<div id="readability-page-1"><div>Daily Journal Corp, a company operating in newspaper publishing and case management software systems, has released its annual 10-K report, showcasing significant financial growth and strategic initiatives aimed at enhancing its market presence and operational efficiency. The report provides a comprehensive overview of the company's financial performance, business operations, strategic goals, and the challenges it faces in the current market environment. Financial Highlights <ul><li>Total Revenues: $87.7 million, reflecting a 25% increase from the previous year primarily due to higher consulting fees, public service fees, and licensing and maintenance fees in Journal Technologies.</li><li>Income from Operations: $9.5 million, up from $4.1 million in the prior year, driven by increased revenues despite higher operating expenses.</li><li>Net Income: $112.1 million, compared to $78.1 million in the previous year, largely due to significant unrealized gains on marketable securities.</li><li>Basic Net Income Per Share: $81.41, up from $56.73, reflecting the increase in net income.</li><li>Diluted Net Income Per Share: $81.41, consistent with basic EPS, indicating no significant dilution from potential securities.</li></ul> Business Highlights <ul><li>Revenue Segments: The company operates two main business segments: Traditional Business, which includes newspaper publishing and related services, and Journal Technologies, which supplies case management software systems to justice agencies. Journal Technologies accounted for approximately 80% of the company's total revenues in fiscal year 2025.</li><li>Geographical Performance: The company's U.S. operations are primarily based in California and Utah, with additional projects in Australia and a subsidiary in British Columbia, Canada. Approximately 11% of the company's revenues in fiscal year 2025 were derived from foreign countries.</li><li>Sales Units: The Los Angeles Daily Journal and the San Francisco Daily Journal had a combined total of 5,687 paid subscribers as of September 30, 2024, which decreased to 5,681 by September 30, 2025.</li><li>New Product Launches: Journal Technologies introduced AI features in some of its products to maintain a technological advantage and continue delivering value to customers.</li><li>Future Outlook: The company anticipates continued competition in both its traditional and technology segments, with a focus on maintaining and expanding its market share through technological advancements and strategic investments in AI capabilities.</li></ul> Strategic Initiatives <ul><li>Operational Efficiency and Market Presence: The company has focused on enhancing its operational efficiency and expanding its market presence through Journal Technologies, which saw a significant increase in revenues due to consulting fees and public service fees. The company also transitioned Journal Technologies employees to a new profit-sharing incentive program to align employee incentives with company performance.</li><li>Capital Management: The company reduced its margin loan balance by $5.5 million using excess cash from operations, reflecting a strategic focus on debt reduction. It maintained a strong cash position with an increase in cash and cash equivalents by $7.7 million. The company did not declare or pay any dividends during fiscal years 2025 or 2024, and it did not repurchase any shares during these periods, although the stock repurchase program remains in effect.</li><li>Future Outlook: The company plans to fund its operations through cash flows from operations and current working capital, with potential borrowing against marketable securities if needed. It aims to continue investing in its businesses, particularly in Journal Technologies, to drive future growth. The company does not anticipate paying dividends in the foreseeable future, focusing instead on reinvestment and strategic growth initiatives.</li></ul> Challenges and Risks <ul><li>Traditional Business Challenges: The Traditional Business faces significant challenges due to the secular decline in the newspaper industry, competition from digital platforms, and changes in legal requirements for public notice advertising.</li><li>Journal Technologies Competition: Journal Technologies, while a growing segment, faces competition from larger vendors and the need to continuously update its software products to remain competitive.</li><li>AI Technology Risks: The maturation of AI technologies presents both opportunities and risks. AI could disrupt existing business models, particularly in content creation and customer workflows, potentially obviating the need for current technologies. The company must actively engage in AI developments to mitigate risks and capitalize on opportunities.</li><li>Regulatory Risks: The Traditional Business is at risk from legislative changes reducing the need for public notice advertising, particularly in California and Arizona. Competition in the newspaper market remains intense, with declining circulation and advertising revenues.</li><li>Marketable Securities Risks: The company's holdings in marketable securities are concentrated, posing a risk if the value of these securities declines. The recent passing of Charles T. Munger, who managed the securities portfolio, adds uncertainty to future financial performance.</li><li>Internal Controls: The company is dealing with a material weakness in internal controls related to financial reporting, which it is working to remediate.</li></ul>SEC Filing: DAILY JOURNAL CORP [ DJCO ] - 10-K - Dec. 29, 2025</div></div>

DJCO

Daily Journal Corp has released its annual 10-K report, highlighting significant financial growth with total revenues of $87.7 million, a 25% increase from the previous year. The report details a net income of $112.1 million, driven by unrealized gains on marketable securities. The company operates in two segments: Traditional Business and Journal Technologies, with the latter accounting for 80% of revenues. Challenges include competition in the newspaper industry and risks associated with AI technology. The company plans to focus on operational efficiency and strategic growth without paying dividends in the near future.

DAILY JOURNAL CORP SEC 10-K Report