Daily Journal Swings to $8.0M Net Loss in Q1 FY2026 as Operating Costs Jump
Daily Journal Corporation posted a net loss of $8.0 million for the quarter ending December 31, 2025, reversing a $10.9 million profit in the same period last year. Operating expenses climbed 12% to $19.1 million.
Daily Journal Corporation reported a net loss of $8.0 million for the three months ending December 31, 2025, a sharp reversal from net income of $10.9 million in the year-ago quarter. The loss translated to $5.79 per diluted share, compared with earnings of $7.91 per share a year earlier. Read more earnings reports.
Operating expenses rose to $19.1 million from $17.0 million in the prior-year quarter, a 12% increase. Labor and related expenses climbed to $13.0 million from $11.9 million, while general and administrative costs jumped 43% to $2.1 million from $1.4 million.
The company recorded a tax benefit of $2.1 million in the quarter, compared with tax expense of $4.0 million a year earlier. Operating income fell to $477,000 from $742,000 in the same quarter last year.
Cash flow from operations turned negative at $1.9 million, down from positive $2.2 million in the prior-year quarter. Cash from financing activities showed an outflow of $2.0 million, primarily from debt repayments, compared with $41,000 a year earlier.
Total assets declined to $529.5 million as of December 31, 2025, from $548.1 million at the end of the prior fiscal year on September 30, 2025. Cash and cash equivalents fell to $16.6 million from $20.6 million over the same period.
Stockholders' equity decreased to $383.1 million from $391.1 million at the fiscal year-end. Retained earnings dropped to $381.0 million from $389.0 million. The company had 1.38 million weighted average shares outstanding during the quarter, essentially flat with the prior year.
Accounts receivable declined to $17.1 million from $21.0 million at September 30, 2025. Current liabilities fell to $31.8 million from $38.8 million, while total liabilities decreased to $146.4 million from $157.1 million.
| Metric | Q1 FY2026 | Q1 FY2025 |
|---|---|---|
| Net Income (Loss) | ($8.0M) | $10.9M |
| EPS (Diluted) | ($5.79) | $7.91 |
| Operating Expenses | $19.1M | $17.0M |
| Operating Income | $477,000 | $742,000 |
| Cash from Operations | ($1.9M) | $2.2M |
| Total Assets | $529.5M | — |
| Stockholders' Equity | $383.1M | — |
Daily Journal publishes newspapers and websites covering California and Arizona and produces specialized information services. The company is incorporated in South Carolina and files as a non-accelerated filer with small business designation.