0001437749-26-004226
SEC filingDaily Journal Corporation reported a net loss of $8.0 million for Q1 2026, driven primarily by a $11.7 million net loss on marketable securities. The company generated $19.5 million in revenue with operating income of $477,000, but investment losses pushed the company into negative territory. Cash flow from operations was negative $1.9 million, with total cash decreasing by $4.0 million during the quarter. The balance sheet remains strong with $529.5 million in total assets, including $481.3 million in marketable securities, and $383.1 million in stockholders' equity. The company's core operations remain profitable, but investment performance significantly impacted overall results for the quarter.
Daily Journal Corporation reported a net loss of $8.0 million for Q1 2026, compared to operating income of $477,000. The company generated $19.5 million in revenue with total operating expenses of $19.1 million. The primary driver of the net loss was a $11.7 million net realized and unrealized loss on marketable securities. Other income components included $1.3 million in dividends and interest income, offset by $255,000 in interest expense. Basic and diluted earnings per share were both -$6.00, based on 1.4 million weighted average shares outstanding.
The company reported $19.5 million in total revenue for the quarter. Operating expenses totaled $19.1 million, with the largest components being salaries and employee benefits at $13.0 million, outside services at $2.6 million, and other general and administrative expenses at $2.1 million. Other significant expense items included credit card merchant discount fees of $600,000 and agency commissions of $328,000. The company's operating margin was 2.4% for the quarter.
The company achieved an operating margin of 2.4% for Q1 2026, with operating income of $477,000 on $19.5 million in revenue. The largest expense category was salaries and employee benefits at $13.0 million, representing approximately 66.7% of total operating expenses. Other significant costs included outside services ($2.6 million, 13.6% of operating expenses) and other general and administrative expenses ($2.1 million, 11.0% of operating expenses). The net loss margin was -41.0% due to investment losses.
Operating activities used $1.9 million in cash, primarily due to the net loss of $8.0 million, adjusted for non-cash items including $11.7 million in investment losses. Investing activities used $7,000 for property purchases, while financing activities used $2.0 million for debt repayments. Total cash and equivalents decreased by $4.0 million to $18.9 million. The balance sheet shows total assets of $529.5 million, including $481.3 million in marketable securities. Total liabilities were $146.4 million, with stockholders' equity of $383.1 million.
The filing does not contain specific forward-looking guidance, management commentary, or explicit risk factor disclosures regarding future performance. The company's results were significantly impacted by marketable securities performance, which contributed $11.7 million in losses for the quarter. The company maintains a strong balance sheet position with substantial marketable securities holdings and positive operating income from core business activities.