The core technology business is scaling profitably with 19.5% revenue growth and 65% operating income expansion. The GAAP loss is purely a portfolio mark-to-market artifact with no cash impact. Monitor Q4 for continued operating leverage and any portfolio repositioning that could reduce earnings volatility.
Price Chart
Executive Summary
Daily Journal Corp reported Q3 fiscal 2026 revenue of $27.0M (+15.3% YoY), driven by 19.5% growth at Journal Technologies. Operating income nearly doubled to $5.3M from $3.2M, reflecting operating leverage. However, GAAP net loss was $10.9M ($7.90/share) vs net income of $14.4M a year ago, entirely due to $24.1M in unrealized losses on the marketable securities portfolio. The operating business continues to strengthen, but reported results are dominated by portfolio mark-to-market swings.
Key Financial Metrics
Key Facts
- Q3 FY2026 total revenue $27.0M, +15.3% YoY from $23.4M
- Journal Technologies revenue $22.1M, +19.5% YoY
- Income from operations $5.3M vs $3.2M YoY, +65%
- GAAP net loss $10.9M ($7.90/share) vs net income $14.4M ($10.47/share) YoY
- Net unrealized losses on securities $24.1M vs gains $11.5M YoY
- Operating cash flow YTD $12.9M vs $8.8M prior year
- Marketable securities portfolio $406.0M with $266.9M in unrealized gains
Financial Impact
Operating income doubled to $5.3M; GAAP net loss of $10.9M driven by $24.1M portfolio mark-to-market loss
Risk Factors
- Continued unrealized losses on $406M securities portfolio could drive further GAAP losses
- Traditional business advertising/circulation revenue declined 0.8% YoY
- Stock price is heavily influenced by portfolio market movements, not operating performance
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-027322 |
| Document: djco20260610_8k.htm | 0001437749-26-027322 |
| Document: 0001437749-26-027322-index-headers.html | 0001437749-26-027322 |
| Document: 0001437749-26-027322-index.html | 0001437749-26-027322 |
| Document: 0001437749-26-027322.txt | 0001437749-26-027322 |
| 8-K Data (Synthetic) | 0001437749-26-027322 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 15, 2026 11d ago | 8-K | $602.99 | awaiting T+20 | — | $607.82 (+0.80%) |
Oct 15, 2026 11d ago | Press Release | $602.99 | awaiting T+20 | — | $607.82 (+0.80%) |
Sep 11, 2026 6w ago | 8-K | $677.05 $640.57 | ▼ −5.39% | ▼ −7.65% | $607.82 (−10.23%) |
Aug 12, 2026 10w ago | Press Release | $601.22 $661.90 | ▲ +10.09% | ▲ +11.84% | $607.82 (+1.10%) |
Aug 12, 2026 10w ago | 8-K | $601.22 $661.90 | ▲ +10.09% | ▲ +11.84% | $607.82 (+1.10%) |
Jun 11, 2026 19w ago | Institutional Cluster | $556.20 $576.02 | ▲ +3.56% | ▲ +1.78% | $607.82 (+9.28%) |
May 14, 2026 23w ago | 8-K | $462.61 $556.33 | ▲ +20.26% | ▲ +18.14% | $607.82 (+31.39%) |
US Market Status
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