Value Line Inc (VALU) reported a solid cash-generative quarter for QQ1 2026, with revenue of $8.606 million and gross profit of $4.99 million, yielding a gross margin of 57.98%. Operating income reached $1.50 million with an operating margin of 17.38%. A material driver of reported net income was total other income and expenses of $7.14 million, resulting in a reported net income of $6.46 million and EPS of $0.69, up 35.3% year over year and 25.5% quarter over quarter. This structure produced a robust net income yield despite a modest YoY and QoQ decline in revenue (YoY -4.41%, QoQ -4.03%). The quarter underscored a key investable characteristic: a very strong cash position and liquidity profile, with cash and short-term investments totaling approximately $59.1 million and net debt of about negative $30.4 million, supporting shareholder-friendly actions and optionality for strategic investments.
Key Performance Indicators
Revenue
Decreasing
8.61M
QoQ: -4.03% | YoY: -4.41%
Gross Profit
Increasing
4.99M
57.98% margin
QoQ: -6.62% | YoY: 26.43%
Operating Income
Increasing
1.50M
QoQ: -4.35% | YoY: 0.54%
Net Income
Increasing
6.46M
QoQ: 25.12% | YoY: 35.03%
EPS
Increasing
0.69
QoQ: 25.45% | YoY: 35.29%
Revenue Trend
Margin Analysis
Financial Highlights
Core profitability and cash generation:
- Revenue: $8.606 million; YoY -4.41%, QoQ -4.03%; Gross Profit: $4.99 million; Gross Margin: 57.98%;
- EBITDA: $8.967 million; EBITDA Margin: 1.04x (EBITDA as a multiple of revenue, reflecting non-operating items visually subsidizing earnings);
- Operating Income: $1.496 million; Operating Margin: 17.38%; Net Income: $6.460 million; Net Margin: 75.06%; EPS: $0.69; YoY EPS: +35.29%, QoQ EPS: +25.45%;
Cash flow and balance sheet:
- Net cash provided by operating activities: $5.56 million; Free cash flow: $5.56 million;
- Cash end of period: $34.01 million; Cash beginning: $34.38 million; Net change in cash: -$0.369 million;
- Cash and cash equivalents: $33.708 million; Short-term investments: $25.362 million; Total cash & equivalents: $59.07 million; Net debt: -$30.445 million (cash greater than debt);
- Total assets: $148.203 million; Total liabilities: $21.444 million; Total stockholders’ equity: $103.036 million; Deferred revenue (current): $15.553 million; Deferred revenue non-current: $6.003 million.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
8.61M
-4.41%
-4.03%
Gross Profit
4.99M
26.43%
-6.62%
Operating Income
1.50M
0.54%
-4.35%
Net Income
6.46M
35.03%
25.12%
EPS
0.69
35.29%
25.45%
Key Financial Ratios
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