Daily Journal Corporation (Nasdaq: DJCO) grows Q2 revenue but posts net loss on securities

Rhea-AI Filing Summary

Daily Journal Corporation reported strong revenue growth for the second quarter and first half of fiscal 2026, but overall results were heavily affected by market swings in its investment portfolio. Second quarter total revenue was $22.7 million, up 25% from $18.2 million a year earlier, driven mainly by Journal Technologies’ 32% revenue increase and higher e-filing, license, maintenance, and consulting fees. First half total revenue rose to $42.3 million, a 17.8% increase from $35.9 million.

Income from operations improved to $3.0 million for the quarter and $3.5 million for the first half, showing better profitability in the core businesses. However, large net unrealized losses of $51.2 million on marketable securities led to a quarterly net loss of $34.6 million and a first half net loss of $42.6 million, compared with significant profits in the prior-year periods. Basic and diluted loss per share for the quarter was $25.14, versus earnings of $32.43 per share a year earlier.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Q2 2026 total revenue: $22.7 million First half 2026 total revenue: $42.3 million Q2 2026 income from operations: $2.989 million +5 more

8 metrics

Q2 2026 total revenue $22.7 million Three months ended March 31, 2026; up 25.0% from $18.2 million

First half 2026 total revenue $42.3 million Six months ended March 31, 2026; up 17.8% from $35.9 million

Q2 2026 income from operations $2.989 million Three months ended March 31, 2026; vs $0.963 million prior-year quarter

Q2 2026 net income (loss) ($34.640 million) Three months ended March 31, 2026; vs $44.670 million prior-year quarter

Net unrealized gains (losses) on marketable securities, Q2 2026 ($51.208 million) Three months ended March 31, 2026; vs $59.386 million gain prior-year quarter

Q2 2026 basic EPS ($25.14) per share Three months ended March 31, 2026; vs $32.43 per share a year earlier

Cash and cash equivalents $20.579 million Balance sheet as of March 31, 2026

Marketable securities at fair value $430.108 million Balance sheet as of March 31, 2026; vs $492.995 million at September 30, 2025

Key Terms

mark-to-market changes, deferred revenue, non-qualified deferred compensation plan, earnings (losses) per share, +1 more

5 terms

mark-to-market changes financial

"consolidated reported net results were materially impacted by mark-to-market changes in our investment portfolio"

deferred revenue financial

"Deferred revenue 16,394 ... Long-term deferred revenue 835"

Cash a company has already received for goods or services it has promised but not yet delivered; it's recorded as a liability because the company still owes that product, service, or future revenue recognition. For investors, deferred revenue signals upcoming work or deliveries that will convert into reported sales over time and affects short-term obligations, cash flow quality, and how quickly a firm can grow recognized revenue—think of it like prepaid subscriptions or gift cards a business must honor later.

non-qualified deferred compensation plan financial

"Non-qualified deferred compensation plan – trust account asset value"

An arrangement where an employer agrees to pay part of an employee’s salary or bonus at a later date, often to attract or keep key staff. Think of it as a company IOU or a delayed paycheck held on the company’s books rather than in a protected retirement account; investors care because these promises create future cash obligations that are typically unsecured and depend on the company’s financial health, affecting risk, liabilities, and cash-flow planning.

earnings (losses) per share financial

"Earnings (losses) per share: Basic $ (25.14 ) ... $ 32.43"

forward-looking statements regulatory

"This press release includes “forward-looking statements” within the meaning of Section 27A"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

Earnings Snapshot

Q2 2026 Revenue: $22.7 million

three and six months ended March 31, 2026

Q2 2026 Revenue $22.7 million +25.0% year over year vs $18.2 million

First Half 2026 Revenue $42.3 million +17.8% year over year vs $35.9 million

Q2 2026 Net Income (Loss) ($34.6 million) vs $44.7 million net income in prior-year quarter

Q2 2026 Basic EPS ($25.14) vs $32.43 per share in prior-year quarter

Understanding 8-K Material Events →

false 0000783412 0000783412 2026-05-14 2026-05-14

FORM 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of

The Securities Exchange Act of 1934

Date of report (Date of earliest event reported): May 14, 2026

DAILY JOURNAL CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

South Carolina

(State or Other Jurisdiction of Incorporation)

0-14665	95-4133299
(Commission File Number)	(IRS Employer Identification No.)
915 E. First Street
Los Angeles, CA	90012
(Address of Principal Executive Offices)	(Zip Code)

(213) 229-5300

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12)

☐ Pre -commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d -2(b))

☐ Pre -commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $.01 per share		DJCO		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company ☐      

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

1

Item 2.02 Results of Operations and Financial Condition.

On May 14, 2026, Daily Journal Corporation (the “Company”) announced its financial results for the three and six months ended March 31, 2026 and provided recent business highlights. A copy of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information contained in Item 2.02 of this Current Report on Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly provided by specific reference in such filing.

Item 9.01         Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.		Description
99.1		Press release issued by Daily Journal Corporation dated May 14, 2026
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

[SIGNATURE PAGE FOLLOWS]

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	DAILY JOURNAL CORPORATION
Dated: May 14, 2026	By: /s/ Erik Nakamura
	Erik Nakamura Chief Financial Officer

3

Exhibit 99.1

Daily Journal Corporation Announces Second Quarter and First Half Fiscal 2026 Financial Results

Second Quarter Fiscal 2026 Total Revenue of $22.7 Million, Reflecting a 25% Increase

Year Over Year

First Half Fiscal 2026 Total Revenue of $42.3 Million, Reflecting

an 18% Increase Year Over Year

LOS ANGELES, Calif. – May 14, 2026 – 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 $22.7 million, representing a 25.0% increase from the $18.2 million reported in the prior-year quarter, driven primarily by strong growth at Journal Technologies, Inc. (JTI). Total consolidated revenue for the first half of fiscal 2026 was $42.3 million, a 17.8% increase from $35.9 million in the prior-year period.

“Journal Technologies delivered strong revenue growth in the second quarter, with total JTI revenue increasing 32% year over year, reflecting continued expansion of e-filing and public service fees, higher recurring license and maintenance revenues, and increased consulting activity,” said Steven Myhill-Jones, Chairman of the Board and Chief Executive Officer of Daily Journal Corporation. “For the first half of fiscal 2026, JTI revenue grew 22% over the prior-year period. Income from operations improved significantly in both the quarter and the first half, reflecting the operating leverage in our technology business as it continues to scale. As always, our consolidated reported net results were materially impacted by mark-to-market changes in our investment portfolio, which reflects broad market movements rather than the underlying performance of our operating businesses.”

Financial Highlights:

● Total consolidated revenue for the three months ended March 31, 2026 was $22.7 million, representing a 25.0% 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, a 32.2% 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, a 22.0% 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, a 2.3% 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, a 4.2% 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.

1

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

2

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
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 427,427 and 427,627 treasury shares, and 1,377,722 and 1,377,426 shares outstanding as of March 31, 2026 and September 30, 2025, respectively.			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

3

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

4

FAQ

How did Daily Journal Corporation (DJCO) perform in Q2 fiscal 2026?

Daily Journal reported Q2 fiscal 2026 revenue of $22.7 million, up 25% from $18.2 million a year earlier. Strong growth at Journal Technologies and higher e-filing, licensing, maintenance, and consulting fees drove this increase.

What were Daily Journal Corporation’s first half 2026 revenues?

For the first half of fiscal 2026, Daily Journal generated $42.3 million in total revenue, a 17.8% increase from $35.9 million in the prior-year period. Growth was largely tied to the Journal Technologies software business.

Did Daily Journal Corporation report a profit or loss in Q2 2026?

Daily Journal recorded a net loss of $34.6 million in Q2 2026, compared with net income of $44.7 million a year earlier. Large net unrealized losses on marketable securities drove the quarterly loss despite higher operating income.

How did Journal Technologies perform within Daily Journal in Q2 2026?

Journal Technologies revenue grew 32% year over year in Q2 2026. Management attributed this to expanding e-filing and public service fees, higher recurring license and maintenance revenue, and increased consulting activity across its court and justice software customers.

What happened to Daily Journal Corporation’s investment portfolio in early 2026?

Daily Journal reported net unrealized losses of $51.2 million on marketable securities in Q2 2026, versus net unrealized gains of $59.4 million a year earlier. Management noted these mark-to-market changes reflect broad market movements, not operating performance.

What were Daily Journal Corporation’s earnings per share in Q2 2026?

Basic and diluted earnings per share were a loss of $25.14 in Q2 2026, compared with earnings of $32.43 per share in Q2 2025. This decline was mainly due to large unrealized losses on the company’s investment portfolio.

Filing Exhibits & Attachments

5 documents

Press Releases

• EX-99.1 EXHIBIT 99.1 181.2 KB

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA 3.5 KB
• EX-101 XBRL TAXONOMY EXTENSION DEFINITION LINKBASE 11.2 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE 15.0 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE 11.3 KB