 44,670 | $ | (42,626 | ) | $ | 55,565 | ||||||
| Earnings (losses) per share: | ||||||||||||||||
| Basic | $ | (25.14 | ) | $ | 32.43 | $ | (30.93 | ) | $ | 40.34 | ||||||
| Diluted | $ | (25.14 | ) | $ | 32.43 | $ | (30.93 | ) | $ | 40.34 | ||||||
| Shares used in computing earnings (losses) per share: | ||||||||||||||||
| Basic | 1,377,722 | 1,377,426 | 1,377,722 | 1,377,268 | ||||||||||||
| Diluted | 1,377,722 | 1,377,426 | 1,377,722 | 1,377,268 | ||||||||||||
