DAILY JOURNAL CORP

Previous wording

The Company’s Traditional Business is one reportable segment and the other is Journal Technologies, which includes Journal Technologies, Inc. and Journal Technologies (Canada) Inc. All inter-segment transactions were eliminated. Additional details about each of the reportable segments and the Company’s corporate income and expenses for the six months ended March 31, 2026 and 2025, are set forth below (in thousands):

Current wording

The Company’s Traditional Business is one reportable segment and the other is Journal Technologies, which includes Journal Technologies, Inc. and Journal Technologies (Canada) Inc. All inter-segment transactions were eliminated. Additional details about each of the reportable segments and the Company’s corporate income and expenses for the nine months ended June 30, 2026 and 2025, are set forth below (in thousands):

Previous wording

Comparison of the six months ended March 31, 2026 to the six months ended March 31, 2025

Current wording

Comparison of the nine months ended June 30, 2026 to the nine months ended June 30, 2025

Previous wording

*Other segment items within net income (loss) include rental income, net unrealized gains on non-qualified compensation plan, interest expense on note payable collateralized by real estate, agency commissions, outside services, postage and delivery expenses, newsprint and printing expenses, depreciation and amortization, equipment maintenance and software, credit card merchant discount fees, rent expenses, accounting and legal fees, and other general and administrative expense.

Current wording

*Other segment items within net income (loss) include rental income, net unrealized gains on non-qualified compensation plan, interest expense on note payable collateralized by real estate, agency commissions, outside services, postage and delivery expenses, newsprint and printing expenses, depreciation and amortization, equipment maintenance and software, credit card merchant discount fees, rent expenses, accounting and legal fees, and other general and administrative expenses.

Previous wording

Consolidated revenues were $42.3 million and $35.9 million for the six months ended March 31, 2026 and 2025, respectively. This increase of $6.4 million (17.8%) was primarily from increases in (i) Journal Technologies’ other public service fees of $2.2 million, license and maintenance fees of $2.0 million, and consulting fees of $1.8 million, and (ii) the Traditional Business’ advertising revenues of $0.3 million.

Current wording

Consolidated revenues were $69.2 million and $59.3 million for the nine months ended June 30, 2026 and 2025, respectively. This increase of $9.9 million (16.8%) was primarily from increases in Journal Technologies’ other public service fees of $3.9 million, license and maintenance fees of $3.3 million, and consulting fees of $2.4 million, and the Traditional Business’ advertising revenues of $0.2 million.

Previous wording

Approximately 79% and 76% of our revenues during the six months ended March 31, 2026 and 2025 were derived from Journal Technologies. In addition, our revenues during the six months ended March 31, 2026 were primarily from the United States, with approximately $3.3 million (7.9%) from foreign countries. Almost all of Journal Technologies’ revenues are from governmental agencies.

Current wording

Approximately 80% and 77% of our revenues during the nine months ended June 30, 2026 and 2025, respectively, were derived from Journal Technologies. In addition, our revenues during the nine months ended June 30, 2026 were primarily from the United States, with approximately $6.3 million (9.1%) from foreign countries and U.S. territories. Almost all of Journal Technologies’ revenues are from governmental agencies.

Previous wording

Consolidated operating expenses increased by $4.6 million (13.5%) to $38.8 million from $34.2 million. Total salaries and employee benefits increased by $1.8 million (7.6%) to $26.0 million from $ 24.2 million primarily due to annual salary adjustments and the hiring of additional staff members to strengthen operational efficiencies, conduct product development and address technical debt, and bolster teams working on our installation projects. Outside services increased by $0.7 million (19.4%) to $4.3 million from $3.6 million mainly because of additional contractor services and increased third-party hosting fees which were billed to clients. Other general and administrative expenses increased by $2.6 million (93.6%) to $5.4 million from $2.8 million, primarily driven by a $1.5 million increase in accounting and legal fees, including higher accounting costs associated with efforts to remediate previously identified material weaknesses in internal control over financial reporting and higher legal and service provider expenses related to proxy solicitation and stockholder outreach activities, as well as a $0.4 million increase in costs related to the adoption and implementation of software and related process changes supporting the Company’s modernization initiatives. The Company expects these costs to remain elevated in the near term as these initiatives continue

Current wording

Consolidated operating expenses increased by $6.1 million (11.3%) to $60.5 million from $54.4 million. Total salaries and employee benefits increased by $1.8 million (4.6%) to $41.4 million from $39.6 million primarily due to annual salary adjustments and the hiring of additional staff members to strengthen operational efficiencies, conduct product development and address technical debt, and bolster teams working on our installation projects. Outside services increased by $0.4 million (8.4%) to $5.8 million from $5.3 million mainly because of additional contractor services and increased third-party hosting fees which were billed to clients. Other general and administrative expenses increased by $4.4 million (104.0%) to $8.7 million from $4.3 million, primarily driven by a $1.5 million increase in accounting and legal fees, including higher accounting costs associated with efforts to remediate previously identified material weaknesses in internal control over financial reporting and higher legal and service provider expenses related to proxy solicitation and stockholder outreach activities, as well as a $0.4 million increase in costs related to the adoption and implementation of software and related process changes supporting the Company’s modernization initiatives. The Company expects these costs to remain elevated in the near term as these initiatives continue.

Previous wording

Other income (expense) for the six months ended March 31, 2026 decreased by $135.0 million, resulting in $60.6 million of other expense, compared with $74.5 million of other income for the six months ended March 31, 2025. This change was primarily driven by unrealized losses on marketable securities of $62.9 million, compared with unrealized gains of $72.8 million in the prior-year period.

Current wording

Other income (expense) for the nine months ended June 30, 2026 decreased by $171.3 million, resulting in $81.8 million of other expense, compared with $89.5 million of other income for the nine months ended June 30, 2025. This change was primarily driven by unrealized losses on marketable securities of $87.0 million, compared with unrealized gains of $84.3 million in the prior-year period.

Previous wording

During the six months ended March 31, 2026 and 2025, consolidated pretax loss was $57.1 million and pretax income was $76.2 million, respectively, and consolidated net loss was $42.6 million and net income was $55.6 million, respectively.

Current wording

During the nine months ended June 30, 2026 and 2025, consolidated pretax loss was $73.1 million and pretax income was $94.4 million, respectively, and consolidated net loss was $53.5 million and net income was $70.0 million, respectively.

Previous wording

As of March 31, 2026, the aggregate fair market value of the Company’s marketable securities was $430.1 million. These securities had approximately $291.0 million of cumulative unrealized gains before estimated taxes of $75.7 million. Most of the unrealized gains were in the common stocks of three U.S. financial institutions and one foreign manufacturer.

Current wording

As of June 30, 2026, the aggregate fair market value of the Company’s marketable securities was $406.0 million. These securities had approximately $266.9 million of cumulative unrealized gains before estimated taxes of $68.7 million. Most of the unrealized gains were in the common stocks of three U.S. financial institutions and one foreign manufacturer.

Previous wording

During the six months ended March 31, 2026, the Company recorded an income tax benefit of $14.5 million on the pretax loss of $57.1 million. The income tax benefit and expense consisted primarily of tax benefit of $15.8 million related to unrealized losses on marketable securities, and tax expense of $1.4 million on income from US operations and dividend income. Consequently, the overall effective tax rate for the six months ended March 31, 2026 was 25.3% after including the taxes on the unrealized gains on marketable securities.

Current wording

During the nine months ended June 30, 2026, the Company recorded an income tax benefit of $19.6 million on the pretax loss of $73.1 million. The income tax benefit and expense consisted primarily of tax benefit of $22.4 million related to unrealized losses on marketable securities, and tax expense of $3.2 million on income from U.S. operations and dividend income. Consequently, the overall effective tax rate for the nine months ended June 30, 2026 was 26.8% after including the taxes on the unrealized losses on marketable securities.

Previous wording

For the six months ended March 31, 2025, the Company recorded an income tax provision of $20.6 million on pretax income of $76.2 million. The income tax provision consisted of $19.2 million related to unrealized gains on marketable securities, $0.9 million related to income from U.S. operations and dividend income, and a tax provision of $0.6 million for the effect of a change in state apportionment on the beginning of the year’s deferred tax liability. These tax liabilities were partially offset by a tax benefit of $0.1 million for the dividends received deduction and other permanent book and tax differences. Consequently, the overall effective tax rate for the six months ended March 31, 2025 was 27%, after including the taxes on the unrealized gains on marketable securities.

Current wording

For the nine months ended June 30, 2025, the Company recorded an income tax provision of $24.4 million on pretax income of $94.4 million. The income tax provision consisted of $22.0 million related to unrealized gains on marketable securities, $2.5 million related to income from U.S. operations and dividend income, and a tax provision of $0.2 million for the effect of a change in state apportionment on the beginning of the year’s deferred tax liability. These tax liabilities were partially offset by a tax benefit of $0.3 million for the dividends received deduction and other permanent book and tax differences. Consequently, the overall effective tax rate for the nine months ended June 30, 2025 was 25.9%, after including the taxes on the unrealized gains on marketable securities.

Previous wording

For the six months ended March 31, 2026, Journal Technologies’ pretax income increased by $3.7 million to $4.2 million, compared to $0.5 million for the six months ended March 31, 2025. The increase was primarily attributable to higher revenues of $6.0 million, partially offset by increased operating expenses of $2.3 million.

Current wording

For the nine months ended June 30, 2026, Journal Technologies’ pretax income increased by $5.1 million to $9.8 million, compared to $4.7 million for the nine months ended June 30, 2025. The increase was primarily attributable to higher revenues of $9.6 million, partially offset by increased operating expenses of $4.6 million.

Previous wording

Revenues increased by $6.0 million (22.0%) to $33.4 million from $27.4 million during the prior-year period. Licensing and maintenance fees increased by $2.0 million (13.4%) to $17.0 million, while other public service fees increased by $2.2 million (30.8%) to $9.3 million, primarily due to increased e-filing revenues. Consulting fees increased by $1.8 million (34.4%) to $7.1 million, primarily due to the timing of project go-lives and deferred revenue recognition.

Current wording

Revenues increased by $9.6 million (21.0%) to $55.6 million from $45.9 million during the prior-year period. Licensing and maintenance fees increased by $3.3 million (14.3%) to $26.3 million, while other public service fees increased by $3.9 million (34.9%) to $15.0 million, primarily due to increased e-filing revenues. Consulting fees increased by $2.4 million (20.7%) to $14.2 million, primarily due to the timing of project go-lives and deferred revenue recognition.

Previous wording

Operating expenses increased by $2.3 million (8.7%) to $29.2 million, primarily due to higher accounting and consulting fees, increased personnel costs, higher contractor utilization, and increased hosting costs billed to customers.

Current wording

Operating expenses increased by $4.6 million (11.1%) to $45.8 million, primarily due to higher accounting and consulting fees, increased personnel costs, higher contractor utilization, and increased hosting costs billed to customers.

Previous wording

For the six months ended March 31, 2026, the Traditional Business reported a pretax loss of $1.1 million, compared to pretax income of $1.2 million for the six months ended March 31, 2025. This decrease was primarily attributable to increased accounting and consulting fees and other operating expenses.

Current wording

For the nine months ended June 30, 2026, the Traditional Business reported a pretax loss of $0.6 million, compared to pretax income of $0.2 million for the nine months ended June 30, 2025. This decrease was primarily attributable to increased accounting and consulting fees and other operating expenses.

Previous wording

Total revenues increased by $0.4 million (4.2%) to $8.8 million from $8.5 million in the prior-year period. Advertising revenues increased by $0.3 million (4.7%) to $6.6 million, while circulation revenues increased by $0.1 million (2.8% ).

Current wording

Total revenues increased by $0.3 million (2.4%) to $13.7 million from $13.4 million in the prior-year period. Advertising revenues increased by $0.2 million (2.4%) to $10.4 million, while circulation revenues increased by $0.1 million (2.4% ).

Previous wording

The Traditional Business segment operating expenses increased by $2.6 million (36.0%) to $9.9 million from $7.3 million, primarily resulting from increased personnel costs, merchant discount fees, additional promotional expenses, and accounting advisory fees primarily associated with the remediation of material weaknesses in our internal controls and higher legal and service provider expenses associated with proxy solicitation and stockholder outreach activities.

Current wording

The Traditional Business segment operating expenses increased by $1.2 million (8.7%) to $14.3 million from $13.1 million, primarily resulting from increased merchant discount fees, additional promotional expenses, and accounting advisory fees primarily associated with the remediation of material weaknesses in our internal controls and higher legal and service provider expenses associated with proxy solicitation and stockholder outreach activities, partially offset by decreased personnel costs.

Previous wording

*Other segment items within net income (loss) include rental income, net unrealized gains on non-qualified compensation plan, interest expense on note payable collateralized by real estate, agency commissions, outside services, postage and delivery expenses, newsprint and printing expenses, depreciation and amortization, equipment maintenance and software, credit card merchant discount fees, rent expenses, accounting and legal fees, and other general and administrative expense.

Current wording

*Other segment items within net income (loss) include rental income, net unrealized gains on non-qualified compensation plan, interest expense on note payable collateralized by real estate, agency commissions, outside services, postage and delivery expenses, newsprint and printing expenses, depreciation and amortization, equipment maintenance and software, credit card merchant discount fees, rent expenses, accounting and legal fees, and other general and administrative expenses.

Previous wording

Consolidated revenues were $22.7 million and $18.2 million for three months ended March 31, 2026 and 2025, respectively. This increase of $4.5 million (25.0%) was primarily from increases in (i) Journal Technologies’ consulting fees of $2.3 million, other public service fees of $1.2 million, and license and maintenance fees of $1.0 million.

Current wording

Consolidated revenues were $27.0 million and $23.4 million for the three months ended June 30, 2026 and 2025, respectively. This increase of $3.6 million (15.3%) was primarily from increases in Journal Technologies’ consulting fees of $0.6 million, other public service fees of $1.7 million, and license and maintenance fees of $1.3 million.

Previous wording

Approximately 80% and 76% of our revenues during the three months ended March 31, 2026 and 2025 were derived from Journal Technologies. In addition, our revenues during the three months ended March 31, 2026 were primarily from the United States, with approximately $2.2 million (9.7%) from foreign countries.

Current wording

Approximately 82% and 79% of our revenues during the three months ended June 30, 2026 and 2025 were derived from Journal Technologies. In addition, our revenues during the three months ended June 30, 2026 were primarily from the United States, with approximately $3.0 million (11.0%) from foreign countries and U.S. territories.

Previous wording

Consolidated operating expenses increased by $2.5 million (14.6%) to $19.7 million from $17.2 million. Total salaries and employee benefits increased by $0.7 million (6.1%) to $13.1 million from $12.3 million primarily due to annual salary adjustments and the hiring of additional staff members to strengthen operational efficiencies, conduct product development and address technical debt, and bolster teams working on our installation projects. Outside services decreased by $0.1 million (3.7%) to $1.7 million from $1.8 million. Other general and administrative expenses increased by $2.0 million (147.6%) to $3.4 million from $1.4 million, primarily due to higher accounting and consulting fees associated with remediation of material weaknesses in internal controls.

Current wording

Consolidated operating expenses increased by $1.5 million (7.6%) to $21.7 million from $20.2 million. Total salaries and employee benefits remained essentially flat at $15.4 million, as increased Journal Technologies personnel costs were offset by decreased Traditional Business personnel costs. Outside services decreased by $0.3 million (14.7%) to $1.5 million from $1.7 million. Other general and administrative expenses increased by $1.8 million (123.7%) to $3.3 million from $1.5 million, primarily due to higher accounting and consulting fees associated with remediation of material weaknesses in internal controls.

Previous wording

Other expenses for the three months ended March 31, 2026 was $50.0 million of other expense, compared with $60.3 million of other income for the three months ended March 31, 2025. This change was primarily driven by unrealized losses on marketable securities of $51.2 million, compared with unrealized gains of $59.4 million in the prior-year quarter.

Current wording

Other income (expense) for the three months ended June 30, 2026 was $21.3 million of other expense, compared with $15.0 million of other income for the three months ended June 30, 2025. This change was primarily driven by unrealized losses on marketable securities of $24.1 million, compared with unrealized gains of $11.5 million in the prior-year quarter.

Previous wording

During the three months ended March 31, 2026 and 2025, consolidated pretax loss was $47.0 million and pretax income was $61.3 million, respectively, and consolidated net loss was $34.6 million and net income was $44.7 million, respectively.

Current wording

During the three months ended June 30, 2026 and 2025, consolidated pretax loss was $16.0 million and pretax income was $18.2 million, respectively, and consolidated net loss was $10.9 million and net income was $14.4 million, respectively.

Previous wording

For the three months ended March 31, 2026, Journal Technologies’ pretax income was $3.1 million compared to $0.1 million for the three months ended March 31, 2025. The increase was primarily attributable to higher revenues of $4.4 million, partially offset by increased operating expenses of $1.4 million.

Current wording

For the three months ended June 30, 2026, Journal Technologies’ pretax income was $5.5 million compared to $4.2 million for the three months ended June 30, 2025. The increase was primarily attributable to higher revenues of $3.6 million, partially offset by increased operating expenses of $2.2 million.

Previous wording

Revenues increased by $4.4 million (32.2%) to $18.2 million from $13.8 million during the prior-year quarter. Licensing and maintenance fees increased by $1.0 million (13.7%) to $8.5 million, while other public service fees increased by $1.2 million (32.0%) to $4.8 million, primarily due to increased e-filing revenues. Consulting fees increased by $2.3 million (84.5%) to $4.9 million, primarily due to the timing of project go-lives and deferred revenue recognition.

Current wording

Revenues increased by $3.6 million (19.5%) to $22.1 million from $18.5 million during the prior-year quarter. Licensing and maintenance fees increased by $1.3 million (16.0%) to $9.2 million, while other public service fees increased by $1.7 million (42.2%) to $5.7 million, primarily due to increased e-filing revenues. Consulting fees increased by $0.6 million (9.7%) to $7.2 million, primarily due to the timing of project go-lives and deferred revenue recognition.

Previous wording

Operating expenses increased by $1.4 million (10.2%) to $15.1 million, primarily due to increased personnel costs, higher contractor utilization, and increased hosting costs billed to customers.

Current wording

Operating expenses increased by $2.2 million (15.5%) to $16.6 million, primarily due to increased personnel costs, higher contractor utilization, and increased hosting costs billed to customers.

Previous wording

For the three months ended March 31, 2026, the Traditional Business reported a pretax loss of $0.5 million, compared to pretax income of $0.9 million for the three months ended March 31, 2025. This decrease was primarily attributable to other operating expenses.

Current wording

For the three months ended June 30, 2026, the Traditional Business reported a pretax income of $0.5 million, compared to pretax loss of $0.9 million for the three months ended June 30, 2025. This increase was primarily attributable to decreased operating expenses, driven by lower personnel costs.

Previous wording

The Traditional Business segment operating expenses increased by $1.5 million (42.0%) to $5.0 million from $3.5 million, primarily resulting from increased merchant discount fees, additional promotional expenses, and accounting advisory fees primarily associated with the remediation of material weaknesses in our internal controls, as well as higher legal and service provider expenses associated with proxy solicitation and stockholder outreach activities.

Current wording

The Traditional Business segment operating expenses decreased by $1.5 million (25.5%) to $4.3 million from $5.8 million, primarily resulting from decreased personnel costs, partially offset by increased merchant discount fees, additional promotional expenses, accounting advisory fees primarily associated with the remediation of material weaknesses in our internal controls, and higher legal expenses.

Previous wording

During the six months ended March 31, 2026, our cash and cash equivalents, restricted cash, and marketable securities decreased by $62.8 million, reflecting net pretax unrealized losses on marketable securities of $62.9 million. The investments in marketable securities, which had an adjusted cost basis of approximately $139.1 million and a market value of approximately $430.1 million as of March 31, 2026, generated approximately $2.6 million in dividends and interest income during the six months ended March 31, 2026. These securities had approximately $291.0 million of cumulative unrealized gains before estimated taxes of $75.7 million which will become due only when we sell securities in which there is realized appreciation.

Current wording

During the nine months ended June 30, 2026, our cash and cash equivalents, restricted cash, and marketable securities decreased by $76.4 million, reflecting net pretax unrealized losses on marketable securities of $87.0 million. The investments in marketable securities, which had an adjusted cost basis of approximately $139.1 million and a market value of approximately $406.0 million as of June 30, 2026, generated approximately $5.5 million in dividends and interest income during the nine months ended June 30, 2026. These securities had approximately $266.9 million of cumulative unrealized gains before estimated taxes of $68.7 million which will become due only when we sell securities in which there is realized appreciation.

Previous wording

No marketable securities were sold during the six months ended March 31, 2026. The margin loan principal balance was paid down by $2.0 million using excess cash from operations. The loan balance was $20.0 million and $22.0 million as of March 31, 2026 and September 30, 2025, respectively.

Current wording

No marketable securities were sold during the nine months ended June 30, 2026. The margin loan principal balance was paid down by $2.0 million using excess cash from operations. The loan balance was $20.0 million and $22.0 million as of June 30, 2026 and September 30, 2025, respectively.

Previous wording

As of March 31, 2026, we had working capital of $441.7 million, including the liabilities for deferred revenue of $16.4 million.

Current wording

As of June 30, 2026, we had working capital of $424.1 million, including the liabilities for deferred revenue of $17.9 million.

Previous wording

We believe that we will be able to fund our operations for the foreseeable future through our cash flows from operations and our current working capital, and we expect that any such cash flows will be invested in our businesses. We may or may not have the ability to borrow additional amounts against our marketable securities and, among other possibilities, we may be required to consider selling securities to generate cash if needed to fund ongoing operations. The amount available for borrowing is based on the market value of our investment portfolio and fluctuates depending on the value of the underlying securities. In addition, we could be subject to margin calls should the value of the investments decrease significantly.

Current wording

We believe that we will be able to fund our operations for the foreseeable future through our cash flows from operations and our current working capital, and we expect that any such cash flows will be invested in our businesses. We may or may not have the ability to borrow additional amounts against our marketable securities and, among other possibilities, we may be required to consider selling assets to generate cash if needed to fund ongoing operations. The amount available for borrowing is based on the market value of our investment portfolio and fluctuates depending on the value of the underlying securities. In addition, we could be subject to margin calls should the value of the investments decrease significantly.

Previous wording

For the six months ended March 31, 2026, net cash provided by operating activities was $2.2 million. Cash provided by operating activities consisted of a net loss of $42.6 million, adjusted for non-cash items of $48.3 million, and cash used for working capital of $3.5 million. Adjustments for non-cash items consisted primarily of $62.9 million of net unrealized losses on marketable securities, and $14.8 million of deferred income tax benefit. The use of cash from changes in operating assets and liabilities was primarily attributable to a $7.7 million decrease in accrued liabilities, including non-qualified deferred compensation, $0.6 million decrease in income taxes payable, $1.9 million decrease in deferred revenue, and $1.3 million increase in prepaid expenses and other assets, partially offset by a $7.4 million decrease in accounts receivable, reflecting improved collections, and a $0.7 million increase in accounts payable.

Current wording

For the nine months ended June 30, 2026, net cash provided by operating activities was $12.9 million. Cash provided by operating activities consisted of a net loss of $53.5 million, adjusted for non-cash items of $65.1 million, and increased by cash provided by working capital of $1.3 million. Adjustments for non-cash items consisted primarily of $87.0 million of net unrealized losses on marketable securities, and partially offset by $22.2 million of deferred income tax benefit. The cash provided by changes in operating assets and liabilities was primarily attributable to a $3.1 million decrease in accounts receivable, reflecting improved collections, a $3.0 million increase in accounts payable, a $1.6 million increase in income taxes payable, and a $0.5 million increase in deferred revenue, partially offset by a $4.5 million decrease in accrued liabilities, including non-qualified deferred compensation, and a $2.4 million increase in prepaid expenses and other assets.

Previous wording

For the six months ended March 31, 2025, net cash provided by operating activities was $1.6 million. Cash provided by operating activities consisted of net income of $55.6 million, adjusted for non-cash items of $52.3 million, and cash used for working capital of $1.6 million. Adjustments for non-cash items consisted primarily of $72.8 million of net unrealized gains on marketable securities, partially offset by $20.3 million of deferred income tax expense, as well as $0.1 million of depreciation and amortization and $0.1 million of stock-based compensation. The use of cash from changes in operating assets and liabilities was primarily attributable to a $6.5 million decrease in deferred revenue and a $2.5 million decrease in accrued liabilities, including non-qualified deferred compensation, partially offset by a $7.4 million decrease in accounts receivable, reflecting improved collections.

Current wording

For the nine months ended June 30, 2025, net cash provided by operating activities was $8.8 million. Cash provided by operating activities consisted of net income of $70.0 million, reduced by adjustments for non-cash items of $61.2 million and increased by cash provided by working capital of less than $0.1 million. Adjustments for non-cash items consisted primarily of $84.3 million of net unrealized gains on marketable securities, partially offset by $22.8 million of deferred income tax expense, as well as $0.2 million of depreciation and amortization and $0.1 million of stock-based compensation. The cash provided by changes in operating assets and liabilities was primarily attributable to a $2.3 million increase in accounts payable, a $1.6 million increase in income taxes payable, and a $0.9 million increase in accrued liabilities, including non-qualified deferred compensation, partially offset by a $4.0 million decrease in deferred revenue and a $0.3 million increase in accounts receivable.

Previous wording

For the six months ended March 31, 2026 and 2025 , net cash used in investing activities was negligible or nil.

Current wording

For the nine months ended June 30, 2026 and 2025, net cash used in investing activities was negligible or nil.

Previous wording

For the six months ended March 31, 2026, net cash used in financing activities totaled $2.1 million, consisting primarily of a $2.0 million repayment on the outstanding balance of the Company’s investment margin loan.

Current wording

For the nine months ended June 30, 2026, net cash used in financing activities totaled $2.1 million, consisting primarily of a $2.0 million repayment on the outstanding balance of the Company’s investment margin loan.