VALUE LINE INC
For the period ended Jul 31, 2026. Filed Sep 14, 2026.
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, 2026 · Filed Sep 14, 2026
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 2026-01-31; filed 2026-03-17.
0001437749-26-008479
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-07-31; filed 2026-09-14.
0001437749-26-030292
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.
47 unchanged; 32 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 turned in a mixed performance during the first half of calendar 2026. After a solid start to the year, with the gross domestic product (GDP) expanding by an estimated annualized rate of 2.1% during the March quarter, output slowed to 1.5% in the June period. In general, resilient consumer spending and robust business investment, primarily focused on the ongoing artificial intelligence (AI) infrastructure buildout, was partially offset by a notable decline in residential construction, a sharp increase in imports (which detracts from the GDP calculation), and a decrease in government spending. Forecasts for real GDP growth this year have since come down, largely reflecting continued worries about inflation, and its impact on the U.S. consumer, along with elevated geopolitical concerns, and the resultant higher energy prices. The consensus GDP estimate now calls for a 1.5% to 2.2% advance, down from the prior expectation of 2.5%-3.1%.
Current report
The inflation situation remains a concern for the Federal Reserve. The reacceleration in the pace of price growth this year was evident in the July inflation data, with the Consumer and Producer Price Indexes (on a 12-month basis) increasing 3.4% and 4.7%, respectively. Likewise, the Personal Consumption Expenditures (PCE) Price Index, the assessment of inflation most closely watched by the Fed, rose 3.7% over the 12-month period ended July 31st. These figures remain well above the central bank’s target inflation rate of 2.0%. Treasury market yields have risen recently on the inflation worries and concerns about the nation’s soaring debt level.
Current report
The labor market appears to be less of a worry for the Federal Reserve. The estimated August job creation figure of 162,000 came in nearly triple the consensus forecast, and the prior two-month total included an upward revision of 55,000 jobs. Meanwhile, weekly unemployment claims still remain low and the number of job openings totaled 7.4 million in July. The unemployment rate held steady at 4.1% in August, another positive sign especially with more people reentering the workforce. This was reflected by an increase in the labor force participation rate, to 61.6%.
Current report
Meanwhile, Corporate America continues to excel. Profit growth for the S&P 500 companies averaged more than 50% in the second quarter (+30% when excluding the impact of the hefty non-operating gains from Amazon and Alphabet), and indications are that the growth rate remained in the high-20% range in the third quarter, again powered by strong profit gains for the technology companies. The astronomical spending on AI infrastructure (i.e., data center construction and memory and processing chips) is the main catalyst behind the profit gains. That said, the recent increase in oil prices—due to the ongoing war with Iran and its military proxies in the Middle East—and the continued trade uncertainties—including the United States trade war with Canada—may cut into profit growth during in the second half of calendar 2026.
Current report
In conclusion: The business environment remains in good shape, despite the continued geopolitical and global trade uncertainty. Spending on AI is providing a major catalyst and should power earnings growth through the end of this year. The strong profit gains are supporting equity valuations, despite building sentiment that the Federal Reserve may soon need to raise the benchmark short-term interest rate to help rein in inflation.
Current report
During the three months ended July 31, 2026, advertising and promotion expenses of $821,000 increased 14.5% as compared to the prior fiscal year primarily due to increase in direct mail campaigns.
Current report
During the three months ended July 31, 2026, production and distribution expenses of $1,460,000 decreased 10.5% below the prior fiscal year primarily due to decreases in production expenses to support the Company’s website and maintenance of the Company’s publishing and application software and operating systems.
Current report
During the three months ended July 31, 2026, office and administrative expenses of $1,246,000 increased 8.7% above the prior fiscal year, primarily because the Company incurred costs associated with a fulfillment system upgrade, new E-commerce platform, and security and accessibility improvements to our digital services.
Current report
In September 2025, the FASB issued ASU No. 2025-06: Targeted Improvements to the Accounting for Internal-Use Software (ASU No. 2025-06) to clarify and modernize the recognition and disclosure framework for internal-use software costs. This standard removes all references to software development project stages and requires capitalization to begin once (1) management commits funding and (2) completion and intended use are probable, considering whether significant development uncertainties have been resolved. This standard is effective for fiscal years beginning after December 15, 2027, and for interim periods within those annual reporting periods. Early adoption is permitted. We are currently evaluating the impact on our financial statement disclosures.
Removed paragraphs (9)
Previous report
The U.S. economy entered calendar 2026 at a slowly growing pace. After a slow start in 2025, with a tariff-driven spike in imports resulting in a 0.6% annualized contraction in the first quarter, the gross domestic product (GDP) expanded 3.8%, 4.4%, and 0.7%, respectively, over the final three quarters of the year. It also should be noted that the federal government shutdown, the longest in the nation’s history, reduced the estimated final-quarter GDP tally by at least a full percentage point. The advances over the final nine months of last year were driven by a resilient consumer sector, as well massive spending on artificial intelligence and the related infrastructure build out. Looking forward, further GDP gains are expected over the next 12 months, with lower interest rates, the result of three quarter-point cuts to the Fed interest rate last year, tax cuts, and regulation rollback providing support for the economy. Additional Fed interest rate reductions may occur as well.
Previous report
Meanwhile, there are concerns that a reacceleration in inflation is possible this year. Attacks by Iran on multiple states in the Middle East followed the launch by the United States and Israel of a substantial assault on Iran that killed that nation’s Supreme Leader Ayatollah Ali Khamenei as well as other military and government leaders. President Trump and Secretary of State Marco Rubio have said the use of force aims to eliminate Iran’s nuclear program, degrade its missile and naval forces, and possibly bring about regime change. Both the fighting itself and Iranian warnings that ships not use the Strait of Hormuz, a waterway where 20% of the world’s oil supply passes through, could significantly disrupt the worldwide shipment of oil and other goods like fertilizer. Resultant higher crude prices, along with the recent renewed tariff threats from the Trump Administration, may lead to a reacceleration in inflation.
Previous report
Wall Street now expects the Federal Reserve, which will have a leadership change later this year, to take a more-cautious approach with regard to interest-rate policy. Inflation worries, along with data showing that the labor market is holding up fairly well in an environment of few layoffs but restrained new hiring, don’t put pressure on the central bank to cut interest rates. Corporate earnings growth remains healthy. On point, the profit growth rate for the S&P 500 companies averaged around 14% in the fourth quarter of 2025, which marked a fifth-consecutive quarter of double-digit advances for the Index. Against this backdrop, the Fed futures market is now predicting that the Federal Reserve will cut the benchmark interest rate, which currently is in the range of 3.50% to 3.75%, once this year, with a quarter-point reduction at the September Federal Open Market Committee (FOMC) meeting the most likely possibility.
Previous report
In all, the business environment is in solid shape, highlighted by double-digit corporate profit growth. The strong earnings performance has provided some support for equities, but volatility in the U.S. stock market has picked up. Investors clearly do not like uncertainty and they are getting a lot of it in the early months of 2026. Concerns about tariffs, artificial intelligence (AI) infrastructure funding (especially among private-equity and credit companies), hostilities in the Middle East, and the Fed’s near-term monetary policy course are all stoking anxiety for investors.
Previous report
During the nine months ended January 31, 2026, the Company’s net income of $18,052,000, or $1.92 per share, was 7.9% above net income of $16,735,000, or $1.78 per share, for the nine months ended January 31, 2025. During the nine months ended January 31, 2026, the Company’s income from operations of $4,012,000 was 22.2% below income from operations of $5,155,000 during the nine months ended January 31, 2025. For the nine months ended January 31, 2026, operating expenses decreased slightly below those during the nine months ended January 31, 2025.
Previous report
During the nine months ended January 31, 2026, advertising and promotion expenses of $2,628,000 decreased 2.6% as compared to the prior fiscal year. During the nine months ended January 31, 2026, decreases were primarily due to a decline in third party telemarketing costs and sales commissions.
Previous report
During the nine months ended January 31, 2026, production and distribution expenses of $4,446,000 increased 1.2% above the prior fiscal year primarily due to an overlap of data feed and licensing fees during a transition to a new vendor.
Previous report
During the nine months ended January 31, 2026, office and administrative expenses of $3,632,000 decreased 1.9% below the prior fiscal year.
Previous report
From 2016 to 2024, the Company’s subsidiary VLDC and Seagis Property Group LP (the “Landlord”) entered into a lease agreement, pursuant to which VLDC leased 24,110 square feet of warehouse and appurtenant office space located at Lyndhurst, NJ (“Warehouse”). Base rent under the Lease was $237,218 per annum. The Company provided a security deposit in cash in the amount of $32,146, which has been fully refunded after the Company vacated the premises. VLDC distributed Value Line’s print publications from the Warehouse. The Company has outsourced to U.S. contractors the functions formerly performed at the Warehouse.
Reworded paragraphs (32)
Previous wording
Results of Operations for the Three and Nine Months Ended January 31, 2026 and 2025
Current wording
Results of Operations for the Three Ended July 31, 2026 and 2025
Previous wording
During the three months ended January 31, 2026, the Company’s net income of $5,910,000, or $0.63 per share, was 14.5% above net income of $5,163,000, or $0.55 per share, for the three months ended January 31, 2025. During the three months ended January 31, 2026, the Company’s income from operations of $1,004,000 was 35.8% below income from operations of $1,564,000 during the three months ended January 31, 2025. For the three months ended January 31, 2026, operating expenses decreased 0.7% below those during the three months ended January 31, 2025.
Current wording
During the three months ended July 31, 2026, the Company’s net income of $4,655,000, or $0.50 per share, was 27.9% below net income of $6,460,000, or $0.69 per share, for the three months ended July 31, 2025. During the three months ended July 31, 2026, the Company’s income from operations of $1,027,000 was 31.4% below income from operations of $1,496,000 during the three months ended July 31, 2025. For the three months ended July 31, 2026, operating expenses decreased 1.2% below those during the three months ended July 31, 2025.
Previous wording
During the nine months ended January 31, 2026, there were 9,402,966 average common shares outstanding as compared to 9,418,527 average common shares outstanding during the nine months ended January 31, 2025.
Current wording
During the three months ended July 31, 2026, there were 9,384,249 average common shares outstanding as compared to 9,414,605 average common shares outstanding during the three months ended July 31, 2025.
Previous wording
During the nine months ended January 31, 2026, 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.
Current wording
During the three months ended July 31, 2026, 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 decreased.
Previous wording
Unearned subscription revenue as of January 31, 2026, is 5.7% below April 30, 2025 and 4.2% below January 31, 2025. 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, 2026, is slightly below April 30, 2026 and 3.0% below July 31, 2025. A certain amount of variation is to be expected due to the volume of new orders and timing of long-term renewal contracts, marketing campaigns and large Institutional Sales orders.
Previous wording
Investment periodicals and related publications revenues of $18,083,000 (excluding copyright fees) during the nine months ended January 31, 2026 were 3.7% below publications revenues of $18,782,000 in the prior fiscal year. The Company continued a variety of efforts 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, 2026, was 1.1% below total product line circulation at January 31, 2025.
Current wording
Investment periodicals and related publications revenues of $5,774,000 (excluding copyright fees) during the three months ended July 31, 2026 were 6.0% below publications revenues of $6,140,000 in the prior fiscal year. The Company continued a variety of efforts 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, 2026, was 2.4% below total product line circulation at July 31, 2025.
Previous wording
Total print circulation at January 31, 2026 was 2.0% below the total print circulation at January 31, 2025. During the nine months ended January 31, 2026, print publication revenues of $6,383,000 decreased 5.4%, below print publication revenues of $6,750,000 during the corresponding period of 2025. Total digital circulation at January 31, 2026 was 2.3% above total digital circulation at January 31, 2025. During the nine months ended January 31, 2026, digital revenues of $11,700,000 were 2.8% lower than the prior fiscal year. These figures reflect the ongoing shift from our print services to digital counterparts. Sales of our higher-price, higher-profit, publications have remained strong.
Current wording
Total print circulation at July 31, 2026 was 3.2% below the total print circulation at July 31, 2025. During the three months ended July 31, 2026, print publication revenues of $1,957,000 decreased 11.6%, below print publication revenues of $2,214,000 during the corresponding period of 2026. Total digital circulation at July 31, 2026 was 1.5% below total digital circulation at July 31, 2025. During the three months ended July 31, 2026, digital revenues of $3,817,000 were 2.8% lower than the prior fiscal year. These figures reflect solid the ongoing shift from our print services to digital counterparts. Sales of our higher-price, higher-profit, publications have remained strong.
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, 2026, the combined Ranking System “Rank 1 & 2” stocks’ increase of 14.2% compared to the Russell 2000 Index’s increase of 14.3% 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, 2026, the combined Ranking System “Rank 1 & 2” stocks’ price increase of 26.0% compared to the Russell 2000 Index’s increase of 32.5% during the comparable period.
Previous wording
During the nine months ended January 31, 2026, copyright fees of $7,355,000 were 7.0% below those during the corresponding period in the prior fiscal year.
Current wording
During the three months ended July 31, 2026, copyright fees of $2,277,000 were 7.7% 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, 2026, were $4.20 billion, which is $0.77 billion or 15.6% below total assets of $4.97 billion in the Value Line Funds managed and/or distributed by EAM at January 31, 2025.
Current wording
Total assets in the Value Line Funds managed and/or distributed by EAM at July 31, 2026, were $3.40 billion, which is $1.61 billion or 32.2% below total assets of $5.01 billion in the Value Line Funds managed and/or distributed by EAM at July 31, 2025.
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, 2026, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $6,228,000, 12b-1 fees and other fees of $1,321,000 and other net gains of $144,000. For the same period, there was total investment management fee waivers of $23,000. During the three months ended July 31, 2026, EAM's net income was $1,046,000 after giving effect to Value Line’s non-voting revenues interest of $3,356,000, 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, 2026, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $24,355,000, 12b-1 fees and other fees of $4,506,000 and other net gains of $470,000. For the same period, total investment management fee waivers were $132,000 and 12b-1 fee waivers were $47,000. During the nine months ended January 31, 2026, EAM's net income was $3,648,000 after giving effect to Value Line’s non-voting revenues interest of $13,212,000, 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
As of January 31, 2026, 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.
Current wording
As of July 31, 2026, three of the Value Line 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 100% of total fund assets under management (“AUM”) as of January 31, 2026. At January 31, 2026, equity and hybrid AUM decreased by 15.0% compared to last year at January 31, 2025.
Current wording
The Value Line equity and hybrid funds’ assets represent 100% of total fund assets under management (“AUM”) as of July 31, 2026. At July 31, 2026, equity and hybrid AUM decreased by 31.7% compared to last year at July 31, 2025.
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 $21,426,000 during the nine months ended January 31, 2026, were slightly below those during the nine months ended January 31, 2025.
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 $7,024,000 during the three months ended July 31, 2026, were slightly below those during the three months ended July 31, 2025.
Previous wording
During the nine months ended January 31, 2026, salaries and employee benefits of $10,720,000 decreased slightly below the prior fiscal year.
Current wording
During the three months ended July 31, 2026, salaries and employee benefits of $3,497,000 decreased 3.3% below the prior fiscal year.
Previous wording
During the nine months ended January 31, 2026, 29.0% of total publishing revenues of $25,438,000 were derived from a single customer.
Current wording
During the three months ended July 31, 2026, 28.3% of total publishing revenues of $8,051,000 were derived from a single customer.
Previous wording
During the nine months ended January 31, 2026, the Company’s total investment gains of 5,379,000 increased 51.2% above the prior fiscal year, primarily derived from unrealized gains on equity securities. Proceeds from the sales of equity securities during the nine months ended January 31, 2026 and January 31, 2025 were $328,000 and $3,173,000, respectively.
Current wording
During the three months ended July 31, 2026, the Company’s total investment gains of $1,471,000 decreased 27.1% below the prior fiscal year, primarily a result of lower unrealized gains on equity securities. Proceeds from the sales of equity securities during the three months ended July 31, 2026 and July 31, 2025 were $45,000 and $215,000, respectively.
Previous wording
The overall effective income tax rates, as a percentage of pre-tax ordinary income for the nine months ended January 31, 2026 and January 31, 2025 were 26.10% and 25.60%, respectively. The higher effective tax rate during nine months ended January 31, 2026 as compared to January 31, 2025, is primarily a result of an increase in the state and local income taxes from 4.85% to 5.32% 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 methods 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, 2026 and July 30, 2025 were 27.00% and 25.20%, respectively. The increase in the effective tax rate during for the three months ended July 31, 2026 as compared to July 31, 2025, is primarily a result of an increase in the state and local tax rate from 4.39% to 6.40%, primarily in a single jurisdiction that has changed from a market based approach to a cost of production approach affecting EAM's allocation of taxable income for the combined companies to that jurisdiction. 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-income tax, the Company's geographic profit mix between tax jurisdictions, taxation method adopted by each locality, changes in tax rates, new interpretations of existing tax laws and rulings and settlements with tax authorities.
Previous wording
On November 30, 2016, Value Line, Inc., received consent from the landlord at 551 Fifth Avenue, New York, NY to the terms of a new sublease agreement between Value Line, Inc. and ABM Industries, Incorporated (“ABM” or the “Sublandlord”) commencing on December 1, 2016. Pursuant to the agreement Value Line leased from ABM 24,726 square feet of office space located on the second and third floors at 551 Fifth Avenue, New York, NY (“Building” or “Premises”) beginning on December 1, 2016 and ending on November 29, 2027. Base rent under the sublease agreement is $1,126,000 per annum during the first year with an annual increase in base rent of 2.25% scheduled for each subsequent year, payable in equal monthly installments on the first day of each month, subject to customary concessions in the Company’s favor and pass-through of certain increases in utility costs and real estate taxes over the base year. The Company provided a security deposit represented by a letter of credit in the amount of $469,000 in October 2016, which was reduced to $305,000 on October 3, 2021 and is to be fully refunded after the sublease ends. This Building became the Company’s new corporate office facility. The Company is required to pay for certain operating expenses associated with the Premises as well as utilities supplied to the Premises. Sublandlord provided Value Line a work allowance of $417,000 which accompanied with the six months free rent worth $563,000 was applied against the Company’s obligation to pay rent at our NYC headquarters.
Current wording
On November 30, 2016, Value Line, Inc., received consent from the landlord at 551 Fifth Avenue, New York, NY to the terms of a new sublease agreement for the Company’s new corporate headquarters between Value Line, Inc. and ABM Industries, Incorporated (“ABM” or the “Sublandlord”) commencing on December 1, 2016. Pursuant to the agreement Value Line leased from ABM 24,726 square feet of office space located on the second and third floors at 551 Fifth Avenue, New York, NY (“Building” or “Premises”) beginning on December 1, 2016 and ending on November 29, 2027. Base rent under the sublease agreement is $1,126,000 per annum during the first year with an annual increase in base rent of 2.25% scheduled for each subsequent year, payable in equal monthly installments on the first day of each month, subject to customary concessions in the Company’s favor and pass-through of certain increases in utility costs and real estate taxes over the base year. The Company is required to pay for certain operating expenses associated with the Premises as well as utilities supplied to the Premises.
Previous wording
The Company had working capital, defined as current assets less current liabilities, of $65,716,000 as of January 31, 2026 and $56,230,000 as of April 30, 2025. These amounts include short-term unearned revenue of $14,642,000 and $16,558,000 reflected in total current liabilities at January 31, 2026 and April 30, 2025, respectively. Cash and short-term securities were $84,550,000 and $77,391,000 as of January 31, 2026 and April 30, 2025, respectively.
Current wording
The Company had working capital, defined as current assets less current liabilities, of $68,326,000 as of July 31, 2026 and $66,389,000 as of April 30, 2026. These amounts include short-term unearned revenue of $14,355,000 and $14,742,000 reflected in total current liabilities at July 31, 2026 and April 30, 2026, respectively. Cash and short-term securities were $88,458,000 and $86,466,000 as of July 31, 2026 and April 30, 2026, respectively.
Previous wording
The Company’s cash and cash equivalents include $45,995,000 and $33,615,000 at January 31, 2026 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.
Current wording
The Company’s cash and cash equivalents include $15,085,000 and $23,733,000 at July 31, 2026 and April 30, 2026, respectively, invested primarily in commercial banks and 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 $13,801,000 during the nine months ended January 31, 2026, compared to cash inflows of $14,703,000 during the nine months ended January 31, 2025. The decrease in cash flows from fiscal 2025 to fiscal 2026 is primarily attributable to the decline in customers’ subscription future revenue and the timing of Federal Income tax payments.
Current wording
The Company had cash inflows from operating activities of $4,705,000 during the three months ended July 31, 2026, compared to cash inflows of $5,560,000 during the three months ended July 31, 2025. The decrease in cash flows from operations from fiscal 2026 to fiscal 2027 is primarily attributable to the decline in publishing revenues, primarily print publication.
Previous wording
The Company had cash inflows from investing activities of $8,626,000 during the nine months ended January 31, 2026, compared to cash inflows from investing activities of $16,475,000 for the nine months ended January 31, 2025, respectively. The decrease in cash inflows from investing activities for the nine months ended January 31, 2026 compared to last year was a result of a decrease in investment in fixed income short-term securities in favor of higher yielding short-term U.S. Government money market investments.
Current wording
The Company had cash outflows from investing activities of $9,484,000 during the three months ended July 31, 2026, compared to cash outflows from investing activities of $2,811,000 for the three months ended July 31, 2025, respectively. The increase in cash outflows from investing activities for the three months ended July 31, 2026 compared to last year was a result of a increase in investment in equity securities.
Previous wording
During the nine months ended January 31, 2026, the Company’s cash outflows from financing activities were $10,041,000, compared to cash outflows from financing activities of $8,752,000 for the nine months ended January 31, 2025. Quarterly dividend payments of $0.325 per share during fiscal year 2026 aggregated $9,175,000. Quarterly regular dividend payments of $0.30 per share during fiscal year 2025 aggregated $8,478,000.
Current wording
During the three months ended July 31, 2026, the Company’s cash outflows from financing activities were $3,385,000, compared to cash outflows from financing activities of $3,118,000 for the three months ended July 31, 2025. Quarterly dividend payments of $0.35 per share during fiscal year 2027 aggregated $3,285,000. Quarterly regular dividend payments of $0.325 per share during fiscal year 2026 aggregated $3,059,000.
Previous wording
At January 31, 2026 there were 9,402,966 common shares outstanding as compared to 9,418,527 common shares outstanding at January 31, 2025. The Company expects financing activities to continue to include use of cash for dividend payments for the foreseeable future.
Current wording
At July 31, 2026 there were 9,384,249 common shares outstanding as compared to 9,414,605 common shares outstanding at July 31, 2025. 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 January 31, 2026, retained earnings and liquid assets were $122,285,000 and $84,550,000, 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 July 31, 2026, retained earnings and liquid assets were $123,949,000 and $88,458,000, respectively. As of April 30, 2026, retained earnings and liquid assets were $122,578,000 and $86,466,000, 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 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.
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 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.
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 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.
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(net of refunds 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 adopted ASU 2023-09 with such disclosures included in Note 8 to our Consolidated Financial Statements.
Previous wording
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.
Current wording
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 included 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 evaluating the impact on our financial statement disclosures.
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, 2026. 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 three months ended July 31, 2026. 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, 2026.
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): $370 in 2026; $1,493 in 2027 and $882 in 2028 totaling $2,745.
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 two fiscal are (in thousands): $1,124 in 2027 and $882 in 2028 totaling $2,006.