VALUE LINE INC
For the period ended Jul 31, 2025. Filed Sep 15, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jul 31, 2025 · Filed Sep 15, 2025
VALU$42.37-4.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-01-31; filed 2025-03-14.
0001437749-25-007788
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-07-31; filed 2025-09-15.
0001437749-25-029035
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 88 previous paragraphs and 88 current paragraphs.
41 unchanged; 38 reworded; 9 added; 9 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 9 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
The U.S. economy delivered an uneven performance during the first half of 2025. The nation’s gross domestic product (GDP) contracted by an annualized rate of 0.5% in the first quarter, with a surge in imports ahead of the announcement of tariffs on April 2nd accounting for a large portion of the decline. (Imports detract from the GDP calculation.) The economy then rebounded sharply in the second quarter, with a reversal in the level of imports adding significantly to the recorded gain of 3.3%. A recovery in personal consumption also contributed to the GDP advance. Still, the U.S. economy did slow during the first half of the year, with an overall annualized growth rate of 1.4%. That pace was half the rate recorded in calendar 2024.
Current report
Meanwhile, the inflation situation remains unsettled. After easing during the first few months of the calendar year, the pace of price growth reaccelerated over the late spring and into the summer. The Trump Administration tariffs—and resultant global trade uncertainty—did not have a material impact on the price of goods during the second quarter, with most of the inflation seen on the services side of the economy. However, there are concerns that businesses and consumers will feel the true impact of the tariffs on imported goods in the fall months. The U.S. consumer sector has proven quite resilient amid the higher prices, but recent sentiment readings suggest that, in the months ahead, most shoppers will avoid big-ticket items that have seen large price increases.
Current report
On a 12-month basis, the Personal Consumption Expenditures (PCE) Price Index and the core PCE, which excludes the more-volatile food and energy components, rose 2.6% and 2.9%, respectively, in July. The PCE Price Index, the assessment of inflation most closely watched by the Federal Reserve, showed that the rate of prices increases is still running above the central bank’s target of 2.0%. The stubborn inflation backdrop notwithstanding, the Federal Reserve appears poised to resume cutting the federal funds rate, which is the target interest rate at which U.S. commercial banks lend their excess reserve balances to each other overnight. A softening job market, which included a significant deceleration in hiring over the summer months, and slowing economy are the impetuses for the Fed reversing monetary course.
Current report
Corporate America effectively managed the global trade uncertainty and the negative impact of increased tariffs on its cost structure during the second quarter of calendar 2025. The major companies were able to absorb a good deal of the higher input prices, but the question remains as to how long they will be able to do so before having to pass the additional costs onto the consumer. If businesses do raise prices, it could further hamper the Fed’s ability to effectively tame inflation.
Current report
In all, the business environment has held up well amid the global trade uncertainty, highlighted by double-digit profit growth for the S&P 500 companies in the first half of 2025. The strong earnings performance provided support for stocks. However, stock valuations are now quite rich compared to historical norms, which leaves many issues vulnerable to selling on any disappointing news. It also is worth noting that when the Federal Reserve cuts rates to provide support for a slowing economy and labor market, it often sparks a volatile reaction from the stock market.
Current report
Investment publications revenues
Current report
The Company receives non-voting revenues interest and non-voting profits interest from EAM, the investment adviser to the Value Line Mutual Funds.
Current report
During the three months ended July 31, 2025, salaries and employee benefits of $3,616,000 increased 2.1% above the prior fiscal year.
Current report
In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, Income Statement-Reporting Comprehensive Income- Expense Disaggregation Disclosures, requiring all public business entities to provide additional disclosure of the nature of expenses include in the income statement. This ASU is effective for fiscal years beginning after December 15, 2026, and for interim reporting periods beginning after December 15, 2027, on a prospective basis, with early adoption permitted. We are currently evaluating the impact on our financial statement disclosures.
Removed paragraphs (9)
Previous report
The U.S. economy performed well in 2024. The nation’s gross domestic product (GDP) expanded by an estimated 2.8% during the 12-month period and nearly matched the 2.9% gain recorded in 2023. The advance was powered by the consumer sector, which was helped by a solid job market and a continued low unemployment rate of around 4.0%. In all, personal consumption expenditures rose by a healthy 2.8%, with the biggest gain in consumer spending (+4.2%) coming during the final three months of last year.
Previous report
However, as the calendar turned to 2025, there were some signs of fatigue in the consumer sector, as inflation reaccelerated during the late fall/early winter months. Both the University of Michigan’s Consumer Sentiment Index and The Conference Board’s Consumer Confidence Survey declined notably in February, with each citing consumer concerns about stubbornly high prices for both goods and services. Not surprisingly, given this weakening sentiment, retail sales fell 0.9%in January and consumer spending dropped 0.2%, with the latter figure marking the first decline in nearly two years. Higher borrowing costs also are hurting the housing market, with both new and existing home sales falling sharply during the first month of this year.
Previous report
With inflation still running above the Federal Reserve’s comfort level of 2.0%, the consensus forecast is that the central bank will hold off on cutting the federal funds rate again until the second half of this year. The lead bank’s decision to reduce the benchmark short-term rate by a full-percentage point last fall did not have the desired result, as the yield on the 10-year Treasury note, which is used as a barometer for setting longer-term lending rates, increased sharply during the same stretch. Reports indicating a reacceleration in the pace of price growth at both the consumer and producer (wholesale) levels and fears about near-term fiscal policy changes were the primary reasons for the late-2024 spike in Treasury yields.
Previous report
Meanwhile, the Trump Administration has promised a pro-growth agenda, highlighted by lower taxes and a rollback in regulations, with the hope that these policies will further stimulate economic growth stateside. The new fiscal policy measures coming from the White House have included a series of tariff announcements. The first round of levies were placed on selective goods coming from Canada and Mexico, as well as shipments from China. President Trump also announced a series of reciprocal tariffs against trading partners around the world, which are currently set to take place on April 1 st. There is a fear that the duties will put additional upward pressure on near-term prices for goods and services. The tariff situation, though, remains quite fluid.
Previous report
In all, the business environment held up very well during calendar 2024, with profit growth for S&P 500 companies averaging around 18% in the fourth quarter. Moving forward, the S&P 500 companies may have a harder time sustaining this pace of earnings growth, with the Federal Reserve not planning to loosen monetary policy until it gets a better sense of what impact the potential changes in fiscal policies will have on price stability and the labor market.
Previous report
During the nine months ended January 31, 2025, the Company’s net income of $16,735,000, or $1.78 per share, was 17.6% above net income of $14,232,000, or $1.51 per share, for the nine months ended January 31, 2024. During the nine months ended January 31, 2025, the Company’s income from operations of $5,155,000 was 32.6% below income from operations of $7,653,000 during the nine months ended January 31, 2024. For the nine months ended January 31, 2025, operating expenses increased 3.4% above those during the nine months ended January 31, 2024.
Previous report
Investment periodicals and related publications revenues
Previous report
The Company has substantial non-voting revenues and non-voting profits interests in EAM, the asset manager to the Value Line Mutual Funds. Accordingly, the Company does not report this operation as a separate business segment, although it maintains a significant interest in the cash flows generated by this business and will receive ongoing payments in respect of its non-voting revenues and non-voting profits interests.
Previous report
During the nine months ended January 31, 2025, salaries and employee benefits of $10,741,000 decreased 3.7% below the prior fiscal year, primarily due to decreases in salaries and employee benefits resulting from reduced employee headcount and the outsourcing of the Company’s distribution operation to a domestic contractor during fiscal years 2024 and 2025.
Reworded paragraphs (38)
Previous wording
The Company's core business is producing investment periodicals and their underlying research and making available certain Value Line copyrights, Value Line trademarks and Value Line Proprietary Ranks and other proprietary information, to third parties under written agreements for use in third-party managed and marketed investment products and for other purposes. Value Line markets under well-known brands includingValue Line®, the Value Linelogo®,The Value Line Investment Survey®, Smart Research, Smarter Investing™* andThe Most Trusted Name in Investment Research*®. The name "Value Line" as used to describe the Company, its products, and its subsidiaries, is a registered trademark of the Company. EULAV Asset Management Trust (“EAM”) was established to provide the investment management services to the Value Line Funds, institutional and individual accounts and provide distribution, marketing, and administrative services to the Value Line® Mutual Funds ("Value Line Funds"). The Company maintains a significant investment in EAM from which it receives payments in respect of its non-voting revenues and non-voting profits interests.
Current wording
The Company's core business is producing investment publications and their underlying research and making available certain Value Line copyrights, Value Line trademarks and Value Line Proprietary Ranks and other proprietary information, to third parties under written agreements for use in third-party managed and marketed investment products and for other purposes. Value Line markets under well-known brands includingValue Line®, the Value Linelogo®,The Value Line Investment Survey®, Smart Research, Smarter Investing™* andThe Most Trusted Name in Investment Research*®. The name "Value Line" as used to describe the Company, its products, and its subsidiaries, is a registered trademark of the Company. EULAV Asset Management Trust (“EAM”) was established to provide the investment management services to the Value Line Funds, institutional and individual accounts and provide distribution, marketing, and administrative services to the Value Line® Mutual Funds ("Value Line Funds") and to provide distribution, marketing, and administrative services to the Value Line Funds.
Previous wording
The investment periodicals and related publications (retail and institutional) and Value Line copyrights and Value Line Proprietary Ranks and other proprietary information consolidate into one segment called Publishing. The Publishing segment constitutes the Company’s only reportable business segment.
Current wording
The investment publications and related publications (retail and institutional) and Value Line copyrights and Value Line Proprietary Ranks and other proprietary information consolidate into one segment called Publishing. The Publishing segment constitutes the Company’s only reportable business segment.
Previous wording
Pursuant to the EAM Declaration of Trust, the Company maintains an interest in certain revenues of EAM and a portion of the residual profits of EAM but has no voting authority with respect to the election or removal of the trustees of EAM or control of its business.
Current wording
Pursuant to the EAM Declaration of Trust, the Company maintains an interest in revenues of EAM and a portion of the residual profits of EAM but has no voting authority with respect to the election or removal of the trustees of EAM or control of its business. Although the Company does not have control over the operating and financial policies of EAM, the Company has a contractual right to receive its share of EAM’s revenues and profits
Previous wording
The business of EAM is managed by its trustees each owning 20% of the voting interest in EAM and by its officers subject to the direction of the trustees. The Company’s non-voting revenues and non-voting profits interests in EAM entitle it to receive a range of 41% to 55% of EAM’s revenues (excluding distribution revenues) from EAM’s mutual fund and separate account business and 50% of the residual profits of EAM (subject to temporary increase in certain limited circumstances). The Voting Profits Interest Holders will receive the other 50% of residual profits of EAM. Distribution is not less than 90% of EAM’s profits payable each fiscal quarter under the provisions of the EAM Trust Agreement.
Current wording
The business of EAM is managed by its five individual trustees each owning 20% of the voting interest in EAM and by its officers subject to the direction of the trustees. The Company is entitled to receive from EAM a range of 41% to 55% of EAM’s revenues (excluding distribution revenues) from EAM’s mutual fund and separate account business and 50% of the residual profits of EAM (subject to temporary increase in certain limited circumstances). The Holders of the remaining profits interests will receive the other 50% of residual profits of EAM. Distribution is not less than 90% of EAM’s profits payable each fiscal quarter under the provisions of the EAM Trust Agreement.
Previous wording
Results of Operations for the Three and Nine Months Ended January 31, 2025 and 2024
Current wording
Results of Operations for the Three Months Ended July 31, 2025 and 2024
Previous wording
During the three months ended January 31, 2025, the Company’s net income of $5,163,000, or $0.55 per share, was 12.3% below net income of $5,885,000, or $0.62 per share, for the three months ended January 31, 2024. During the three months ended January 31, 2025, the Company’s income from operations of $1,564,000 was 29.9% below income from operations of $2,232,000 during the three months ended January 31, 2024. For the three months ended January 31, 2025, operating expenses increased 7.3% above those during the three months ended January 31, 2024.
Current wording
During the three months ended July 31, 2025, the Company’s net income of $6,460,000, or $0.69 per share, was 9.7% above net income of $5,887,000, or $0.62 per share, for the three months ended July 31, 2024. During the three months ended July 31, 2025, the Company’s income from operations of $1,496,000 was 19.0% below income from operations of $1,847,000 during the three months ended July 31, 2024. For the three months ended July 31, 2025, operating expenses increased 1.0% above those during the three months ended July 31, 2024.
Previous wording
During the nine months ended January 31, 2025, there were 9,418,527 average common shares outstanding as compared to 9,429,575 average common shares outstanding during the nine months ended January 31, 2024.
Current wording
During the three months ended July 31, 2025, there were 9,414,605 average common shares outstanding as compared to 9,419,938 average common shares outstanding during the three months ended July 31, 2024.
Previous wording
During the nine months ended January 31, 2025, new sales of print publications increased as a percent of the total gross sales as a result of an increase in new sales orders while conversion and renewal sales orders decreased from the prior fiscal year.
Current wording
During the three months ended July 31, 2025, new sales of print publications increased as a percent of the total gross sales as a result of an increase in new sales orders while conversion and renewal sales orders decreased from the prior fiscal year.
Previous wording
Unearned subscription revenue as of January 31, 2025, is 1.5% below April 30, 2024 and 2.5% below January 31, 2024. A certain amount of variation is to be expected due to the volume of new orders and timing of long-term renewal contracts, direct mail campaigns and large Institutional Sales orders.
Current wording
Unearned subscription revenue as of July 31, 2025, is 3.3% below April 30, 2025 and 2.3% above July 31, 2024. A certain amount of variation is to be expected due to the volume of new orders and timing of long-term renewal contracts, direct mail campaigns and large Institutional Sales orders.
Previous wording
Investment periodicals and related publications revenues of $18,782,000 (excluding copyright fees) during the nine months ended January 31, 2025, which included an extra week of servings for the weekly print products were 2.0% below publications revenues of $19,174,000 in the prior fiscal year. The Company continued actions to attract new subscribers through various marketing channels, primarily direct mail, e-mail, and by the efforts of our sales personnel. As fewer individual investors manage their own portfolios, particularly in volatile markets, total product line circulation at January 31, 2025, was 2.8% below total product line circulation at January 31, 2024.
Current wording
Investment publications revenues of $6,140,000 (excluding copyright fees) during the three months ended July 31, 2025 were 2.3% below publications revenues of $6,287,000 in the prior fiscal year. The Company continued and increased to attract new subscribers through various marketing channels, primarily direct mail, e-mail, and by the efforts of our sales personnel. As fewer individual investors manage their own portfolios, particularly in volatile markets, total product line circulation at July 31, 2025, was 1.8% below total product line circulation at July 31, 2024.
Previous wording
Circulation also reflected management’s decision to reduce marketing efforts temporarily while the challenging stock market environment persisted during the fiscal year ended April 30, 2024. Total print circulation at January 31, 2025 was 3.2% below the total print circulation at January 31, 2024. During the nine months ended January 31, 2025, print publication revenues of $6,750,000 decreased 3.4%, below print publication revenues of $6,987,000 during the corresponding period of 2024 because we deferred advertising in light of negative sentiment among prospective individual customers in a challenging market environment. Total digital circulation at January 31, 2025 was 2.3% below total digital circulation at January 31, 2024. During the nine months ended January 31, 2025, digital revenues of $12,032,000 was 1.3% below last fiscal year. These figures reflect weak investor sentiment, likely temporary, and the ongoing shift from our print services to digital counterparts. Sales of our higher-price, higher-profit, publications have been stronger than sales of lower price “starter” products.
Current wording
Total print circulation at July 31, 2025 was 3.3% below the total print circulation at July 31, 2024. During the three months ended July 31, 2025, print publication revenues of $2,214,000 slightly decreased below print publication revenues of $2,233,000 during the corresponding period of 2025 because we deferred advertising in light of negative sentiment among prospective individual customers in a challenging market environment. Total digital circulation at July 31, 2025 was comparable to total digital circulation at July 31, 2024. During the three months ended July 31, 2025, digital revenues of $3,926,000 was 3.2% below last fiscal year. These figures reflect weak investor sentiment, likely temporary, and the ongoing shift from our print services to digital counterparts. Further, publishing revenue is fairly steady, despite the dip in print circulation. Sales of our higher-price, higher-profit, publications have been stronger than sales of lower price “starter” products.
Previous wording
The Value Line Proprietary Ranks (the “Ranking System”), a component of the Company’s flagship product,The Value Line Investment Survey, are also utilized in the Company’s copyright business. The Ranking System is made available to EAM for specific uses without charge. During the twelve month period ended January 31, 2025, the combined Ranking System “Rank 1 & 2” stocks’ increase of 23.2% compared to the Russell 2000 Index’s increase of 17.5% during the comparable period.
Current wording
The Value Line Proprietary Ranks (the “Ranking System”), a component of the Company’s flagship product,The Value Line Investment Survey, are also utilized in the Company’s copyright business. The Ranking System is made available to EAM for specific uses without charge. During the twelve month period ended July 31, 2025, the combined Ranking System “Rank 1 & 2” stocks’ increase of 7.9% compared to the Russell 2000 Index’s decrease of 1.9% during the comparable period.
Previous wording
During the nine months ended January 31, 2025, copyright fees of $7,910,000 were 15.0% below those during the corresponding period in the prior fiscal year. These fees depend on the assets under management in financial products with contractual arrangements to use the Ranks and other Value Line proprietary information.
Current wording
During the three months ended July 31, 2025, copyright fees of $2,466,000 were 5.0% below those during the corresponding period in the prior fiscal year.
Previous wording
Total assets in the Value Line Funds managed and/or distributed by EAM at January 31, 2025, were $4.97 billion, which is $0.91 billion, or 22.6%, above total assets of $4.06 billion in the Value Line Funds managed and/or distributed by EAM at January 31, 2024.
Current wording
Total assets in the Value Line Funds managed and/or distributed by EAM at July 31, 2025, were $5.01 billion, which is $0.41 billion, or 8.8%, above total assets of $4.60 billion in the Value Line Funds managed and/or distributed by EAM at July 31, 2024.
Previous wording
The gross fees and net income of EAM’s investment management operations during the nine months ended January 31, 2025, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $23,724,000, 12b-1 fees and other fees of $6,032,000 and other net gains of $456,000. For the same period, total investment management fee waivers were $131,000 and 12b-1 fee waivers were $69,000. During the nine months ended January 31, 2025, EAM's net income was $3,384,000 after giving effect to Value Line’s non-voting revenues interest of $12,089,000, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.
Current wording
The gross fees and net income of EAM’s investment management operations during the three months ended July 31, 2025, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $8,302,000, 12b-1 fees and other fees of $1,509,000 and other net gains of $204,000. For the same period, total investment management fee waivers were $41,000 and 12b-1 fee waivers were $22,000. During the three months ended July 31, 2025, EAM's net income was $1,266,000 after giving effect to Value Line’s non-voting revenues interest of $4,488,000, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.
Previous wording
The gross fees and net income of EAM’s investment management operations during the nine months ended January 31, 2024, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $17,388,000, 12b-1 fees and other fees of 4,811,000 and other net gains of $295,000. For the same period, total investment management fee waivers were $260,000 and 12b-1 fee waivers were $72,000. During the nine months ended January 31, 2024, EAM's net income was $1,842,000 after giving effect to Value Line’s non-voting revenues interest of $8,420,000, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.
Current wording
The gross fees and net income of EAM’s investment management operations during the three months ended July 31, 2024, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $7,376,000, 12b-1 fees and other fees of $1,942,000 and other net gains of $156,000. For the same period, total investment management fee waivers were $47,000 and 12b-1 fee waivers were $23,000. During the three months ended July 31, 2024, EAM's net income was $1,122,000 after giving effect to Value Line’s non-voting revenues interest of $3,680,000, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.
Previous wording
As of January 31, 2025, one of the Value Line Funds has 12b-1 fees waivers in place, and five funds have partial investment management fee waivers in place. Although, under the terms of the EAM Declaration of Trust, the Company does not receive or share in the revenues from 12b-1 distribution fees, the Company could benefit from the fee waivers to the extent that the resulting reduction of expense ratios and enhancement of the performance of the Value Line Funds attracts new assets.
Current wording
As of July 31, 2025, one of the Value Line Funds has 12b-1 fees waivers in place, and four funds have investment management fee waivers in place amounting in aggregate to less than 1% of all EAM management fee revenues.
Previous wording
The Value Line equity and hybrid funds’ assets represent 99.3% and fixed income fund assets represent 0.7%, respectively, of total fund assets under management (“AUM”) as of January 31, 2025. At January 31, 2025, equity and hybrid AUM increased by 22.9% and fixed income AUM decreased by 5.3% as compared to last year at January 31, 2024.
Current wording
The Value Line equity and hybrid funds’ assets represent 99.3% and fixed income fund assets represent 0.7%, respectively, of total fund assets under management (“AUM”) as of July 31, 2025. At July 31, 2025, equity and hybrid AUM increased by 9.0% and fixed income AUM decreased by 6.2% as compared to last year at July 31, 2024.
Previous wording
The Company holds non-voting revenues and non-voting profits interests in EAM which entitle the Company to receive from EAM an amount ranging from 41% to 55% of EAM's investment management fee revenues from its mutual fund and separate accounts business, and 50% of EAM’s net profits, not less than 90% of which is distributed in cash every fiscal quarter.
Current wording
The Company receives non-voting revenues interest and non-voting profits interest from EAM. The Company receives from EAM in an amount ranging from 41% to 55% of EAM's investment management fee revenues from its mutual fund business.
Previous wording
The Company recorded income from its non-voting revenues interest and its non-voting profits interest in EAM as follows:
Current wording
The Company recorded income from its non-voting revenues interest and its non-voting profits interest from EAM as follows:
Previous wording
Expenses within the Company are categorized into advertising and promotion, salaries and employee benefits, production and distribution, office and administration. Operating expenses of $21,537,000 during the nine months ended January 31, 2025, were 3.4% above those during the nine months ended January 31, 2024.
Current wording
Expenses within the Company are categorized into advertising and promotion, salaries and employee benefits, production and distribution, office and administration. Operating expenses of $7,110,000 during the three months ended July 31, 2025, were 1.0% above those during the three months ended July 31, 2024.
Previous wording
During nine months ended January 31, 2025, advertising and promotion expenses of $2,698,000 increased 26.1% as compared to the prior fiscal year. During the nine months ended January 31, 2025, increases were primarily due to increases in direct mail and third-party telemarketing & sales consulting.
Current wording
During three months ended July 31, 2025, advertising and promotion expenses of $717,000 decreased 16.6% as compared to the prior fiscal year. During the three months ended July 31, 2025, decreases were primarily due to decreases in direct mail and other promotion costs.
Previous wording
During the nine months ended January 31, 2025, production and distribution expenses of $4,395,000 increased 7.4% above prior fiscal year primarily due to increases in third-party distribution and mailing expenses that resulted from outsourcing our internal distribution operations in early May 2024, while ending our internal VLDC operation at April 30, 2024.
Current wording
During the three months ended July 31, 2025, production and distribution expenses of $1,631,000 increased 9.5% above prior fiscal year primarily due to increases in third-party distribution and mailing expenses that resulted from outsourcing our internal distribution operations in early May 2024, while ending our internal VLDC operation at April 30, 2024.
Previous wording
During the nine months ended January 31, 2025, office and administrative expenses of $3,703,000 increased 7.6% above the prior fiscal year, due to an increase that resulted from software upgrade and modernization project to replace outdated software, and the costs of product billing and other outsourced fulfillment functions, replacing an in-house group based at VLDC previously handled internally by employees.
Current wording
During the three months ended July 31, 2025, office and administrative expenses of $1,146,000 was comparable to the prior fiscal year.
Previous wording
During the nine months ended January 31, 2025, 29.6% of total publishing revenues of $26,692,000 were derived from a single customer.
Current wording
During the three months ended July 31, 2025, 28.7% of total publishing revenues of $8,606,000 were derived from a single customer.
Previous wording
During the nine months ended January 31, 2025, the Company’s total investment gains of 3,557,000 increased 111.1% above prior fiscal year, primarily derived from unrealized gains on equity securities and increases in the interest income. Proceeds from the sales of equity securities during the nine months ended January 31, 2025 and January 31, 2024 were $3,173,000 and $1,129,000, respectively.
Current wording
During the three months ended July 31, 2025, the Company’s total investment gains of $2,019,000 increased 18.1% above prior fiscal year, primarily derived from unrealized gains on equity securities and increases in the interest income. Proceeds from the sales of equity securities during the three months ended July 31, 2025 and July 31, 2024 were $215,000 and $90,000, respectively.
Previous wording
The overall effective income tax rates, as a percentage of pre-tax ordinary income for the nine months ended January 31, 2025 and January 31, 2024 were 25.60% and 23.80%, respectively. The higher effective tax rate during nine months ended January 31, 2025 as compared to January 31, 2024, is primarily a result of an increase in the state and local income taxes from 3.04% to 4.85% due to changes in state and local income tax allocations. The Company's annualized overall effective tax rate fluctuates due to a number of factors, in addition to changes in tax law, including but not limited to an increase or decrease in the ratio of items that do not have tax consequences to pre-tax income, the Company's geographic profit mix among tax jurisdictions, taxation method adopted by each locality, new interpretations of existing tax laws and rulings and settlements with tax authorities.
Current wording
The overall effective income tax rates, as a percentage of pre-tax ordinary income for the three months ended July 31, 2025 and July 31, 2024 were 25.20% and 24.50%, respectively. The higher effective tax rate during three months ended July 31, 2025 as compared to July 31, 2024, is primarily a result of an increase in the state and local income taxes from 3.69% to 4.39% due to changes in state and local income tax allocations. The Company's annualized overall effective tax rate fluctuates due to a number of factors, in addition to changes in tax law, including but not limited to an increase or decrease in the ratio of items that do not have tax consequences to pre-tax income, the Company's geographic profit mix among tax jurisdictions, taxation method adopted by each locality, new interpretations of existing tax laws and rulings and settlements with tax authorities.
Previous wording
The Company had working capital, defined as current assets less current liabilities, of $55,483,000 as of January 31, 2025 and $48,770,000 as of April 30, 2024. These amounts include short-term unearned revenue of $16,634,000 and $15,764,000 reflected in total current liabilities at January 31, 2025 and April 30, 2024, respectively. Cash and short-term securities were $75,791,000 and $68,345,000 as of January 31, 2025 and April 30, 2024, respectively.
Current wording
The Company had working capital, defined as current assets less current liabilities, of $59,748,000 as of July 31, 2025 and $56,230,000 as of April 30, 2025. These amounts include short-term unearned revenue of $15,553,000 and $16,558,000 reflected in total current liabilities at July 31, 2025 and April 30, 2025, respectively. Cash and short-term securities were $81,196,000 and $77,391,000 as of July 31, 2025 and April 30, 2025, respectively.
Previous wording
The Company’s cash and cash equivalents include $26,005,000 and $4,136,000 at January 31, 2025 and April 30, 2024, respectively, invested primarily in commercial banks and in Money Market Funds at brokers, which operate under Rule 2a-7 of the 1940 Act and invest primarily in short-term U.S. government securities.
Current wording
The Company’s cash and cash equivalents include $33,430,000 and $33,615,000 at July 31, 2025 and April 30, 2025, respectively, invested primarily in commercial banks and in Money Market Funds at brokers, which operate under Rule 2a-7 of the 1940 Act and invest primarily in short-term U.S. government securities.
Previous wording
The Company had cash inflows from operating activities of $14,703,000 during the nine months ended January 31, 2025, compared to cash inflows of $14,169,000 during the nine months ended January 31, 2024. The change in cash inflows was a result of an increase in unrealized gains on equity securities and a decrease in accounts receivable from customers, offset by a smaller decline of unearned revenue from the same period last year.
Current wording
The Company had cash inflows from operating activities of $5,560,000 during the three months ended July 31, 2025, compared to cash inflows of $4,771,000 during the three months ended July 31, 2024. The change in cash inflows was a result of an increase in unrealized gains on equity securities and a decrease in accounts receivable from customers, offset by a smaller decline of unearned revenue from the same period last year.
Previous wording
The Company had cash inflows from investing activities of $16,475,000 during the nine months ended January 31, 2025, compared to cash outflows from investing activities of $7,719,000 for the nine months ended January 31, 2024, respectively. The significant cash inflows in investing activities for the nine months ended January 31, 2025 was a result of the company’s conscious decisions to invest the proceeds from maturities of fixed income short-term securities in the company’s short-term U.S. Government money market funds at higher yields than U.S Treasury Bills.
Current wording
The Company had cash outflows from investing activities of $2,811,000 during the three months ended July 31, 2025, compared to cash inflows from investing activities of $9,473,000 for the three months ended July 31, 2024, respectively. The significant cash outflows in investing activities for the three months ended July 31, 2025 was a result of the company’s conscious decisions in the previous year, to invest the proceeds from maturities of fixed income short-term securities in the company’s short-term U.S. Government money market funds at higher yields than U.S Treasury Bills compared to this year.
Previous wording
During the nine months ended January 31, 2025, the Company’s cash outflows from financing activities were $8,752,000, compared to cash outflows from financing activities of $8,260,000 for the nine months ended January 31, 2024. Quarterly dividend payments of $0.30 per share during fiscal year 2025 aggregated $8,478,000. Quarterly regular dividend payments of $0.28 per share during fiscal year 2024 aggregated $7,922,000.
Current wording
During the three months ended July 31, 2025, the Company’s cash outflows from financing activities were $3,118,000, compared to cash outflows from financing activities of $3,006,000 for the three months ended July 31, 2024. Quarterly dividend payments of $0.325 per share during fiscal year 2026 aggregated $3,059,000. Quarterly regular dividend payments of $0.30 per share during fiscal year 2025 aggregated $2,827,000.
Previous wording
At January 31, 2025 there were 9,418,527 common shares outstanding as compared to 9,429,575 common shares outstanding at January 31, 2024. The Company expects financing activities to continue to include use of cash for dividend payments for the foreseeable future.
Current wording
At July 31, 2025 there were 9,414,605 common shares outstanding as compared to 9,419,938 common shares outstanding at July 31, 2024. The Company expects financing activities to continue to include use of cash for dividend payments for the foreseeable future.
Previous wording
Management believes that the Company’s cash and other liquid asset resources used in its business together with future cash flows from operations and from the Company’s non-voting revenues and non-voting profits interests in EAM will be sufficient to finance current and forecasted liquidity needs for the next twelve months and beyond. Management does not anticipate making any borrowings during the next twelve months. As of January 31, 2025, retained earnings and liquid assets were $112,508,000 and $75,791,000, respectively. As of April 30, 2024, retained earnings and liquid assets were $104,249,000 and $68,345,000, respectively. There are no off-balance-sheet arrangements, so none affect the interpretations of reported assets, liquidity, and debt.
Current wording
Management believes that the Company’s cash and other liquid asset resources used in its business together with future cash flows from operations and from the Company’s non-voting revenues and non-voting profits interests from EAM will be sufficient to finance current and forecasted liquidity needs for the next twelve months and beyond. Management does not anticipate making any borrowings during the next twelve months. As of July 31, 2025, retained earnings and liquid assets were $116,802,000 and $81,196,000, respectively. As of April 30, 2025, retained earnings and liquid assets were $113,400,000 and $77,391,000, respectively. There are no off-balance-sheet arrangements, so none affect the interpretations of reported assets, liquidity, and debt.
Previous wording
In November 2023, the FASB issued Accounting Standards Update 2023-07, “Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which requires disclosures of significant expenses by segment and interim disclosure of items that were previously required on an annual basis. ASU 2023-07 is to be applied on a retrospective basis and is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. We adopted ASU 2023-07 with such disclosures included in Note 16 to our Consolidated Financial Statements.
Current wording
In November 2023, the FASB issued Accounting Standards Update 2023-07, “Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which requires disclosures of significant expenses by segment and interim disclosure of items that were previously required on an annual basis. ASU 2023-07 is to be applied on a retrospective basis and is effective for annual reporting periods after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. We adopted ASU 2023-07 with such disclosures included in Note 16 to our Consolidated Financial Statements.
Previous wording
In December 2023, the FASB issued Accounting Standards Update 2023-09, “Improvements to Income Tax Disclosures” (“ASU 2023-09”), which provides for additional disclosures primarily related to the income tax rate reconciliations and income taxes paid. ASU 2023-09 requires entities to annually disclose the income tax rate reconciliation using both amounts and percentages, considering several categories of reconciling items, including state and local income taxes, foreign tax effects, tax credits and nontaxable or nondeductible items, among others. Disclosure of the reconciling items is subject to a quantitative threshold and disaggregation by nature and jurisdiction. ASU 2023-09 also requires entities to disclose net income taxes paid or received to federal, state and foreign jurisdictions, as well as by individual jurisdiction, subject to a five percent quantitative threshold. ASU 2023-09 may be adopted on a prospective or retrospective basis and is effective for fiscal years beginning after December 15, 2024 with early adoption permitted. We are evaluating the impact of ASU 2023-09 on disclosures in our Consolidated Financial Statements.
Current wording
In December 2023, the FASB issued Accounting Standards Update 2023-09, “Improvements to Income Tax Disclosures” (“ASU 2023-09”), which provides for additional disclosures primarily related to the income tax rate reconciliations and income taxes paid. ASU 2023-09 requires entities to annually disclose the income tax rate reconciliation using both amounts and percentages, considering several categories of reconciling items, including state and local income taxes, foreign tax effects, tax credits and nontaxable or nondeductible items, among others. Disclosure of the reconciling items is subject to a quantitative threshold and disaggregation by nature and jurisdiction. ASU 2023-09 also requires entities to disclose net income taxes paid or received to federal, state and foreign jurisdictions, as well as by individual jurisdiction, subject to a five percent quantitative threshold. ASU 2023-09 may be adopted on a prospective or retrospective basis and is effective for annual reporting periods beginning after December 15, 2024 with early adoption permitted. We are evaluating the impact of ASU 2023-09 on disclosures in our Consolidated Financial Statements.
Previous wording
The Company’s critical accounting policy relates to the valuation of EAM. There have been no material changes in our critical accounting policies during the nine months ended January 31, 2025. For a complete discussion of our critical accounting policies, refer to “Critical Accounting Policies and Estimates” discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Annual Report on Form 10-K for fiscal year ended April 30, 2024.
Current wording
The Company’s critical accounting policy relates to the valuation of EAM. There have been no material changes in our critical accounting policies during the three months ended July 31, 2025. For a complete discussion of our critical accounting policies, refer to “Critical Accounting Policies and Estimates” discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Annual Report on Form 10-K for fiscal year ended April 30, 2025.
Previous wording
We are a party to a lease contract which will result in cash payments to a lessor in future periods. Operating lease liabilities are included in our Consolidated Balance Sheets. Estimated payments of these liabilities in each of the next four fiscal years and thereafter are (in thousands): $362 in 2025; $1,461 in 2026; $1,493 in 2027 and $882 in 2028 totaling $4,198.
Current wording
We are a party to a lease contract which will result in cash payments to a lessor in future periods. Operating lease liabilities are included in our Consolidated Balance Sheets. Estimated payments of these liabilities in each of the next three fiscal years and thereafter are (in thousands): $1,099 in 2026; $1,493 in 2027 and $882 in 2028 totaling $3,474.