VALU 10-K & 10-Q changes, risk factors and insider trading
Value Line Inc. · Nasdaq · Investment Advice · CIK 717720 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
No wording changes found in this section (only numbers or dates changed in 1 paragraph).
Full comparison: every changed paragraph (0)
Management's Discussion & Analysis (MD&A)
Largest changes
“The weak economic start to 2025, along with the still unsettled global trade environment and geopolitical unrest, including the war in Ukraine and the 12 days of aerial attacks between Israel and Iran, did bring a cautious reaction from the Federal Reserve on the monetary policy front. Indeed, the central bank kept the federal funds rate steady, in the range of 4.25% to 4.50%, during the first half of 2025, while it assessed the impact of the global developments on the rate of inflation stateside. …”see in full comparison
“In all, the business environment has held up well amid the uncertain fiscal and monetary environment, highlighted by double-digit earnings growth for the S&P 500 companies during the first quarter of 2025. This, along with the popularity of artificial intelligence (AI)-related stocks, helped the major averages climb the proverbial “wall of worry,” with the S&P 500 Index and technology-dominated NASDAQ Composite ending the first half of 2025 at record highs. …”see in full comparison
“The U.S. economy got off to a decent start in calendar 2026. This followed a mediocre conclusion to 2025, when the gross domestic product (GDP) advance of just 0.5% was hurt by the longest federal government shutdown in the nation’s 250-year history. In the March quarter, GDP expanded at an estimated annualized rate of 2.1%, primarily fueled by massive spending on artificial intelligence (AI). …”see in full comparison
“The labor market appears to be less of a worry for the Federal Reserve right now. True, the June job creation figure came in below forecast, at 57,000, and the May estimate was revised notably lower, from 172,000 to 129,000. However, weekly unemployment claims still remain low and the number of job openings totaled 7.3 million in June. Both metrics indicate that the labor market is holding up well, despite some notable recent layoffs in the information technology (IT) services sector. …”see in full comparison
“The inflation situation remains a concern for the Federal Reserve. The reacceleration in the pace of price growth was evident in the May inflation data, with the Consumer and Producer Price Indexes (on a 12-month basis) jumping 4.2% and 6.5%, respectively. The latter increase was the highest rate since November 2022. Likewise, the Personal Consumption Expenditures (PCE) Price Index, the assessment of inflation most closely watched by the Fed, climbed 4.1% over the 12-month period ended May 31st. These figures remain well above the central bank’s target growth rate of 2.0%. …”see in full comparison
“In conclusion: The business environment is in good shape at the start of the second half of calendar 2026. 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 the recent sentiment that the Federal Reserve is now more likely to raise the benchmark short-term interest rate before the end of calendar 2026.”see in full comparison
Full comparison: every changed paragraph (68)
The Company's core business is producing investment periodicalspublications and their underlying research and making available certain Value Line copyrights, Value Line trademarks and Value Line Proprietary Ranks and other proprietary information, to third parties under written agreements for use in third-party managed and marketed investment products and for other purposes. Value Line markets under well-known brands including Value Line®, the Value Line logo®, The Value Line Investment Survey®, Smart Research, Smarter Investing™ and The Most Trusted Name in Investment Research®. The name "Value Line" as used to describe the Company, its products, and its subsidiaries, is a registered trademark of the Company. EULAV Asset Management Trust (“EAM”) was established to provide the investment management services to the Value Line Funds, institutional and individual accounts and provide distribution, marketing, and administrative services to the Value Line® Mutual Funds ("Value Line Funds"). The Company maintains a significant investment in EAM from which it receives payments in respect of its non-voting revenues and non-voting profits interests.
The investment periodicalspublications and related publications (retail and institutional) and Value Line copyrights and Value Line Proprietary Ranks and other proprietary information consolidate into one segment called Publishing. The Publishing segment constitutes the Company’s only reportable business segment.
Pursuant to the EAM Declaration of Trust, the Company maintains an interest in certain revenues of EAM and a portion of the residual profits of EAM but has no voting authority with respect to the election or removal of the trustees of EAM or control of its business. Although the Company does not have control over the operating and financial policies of EAM, the Company has a contractual right to receive its share of EAM’s revenues and profits.
The business of EAM is managed by its five individual trustees each owning 20% of the voting interest in EAM and by its officers subject to the direction of the trustees. The Company’sCompany non-votingis revenues and non-voting profits interests in EAM entitle itentitled to receive from EAM a range of 41% to 55% of EAM’s revenues (excluding distribution revenues) from EAM’s mutual fund and separate account business and 50% of the residual profits of EAM (subject to temporary increase in certain limited circumstances). The Voting Profits Interest Holders receivedof the remaining profits interests will receive the other 50% of residual profits of EAM. Distribution is not less than 90% of EAM’s profits payable each fiscal quarter under the provisions of the EAM Trust Agreement.
The U.S. economy got off to a decent start in calendar 2026. This followed a mediocre conclusion to 2025, when the gross domestic product (GDP) advance of just 0.5% was hurt by the longest federal government shutdown in the nation’s 250-year history. In the March quarter, GDP expanded at an estimated annualized rate of 2.1%, primarily fueled by massive spending on artificial intelligence (AI). The ongoing AI infrastructure buildout helped offset a sharp decrease in the rate of personal consumption and a notable decline in residential construction, both of which were hurt by inflation and higher borrowing rates. Notwithstanding some pockets of weakness, the consensus forecast at the midpoint of 2026 was that real GDP growth, powered by the AI revolution, will advance 2.5%-3.1% this year.
The inflation situation remains a concern for the Federal Reserve. The reacceleration in the pace of price growth was evident in the May inflation data, with the Consumer and Producer Price Indexes (on a 12-month basis) jumping 4.2% and 6.5%, respectively. The latter increase was the highest rate since November 2022. Likewise, the Personal Consumption Expenditures (PCE) Price Index, the assessment of inflation most closely watched by the Fed, climbed 4.1% over the 12-month period ended May 31st. These figures remain well above the central bank’s target growth rate of 2.0%. At the June Federal Open Market Committee (FOMC) meeting, half of the voting members were expecting at least one hike to the benchmark overnight interest rate before the conclusion of 2026.
The labor market appears to be less of a worry for the Federal Reserve right now. True, the June job creation figure came in below forecast, at 57,000, and the May estimate was revised notably lower, from 172,000 to 129,000. However, weekly unemployment claims still remain low and the number of job openings totaled 7.3 million in June. Both metrics indicate that the labor market is holding up well, despite some notable recent layoffs in the information technology (IT) services sector. The unemployment rate also ticked lower, to 4.2%, in June, but that was likely the result of more individuals exiting the labor force, primarily the product of an aging U.S. population and the rapid reduction in immigration under the Trump Administration.
Meanwhile, Corporate America continues to flourish. Profit growth for the S&P 500 companies averaged approximately 28% in the first quarter, and indications are that the growth rate remained above 20% in the second period, again powered by strong profit gains for the technology companies. The astronomical spending on AI infrastructure (i.e., data center construction and storage/processing chips) is the main catalyst behind the profit gains. Looking forward, the sharp drop in oil prices since early June, on the hopes of an eventual deal being signed to end the war in Iran, might provide another boost for corporate earnings in the second half of the year. That said, the negotiations between the United States and Iran remain very fluid and can change in a moment’s notice, so some volatility in the energy markets also can’t be ruled out in the months ahead.
In conclusion: The business environment is in good shape at the start of the second half of calendar 2026. 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 the recent sentiment that the Federal Reserve is now more likely to raise the benchmark short-term interest rate before the end of calendar 2026.
The U.S. economy, after performing well in 2024, got off to a weak start in calendar 2025. The nation’s gross domestic product (GDP) contracted by an estimated 0.5% during the first quarter, statistically attributable to businesses and consumers buying ahead of the implementation of the Trump Administration’s wide-ranging tariffs on April 2, 2025. The surge in imports to the United States detracts from GDP. President Trump subsequently delayed or modified many of the levies.
The weak economic start to 2025, along with the still unsettled global trade environment and geopolitical unrest, including the war in Ukraine and the 12 days of aerial attacks between Israel and Iran, did bring a cautious reaction from the Federal Reserve on the monetary policy front. Indeed, the central bank kept the federal funds rate steady, in the range of 4.25% to 4.50%, during the first half of 2025, while it assessed the impact of the global developments on the rate of inflation stateside. There still are concerns that the tariffs may lead to a reacceleration in the pace of price growth, which, along with somewhat a softening labor market, could lead to a period of stagflation. Stagflation occurs when there are rising inflation and weakening employment at the same time the economy is slowing.
That said, while some of the soft (sentiment) data during the spring season, including a decline in consumer confidence, suggest that the economy is weakening, the hard data did not indicate as much. On the positive side, inflation on both the consumer and producer (wholesale) levels did ease some this spring; the job market proved resilient, with the unemployment rate falling to 4.1% in June, a level indicative of full employment; and manufacturing activity, though still contracting, did come in above forecast during the month of June. This suggests that the economy likely returned to growth mode in the second quarter and the aforementioned stagflation scenario has yet to materialize.
Amid the global uncertainty, the Republican-controlled House of Representatives and Senate were able to produce a new budget deal that President Trump signed into law on July 4, 2025. The President’s comprehensive tax and policy legislation, which is estimated to add $3.4 trillion to the federal deficit over the next decade, also included legislation that increases the nation’s debt ceiling by $5 trillion. In the near-to-intermediate term, the new budget deal, along with the possibility that the Federal Reserve may enact one or two quarter-point cuts to the benchmark short-term interest rate, which is widely considered to be restrictive, in the second half of the year, may lift corporate and consumer spending. This may well spur GDP growth over the final six months of calendar 2025.
In all, the business environment has held up well amid the uncertain fiscal and monetary environment, highlighted by double-digit earnings growth for the S&P 500 companies during the first quarter of 2025. This, along with the popularity of artificial intelligence (AI)-related stocks, helped the major averages climb the proverbial “wall of worry,” with the S&P 500 Index and technology-dominated NASDAQ Composite ending the first half of 2025 at record highs. That said, valuations looked quite frothy entering the second half of 2025 and with concerns over import tariffs and inflation still persisting, some share-price volatility can’t be ruled out.
During the twelve months ended April 30, 2026, the Company’s net income of $21,630,000, or $2.30 per share, was 4.6% above net income of $20,686,000, or $2.20 per share, for the twelve months ended April 30, 2025. During the twelve months ended April 30, 2026, the Company’s income from operations was $4,031,000 compared to income from operations of $5,985,000 during the twelve months ended April 30, 2025. For the twelve months ended April 30, 2026, operating expenses increased 1.1% above those during the twelve months ended April 30, 2025.
During the twelve months ended April 30, 2026, there were 9,399,062 average common shares outstanding as compared to 9,417,097 average common shares outstanding during the twelve months ended April 30, 2025.
During the three months ended April 30, 2026, the Company’s net income of $3,578,000, or $0.38 per share, was 9.4% below net income of $3,951,000, or $0.42 per share, for the three months ended April 30, 2025. During the three months ended April 30, 2026, the Company’s income from operations was $19,000 compared to income from operations of $830,000 during the three months ended April 30, 2025.
During the three months ended April 30, 2023, the Company’s net income of $4,033,000, or $0.43 per share, was 5.9% below net income of $3,807,000, or $0.40 per share, for the three months ended April 30, 2022. During the three months ended April 30, 2023, the Company’s income from operations was $2,757,000 compared to income from operations of $2,923,000 during the three months ended April 30, 2022.
During the twelve months ended April 30, 2023, the Company’s net income of $18,069,000, or $1.91 per share, was 24.1% below net income of $23,822,000, or $2.50 per share, for the twelve months ended April 30, 2022. Fiscal 2022 included a gain of $2,331,000 from the tax-free forgiveness of SBA’s PPP loan to the Company. During the twelve months ended April 30, 2023, the Company’s income from operations was $11,470,000 compared to income from operations of $10,800,000 during the twelve months ended April 30, 2022. For the twelve months ended April 30, 2023, operating expenses decreased 5.0% below those during the twelve months ended April 30, 2022.
During the twelve months ended April 30, 2023, there were 9,458,605 average common shares outstanding as compared to 9,544,421 average common shares outstanding during the twelve months ended April 30, 2022.
Within investment periodicals and related publications, subscription sales orders are derived from print and digital products.publications. The following chart illustrates the changes in the sales orders associated with print and digital subscriptions.
During the twelve months ended April 30, 2025,2026, 20242025 & 2023,2024, new sales of print publications increased while conversion and renewal sales orders decreased.
Investment periodicals and related publications revenues of $24,682,000$23,857,000 (excluding copyright fees) during the twelve months ended April 30, 20252026 were 2.9%3.3% below publishing revenues of $25,420,000$24,682,000 in the prior fiscal year. The Company continued anda increasedvariety of efforts to attract new subscribers through various marketing channels, primarily direct mail, e-mail, social media, 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 April 30, 2025,2026, was 1.7%1.4% below total product line circulation at April 30, 2024.2025.
Total print circulation at April 30, 2025 was 1.9% below the total print circulation at April 30, 2024. During the twelve months ended April 30, 2025, print publication revenues of $8,783,000, decreased 5.4%, below print publication revenues of $9,286,000 during April of 2024 because we deferred advertising in light of negative sentiment among prospective individual customers in a challenging market environment. Total digital circulation at April 30, 2025 was 1.5% below total digital circulation at April 30, 2024 with the professional clientele offsetting individual subscribers. During the twelve months ended April 30, 2025, digital revenues of $15,899,000 were down 1.5% as compared to the prior fiscal year. These figures reflect weak investor sentiment, likely temporary, and the ongoing shift from our print services to digital counterparts. Further, publishing revenue is fairly steady, despite the dip in print circulation. Sales of our higher-price, higher-profit, publications have been stronger than sales of lower price “starter” products.
Investment periodicals and related publications revenues of $25,420,000 (excluding copyright fees) during the twelve months ended April 30, 2024 were 3.1% below publishing revenues of $26,232,000 in the prior fiscal year. The Company continued actions 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 April 30, 2024, was 3.2% below total product line circulation at April 30, 2023. However, Institutional Sales department total sales orders reached a record level last fiscal year ended April 30, 2023 and this higher profit margin distribution to financial advisors and professional investors significantly offsets the long-term trend of declining individual investor circulation.
Total print circulation at April 30, 2024 was 4.6% below the total print circulation at April 30, 2023. During the twelve months ended April 30, 2024, print publication revenues of $9,286,000, decreased 6.8%, below print publication revenues of $9,963,000 during April of 2023 because we deferred advertising in light of negative sentiment among prospective individual customers in a challenging market environment. Total digital circulation at April 30, 2024 was 1.4% below total digital circulation at April 30, 2023 with the professional clientele offsetting individual subscribers. During the twelve months ended April 30, 2024, digital revenues of $16,134,000 were slightly below compared to the prior fiscal year. These figures reflect weak investor sentiment, likely temporary, and the ongoing shift from our print services to digital counterparts. Further, publishing revenue is fairly steady, despite the dip in print circulation. Sales of our higher-price, higher-profit, publications have been stronger than sales of lower price “starter” products.
Investment periodicals and related publications revenues of $26,232,000 (excluding copyright fees) during the twelve months ended April 30, 2023 were 3.4% below publishing revenues of $27,145,000 in the prior fiscal year. The Company continued actions 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, total product line circulation at April 30, 2023, was 10.4% below total product line circulation at April 30, 2022. However, during the twelve months ended April 30, 2023, Institutional Sales department total sales orders, representing our growing business with financial advisors and professional investors, reached a record of $15,236,000, 10.0% above the prior fiscal year. The retail telemarketing sales team generated total sales orders of $7,409,000 or 10.6% below the prior fiscal year.
Total print circulation at April 30, 20232026 was 16.0%3.3% below the total print circulation at April 30, 2022.2025. During the twelve months ended April 30, 2023,2026, print publication revenues of $9,963,000,$8,451,000, decreased 11.5%,3.8%, below print publication revenues of $11,253,000$8,783,000 during the twelve months ended April of 20222025 because we deferred advertising in light of negative sentiment among prospective individual customers in a challenging market environment. Total digital circulation at April 30, 20232026 was 2.7%0.8% belowabove total digital circulation at April 30, 20222025 with the professional clientele offsetting individual subscribers. During the twelve months ended April 30, 2023,2026, digital revenues of $16,269,000$15,406,000 were updown 2.4%3.1% as compared to the prior fiscal year. These figures reflect the ongoing shift from our print services to digital counterparts. Further, publishing revenue was fairly steady, despite the dip in print circulation. Sales of our higher-price, higher-profit, publications have beenremained stronger than sales of lower price “starter” products.strong.
Investment periodicals and related publications revenues of $24,682,000 (excluding copyright fees) during the twelve months ended April 30, 2025 were 2.9% below publishing revenues of $25,420,000 in the prior fiscal year. The Company continued and increased 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 managed their own portfolios, particularly in volatile markets, total product line circulation at April 30, 2025, was 1.7% below total product line circulation at April 30, 2024.
Total print circulation at April 30, 2025 was 1.9% below the total print circulation at April 30, 2024. During the twelve months ended April 30, 2025, print publication revenues of $8,783,000, decreased 5.4%, below print publication revenues of $9,286,000 during April of 2024. Total digital circulation at April 30, 2025 was 1.5% below total digital circulation at April 30, 2024 with the professional clientele offsetting individual subscribers. During the twelve months ended April 30, 2025, digital revenues of $15,899,000 were down 1.5% as compared to 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 been stronger than sales of lower price “starter” products.
Investment periodicals and related publications revenues of $25,420,000 (excluding copyright fees) during the twelve months ended April 30, 2024 were 3.1% below publishing revenues of $26,232,000 in the prior fiscal year. The Company continued actions 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 April 30, 2024, was 3.2% below total product line circulation at April 30, 2023.
Total print circulation at April 30, 2024 was 4.6% below the total print circulation at April 30, 2023. During the twelve months ended April 30, 2024, print publication revenues of $9,286,000, decreased 6.8%, below print publication revenues of $9,963,000 during April of 2023. Total digital circulation at April 30, 2024 was 1.4% below total digital circulation at April 30, 2023 with the professional clientele offsetting individual subscribers. During the twelve months ended April 30, 2024, digital revenues of $16,134,000 were slightly below compared to the prior fiscal year.
Value Line serves primarily individual and professional investors in stocks, and other securities, who pay mostly on annual or multi-year subscription plans, for basic services or as much as $100,000 or more annually for comprehensive premium quality research, not obtainable elsewhere. The ongoing goal of adding new subscribers has led us to introduce publications and packages at a range of price points. Prominently introduced in fiscal 2020 and 2021 were new features in the Value Line Research Center, which are The Value Line ETFs Service, monthly publication Value Line Information You Should Know Wealth Newsletter, The Value Line M & A Service, and our Value Line Climate Change Investing Service.
The Value Line Proprietary Ranks (the “Ranking System”), a component of the Company’s flagship product, The Value Line Investment Survey, isare also utilized in the Company’s copyright business. The Ranking System is made available to EAM for specific uses without charge. During the six month period ended April 30, 2025,2026, the combined Ranking System “Rank 1 & 2” stocks’ decreaseincrease of 6.0%14.2% compared favorably to the Russell 2000 Index’s decreaseincrease of 10.6%12.9% during the comparable period. During the twelve month period ended April 30, 2025,2026, the combined Ranking System “Rank 1 & 2” stocks’ increase of 7.4%35.6% compared favorably to the Russell 2000 Index’s decreaseincrease of 0.5%42.6% during the comparable period.
During the twelve months ended April 30, 2026, copyright fees of $9,590,000 were 7.8% below those during the corresponding period in the prior fiscal year. During the twelve months ended April 30, 2025, copyright fees of $10,397,000 were 13.8% below those during the corresponding period in the prior fiscal year. During the twelve months ended April 30, 2024, copyright fees of $12,067,000 were 10.4% below those during the corresponding period in the prior fiscal year. During the twelve months ended April 30, 2023, copyright fees of $13,463,000 were slightly above those during the corresponding period in the prior fiscal year. These fees depend on the assets under management in financial products with contractual arrangements to use the Ranks and other Value Line proprietary information, which tend to fluctuate based on interest rates sectoral investment trends and ratings by fund rating agencies, among other factors.
Total assets in the Value Line Funds managed and/or distributed by EAM at April 30, 2025,2026, were $4.68$3.72 billion, which is $0.51$0.96 billion, or 12.0%,20.4%, abovebelow total assets of $4.17$4.68 billion in the Value Line Funds managed and/or distributed by EAM at April 30, 2024.2025.
Total assets in the Value Line Funds managed and/or distributed by EAM at April 30, 2024,2025, were $4.17$4.68 billion, which iswas $1.08$0.51 billion, or 35.0%,12.0%, above total assets of $3.09$4.17 billion in the Value Line Funds managed and/or distributed by EAM at April 30, 2023.2024.
Value Line Equity Funds experienced net inflows and the associated net asset outflows (redemptions less new sales) in fiscal 2025.2026. Value Line Fixed Income Funds experienced net outflows during fiscal year 2025.2026.
Annual variations can be triggered by fluctuations in the performance of the Funds, and investor preferences for sectors of the Equity markets that may not represent the sectors in which the Value Line Funds concentrate.
The following table shows the change in assets for the past three fiscal years including sales (inflows), redemptions (outflows), dividends and capital gain distributions, and market value changes. Inflows forfrom sales, and outflows for redemptions reflect decisions of individual investors and/or their investment advisors. The table also illustrates the assets within the Value Line Funds broken down into equity funds and fixed income funds as of April 30, 2025,2026, 20242025 and 2023.2024.
(1) Value Line Core Bond Fund liquidated November 24, 2025.
The gross fees and net income of EAM’s investment management operations during the twelve months ended April 30, 2026, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $30,758,000, 12b-1 fees and other fees of $5,774,000 and other net gains of $601,000. For the same period, total investment management fee waivers were a nominal $136,000 and 12b-1 fee waivers were $49,000. During the twelve months ended April 30, 2026, EAM's net income was $4,644,000 after giving effect to Value Line’s non-voting revenues interest of $16,648,000, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.
The gross fees and net income of EAM’s investment management operations during the twelve months ended April 30, 2023, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $19,824,000, 12b-1 fees and other fees of $5,964,000 and other net gains of $142,000. For the same period, total investment management fee waivers were $164,000 and 12b-1 fee waivers were $105,000. During the twelve months ended April 30, 2023, EAM's net income was $1,468,000 after giving effect to Value Line’s non-voting revenues interest of $10,397,000, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.
As of April 30, 2025,2026, one of the Value Line Funds has 12b-1 fees waivers in place, and fourthree funds have investment management fee waivers in place amounting in aggregate to less than 1% of all EAM management fee revenues.
The Value Line equity and hybrid funds’ assets represent 99.2% and fixed income fund assets represent 0.8%, respectively,100% of total fund assets under management (“AUM”) as of April 30, 2025.2026. At April 30, 2025,2026, equity and hybrid AUM increaseddecreased by 12.0% and fixed income AUM was similar20.4% when compared to last year at April 30, 2024.2025.
The Value Line equity and hybrid funds’ assets representrepresented 99.1%99.2% and fixed income fund assets representrepresented 0.9%,0.8%, respectively, of total fund assets under management (“AUM”) as of April 30, 2024.2025. At April 30, 2024,2025, equity and hybrid AUM increased by 35.6%12.0% and fixed income AUM decreasedwas bysimilar 12.8% aswhen compared to last year at April 30, 2023.2024.
The Company holdsreceives non-voting revenues interest and non-voting profits interestsinterest infrom EAMEAM. which entitle theThe Company to receivereceives from EAM in an amount ranging from 41% to 55% of EAM's investment management fee revenues from its mutual fund and separate accounts business, and 50% of EAM’s net profits, not less than 90% of which is distributed in cash every fiscal quarter.business.
Operating expenses of $29,416,000 during the twelve months ended April 30, 2026, were 1.1% above those during the twelve months ended April 30, 2025. Operating expenses of $7,990,000 during the three months ended April 30, 2026, were 5.7% above those during the three months ended April 30, 2025.
Operating expenses of $28,225,000 during the twelve months ended April 30, 2023, were 5.0% below those during the twelve months ended April 30, 2022 as a result of cost controls in fiscal year 2023. Operating expenses of $6,961,000 during the three months ended April 30, 2023, were 3.4% below those during the three months ended April 30, 2022.
During twelve months ended April 30, 2026, advertising and promotion expenses of $3,718,000 decreased 2.1% as compared to the prior fiscal year. During the twelve months ended April 30, 2026, decreases were primarily due to decreases in total sales commissions and other promotion costs.
During twelve months ended April 30, 2024, advertising and promotion expenses of $2,955,000 decreased 3.1% as compared to the prior fiscal year. During the twelve months ended April 30, 2024, decreases were primarily due to decreasesdeferring direct mail activity in totalresponse salesto commissions.market condition.
During twelve months ended April 30, 2023, advertising and promotion expenses of $3,049,000 decreased 5.4% as compared to the prior fiscal year. During the twelve months ended April 30, 2023, decreases were primarily due to decreases in media advertising expenses and direct mail campaigns, partially offset by increases in renewal solicitation costs and institutional sales commissions.
During the twelve months ended April 30, 2026, salaries and employee benefits of $14,365,000 decreased slightly below the prior fiscal year as substantial headcount reduction occurred late in the fiscal year and shortly thereafter.
During the twelve months ended April 30, 2023, salaries and employee benefits of $15,203,000 decreased 12.2% below the prior fiscal year, primarily due to decreases in salaries and employee benefits resulting from a reduced employee headcount in fiscal year 2023, as well as reductions in payment for a profit sharing contribution and the company’s share of medical benefits.
During the twelve months ended April 30, 2026, production and distribution expenses of $6,018,000 increased slightly above the prior fiscal year.
During the twelve months ended April 30, 2023, production and distribution expenses of $5,211,000 increased 4.1% above the prior fiscal year. Increases in production support of the Company’s website and maintenance of the Company’s publishing and application software and operating systems were partially offset by lower paper and printing costs resulting from decreases in print circulation.
During the twelve months ended April 30, 2026, office and administrative expenses of $5,315,000 increased 9.5% above the prior fiscal year, primarily because the Company incurred costs associated with fulfillment system upgrade, new E-commerce platform, multi-factor authentication and American Disabilities Act digital product compliance.
During the twelve months ended April 30, 2023, office and administrative expenses of $4,763,000 increased 14.1% above the prior fiscal year, primarily due to an increase in settlement costs and professional fees.
During the twelve months ended April 30, 2026, the Company’s total investment gains of $6,428,000 increased 98.5% above the prior fiscal year, primarily derived from unrealized gains on equity securities. Proceeds from the sales of equity securities during the twelve months ended April 30, 2026 and April 30, 2025 were $2,425,000 and $3,243,000, respectively. There were no capital gain distributions from ETFs in fiscal 2026 or fiscal 2025. Moderate increases in the commitment to equity securities including select income - producing ETFs occurred during fiscal 2026 and subsequently.
During the twelve months ended April 30, 2024, the Company’s total investment gains of $2,764,000 increased 135.4% above prior fiscal year, primarily derived from unrealized gains on equity securities and increases in the interest income. Proceeds from the sales of equity securities during the twelve months ended April 30, 2024 and April 30, 2023 were $1,129,000 and $4,706,000, respectively. There were no capital gain distributions from ETFs in fiscal 2024 or fiscal 2023.
What changed in the latest 10-Q
Risk Factors
Part I, Item 2 of this Quarterly Report on Form 10-Q for the period ended July 31, 2026, reflects any changes and updates (see page 23) in addition to the list of the risk factors disclosed in Item 1A - Risk Factors in the Company's Annual Report on Form 10-K for the year ended April 30, 2026 filed with the SEC on July 29, 2026. Any new risk factors reflect management's continuing analysis of developments in the Company's business environment, rather than any specific event or particular issue.
Full comparison: every changed paragraph (1)
Part I, Item 2 of this Quarterly Report on Form 10-Q for the period ended JanuaryJuly 31, 2026, reflects any changes and updates (see page 23) in addition to the list of the risk factors disclosed in Item 1A - Risk Factors in the Company's Annual Report on Form 10-K for the year ended April 30, 20252026 filed with the SEC on July 29, 2025.2026. Any new risk factors reflect management's continuing analysis of developments in the Company's business environment, rather than any specific event or particular issue.
Management's Discussion & Analysis (MD&A)
Largest changes
“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. …”see in full comparison
“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. …”see in full comparison
“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. …”see in full comparison
“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.”see in full comparison
“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.”see in full comparison
“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. …”see in full comparison
Full comparison: every changed paragraph (49)
Pursuant to the EAM Declaration of Trust, the Company maintains an interest in revenues of EAM and a portion of the residual profits of EAM but has no voting authority with respect to the election or removal of the trustees of EAM or control of its business. Although the Company does not have control over the operating and financial policies of EAM, the Company has a contractual right to receive its share of EAM’s revenues and profits The business of EAM is managed by its five individual trustees each owning 20% of the voting interest in EAM and by its officers subject to the direction of the trustees. The Company is entitled to receive from EAM a range of 41% to 55% of EAM’s revenues (excluding distribution revenues) from EAM’s mutual fund and separate account business and 50% of the residual profits of EAM (subject to temporary increase in certain limited circumstances). The Holders of the remaining profits interests will receive the other 50% of residual profits of EAM. Distribution is not less than 90% of EAM’s profits payable each fiscal quarter under the provisions of the EAM Trust Agreement.profits.
The business of EAM is managed by its five individual trustees each owning 20% of the voting interest in EAM and by its officers subject to the direction of the trustees. The Company is entitled to receive from EAM a range of 41% to 55% of EAM’s revenues (excluding distribution revenues) from EAM’s mutual fund and separate account business and 50% of the residual profits of EAM (subject to temporary increase in certain limited circumstances). The Holders of the remaining profits interests will receive the other 50% of residual profits of EAM. Distribution is not less than 90% of EAM’s profits payable each fiscal quarter under the provisions of the EAM Trust Agreement.
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%.
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.
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%.
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.
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.
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.
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.
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.
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.
Results of Operations for the Three and Nine Months Ended JanuaryJuly 31, 2026 and 2025
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.
During the three months ended JanuaryJuly 31, 2026, the Company’s net income of $5,910,000,$4,655,000, or $0.63$0.50 per share, was 14.5%27.9% abovebelow net income of $5,163,000,$6,460,000, or $0.55$0.69 per share, for the three months ended JanuaryJuly 31, 2025. During the three months ended JanuaryJuly 31, 2026, the Company’s income from operations of $1,004,000$1,027,000 was 35.8%31.4% below income from operations of $1,564,000$1,496,000 during the three months ended JanuaryJuly 31, 2025. For the three months ended JanuaryJuly 31, 2026, operating expenses decreased 0.7%1.2% below those during the three months ended JanuaryJuly 31, 2025.
During the ninethree months ended JanuaryJuly 31, 2026, there were 9,402,9669,384,249 average common shares outstanding as compared to 9,418,5279,414,605 average common shares outstanding during the ninethree months ended JanuaryJuly 31, 2025.
During the ninethree months ended JanuaryJuly 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.decreased.
Unearned subscription revenue as of JanuaryJuly 31, 2026, is 5.7%slightly below April 30, 20252026 and 4.2%3.0% below JanuaryJuly 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 mailmarketing campaigns and large Institutional Sales orders.
Investment periodicals and related publications revenues of $18,083,000$5,774,000 (excluding copyright fees) during the ninethree months ended JanuaryJuly 31, 2026 were 3.7%6.0% below publications revenues of $18,782,000$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 JanuaryJuly 31, 2026, was 1.1%2.4% below total product line circulation at JanuaryJuly 31, 2025.
Total print circulation at JanuaryJuly 31, 2026 was 2.0%3.2% below the total print circulation at JanuaryJuly 31, 2025. During the ninethree months ended JanuaryJuly 31, 2026, print publication revenues of $6,383,000$1,957,000 decreased 5.4%,11.6%, below print publication revenues of $6,750,000$2,214,000 during the corresponding period of 2025.2026. Total digital circulation at JanuaryJuly 31, 2026 was 2.3%1.5% abovebelow total digital circulation at JanuaryJuly 31, 2025. During the ninethree months ended JanuaryJuly 31, 2026, digital revenues of $11,700,000$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.
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 JanuaryJuly 31, 2026, the combined Ranking System “Rank 1 & 2” stocks’ price increase of 14.2%26.0% compared to the Russell 2000 Index’s increase of 14.3%32.5% during the comparable period.
During the ninethree months ended JanuaryJuly 31, 2026, copyright fees of $7,355,000$2,277,000 were 7.0%7.7% below those during the corresponding period in the prior fiscal year.
Total assets in the Value Line Funds managed and/or distributed by EAM at JanuaryJuly 31, 2026, were $4.20$3.40 billion, which is $0.77$1.61 billion or 15.6%32.2% below total assets of $4.97$5.01 billion in the Value Line Funds managed and/or distributed by EAM at JanuaryJuly 31, 2025.
The gross fees and net income of EAM’s investment management operations during the ninethree months ended JanuaryJuly 31, 2026, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $24,355,000,$6,228,000, 12b-1 fees and other fees of $4,506,000$1,321,000 and other net gains of $470,000.$144,000. For the same period, there was total investment management fee waivers wereof $132,000 and 12b-1 fee waivers were $47,000.$23,000. During the ninethree months ended JanuaryJuly 31, 2026, EAM's net income was $3,648,000$1,046,000 after giving effect to Value Line’s non-voting revenues interest of $13,212,000,$3,356,000, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.
The gross fees and net income of EAM’s investment management operations during the ninethree months ended JanuaryJuly 31, 2025, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $23,724,000,$8,302,000, 12b-1 fees and other fees of $6,032,000$1,509,000 and other net gains of $456,000.$204,000. For the same period, total investment management fee waivers were $131,000$41,000 and 12b-1 fee waivers were $69,000.$22,000. During the ninethree months ended JanuaryJuly 31, 2025, EAM's net income was $3,384,000$1,266,000 after giving effect to Value Line’s non-voting revenues interest of $12,089,000,$4,488,000, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.
As of JanuaryJuly 31, 2026, onethree 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.
The Value Line equity and hybrid funds’ assets represent 100% of total fund assets under management (“AUM”) as of JanuaryJuly 31, 2026. At JanuaryJuly 31, 2026, equity and hybrid AUM decreased by 15.0%31.7% compared to last year at JanuaryJuly 31, 2025.
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$7,024,000 during the ninethree months ended JanuaryJuly 31, 2026, were slightly below those during the ninethree months ended JanuaryJuly 31, 2025.
During the ninethree months ended JanuaryJuly 31, 2026, advertising and promotion expenses of $2,628,000$821,000 decreasedincreased 2.6%14.5% as compared to the prior fiscal year. During the nine months ended January 31, 2026, decreases wereyear primarily due to a declineincrease in thirddirect partymail telemarketing costs and sales commissions.campaigns.
During the ninethree months ended JanuaryJuly 31, 2026, salaries and employee benefits of $10,720,000$3,497,000 decreased slightly3.3% below the prior fiscal year.
During the ninethree months ended JanuaryJuly 31, 2026, production and distribution expenses of $4,446,000$1,460,000 increaseddecreased 1.2%10.5% abovebelow the prior fiscal year primarily due to andecreases overlapin production expenses to support the Company’s website and maintenance of datathe feedCompany’s publishing and licensingapplication feessoftware duringand aoperating transition to a new vendor.systems.
During the ninethree months ended JanuaryJuly 31, 2026, office and administrative expenses of $3,632,000$1,246,000 decreasedincreased 1.9%8.7% belowabove the prior fiscal year.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.
During the ninethree months ended JanuaryJuly 31, 2026, 29.0%28.3% of total publishing revenues of $25,438,000$8,051,000 were derived from a single customer.
During the ninethree months ended JanuaryJuly 31, 2026, the Company’s total investment gains of 5,379,000$1,471,000 increaseddecreased 51.2%27.1% abovebelow the prior fiscal year, primarily deriveda fromresult of lower unrealized gains on equity securities. Proceeds from the sales of equity securities during the ninethree months ended JanuaryJuly 31, 2026 and JanuaryJuly 31, 2025 were $328,000$45,000 and $3,173,000,$215,000, respectively.
The overall effective income tax rates, as a percentage of pre-tax ordinary income for the ninethree months ended JanuaryJuly 31, 2026 and JanuaryJuly 31,30, 2025 were 26.10%27.00% and 25.60%,25.20%, respectively. The higherincrease in the effective tax rate during ninefor the three months ended JanuaryJuly 31, 2026 as compared to JanuaryJuly 31, 2025, is primarily a result of an increase in the state and local incometax taxesrate from 4.85%4.39% to 5.32%6.40%, dueprimarily in a single jurisdiction that has changed from a market based approach to changesa incost stateof andproduction localapproach affecting EAM's allocation of taxable income taxfor allocations.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-taxpre-income income,tax, the Company's geographic profit mix amongbetween tax jurisdictions, taxation methodsmethod adopted by each locality, changes in tax rates, new interpretations of existing tax laws and rulings and settlements with tax authorities.
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 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.
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.
The Company had working capital, defined as current assets less current liabilities, of $65,716,000$68,326,000 as of JanuaryJuly 31, 2026 and $56,230,000$66,389,000 as of April 30, 2025.2026. These amounts include short-term unearned revenue of $14,642,000$14,355,000 and $16,558,000$14,742,000 reflected in total current liabilities at JanuaryJuly 31, 2026 and April 30, 2025,2026, respectively. Cash and short-term securities were $84,550,000$88,458,000 and $77,391,000$86,466,000 as of JanuaryJuly 31, 2026 and April 30, 2025,2026, respectively.
The Company’s cash and cash equivalents include $45,995,000$15,085,000 and $33,615,000$23,733,000 at JanuaryJuly 31, 2026 and April 30, 2025,2026, 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.
The Company had cash inflows from operating activities of $13,801,000$4,705,000 during the ninethree months ended JanuaryJuly 31, 2026, compared to cash inflows of $14,703,000$5,560,000 during the ninethree months ended JanuaryJuly 31, 2025. The decrease in cash flows from operations from fiscal 20252026 to fiscal 20262027 is primarily attributable to the decline in customers’publishing subscriptionrevenues, futureprimarily revenueprint and the timing of Federal Income tax payments.publication.
The Company had cash inflowsoutflows from investing activities of $8,626,000$9,484,000 during the ninethree months ended JanuaryJuly 31, 2026, compared to cash inflowsoutflows from investing activities of $16,475,000$2,811,000 for the ninethree months ended JanuaryJuly 31, 2025, respectively. The decreaseincrease in cash inflowsoutflows from investing activities for the ninethree months ended JanuaryJuly 31, 2026 compared to last year was a result of a decreaseincrease in investment in fixedequity income short-term securities in favor of higher yielding short-term U.S. Government money market investments.securities.
During the ninethree months ended JanuaryJuly 31, 2026, the Company’s cash outflows from financing activities were $10,041,000,$3,385,000, compared to cash outflows from financing activities of $8,752,000$3,118,000 for the ninethree months ended JanuaryJuly 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 $9,175,000. Quarterly regular dividend payments of $0.30 per share during fiscal year 2025 aggregated $8,478,000.$3,059,000.
At JanuaryJuly 31, 2026 there were 9,402,9669,384,249 common shares outstanding as compared to 9,418,5279,414,605 common shares outstanding at JanuaryJuly 31, 2025. The Company expects financing activities to continue to include use of cash for dividend payments for the foreseeable future.
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 JanuaryJuly 31, 2026, retained earnings and liquid assets were $122,285,000$123,949,000 and $84,550,000,$88,458,000, respectively. As of April 30, 2025,2026, retained earnings and liquid assets were $113,400,000$122,578,000 and $77,391,000,$86,466,000, respectively. There are no off-balance-sheet arrangements, so none affect the interpretations of reported assets, liquidity, and debt.
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 annualfiscal reportingyears periodsbeginning 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.
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 orof 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 annualfiscal reporting periodsyears beginning after December 15, 2024 with early adoption permitted. We are evaluating the impact ofadopted ASU 2023-09 onwith such disclosures included in Note 8 to our Consolidated Financial Statements.
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 includeincluded 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.
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.
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 ninethree months ended JanuaryJuly 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, 2025.2026.
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 threetwo fiscal years and thereafter are (in thousands): $370 in 2026; $1,493$1,124 in 2027 and $882 in 2028 totaling $2,745.$2,006.
VALU insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 1 Form 4 filing (1 insider, 1 trade date, 200 shares, about $6.8K) and open-market sales in 0 filings. Net open-market shares: 200 (purchases minus sales); net value about $6.8K.Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
| Trade date | Insider | Transaction | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-05-21 | Brecher Howard A |
Open-market purchase | 200 | $33.89 | $6.8K |
Well-known investors holding VALU (13F)
| Investor | Quarter | Shares | Reported value | % of their 13F | Change vs prior quarter |
|---|---|---|---|---|---|
| Renaissance Technologies | 2026-06-30 | 10,600 | $429.1K | 0.0% | Reduced 3% |