Value Line's Net Income Mixed, EAM Trust Boosts Bottom Line

TL;DR

**VALU's publishing business is shrinking, but its EAM Trust investment is picking up the slack, making it a hold for now.**

AI Summary

VALUE LINE INC (VALU) reported a slight decrease in net income for the three months ended October 31, 2025, to $5.682 million from $5.685 million in the prior year, a marginal 0.05% decline. However, for the six months ended October 31, 2025, net income increased by 4.93% to $12.142 million from $11.572 million in the same period last year. Total publishing revenues saw a decrease, falling to $8.556 million for the three-month period from $8.841 million, and to $17.162 million for the six-month period from $17.725 million. This decline was primarily driven by a reduction in investment periodicals and related publications revenue, which dropped from $6.182 million to $6.054 million for the quarter. Conversely, revenues and profits interests in EAM Trust significantly boosted overall income, rising to $5.154 million for the quarter from $4.630 million, and to $10.275 million for the six months from $8.871 million. The company's cash and cash equivalents increased substantially to $43.606 million as of October 31, 2025, up from $34.077 million on April 30, 2025, reflecting strong cash flow from operating activities of $8.512 million for the six months. Total assets grew to $147.936 million from $144.533 million over the same period, while total liabilities decreased from $44.855 million to $42.447 million.

Why It Matters

Value Line's mixed financial performance, with declining publishing revenues offset by strong EAM Trust contributions, signals a strategic shift towards its investment management arm. For investors, this highlights the importance of EAM Trust's performance as a key driver of profitability, potentially reducing reliance on traditional publishing. Employees in the publishing division might face increased scrutiny, while those in investment management could see growth opportunities. Customers of Value Line's traditional products may experience changes in offerings or pricing as the company adapts. In a competitive landscape where digital content and passive investing are prevalent, Value Line's ability to leverage its proprietary ranks through EAM Trust is crucial for long-term relevance and market share against larger financial data providers.

Risk Assessment

Risk Level: medium — The company's publishing revenues, including investment periodicals and copyright fees, are declining, with a $285,000 decrease in total publishing revenues for the three months ended October 31, 2025, compared to the prior year. This indicates a potential long-term challenge for its core business. While the EAM Trust provides a significant offset, contributing $5.154 million in revenues and profits interest for the quarter, over-reliance on a single unconsolidated entity for growth introduces concentration risk.

Analyst Insight

Investors should monitor the performance of the EAM Trust closely, as it is increasingly vital to VALU's profitability. Consider holding existing positions but be cautious about new investments until there's clearer evidence of sustainable growth in either publishing or a diversified expansion of the EAM Trust's contributions, given the declining core publishing revenues.

Financial Highlights

debt To Equity

0.40

revenue

$8,556,000

operating Margin

17.67%

total Assets

$147,936,000

total Debt

$42,447,000

net Income

$5,682,000

eps

$0.60

gross Margin

N/A

cash Position

$43,606,000

revenue Growth

-3.22%

Revenue Breakdown

Key Numbers

• $5.682M — Net Income (Q3 2025) (Slight decrease from $5.685M in Q3 2024)
• $12.142M — Net Income (YTD 2025) (Increased 4.93% from $11.572M in YTD 2024)
• $8.556M — Total Publishing Revenues (Q3 2025) (Decreased from $8.841M in Q3 2024)
• $17.162M — Total Publishing Revenues (YTD 2025) (Decreased from $17.725M in YTD 2024)
• $5.154M — EAM Trust Revenues & Profits (Q3 2025) (Increased from $4.630M in Q3 2024, offsetting publishing decline)
• $10.275M — EAM Trust Revenues & Profits (YTD 2025) (Increased from $8.871M in YTD 2024)
• $43.606M — Cash and Cash Equivalents (Oct 31, 2025) (Significant increase from $34.077M on April 30, 2025)
• $8.512M — Net Cash from Operating Activities (YTD 2025) (Strong cash generation, up from $7.844M in YTD 2024)
• $147.936M — Total Assets (Oct 31, 2025) (Increased from $144.533M on April 30, 2025)
• $42.447M — Total Liabilities (Oct 31, 2025) (Decreased from $44.855M on April 30, 2025)

Key Players & Entities

• VALUE LINE INC (company) — registrant
• Eulav Asset Management LLC (company) — significant investment and revenue source
• SEC (regulator) — Securities and Exchange Commission
• $5.682 million (dollar_amount) — Net income for three months ended October 31, 2025
• $5.685 million (dollar_amount) — Net income for three months ended October 31, 2024
• $12.142 million (dollar_amount) — Net income for six months ended October 31, 2025
• $11.572 million (dollar_amount) — Net income for six months ended October 31, 2024
• $8.556 million (dollar_amount) — Total publishing revenues for three months ended October 31, 2025
• $5.154 million (dollar_amount) — Revenues and profits interests in EAM Trust for three months ended October 31, 2025
• $43.606 million (dollar_amount) — Cash and cash equivalents as of October 31, 2025

FAQ

Risk Factors

• Reliance on EAM Trust Performance [high — market]: The company's financial performance is significantly influenced by its investment in EAM Trust, which contributed $5.154 million in revenues and profits interest in Q3 2025. Any adverse performance or changes in the EAM Trust could materially impact Value Line's overall income and financial condition.
• Declining Publishing Revenue [medium — market]: Total publishing revenues decreased to $8.556 million in Q3 2025 from $8.841 million in Q3 2024. This decline, particularly in investment periodicals and related publications ($6.054 million vs $6.182 million), indicates potential challenges in core business segments.
• Intangible Asset Amortization [low — operational]: The company has capitalized software and other intangible assets, which are subject to amortization. As of October 31, 2025, these net assets were $26,000, down from $63,000 on April 30, 2025, indicating ongoing amortization and potential future write-downs.
• Unearned Revenue Fluctuations [medium — financial]: Unearned revenue decreased to $14.177 million in current liabilities and $6.152 million in long-term liabilities as of October 31, 2025. While total liabilities decreased, the change in unearned revenue suggests shifts in subscription cycles or service delivery.
• Trademark and Copyright Reliance [medium — regulatory]: The company's core business relies on its registered trademarks and proprietary information, including Value Line Proprietary Ranks. Any infringement or challenges to these intellectual property rights could negatively affect revenue streams derived from licensing agreements.

Industry Context

Value Line operates in the financial publishing and investment research sector, a competitive landscape characterized by digital transformation and evolving investor needs. The industry faces pressure from free online resources and the need to demonstrate unique value through proprietary data and analysis. Companies like Value Line must adapt their content delivery and business models to maintain relevance and subscriber engagement.

Regulatory Implications

As a financial information provider, Value Line is subject to regulations concerning financial reporting and disclosure. While no specific new regulatory risks are highlighted in this 10-Q, the company's reliance on intellectual property and its investment activities mean it must remain compliant with securities laws and industry best practices.

What Investors Should Do

1. Monitor EAM Trust performance and its contribution to overall revenue.
2. Analyze the trend in publishing revenues.
3. Evaluate the company's cash generation and deployment.

Key Dates

• 2025-10-31: Quarter and Six-Month Period End — Reporting period for the consolidated financial statements, showing net income of $5.682M for the quarter and $12.142M year-to-date.
• 2025-04-30: Prior Fiscal Year End — Balance sheet comparison date, showing cash and cash equivalents of $34.077M and total assets of $144.533M.
• 2025-07-31: Third Quarter End (for Statement of Changes in Shareholders' Equity) — Marks the end of the three-month period for the equity statement, showing a balance of $103.036M.

Glossary

EAM Trust

Eulav Asset Management LLC, an entity in which Value Line Inc. holds a significant investment and receives revenues and profits interests. (A major contributor to Value Line's income, with revenues and profits interests of $5.154 million in Q3 2025.)

Unearned Revenue

Revenue that has been received by the company but not yet earned, typically from subscriptions or services not yet delivered. (Represents future revenue streams, with current unearned revenue at $14.177 million and long-term at $6.152 million as of Oct 31, 2025.)

Treasury Stock

Shares of the company's own stock that have been repurchased from the open market. (Value Line held 594,672 shares of treasury stock as of October 31, 2025, valued at $(15,866,000).)

Available-for-sale Fixed Income securities

Investments in debt securities that are not classified as held-to-maturity or trading securities, and are reported at fair value. (The company held $14.495 million in these securities as of October 31, 2025, down from $22.435 million on April 30, 2025.)

Year-Over-Year Comparison

Compared to the prior year's six-month period, Value Line Inc. has seen a slight decrease in net income for the quarter (0.05% decline to $5.682M) but a notable increase year-to-date (4.93% growth to $12.142M). Total publishing revenues have declined in both periods, indicating a challenging core business. However, this decline is significantly offset by a strong increase in revenues and profits from the EAM Trust, which grew by 11.32% for the quarter. The company also shows improved financial health with increased cash reserves ($43.606M vs $34.077M) and reduced total liabilities ($42.447M vs $44.855M).

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
• $0.650 — ividends declared per common share were $0.650 for the six months ending October 31, 2
• $0.30 — ividends declared per common share were $0.30 for the three months ending July 31, 20
• $0.60 — ividends declared per common share were $0.60 for the six months ending October 31, 2

Filing Documents

• valu20251031c_10q.htm (10-Q) — 1356KB
• ex_896476.htm (EX-31.1) — 13KB
• ex_896477.htm (EX-31.2) — 13KB
• ex_896478.htm (EX-32.1) — 6KB
• logo10q.jpg (GRAPHIC) — 4KB
• 0001437749-25-037818.txt ( ) — 6776KB
• valu-20251031.xsd (EX-101.SCH) — 64KB
• valu-20251031_def.xml (EX-101.DEF) — 411KB
• valu-20251031_lab.xml (EX-101.LAB) — 336KB
• valu-20251031_pre.xml (EX-101.PRE) — 445KB
• valu-20251031_cal.xml (EX-101.CAL) — 59KB
• valu20251031c_10q_htm.xml (XML) — 1031KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1. Consolidated Condensed Financial Statements Consolidated Condensed Balance Sheets as of October 31, 2025 and April 30, 2025 3 Consolidated Condensed Statements of Income for the three and six months ended October 31, 2025 and October 31, 2024 4 Consolidated Condensed Statements of Comprehensive Income for the three and six months ended October 31, 2025 and October 31, 2024 5 Consolidated Condensed Statements of Cash Flows for the six months ended October 31, 2025 and October 31, 2024 6 Consolidated Condensed Statement of Changes in Shareholders' Equity for the three months ended July 31, 2025 and six months ended October 31, 2025 7 Consolidated Condensed Statement of Changes in Shareholders' Equity for the three months ended July 31, 2024 and six months ended October 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) October 31, April 30, 2025 2025 (unaudited) Assets Current Assets: Cash and cash equivalents (including short term investments of $ 42,987 and $ 33,615 , respectively) $ 43,606 $ 34,077 Equity securities 23,326 20,879 Available-for-sale Fixed Income securities 14,495 22,435 Accounts receivable, net of allowance for credit losses of $ 13 and $ 16 , respectively 1,161 1,327 Prepaid and refundable income taxes 146 42 Prepaid expenses and other current assets 690 1,123 Total current assets 83,424 79,883 Long term assets: Investment in EAM Trust 61,318 60,807 Restricted money market investments 305 305 Property and equipment, net 2,863 3,475 Capitalized software and other intangible assets, net 26 63 Total long term assets 64,512 64,650 Total assets $ 147,936 $ 144,533 Liabilities and Shareholders' Equity Current Liabilities: Accounts payable and accrued liabilities $ 783 $ 1,528 Accrued salaries 1,017 1,161 Dividends payable 3,058 3,059 Accrued taxes on income 505 43 Operating lease obligation-short term 1,354 1,304 Unearned revenue 14,177 16,558 Total current liabilities 20,894 23,653 Long term liabilities: Unearned revenue 6,152 5,732 Operating lease obligation-long term 1,587 2,275 Deferred income taxes 13,814 13,195 Total long term liabilities 21,553 21,202 Total liabilities 42,447 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 119,426 113,400 Treasury stock, at cost ( 594,672 shares and 588,997 shares, respectively) ( 15,866 ) ( 15,647 ) Accumulated other comprehensive income, net of tax ( 62 ) ( 66 ) Total shareholders' equ

- 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 For the Six Months Ended October 31, October 31, 2025 2024 2025 2024 Revenues: Investment periodicals and related publications $ 6,054 $ 6,182 $ 12,194 $ 12,469 Copyright fees 2,502 2,659 4,968 5,256 Total publishing revenues 8,556 8,841 17,162 17,725 Expenses: Advertising and promotion 922 862 1,639 1,722 Salaries and employee benefits 3,492 3,575 7,108 7,118 Production and distribution 1,423 1,449 3,054 2,938 Office and administration 1,207 1,211 2,353 2,356 Total expenses 7,044 7,097 14,154 14,134 Income from operations 1,512 1,744 3,008 3,591 Revenues and profits interests in EAM Trust 5,154 4,630 10,275 8,871 Investment gains/(losses) 1,182 1,186 3,201 2,895 Income before income taxes 7,848 7,560 16,484 15,357 Income tax provision 2,166 1,875 4,342 3,785 Net income $ 5,682 $ 5,685 $ 12,142 $ 11,572 Earnings per share, basic & fully diluted $ 0.60 $ 0.60 $ 1.29 $ 1.23 Weighted average number of common shares 9,407,142 9,418,074 9,408,597 9,419,006 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 For the Six Months Ended October 31, October 31, 2025 2024 2025 2024 Net income $ 5,682 $ 5,685 $ 12,142 $ 11,572 Other comprehensive income/(loss), net of tax: Change in unrealized gains/(losses) on Fixed Income securities, net of tax ( 11 ) 2 4 179 Other comprehensive income/(loss) ( 11 ) 2 4 179 Comprehensive income $ 5,671 $ 5,687 $ 12,146 $ 11,751 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 Six Months Ended October 31, 2025 2024 Cash flows from operating activities: Net income $ 12,142 $ 11,572 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 649 594 Investment (gains)/losses ( 1,855 ) ( 1,524 ) Non-voting revenues interest from EAM Trust ( 9,034 ) ( 7,726 ) Non-voting profits interest from EAM Trust ( 1,241 ) ( 1,145 ) Distributions received from EAM Trust 9,764 8,219 Deferred income taxes 768 497 Deferred rent ( 638 ) ( 588 ) Changes in operating assets and liabilities: Unearned revenue ( 1,961 ) ( 1,415 ) Accounts payable & accrued expenses ( 745 ) ( 478 ) Accrued salaries ( 144 ) ( 31 ) Accrued taxes on income 312 3 Prepaid and refundable income taxes ( 104 ) ( 390 ) Prepaid expenses and other current assets 435 205 Accounts receivable 164 51 Total adjustments ( 3,630 ) ( 3,728 ) Net cash provided by operating activities 8,512 7,844 Cash flows from investing activities: Purchases of equity securities ( 897 ) ( 7,045 ) Purchases of fixed income securities classified as available-for-sale ( 5,210 ) ( 13,441 ) Proceeds from sales of equity securities 305 3,075 Proceeds from sales of fixed income securities classified as available-for-sale 13,155 22,365 Acquisition of property and equipment - ( 65 ) Net cash provided by investing activities 7,353 4,889 Cash flows from financing activities: Purchase of treasury stock at cost ( 219 ) ( 178 ) Dividends paid ( 6,117 ) ( 5,652 ) Net cash used in financing activities ( 6,336 ) ( 5,830 ) Net change in cash and cash equivalents 9,529 6,903 Cash, cash equivalents and restricted cash at beginning of period 34,382 4,695 Cash, c

- 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 and Six Months Ended October 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. Common stock Additional paid-in- Treasury stock Retained Accumulated other comprehensive Shares Amount capital Shares Amount earnings income Total Balance at July 31, 2025 10,000,000 $ 1,000 $ 991 ( 590,478 ) $ ( 15,706 ) $ 116,802 $ ( 51 ) $ 103,036 Net income 5,682 5,682 Change in unrealized gains on Fixed Income securities, net of taxes ( 11 ) ( 11 ) Purchase of treasury stock ( 4,194 ) ( 160 ) ( 160 ) Dividends declared ( 3,058 ) ( 3,058 ) Balance at October 31, 2025 10,000,000 $ 1,000 $ 991 ( 594,672 ) $ ( 15,866 ) $ 119,426 $ ( 62 ) $ 105,489 Dividends declared per common share were $0.650 for the six months ending October 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 and Six Months Ended October 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 ) ( 178 ) ( 178 ) Dividends declared ( 2,825 ) ( 2,825 ) Balance at July 31, 2024 10,000,000 $ 1,000 $ 991 ( 581,926 ) $ ( 15,372 ) $ 107,311 $ ( 76 ) $ 93,854 Dividends declared per common share were $0.30 for the three months ending July 31, 2024. Common stock Additional paid-in- Treasury stock Retained Accumulated other comprehensive Shares Amount capital Shares Amount earnings income Total Balance at July 31, 2024 10,000,000 $ 1,000 $ 991 ( 581,926 ) $ ( 15,372 ) $ 107,311 $ ( 76 ) $ 93,854 Net income 5,685 5,685 Change in unrealized gains on Fixed Income securities, net of taxes 2 2 Purchase of treasury stock - - Dividends declared ( 2,826 ) ( 2,826 ) Balance at October 31, 2024 10,000,000 $ 1,000 $ 991 ( 581,926 ) $ ( 15,372 ) $ 110,170 $ ( 74 ) $ 96,715 Dividends declared per common share were $0.60 for the six months ending October 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 October 31, 2025 (Unaudited) Note 1 - Organization and Summary of Significant Accounting Policie

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