Daily Journal 10-K Annual Report Summary

Company name: Daily Journal Corporation (parent) and its wholly owned subsidiary Journal Technologies, Inc.

Business overview (as described in the 2025 Form 10‑K)

Operates two principal, distinct businesses:
- Traditional Business — newspaper publishing, public‑notice advertising representation, websites and related specialized information services (court rules, Judicial Profiles, CLE tests, county public‑record/foreclosure databases).
- Journal Technologies — provider of browser‑based case management software and related services for courts and justice agencies (also sells e‑filing and online payment services).

Publishes 10 newspapers (names and bases given in the filing): Los Angeles Daily Journal; San Francisco Daily Journal; Daily Commerce (Los Angeles); The Daily Recorder (Sacramento); The Inter‑City Express (Oakland); San Jose Post‑Record; Orange County Reporter (Santa Ana); The Daily Transcript (San Diego); Business Journal (Riverside); The Record Reporter (Phoenix, AZ).
Frequency: The Daily Journals (Los Angeles & San Francisco) — weekdays (except certain holidays); other papers range from three times/week to daily business days as described.
Subscriber counts (reported):
- Los Angeles Daily Journal: ~3,636 paid subscribers (as of Sept 30, 2025).
- San Francisco Daily Journal: ~2,045 paid subscribers (as of Sept 30, 2025).
- (The filing also notes total paid subscriptions for both Daily Journals was 5,687 as of Sept 30, 2024.)
Traditional Business revenue (FY 2025, year ended Sept 30, 2025):
- Total Traditional Business operating revenues: $17,762 thousand.
  - Advertising: $10,081 thousand
  - Circulation: $4,269 thousand
  - Advertising service fees and other: $3,412 thousand
- Traditional Business operating loss (income from operations): pretax loss of $165 thousand in FY 2025 (compared with pretax income of $1,974 thousand in FY 2024).
Other services: multi‑volume and single‑volume court rules, Judicial Profiles, CLE tests, and county public‑record/foreclosure database access (subscription add‑ons).

Products (core and complementary):
- eSeries Framework™ platform delivering: eCourt®, eProsecutor™, eDefender™, eSupervision™ (formerly eProbation™) — configurable browser‑based case processing systems.
- eFile‑it™ — e‑filing interface.
- ePay‑it™ — online payment of traffic citations and fee processing.
- Hosting services (AWS GovCloud option).
Customer footprint and deployments:
- Products licensed or subscribed to in approximately 37 U.S. states and internationally.
- Foreign presence: Australian projects (four installation projects underway as reported) and a Canadian subsidiary (Journal Technologies (Canada), Inc., in operation since Aug 2022).
Revenue concentration:
- Journal Technologies accounted for ~80% of consolidated revenues in FY 2025 (and ~76% in FY 2024).
- Journal Technologies FY 2025 operating revenues (year ended Sept 30, 2025): $69,938 thousand, composed of:
  - Licensing & maintenance: $31,720 thousand
  - Consulting fees: $22,735 thousand
  - Other public service fees (including e‑filing/e‑payment transaction revenues): $15,483 thousand
- Journal Technologies pretax income (FY 2025): $12,660 thousand (compared with $2,491 thousand in FY 2024).
International revenue: Journal Technologies foreign customer revenue was ~$11,855 thousand in FY 2025 (the filing also stated $11.9M in FY 2025 and $6.2M in FY 2024 specifically attributable to Journal Technologies’ foreign customers).

Headcount (as of Sept 30, 2025): approximately 415 full‑time employees and contractors, and approximately 9 part‑time employees.
Principal U.S. operations concentrated in California and Utah.
Real property: Los Angeles campus (two adjoining buildings — one underutilized), and a 30,700 sq. ft. office building in Logan, Utah (underutilized).

Total consolidated revenues:
- FY 2025: $87,700 thousand
- FY 2024: $69,931 thousand
Operating income (income from operations):
- FY 2025: $9,528 thousand
- FY 2024: $4,070 thousand
Other income highlights:
- Dividends & interest income (FY 2025): $7,459 thousand
- Net realized & unrealized gains on marketable securities (FY 2025): $134,304 thousand
- Interest expense (FY 2025): $1,381 thousand (down from $3,087 thousand in FY 2024)
Pretax income:
- FY 2025: $150,087 thousand
- FY 2024: $104,278 thousand
Net income:
- FY 2025: $112,137 thousand (basic and diluted net income per share: $81.41)
- FY 2024: $78,113 thousand (basic and diluted net income per share: $56.73)

Cash and cash equivalents: $20,569 thousand
Restricted cash: $2,269 thousand
Marketable securities (fair value): $492,995 thousand (adjusted cost basis $139,094 thousand; cumulative unrealized gains before tax: $353,901 thousand)
Non‑qualified deferred compensation plan — trust asset value: $1,385 thousand
Accounts receivable, net: $21,011 thousand
Total assets: $548,118 thousand
Working capital (reported): $500.4 million (includes deferred liabilities of $18.7 million)
Margin loan borrowings secured by marketable securities: $22,000 thousand (Sept 30, 2025), down from $27,500 thousand at Sept 30, 2024
Investment portfolio notes: as of Sept 30, 2025 the portfolio was concentrated in six companies; the filing notes the portfolio historically was managed by Charles T. Munger (deceased Nov 2023) and that management no longer expects past performance to be replicated

Journal Technologies’ revenues are primarily from government agencies and many installations are awarded through competitive bidding.
The Company disclosed a material weakness remaining in its internal control over financial reporting related primarily to segregation of duties and access controls (identified in prior periods and not fully remediated as of Sept 30, 2025); remediation efforts and finance organization enhancements were underway.
The Company holds a Canadian subsidiary (Journal Technologies (Canada), Inc.) and is actively engaged on four Australian software installation projects.
The Company’s Traditional Business depends materially on statutory requirements and adjudication status that permit newspapers to publish legally required public notices; the filing documents legislative changes and risk (e.g., California bills noted in the Form 10‑K) that have reduced certain legal‑notice publication requirements.

(End of summary — all figures and statements are taken from the information provided in the 2025 Form 10‑K excerpts you supplied.)