Value Line's Net Income Jumps 9.7% on Strong EAM Trust Performance

TL;DR

**VALU's dividend hike and EAM Trust gains make it a solid income play, despite flat publishing revenue.**

AI Summary

VALUE LINE INC (VALU) reported a robust financial performance for the three months ended July 31, 2025, with net income increasing by 9.7% to $6.46 million, up from $5.89 million in the prior year. This growth was primarily driven by a significant 20.7% increase in revenues and profits interests from EAM Trust, which rose to $5.12 million from $4.24 million. Investment gains also contributed positively, reaching $2.02 million compared to $1.71 million in the same period last year. Total publishing revenues, however, saw a slight decline of 3.1% to $8.61 million from $8.88 million, with investment periodicals and related publications revenue decreasing to $6.14 million from $6.29 million. Despite this, total assets grew to $148.20 million from $144.53 million as of April 30, 2025, largely due to increases in equity securities and available-for-sale fixed income securities. The company also increased its dividends declared per common share to $0.325 for the quarter, up from $0.30 in the prior year, reflecting confidence in its financial health.

Why It Matters

This filing reveals VALUE LINE's continued reliance on its investment in EAM Trust for profit growth, offsetting a slight dip in its core publishing revenues. For investors, the 9.7% net income increase and higher dividend of $0.325 per share signal a stable, income-generating investment, particularly attractive in a competitive financial information market where digital transformation is key. Employees benefit from a financially healthy company, while customers of Value Line's publications and EAM's funds see a robust, well-managed entity. The competitive landscape, with firms like Morningstar and S&P Global, demands continuous innovation, and VALU's strategic investment income provides capital for future growth and market positioning.

Risk Assessment

Risk Level: medium — The company's reliance on its non-voting revenues and profits interests from EAM Trust, which contributed $5.12 million to income before taxes, represents a significant portion of its profitability. Fluctuations in the market value of underlying portfolios managed by EAM, as noted in the copyright fees section, could impact this revenue stream. Additionally, a slight decline in core publishing revenues to $8.61 million suggests potential challenges in its traditional business model.

Analyst Insight

Investors should consider VALU for its consistent dividend growth and strong income from its EAM Trust investment. However, they should monitor the performance of EAM Trust and the broader market conditions, as well as any strategic initiatives to revitalize core publishing revenues, before making a long-term commitment.

Financial Highlights

debt To Equity

0.44

revenue

$8.61M

operating Margin

17.4%

total Assets

$148.20M

total Debt

$45.17M

net Income

$6.46M

eps

$0.69

gross Margin

N/A

cash Position

$33.71M

revenue Growth

-3.1%

Revenue Breakdown

Key Numbers

• $6.46M — Net Income (Increased 9.7% from $5.89M in Q1 2024)
• $5.12M — EAM Trust Revenues & Profits (Increased 20.7% from $4.24M in Q1 2024, driving net income growth)
• $8.61M — Total Publishing Revenues (Decreased 3.1% from $8.88M in Q1 2024)
• $0.325 — Dividends Per Share (Increased from $0.30 in Q1 2024, signaling shareholder return)
• $148.20M — Total Assets (Increased from $144.53M as of April 30, 2025)
• 9,407,869 — Shares Outstanding (As of August 31, 2025)
• $2.02M — Investment Gains (Increased from $1.71M in Q1 2024)
• $7.11M — Total Expenses (Increased from $7.04M in Q1 2024)

Key Players & Entities

• VALUE LINE INC (company) — registrant
• Eulav Asset Management LLC (company) — significant investment
• SEC (regulator) — Securities and Exchange Commission
• $6.46 million (dollar_amount) — Net income for Q1 2025
• $5.89 million (dollar_amount) — Net income for Q1 2024
• $5.12 million (dollar_amount) — Revenues and profits interests in EAM Trust for Q1 2025
• $4.24 million (dollar_amount) — Revenues and profits interests in EAM Trust for Q1 2024
• $0.325 (dollar_amount) — Dividends declared per common share for Q1 2025
• $0.30 (dollar_amount) — Dividends declared per common share for Q1 2024
• Nasdaq Capital Market (market) — exchange where VALU common stock is registered

FAQ

Risk Factors

• Investment Performance and Market Volatility [medium — market]: The company's financial performance is significantly influenced by investment gains and the performance of its investment in EAM Trust. Market volatility can negatively impact investment values and the revenue generated from EAM Trust, as seen in the fluctuations of investment gains and the reliance on EAM Trust for a substantial portion of income.
• Reliance on EAM Trust and Brand [medium — operational]: Value Line has a significant investment in EAM Trust and receives substantial revenue from it. Any disruption in the operations or performance of EAM Trust, or any negative impact on the 'Value Line' brand which is licensed to EAM, could materially affect the company's financial results.
• Regulatory Compliance [low — regulatory]: As a financial information and investment management services provider, the company is subject to various regulations. Changes in regulations or failure to comply could result in fines, penalties, or reputational damage, impacting operations and profitability.
• Revenue Concentration [medium — financial]: While total publishing revenues declined by 3.1%, revenues and profits interests from EAM Trust increased by 20.7%, highlighting a growing reliance on this segment for overall financial health. A downturn in EAM Trust's performance could disproportionately affect the company.

Industry Context

Value Line operates in the financial publishing and investment services sector, a competitive landscape characterized by digital transformation and evolving investor needs. The industry faces challenges from free online information and the need to demonstrate unique value. Companies like Value Line often leverage proprietary data and analysis to differentiate themselves, while also seeking diversified revenue streams beyond traditional publications.

Regulatory Implications

As a provider of financial information and investment management services, Value Line is subject to oversight by financial regulatory bodies. Compliance with securities laws and data privacy regulations is critical. Any changes in these regulations or enforcement actions could impact the company's operations, product offerings, and profitability.

What Investors Should Do

1. Monitor EAM Trust performance
2. Analyze publishing revenue trends
3. Evaluate dividend sustainability
4. Assess asset allocation and investment gains

Key Dates

• 2025-07-31: End of Q2 2025 — Reporting period for the 10-Q, showing net income growth driven by EAM Trust and investment gains, despite a decline in publishing revenues.
• 2025-04-30: End of Q1 2025 — Prior period balance sheet date, showing total assets of $144.53M.
• 2025-08-31: Shares Outstanding Date — Indicates 9,407,869 shares outstanding as of this date.

Glossary

EAM Trust

Eulav Asset Management LLC, an entity in which Value Line has a significant investment and from which it receives revenues and profits interests. (A primary driver of Value Line's recent revenue and net income growth, with revenues and profits interests increasing by 20.7%.)

Available-for-sale Fixed Income securities

Investments in debt securities that are not classified as held-to-maturity or trading securities. They are reported at fair value, with unrealized gains and losses included in other comprehensive income. (These securities increased in value and contributed to the growth in total assets, with a balance of $25.36M as of July 31, 2025.)

Unearned revenue

Revenue that has been received by the company but not yet earned, typically from subscriptions or service contracts that extend into future periods. (Represents future revenue streams, with current unearned revenue at $15.55M and long-term at $6.00M as of July 31, 2025.)

Treasury stock

Shares of the company's own stock that have been repurchased from the open market and are held by the company. (Indicates share buyback activity, with 590,478 shares held in treasury as of July 31, 2025, valued at $(15.71M).)

Year-Over-Year Comparison

Compared to the three months ended July 31, 2024, Value Line Inc. has demonstrated robust net income growth of 9.7%, reaching $6.46 million. This was primarily fueled by a substantial 20.7% increase in revenues and profits interests from EAM Trust, alongside higher investment gains. However, total publishing revenues experienced a slight decline of 3.1%, indicating a shift in revenue drivers. Total assets saw an increase to $148.20 million, supported by growth in investment securities, while total expenses saw a marginal increase of 1.0%.

Key Financial Figures

• $0.10 — nge on which registered Common stock, $0.10 par value per share VALU The Nasdaq
• $0.325 — ividends declared per common share were $0.325 for the three months ending July 31, 20
• $0.30 — ividends declared per common share were $0.30 for the three months ending July 31, 20

Filing Documents

• valu20251031_10q.htm (10-Q) — 1107KB
• ex_859600.htm (EX-31.1) — 13KB
• ex_859599.htm (EX-31.2) — 14KB
• ex_859598.htm (EX-32.1) — 7KB
• image1.jpg (GRAPHIC) — 4KB
• 0001437749-25-029035.txt ( ) — 6173KB
• valu-20250731.xsd (EX-101.SCH) — 64KB
• valu-20250731_def.xml (EX-101.DEF) — 398KB
• valu-20250731_lab.xml (EX-101.LAB) — 322KB
• valu-20250731_pre.xml (EX-101.PRE) — 432KB
• valu-20250731_cal.xml (EX-101.CAL) — 59KB
• valu20251031_10q_htm.xml (XML) — 913KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1. Consolidated Condensed Financial Statements Consolidated Condensed Balance Sheets as of July 31, 2025 and April 30, 2025 3 Consolidated Condensed Statements of Income for the three months ended July 31, 2025 and July 31, 2024 4 Consolidated Condensed Statements of Comprehensive Income for the three months ended July 31, 2025 and July 31, 2024 5 Consolidated Condensed Statements of Cash Flows for the three months ended July 31, 2025 and July 31, 2024 6 Consolidated Condensed Statement of Changes in Shareholders' Equity for the three months ended July 31, 2025 7 Consolidated Condensed Statement of Changes in Shareholders' Equity for the three months ended July 31, 2024 8 Notes to Consolidated Condensed Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 35 Item 4.

Controls and Procedures

Controls and Procedures 37

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 37 Item 1A.

Risk Factors

Risk Factors 37 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38 Item 3. Defaults Upon Senior Securities 38 Item 4. Mine Safety Disclosures 38 Item 5. Other Information 38 Item 6. Exhibits 39

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements Value Line, Inc. Consolidated Condensed Balance Sheets (in thousands, except share amounts) July 31, April 30, 2025 2025 (unaudited) Assets Current Assets: Cash and cash equivalents (including short term investments of $ 33,430 and $ 33,615 , respectively) $ 33,708 $ 34,077 Equity securities 22,126 20,879 Available-for-sale Fixed Income securities 25,362 22,435 Accounts receivable, net of allowance for credit losses of $ 15 and $ 16 , respectively 1,287 1,327 Prepaid and refundable income taxes 42 42 Prepaid expenses and other current assets 946 1,123 Total current assets 83,471 79,883 Long term assets: Investment in EAM Trust 61,220 60,807 Restricted money market investments 305 305 Property and equipment, net 3,171 3,475 Capitalized software and other intangible assets, net 36 63 Total long term assets 64,732 64,650 Total assets $ 148,203 $ 144,533 Liabilities and Shareholders' Equity Current Liabilities: Accounts payable and accrued liabilities $ 991 $ 1,528 Accrued salaries 1,009 1,161 Dividends payable 3,058 3,059 Accrued taxes on income 1,808 43 Operating lease obligation-short term 1,304 1,304 Unearned revenue 15,553 16,558 Total current liabilities 23,723 23,653 Long term liabilities: Unearned revenue 6,003 5,732 Operating lease obligation-long term 1,959 2,275 Deferred income taxes 13,482 13,195 Total long term liabilities 21,444 21,202 Total liabilities 45,167 44,855 Shareholders' Equity: Common stock, $ 0.10 par value; authorized 30,000,000 shares; issued 10,000,000 shares 1,000 1,000 Additional paid-in capital 991 991 Retained earnings 116,802 113,400 Treasury stock, at cost ( 590,478 shares and 588,997 shares, respectively) ( 15,706 ) ( 15,647 ) Accumulated other comprehensive income, net of tax ( 51 ) ( 66 ) Total shareholders' equit

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements Value Line, Inc. Consolidated Condensed Statements of Income (in thousands, except share & per share amounts) (unaudited) For the Three Months Ended July 31, 2025 2024 Revenues: Investment periodicals and related publications $ 6,140 $ 6,287 Copyright fees 2,466 2,597 Total publishing revenues 8,606 8,884 Expenses: Advertising and promotion 717 860 Salaries and employee benefits 3,616 3,543 Production and distribution 1,631 1,489 Office and administration 1,146 1,145 Total expenses 7,110 7,037 Income from operations 1,496 1,847 Revenues and profits interests in EAM Trust 5,121 4,241 Investment gains/(losses) 2,019 1,709 Income before income taxes 8,636 7,797 Income tax provision 2,176 1,910 Net income $ 6,460 $ 5,887 Earnings per share, basic & fully diluted $ 0.69 $ 0.62 Weighted average number of common shares 9,414,605 9,419,938 The accompanying notes are an integral part of these consolidated condensed financial statements. 4

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements Value Line, Inc. Consolidated Condensed Statements of Comprehensive Income (in thousands) (unaudited) For the Three Months Ended July 31, 2025 2024 Net income $ 6,460 $ 5,887 Other comprehensive income/(loss), net of tax: Change in unrealized gains/(losses) on Fixed Income securities, net of tax 15 177 Other comprehensive income/(loss) 15 177 Comprehensive income $ 6,475 $ 6,064 The accompanying notes are an integral part of these consolidated condensed financial statements. 5

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements Value Line, Inc. Consolidated Condensed Statements of Cash Flows (in thousands) (unaudited) For the Three Months Ended July 31, 2025 2024 Cash flows from operating activities: Net income $ 6,460 $ 5,887 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 331 294 Investment (gains)/losses ( 1,344 ) ( 950 ) Non-voting revenues interest from EAM Trust ( 4,488 ) ( 3,680 ) Non-voting profits interest from EAM Trust ( 633 ) ( 561 ) Distributions received from EAM Trust 4,708 4,004 Deferred income taxes 395 315 Deferred rent ( 316 ) ( 292 ) Changes in operating assets and liabilities: Unearned revenue ( 734 ) ( 1,205 ) Accounts payable & accrued expenses ( 537 ) ( 563 ) Accrued salaries ( 152 ) ( 125 ) Accrued taxes on income 1,653 1,287 Prepaid and refundable income taxes - 209 Prepaid expenses and other current assets 179 70 Accounts receivable 38 81 Total adjustments ( 900 ) ( 1,116 ) Net cash provided by operating activities 5,560 4,771 Cash flows from investing activities: Purchases of equity securities ( 118 ) ( 4,520 ) Purchases of fixed income securities classified as available-for-sale ( 5,055 ) ( 2,450 ) Proceeds from sales of equity securities 215 90 Proceeds from sales of fixed income securities classified as available-for-sale 2,147 16,357 Acquisition of property and equipment - ( 4 ) Net cash provided by/(used in) investing activities ( 2,811 ) 9,473 Cash flows from financing activities: Purchase of treasury stock at cost ( 59 ) ( 179 ) Dividends paid ( 3,059 ) ( 2,827 ) Net cash used in financing activities ( 3,118 ) ( 3,006 ) Net change in cash and cash equivalents ( 369 ) 11,238 Cash, cash equivalents and restricted cash at beginning of period 34,382 4,695 Cash, cash equi

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements Value Line, Inc. Consolidated Condensed Statement of Changes in Shareholders' Equity For the Three Months Ended July 31, 2025 (in thousands, except share amounts) (unaudited) Common stock Additional paid-in- Treasury stock Retained Accumulated other comprehensive Shares Amount capital Shares Amount earnings income Total Balance at April 30, 2025 10,000,000 $ 1,000 $ 991 ( 588,997 ) $ ( 15,647 ) $ 113,400 $ ( 66 ) $ 99,678 Net income 6,460 6,460 Change in unrealized gains on Fixed Income securities, net of taxes 15 15 Purchase of treasury stock ( 1,481 ) ( 59 ) ( 59 ) Dividends declared ( 3,058 ) ( 3,058 ) Balance at July 31, 2025 10,000,000 $ 1,000 $ 991 ( 590,478 ) $ ( 15,706 ) $ 116,802 $ ( 51 ) $ 103,036 Dividends declared per common share were $0.325 for the three months ending July 31, 2025. The accompanying notes are an integral part of these consolidated condensed financial statements. 7

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements Value Line, Inc. Consolidated Condensed Statement of Changes in Shareholders' Equity For the Three Months Ended July 31, 2024 (in thousands, except share amounts) (unaudited) Common stock Additional paid-in- Treasury stock Retained Accumulated other comprehensive Shares Amount capital Shares Amount earnings income Total Balance at April 30, 2024 10,000,000 $ 1,000 $ 991 ( 577,517 ) $ ( 15,194 ) $ 104,249 $ ( 253 ) $ 90,793 Net income 5,887 5,887 Change in unrealized gains on Fixed Income securities, net of taxes 177 177 Purchase of treasury stock ( 4,409 ) ( 179 ) ( 179 ) Dividends declared ( 2,825 ) ( 2,825 ) Balance at July 31, 2024 10,000,000 $ 1,000 $ 991 ( 581,926 ) $ ( 15,373 ) $ 107,311 $ ( 76 ) $ 93,853 Dividends declared per common share were $0.30 for the three months ending July 31, 2024. The accompanying notes are an integral part of these consolidated condensed financial statements. 8 Value Line, Inc. Notes to Consolidated Condensed Financial Statements July 31, 2025 (Unaudited) Note 1 - Organization and Summary of Significant Accounting Policies: Value Line, Inc. ("Value Line" or "VLI", and collectively with its subsidiaries, the "Company") is incorporated in the State of New York. The name "Value Line" as used to describe the Company, its products, and its subsidiaries, is a registered trademark of the Company. The Company's core business is producing investment periodicals 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. The Company maintains a significant investment in Eulav Asset Management LLC ("EAM") from which it receives a non-voting r

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