DAILY JOURNAL CORP Segments Disclosure

Note 11.  Segments Information

 

The key factors used to identify the reportable segments are the organization of the Company’s businesses and alignment of its internal operations. Operating segments are defined as components of an enterprise for which discrete financial information is available and is evaluated regularly by the Chief Operating Decision Maker (“CODM”), in deciding how to allocate resources and assess performance.

 

The Company’s Chief Executive Officer, serving as the CODM, reviews consolidated financial data to allocate resources and assess performance. The CODM focuses on consolidated net income (loss) from the statements of operations, comparing results with prior periods, forecasts, and relevant expenditure categories for each segment.

 

 

The Company identifies its reportable segments based on the nature of the products and services provided and the manner in which the CODM manages the business and allocates resources between (i) the Traditional Business, which consists of newspaper publishing, advertising, circulation, and related information services, and (ii) Journal Technologies, which provides case management software and related services to courts and other justice agencies. Accordingly, Traditional Business revenues are comprised of advertising, circulation, and advertising service fees and other, while Journal Technologies revenues are comprised of licensing and maintenance fees, consulting fees, and other public service fees. All inter-segment transactions were eliminated. Corporate is presented below as a non-operating segment to reconcile segment results to the Company’s consolidated financial statement line-item totals. Additional details about each of the reportable segments and its income and expenses are set forth below:

 

Overall Financial Results (in thousands)
For the twelve months ended September 30
		Reportable Segments
		Traditional Business								Journal Technologies								Corporate								Total
		2025				2024				2025				2024				2025				2024				2025				2024
Revenues
Advertising		$	10,081			$	9,325			$	—			$	—			$	—			$	—			$	10,081			$	9,325
Circulation			4,269				4,462				—				—				—				—				4,269				4,462
Advertising service fees and other			3,412				3,039				—				—				—				—				3,412				3,039
Licensing and maintenance fees			—				—				31,720				28,265				—				—				31,720				28,265
Consulting fees			—				—				22,735				15,086				—				—				22,735				15,086
Other public service fees			—				—				15,483				9,754				—				—				15,483				9,754
Total operating revenues			17,762				16,826				69,938				53,105				—				—				87,700				69,931
Operating expenses
Personnel			10,467				9,492				44,032				36,998				2,967				395				57,466				46,885
Other segment items*			7,460				5,360				13,246				13,616				—				—				20,706				18,976
Total operating expenses			17,927				14,852				57,278				50,614				2,967				395				78,172				65,861
Income from operations			(165	)			1,974				12,660				2,491				(2,967	)			—				9,528				4,070
Dividends and interest income			—				—				—				—				7,459				7,102				7,459				7,102
Interest expense			—				—				—				—				(1,381	)			(3,087	)			(1,381	)			(3,087	)
Net realized and unrealized gains on marketable securities			—				—				—				—				134,304				96,142				134,304				96,142
Other			—				—				—				—				177				51				177				51
Pretax income			(165	)			1,974				12,660				2,491				137,592				100,208				150,087				104,278
Income tax benefit (expense)			180				(395	)			(3,665	)			(735	)			(34,465	)			(25,035	)			(37,950	)			(26,165	)
Net income		$	15			$	1,579			$	8,995			$	1,756			$	103,127			$	75,173			$	112,137			$	78,113

 

* Other segment items within net income (loss) include rental income, net unrealized gains on non-qualified compensation plan, interest expense on note payable collateralized by real estate, decrease in fair value of derivative asset, agency commissions, outside services, postage and delivery expenses, newsprint and printing expenses, depreciation and amortization, equipment maintenance and software, credit card merchant discount fees, rent expenses, accounting and legal fees, and other general and administrative expenses.

 

 

During fiscal 2025, the Company’s revenues were primarily generated in the United States. Revenues from foreign countries and U.S. territories were approximately $11.9 million, or 13.5% (approximately 14%) of total revenues, and were attributable to the Journal Technologies segment. The following table presents revenues by country and territory (in thousands):

 

Country/ Territory		Revenue				As a % of total revenue
Australia		$	10,067				11.5	%
Canada			686				0.8
Guam			674				0.8
Commonwealth of the Northern Mariana Islands			428				0.5
Total		$	11,855				13.5	%

 

The measure of segment assets reviewed by the CODM is the consolidated total assets, as reported on the consolidated balance sheet. The following table presents the measure of segment assets regularly provided to the CODM (in thousands):

 

		Traditional Business								Journal Technologies								Corporate								Total
		2025				2024				2025				2024				2025				2024				2025				2024
Total assets		$	22,701			$	14,486			$	32,422			$	29,838			$	492,995			$	359,439			$	548,118			$	403,763

 

 The Company’s long-lived assets, which consist primarily of property, plant and equipment, net, and operating lease right-of-use assets, are primarily located in the United States. As of September 30, 2025 and 2024, no individual country other than the U.S. accounted for 10% or more of these assets.