On this page of StockholderLetter.com we present the latest annual shareholder letter from DAILY JOURNAL CORP — ticker symbol DJCO. Reading current and past DJCO letters to shareholders can bring important insights into the investment thesis.

 •  1/21/2026 Letter Continued (Full PDF)
 •  More "Publishing & Printing" Category Stockholder Letters
 •  DJCO Benford's Law Stock Score = 91

DJCO Shareholder/Stockholder Letter Transcript:

Daily Journal Corporation
2025 Annual Report
915 E 1st Street, Los Angeles, California, 90012

Dear Daily Journal Shareholders,
Fiscal 2025 was a strong year for the Company. I   m proud of the dedicated efforts of our entire team, who
delivered record revenue by modernizing our pricing and other key aspects of our operations. We are
seeing continued positive momentum at Journal Technologies, and are coupling cost discipline with
systems optimization at our Traditional Publishing Business. Of course, thanks to the foresight and
wisdom of our long-time Chairman, Charles T. Munger, both operating businesses are supported by a $493
million portfolio of high-quality securities that gives us the ability to compete for bigger projects and invest
excess cash in our people and our products, where sensible. We   re not done with our building and
modernization efforts     but we   ve been making great progress.
Our Annual Meeting on February 24, 2026
I strongly recommend that you vote using the Company   s white proxy card to re-elect the Company   s full
slate of directors and approve our proposals at the 2026 Annual Meeting of Shareholders. Your support is
particularly important this year because Buxton Helmsley, Inc. (   BuHeUI   )   evidently the registered holder
of one share of the Company   s stock   is seeking to take control of your Board of Directors. BuHeUI   s
approach began as transparently self-interested with its CEO, Alexander Erwin Parker, making a demand
for payment in exchange for suggesting an inappropriate way to inflate earnings through accounting
changes. When that didn   t work, he shifted to personal attacks, threats of reputational ruin and a fixation
on immaterial disclosure matters with no economic or operational significance. He has yet to articulate
any sort of platform or alternative plans for the Company, and instead seems focused on his personal
grievances. By contrast, current management and the Board (most all of whom were selected by Charlie
based upon his confidence in their judgment and integrity) are continuing to execute on our long-term
strategy towards creating compounding value for all shareholders. The best way for you to rebuke BuHeUI's
bad behavior and support our existing strategy is by voting for the Company's full slate of directors without delay.
Our Journal Technologies Business
Eighty percent of our operating revenue now comes from Journal Technologies, which provides case
management, e-filing, and related solutions to courts and related justice agencies in the United States,
Canada and Australia. In fiscal year 2025, Journal Technologies    revenues grew to approximately $70
million, from $53.1 million in fiscal 2024   an increase of roughly 32%. Within that:


Licensing and maintenance revenues increased about 12%, to $31.7 million;
Consulting and implementation revenues increased roughly 51%, to $22.7 million; and
Other public service fees, including e-filing fees, increased about 59%, to $15.5 million.
Operating expenses increased by about 12%, to $56.9 million, as we continued to invest in product,
implementation capacity, and customer support. After these expenses, Journal Technologies generated
pre-tax income of approximately $13.1 million, up from $2.5 million in fiscal 2024. These results were
driven in part by two notable factors that provided a meaningful boost to both revenue and profit (one
temporary, one sustainable).
First, a significant aspect of the increased net income for fiscal 2025 was due to our shift to milestonebased payments on our newer installation contracts   whereby we receive payment and recognize revenue
along the way as the project progresses. However, while milestone-based payment projects are our new
normal, we still have older contracts (some sizable) where we won   t receive payment or recognize revenue
until final project go-live and customer acceptance. In fiscal 2025, we had some large older projects golive and we recognized several years of delivered services revenue all at once. In other words, some of our
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fiscal 2025 performance is more the result of timing than specific, enduring improvements to our business
model or margins. This should normalize over time as we convert as many of our contracts as possible to
the milestone model.
Second, the other notable contributor to increased fiscal 2025 profits was growth in e-filing revenue,
including a long overdue increase in certain California e-filing fees from $1.95 to $3.50 per filing. Though
this revenue stream is always subject to variability depending upon transaction volumes, it is expected to
be an enduring source of improved margins.
My favorite type of revenue remains the relatively predictable recurring license fees that customers pay to
use our software, which grew by about 12% in 2025. Growing this recurring base, and keeping churn low by
delivering reliable, well-supported products, remains central to our strategy.
We are continuing to invest in our technology and the people and processes that build it. On the product
side, we continue to 1) enhance and modernize our core framework so it remains competitive and efficient
to implement, without compromising the flexibility that is a hallmark of our offerings, 2) address technical
debt and optimize implementation approaches, 3) improve the user experience, documentation, and
upgrade paths; and 4) incorporate sensible uses of AI to reduce friction and improve outcomes for courts
and justice agencies. The benefits of these investments will take time, and we continue to expect nearterm negative impacts on future results. However, we believe they are necessary for our future and will
eventually yield good     if uneven     returns on invested capital. It also seems unlikely that we can go wrong
with a strategy based on building better products, delivering consistently for customers, strengthening our
internal systems, and making Journal Technologies a compelling long-term workplace.
What continues to excite us about the courts and justice agency sector is the unique blue ocean
opportunity for an organization like ours to stand out and win over customers. As I   ve stated before,
although it is a competitive space, in my estimation there isn   t any one company that appears to be
knocking it out of the park right now in terms of delighting customers. If we elevate customer expectations
by effectively executing the best practices of modern software companies, we can stand out and
potentially capture the lead. This will remain our north star goal in this segment.
Our Traditional Publishing Business
About twenty percent of operating revenues in fiscal 2025 came from our traditional business of publishing
newspapers and offering related services. Revenues increased to about $17.9 million, up roughly 6% from
the prior year, driven mainly by higher advertising revenues. Circulation revenue declined modestly in
dollar terms, largely attributable to long-term headwinds associated with a difficult media environment.
On a reported basis, the traditional business showed a small pre-tax loss of approximately $0.5 million in
fiscal 2025, compared to a modest profit in fiscal 2024. But that swing is not a story of operational
deterioration. The traditional business did incur higher costs for merchant fees, display commissions and
planned promotional spending tied to its higher revenue, but much of the difference was the result of
increased non-operational parent company costs in fiscal 2025.
Setting aside higher corporate costs, the traditional publishing business is doing remarkably well and
generally met its 2025 plan: growing revenue and managing the costs it can control. Nonetheless, the
strategic reality remains unchanged. Rather than making new material investments, our focus is on
maximizing remaining possibilities for the existing business by working to provide value to an evolving
subscriber base and managing costs with discipline, including via the use of new technologies like AI.
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Our Portfolio of Marketable Securities
Thanks entirely to the wise capital allocation philosophy of Mr. Munger, the Company holds a concentrated
portfolio of marketable securities that has grown steadily over the years, and is now largely responsible for
our strong balance sheet. As of September 30, 2025, the value of our marketable securities was
approximately $493.0 million, compared to $358.7 million a year earlier. We recorded net realized and
unrealized gains on these securities of about $134.3 million in fiscal 2025, compared to $96.1 million in
fiscal 2024.
We are not an investment company, nor a mini version of Berkshire Hathaway. Although some adjustments
may be warranted over time in response to a changing world, we do not envision significant changes to the
portfolio upcoming, which Charlie designed and intended to be held over the long-term. The primary
purpose of this capital is to support the Company   s operating businesses, particularly Journal
Technologies.
We did not buy or sell any marketable securities during fiscal 2025, whereas in March 2024 we opted to sell
approximately $40,500,000 of the portfolio to reduce our margin loan. Still, we continued to reduce our
margin borrowings using available cash in fiscal 2025. At year-end, the margin balance was $22.0 million,
down from $27.5 million at the end of fiscal 2024 and well below prior levels. Reducing this leverage lowers
risk and interest expense.
Operations in 2026 and Beyond
In 2026 and beyond, our strategy at Journal Technologies is to build on our recent success by:
x
x
x
Growing the installed base and recurring revenue;
Improving implementation performance; and
Continuing to modernize the platform and our internal systems.
For the Traditional Publishing Business, our operating priorities are based on a realistic view of the longterm challenges facing newspapers and publishing in general. We intend to:
x
x
x
Maximize our remaining economic value;
Manage costs carefully; and
Serve customers and employees responsibly.
In terms of capital allocation and the Company   s portfolio of marketable securities, we aim to:
x
x
x
Steadily pay down our moderate leverage;
Stay patient; and
Be selective on any larger use of capital.
We are not in a hurry to spend. We continue to track potential investment and acquisition opportunities in
our space. Some could make sense strategically, but acquisitions are easy to do badly and poorly chosen
or poorly integrated deals can destroy more value than they create. Our approach is to build the integration
capacity to handle a meaningful transaction while remaining disciplined about evaluating price, fit and
complexity. We intend to move only when we are confident we can execute the post-transaction work
without undermining the existing businesses. Until then, our default remains to invest primarily in our own
products, people and customers.
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Governance and Internal Controls
The Board has been     and remains     focused on strengthening the Company   s internal controls over
financial reporting, so that our finance and governance foundation matches the scale and complexity of
our growing business. To address previously identified material weaknesses in our internal controls, the
Board initiated remediation work in 2023 that is now nearly complete. Under the leadership of the Audit
Committee, the Company tackled these weaknesses extensively in 2025, fully remediating a prior
weakness related to insufficient accounting resources, and making significant progress in remediating the
remaining two, which relate to segregation of duties and revenue review controls. The Company is
confident in its ability to achieve full remediation of the remaining material weaknesses this year.
Help Preserve the Company   s Strategic Focus on Sustained Value Creation
I firmly believe that our operating and strategic priorities represent a compelling formula for sustained
value creation. However, as I previously noted, a short-term and self-interested agitator is attempting to
undermine the Company   s momentum. BuHeUI and Mr. Parker first sought to enrich themselves through a
scheme to offer their    consulting services    based on an erroneous understanding of accounting rules.
When the Company refused, BuHeUI and Mr. Parker started referring the Company and its auditor to the
Securities and Exchange Commission based on nothing at all, and then began threatening directors and
officers of the Company with retaliatory actions (such as disciplinary referrals to professional
organizations) if they did not agree to co-operate with their scheme. And when that didn   t work, BuHeUI
and Mr. Parker became the registered owner of one share of the Company   s stock after the record date for
the Annual Meeting, and attempted to nominate a slate of director candidates to take over the Company   s
Board without any sort of plan.
We urge you to ignore any materials received from Buxton Helmsley and instead vote FOR the
re-election of the Company   s current directors.
In closing, we   re hosting our Annual Meeting on February 24, 2026 at our offices in Los Angeles, California.
While this year may be unlike others, it is my hope we   ll be able to conduct necessary business and
dispense with potential distractions so the Company can provide a business update and answer your
questions pertaining to the agenda. I will be joined by my fellow directors and supported by members of
our senior leadership team. They are an impressive group, and I am confident you will find their experience
and focus on creating value for all shareholders to be an inspiring contrast to the modus operandi of
BuHeUI and Mr. Parker.
Yours truly,
Steven Myhill-Jones
Chairman & CEO
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 1/21/2026 Letter Continued (Full PDF)