Daily Journal Corporation Reports 10% Revenue Growth and Significant Net Income Increase for Six Months Ended March 31, 2025

Daily Journal Corporation reported a significant increase in financial performance for the six months ended March 31, 2025, with total revenues reaching $35.88 million, up from $32.56 million in the same period last year, marking a 10% increase. The company's net income also saw a substantial rise, climbing to $55.57 million, or $40.34 per share, compared to $28.03 million, or $20.36 per share, in the prior year. This growth was primarily driven by increased revenues from its Journal Technologies segment, which accounted for approximately 76% of total revenues, particularly in licensing and maintenance fees, which rose by $1.62 million.

In terms of operational changes, Daily Journal's Traditional Business segment reported total operating revenues of $8.47 million, an increase from $7.99 million in the previous year. This growth was attributed to a 10% rise in advertising revenues, which reached $4.84 million, driven by increased commercial and legal notice advertising. However, circulation revenues decreased slightly to $2.13 million. The Journal Technologies segment also experienced a revenue increase of 12%, totaling $27.41 million, despite a decline in consulting fees due to fewer completed customer projects.

The company’s total operating expenses increased by 9% to $34.18 million, primarily due to higher salaries and employee benefits, which rose by 7% to $24.74 million. This increase was attributed to annual salary adjustments and the hiring of additional staff to enhance operational efficiencies and support product development. Other notable increases in expenses included outside services and accounting and legal fees, which rose significantly due to increased contractor services and legal costs.

Daily Journal's non-operating income surged by 112% to $74.46 million, largely due to net unrealized gains on marketable securities, which amounted to $72.80 million, compared to $34.45 million in the prior year. The company’s total assets as of March 31, 2025, were reported at $468.05 million, with a significant portion attributed to marketable securities valued at $431.49 million, reflecting a strong investment portfolio. The company has also reduced its margin loan balance to $25 million, down from $27.5 million at the end of the previous fiscal year.

Looking ahead, Daily Journal Corporation remains optimistic about its growth trajectory, particularly in its Journal Technologies segment, which continues to expand its software offerings to governmental agencies across the U.S. and internationally. The company is also focused on improving its internal controls and accounting systems to address previously identified weaknesses. Management believes that the current cash flows and working capital will support ongoing operations and potential investments in business growth.