VALUE LINE INC

Previous wording

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 wording

The U.S. economy delivered an uneven performance during the first nine months of 2025. The nation’s gross domestic product (GDP) contracted by an annualized rate of 0.6% 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 3.8%. The expectation is that GDP expanded by more than 3.0% in the September quarter, but that data had not yet been released due to the recent federal government shutdown.

Previous wording

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 wording

Meanwhile, the inflation situation remains unsettled. After easing during the first few months of calendar 2025, the pace of price growth reaccelerated over the summer months and into the fall. Both the September Consumer and Producer Price Index reports showed that inflation was still running above the Federal Reserve’s target rate. Although the tariff increases have not had as big an impact on prices as many economists expected, there was a sense that the full impact would not be felt until late in the year. Overall, 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 be more cautious given the ongoing tariffs and weakening labor market.

Previous wording

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 wording

Corporate America effectively managed the global trade uncertainty and the negative impact of increased tariffs on its cost structure during the second and third quarters 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.

Previous wording

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 wording

In all, the business environment held up well in 2025, highlighted by double-digit profit growth for the S&P 500 companies during the first three quarters. The strong earnings performance provided support for stocks, amid the Federal Reserve uncertainty and increasing worries about an artificial intelligence spending and related-debt bubble. That said, stock valuations are quite rich compared to historical norms, which leaves many issues vulnerable to selling on any disappointing news.

Previous wording

Results of Operations for the Three Months Ended July 31, 2025 and 2024

Current wording

Results of Operations for the Three and Six Months Ended October 31, 2025 and 2024

Previous 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.

Current wording

During the three months ended October 31, 2025, the Company’s net income of $5,682,000, or $0.60 per share, was slightly below net income of $5,685,000, or $0.60 per share, for the three months ended October 31, 2024. During the three months ended October 31, 2025, the Company’s income from operations of $1,512,000 was 13.3% below income from operations of $1,744,000 during the three months ended October 31, 2024. For the three months ended October 31, 2025, operating expenses decreased 0.7% below those during the three months ended October 31, 2024.

Previous 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.

Current wording

During the six months ended October 31, 2025, there were 9,408,597 average common shares outstanding as compared to 9,419,006 average common shares outstanding during the six months ended October 31, 2024.

Previous 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.

Current wording

During the six months ended October 31, 2025, new sales of print publications decreased on a percentage basis as a result of an increase in renewal sales orders from the prior fiscal year. New sales of digital publications increased.

Previous 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.

Current wording

Unearned subscription revenue as of October 31, 2025, is 8.8% below April 30, 2025 and 2.6% below October 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 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.

Current wording

Investment periodicals and related publications revenues of $12,194,000 (excluding copyright fees) during the six months ended October 31, 2025 were 2.2% below publications revenues of $12,469,000 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 October 31, 2025, was 1.1% below total product line circulation at October 31, 2024.

Previous 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.

Current wording

Total print circulation at October 31, 2025 was 3.2% below the total print circulation at October 31, 2024. During the six months ended October 31, 2025, print publication revenues of $4,366,000 decreased 1.1%, below print publication revenues of $4,414,000 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 October 31, 2025 was 1.3% above total digital circulation at October 31, 2024. During the six months ended October 31, 2025, digital revenues of $7,828,000 were 2.8% lower than the prior 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 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.

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 October 31, 2025, the combined Ranking System “Rank 1 & 2” stocks’ increase of 10.5% compared to the Russell 2000 Index’s increase of 12.9% during the comparable period.

Previous 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.

Current wording

During the six months ended October 31, 2025, copyright fees of $4,968,000 were 5.5% 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 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.

Current wording

Total assets in the Value Line Funds managed and/or distributed by EAM at October 31, 2025, were $4.76 billion, slightly below total assets of $4.78 billion in the Value Line Funds managed and/or distributed by EAM at October 31, 2024.

Previous 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.

Current wording

The gross fees and net income of EAM’s investment management operations during the six months ended October 31, 2025, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $16,675,000, 12b-1 fees and other fees of $3,046,000 and other net gains of $337,000. For the same period, total investment management fee waivers were $83,000 and 12b-1 fee waivers were $42,000. During the six months ended October 31, 2025, EAM's net income was $2,482,000 after giving effect to Value Line’s non-voting revenues interest of $9,034,000, 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 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.

Current wording

The gross fees and net income of EAM’s investment management operations during the six months ended October 31, 2024, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $15,342,000, 12b-1 fees and other fees of $3,952,000 and other net gains of $316,000. For the same period, total investment management fee waivers were $87,000 and 12b-1 fee waivers were $46,000. During the six months ended October 31, 2024, EAM's net income was $2,290,000 after giving effect to Value Line’s non-voting revenues interest of $7,726,000, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.

Previous wording

The 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.

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 October 31, 2025. At October 31, 2025, equity and hybrid AUM decreased slightly and fixed income AUM decreased by 8.4% compared to last year at October 31, 2024.

Previous wording

The Company recorded income from its non-voting revenues interest and its non-voting profits interest from EAM as follows:

Current wording

The Company recorded income from its non-voting revenues interest and its non-voting profits interest in 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 $7,110,000 during the three months ended July 31, 2025, were 1.0% above those during the three months ended July 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 $14,154,000 during the six months ended October 31, 2025, were slightly above those during the six months ended October 31, 2024.

Previous 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.

Current wording

During six months ended October 31, 2025, advertising and promotion expenses of $1,639,000 decreased 4.8% as compared to the prior fiscal year. During the six months ended October 31, 2025, decreases were primarily due to a decline in third party telemarketing and sales commissions.

Previous wording

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 wording

During the six months ended October 31, 2025, salaries and employee benefits of $7,108,000 decreased slightly below the prior fiscal year.

Previous wording

During the three months ended July 31, 2025, office and administrative expenses of $1,146,000 was comparable to the prior fiscal year.

Current wording

During the six months ended October 31, 2025, office and administrative expenses of $2,353,000 decreased slightly below the prior fiscal year.

Previous 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.

Current wording

During the six months ended October 31, 2025, 29.0% of total publishing revenues of $17,162,000 were derived from a single customer.

Previous 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.

Current wording

During the six months ended October 31, 2025, the Company’s total investment gains of $3,201,000 increased 10.6% above prior fiscal year, primarily derived from unrealized gains on equity securities. Proceeds from the sales of equity securities during the six months ended October 31, 2025 and October 31, 2024 were $305,000 and $3,075,000, respectively.

Previous 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.

Current wording

The overall effective income tax rates, as a percentage of pre-tax ordinary income for the six months ended October 31, 2025 and October 31, 2024 were 26.34% and 24.65%, respectively. The higher effective tax rate during six months ended October 31, 2025 as compared to October 31, 2024, is primarily a result of an increase in the state and local income taxes from 3.86% to 5.54% 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 $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.

Current wording

The Company had working capital, defined as current assets less current liabilities, of $62,530,000 as of October 31, 2025 and $56,230,000 as of April 30, 2025. These amounts include short-term unearned revenue of $14,177,000 and $16,558,000 reflected in total current liabilities at October 31, 2025 and April 30, 2025, respectively. Cash and short-term securities were $81,427,000 and $77,391,000 as of October 31, 2025 and April 30, 2025, respectively.

Previous 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.

Current wording

The Company’s cash and cash equivalents include $42,987,000 and $33,615,000 at October 31, 2025 and April 30, 2025, respectively, invested primarily 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 and in commercial banks.

Previous 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.

Current wording

The Company had cash inflows from operating activities of $8,512,000 during the six months ended October 31, 2025, compared to cash inflows of $7,844,000 during the six months ended October 31, 2024. The change in cash inflows was a result of an increase in non-cash items related to deferred income taxes, depreciation & amortization, and taxes payable.

Previous 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.

Current wording

The Company had cash inflows from investing activities of $7,353,000 during the six months ended October 31, 2025, compared to cash inflows from investing activities of $4,889,000 for the six months ended October 31, 2024, respectively. The significant cash inflows from investing activities for the six months ended October 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.

Previous 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.

Current wording

During the six months ended October 31, 2025, the Company’s cash outflows from financing activities were $6,336,000, compared to cash outflows from financing activities of $5,830,000 for the six months ended October 31, 2024. Quarterly dividend payments of $0.325 per share during fiscal year 2026 aggregated $6,117,000. Quarterly regular dividend payments of $0.30 per share during fiscal year 2025 aggregated $5,652,000.

Previous 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.

Current wording

At October 31, 2025 there were 9,408,597 common shares outstanding as compared to 9,419,006 common shares outstanding at October 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 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.

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 October 31, 2025, retained earnings and liquid assets were $119,426,000 and $81,427,000, 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

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.

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 six months ended October 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 three fiscal years and thereafter are (in thousands): $1,099 in 2026; $1,493 in 2027 and $882 in 2028 totaling $3,474.

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): $737 in 2026; $1,493 in 2027 and $882 in 2028 totaling $3,112.