GEORGE RISK INDUSTRIES Net Income Jumps 24.7% on Strong Investment Gains

TL;DR

**RSKIA's earnings are juiced by market gains, not just sales; watch those investments, because that's where the real action is.**

AI Summary

GEORGE RISK INDUSTRIES, INC. (RSKIA) reported a robust financial performance for the six months ended October 31, 2025, with net income increasing by 24.7% to $6,135,000 from $4,920,000 in the prior year. Net sales also saw an increase of 7.3% to $12,231,000 compared to $11,394,000 in the same period last year. The company's gross profit rose to $5,992,000 from $5,659,000, representing a 5.9% increase. A significant driver of profitability was the unrealized gain on equity securities, which surged to $3,292,000 for the six months ended October 31, 2025, a substantial increase from $1,413,000 in the prior year. Total assets grew to $66,183,000 as of October 31, 2025, up from $63,340,000 on April 30, 2025, primarily due to a rise in investments and securities to $39,871,000 from $35,736,000. Cash and cash equivalents, however, decreased by $1,628,000 to $4,843,000 from $6,471,000 at the beginning of the period, largely due to $4,467,000 in dividends paid. The company also purchased a federal solar tax credit of $3,431,000 in September 2024, resulting in a gain of $515,000.

Why It Matters

This filing reveals GEORGE RISK INDUSTRIES' continued reliance on investment gains to bolster its bottom line, with unrealized gains on equity securities being a primary driver of the 24.7% net income increase. For investors, this highlights a potential sensitivity to market fluctuations in their investment portfolio, which could impact future earnings. The consistent dividend payments, totaling $4,467,000, demonstrate a commitment to shareholder returns, but also explain the significant reduction in cash. Competitively, the company's ability to generate substantial investment income could provide a buffer against operational pressures, but also suggests a less direct competitive focus on its core business, which saw a more modest 7.3% sales growth.

Risk Assessment

Risk Level: medium — The company's significant reliance on unrealized gains on equity securities, which contributed $3,292,000 to income for the six months ended October 31, 2025, introduces market volatility risk. While beneficial in a rising market, a downturn could severely impact profitability. Additionally, cash and cash equivalents decreased by $1,628,000, partly due to substantial dividend payments of $4,467,000, which could limit operational flexibility if investment gains falter.

Analyst Insight

Investors should scrutinize RSKIA's investment portfolio composition and market outlook, as a substantial portion of its net income is derived from unrealized gains on equity securities. While the dividend yield is attractive, be aware that cash reserves are being drawn down to support these payments. Consider if the underlying business operations can sustain growth independently of market performance.

Financial Highlights

debt To Equity

0.14

revenue

$12.23M

operating Margin

23.5%

total Assets

$66.18M

total Debt

$7.94M

net Income

$6.14M

eps

$1.25

gross Margin

49.0%

cash Position

$4.84M

revenue Growth

+7.3%

Key Numbers

• $6.14M — Net Income (Increased by 24.7% for the six months ended October 31, 2025, compared to $4.92M in the prior year.)
• $12.23M — Net Sales (Increased by 7.3% for the six months ended October 31, 2025, compared to $11.39M in the prior year.)
• $3.29M — Unrealized Gain on Equity Securities (Significantly contributed to net income, up from $1.41M in the prior year.)
• $4.84M — Cash and Cash Equivalents (Decreased by $1.63M from April 30, 2025, primarily due to dividend payments.)
• $39.87M — Investments and Securities (Increased from $35.74M on April 30, 2025, reflecting growth in the portfolio.)
• $4.47M — Dividends Paid (A major use of cash flow from financing activities for the six months ended October 31, 2025.)
• $0.48 — Basic Income Per Share (For the three months ended October 31, 2025, up from $0.45 in the prior year.)
• $1.25 — Basic Income Per Share (For the six months ended October 31, 2025, up from $1.00 in the prior year.)
• $2.15M — Federal Solar Tax Credit Receivable (Remaining balance from a $3.43M tax credit purchased in September 2024.)
• $66.18M — Total Assets (Increased from $63.34M on April 30, 2025.)

Key Players & Entities

• GEORGE RISK INDUSTRIES, INC. (company) — Registrant
• Stephanie Risk-McElroy (person) — President and Chief Executive and Financial Officer, Chief Operating Decision Maker (CODM)
• OTC Markets (regulator) — Exchange for Class A Common Stock and Convertible Preferred Stock
• $6,135,000 (dollar_amount) — Net Income for six months ended October 31, 2025
• $12,231,000 (dollar_amount) — Net Sales for six months ended October 31, 2025
• $3,292,000 (dollar_amount) — Unrealized Gain on Equity Securities for six months ended October 31, 2025
• $4,843,000 (dollar_amount) — Cash and Cash Equivalents as of October 31, 2025
• $39,871,000 (dollar_amount) — Investments and securities, at fair value, as of October 31, 2025
• $4,467,000 (dollar_amount) — Dividends paid for six months ended October 31, 2025
• FASB (regulator) — Financial Accounting Standards Board

FAQ

Industry Context

GEORGE RISK INDUSTRIES, INC. operates in a sector influenced by investment market performance and regulatory incentives, such as solar tax credits. The company's strategy involves managing a diverse portfolio of investments, including municipal bonds, REITs, and equity securities, alongside its core business operations.

Regulatory Implications

The company benefits from federal solar tax credits, indicating a favorable regulatory environment for renewable energy investments. However, changes in tax laws or credit availability could impact future gains and financial performance.

What Investors Should Do

1. Monitor the performance of the equity securities portfolio.
2. Analyze the impact of dividend payments on cash flow.
3. Evaluate the long-term value of the federal solar tax credit receivable.

Key Dates

• 2025-10-31: Six-month period ended — Reported increased net income of $6.14M (up 24.7%) and net sales of $12.23M (up 7.3%).
• 2025-04-30: Beginning of the six-month period — Total assets were $63.34M, with cash and cash equivalents at $6.47M.
• 2024-09-01: Purchase of federal solar tax credit — Resulted in a $515,000 gain and a $2.15M receivable balance as of October 31, 2025.

Glossary

Unrealized gain

An increase in the value of an asset that has not yet been sold. (Significantly boosted net income by $3.29M for the six months ended October 31, 2025.)

Federal solar tax credit receivable

A credit that a company can claim for investing in solar energy projects, which is owed to the company by the government. (Represents a $2.15M balance from a credit purchased in September 2024.)

Accumulated other comprehensive income

Includes unrealized gains and losses on certain investments that are not yet recognized in net income. (Increased from a negative $77,000 to a positive $81,000, reflecting changes in the fair value of certain assets.)

Treasury stock

Stock that a company has repurchased from the open market. (Represents a reduction in stockholders' equity, with the cost increasing slightly from $5.016M to $5.037M.)

Year-Over-Year Comparison

For the six months ended October 31, 2025, GEORGE RISK INDUSTRIES, INC. demonstrated strong growth, with net sales up 7.3% to $12.23M and net income soaring by 24.7% to $6.14M compared to the prior year. This improved profitability was significantly bolstered by a substantial increase in unrealized gains on equity securities, which more than doubled from $1.41M to $3.29M. Total assets grew by 4.4% to $66.18M, primarily driven by an increase in investments and securities, while cash reserves decreased due to substantial dividend payments.

Key Financial Figures

• $0.10 — hich registered Class A Common Stock, $0.10 par value RSKIA OTC Markets Conve
• $20 — Markets Convertible Preferred Stock, $20 stated value RSKIA OTC Markets In
• $1.00 — — — — — — — Dividend declared at $1.00 per common share outstanding — — —

Filing Documents

• form10-q.htm (10-Q) — 1013KB
• ex31-1.htm (EX-31.1) — 10KB
• ex32-1.htm (EX-32.1) — 5KB
• 0001493152-25-027793.txt ( ) — 3825KB
• rskia-20251031.xsd (EX-101.SCH) — 19KB
• rskia-20251031_cal.xml (EX-101.CAL) — 49KB
• rskia-20251031_def.xml (EX-101.DEF) — 71KB
• rskia-20251031_lab.xml (EX-101.LAB) — 208KB
• rskia-20251031_pre.xml (EX-101.PRE) — 152KB
• form10-q_htm.xml (XML) — 597KB

Financial Statements

Financial Statements The unaudited financial statements for the three-and six-month periods ended October 31, 2025, are attached hereto. 2 GEORGE RISK INDUSTRIES, INC. CONDENSED BALANCE SHEETS October 31, 2025 April 30, 2025 (unaudited) ASSETS Current Assets: Cash and cash equivalents $ 4,843,000 $ 6,471,000 Investments and securities, at fair value 39,871,000 35,736,000 Accounts receivable: Trade, net of allowance for credit losses of $ 27,869 and $ 12,414 4,784,000 4,693,000 Other 37,000 59,000 Federal solar tax credit receivable 2,154,000 2,154,000 Inventories, net 11,089,000 10,740,000 Prepaid expenses 495,000 514,000 Total Current Assets 63,273,000 60,367,000 Property and Equipment, net, at cost 2,052,000 2,031,000 Other Assets Investment in Limited Land Partnership, at cost — 25,000 Projects in process 10,000 10,000 Other 1,000 — Total Other Assets 11,000 35,000 Intangible Assets, net 847,000 907,000 TOTAL ASSETS $ 66,183,000 $ 63,340,000 See accompanying notes to the unaudited condensed financial statements. 3 GEORGE RISK INDUSTRIES, INC. CONDENSED BALANCE SHEETS (continued) October 31, 2025 April 30, 2025 (unaudited) LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable, trade $ 298,000 $ 301,000 Dividends payable 3,726,000 3,302,000 Deferred income 15,000 17,000 Accrued expenses 552,000 523,000 Income tax payable 284,000 25,000 Total Current Liabilities 4,875,000 4,168,000 Long-Term Liabilities Deferred income taxes 3,064,000 2,310,000 Total Long-Term Liabilities 3,064,000 2,310,000 Total Liabilities 7,939,000 6,478,000 Commitments and Contingencies — — Stockholders' Equity Convertible preferred stock, 1,000,000 shares authorized, Series 1—noncumulative, $ 20 stated value, 25,000 shares authorized, 4,239 issued and outstanding 102,000 102,000 Common stock, Class A, $ .10 par value, 10,000,0

Financial Statements

Financial Statements. 12 Note 2 Investments The Company has investments in publicly traded equity securities, state and municipal debt securities, real estate investment trusts, and money markets. The investments in debt securities, which include municipal bonds and bond funds, mature between December 2025 and December 2050. The Company uses the average cost method to determine the cost of equity securities sold, with any unrealized gains or losses reported in the respective period's earnings. Unrealized gains and losses on debt securities are excluded from earnings and reported separately as a component of stockholders' equity. Dividend and interest income are reported as earned. As of October 31, 2025, and April 30, 2025, investments consisted of the following: Schedule of Investments Gross Gross Investments on Cost Unrealized Unrealized Fair October 31, 2025 Basis Gains Losses Value Municipal bonds $ 7,850,000 $ 233,000 $ ( 68,000 ) $ 8,015,000 REITs 74,000 2,000 ( 9,000 ) 67,000 Equity securities 18,221,000 12,536,000 ( 162,000 ) 30,595,000 Money markets and CDs 1,194,000 — — 1,194,000 Total $ 27,339,000 $ 12,771,000 $ ( 239,000 ) $ 39,871,000 Gross Gross Investments on Cost Unrealized Unrealized Fair April 30, 2025 Basis Gains Losses Value Municipal bonds $ 7,681,000 $ 141,000 $ ( 135,000 ) $ 7,687,000 REITs 74,000 1,000 ( 7,000 ) 68,000 Equity securities 17,689,000 9,330,000 ( 307,000 ) 26,712,000 Money markets and CDs 1,269,000 — — 1,269,000 Total $ 26,713,000 $ 9,472,000 $ ( 449,000 ) $ 35,736,000 Marketable securities that are classified as equity securities are carried at fair value on the balance sheets with changes in fair value recorded as an unrealized gain or (loss) in the statements of income in the period of the change. Upon the disposition of a marketable security, the Company records a realized gain or (loss) on the Company's statements of income.

View Full Filing

View this 10-Q filing on SEC EDGAR