Executive Summary
Value Line Inc (VALU) delivered a resilient QQ3 2025 with revenue of $8.967 million and a gross margin of 59.60%. Net income totaled $5.163 million, translating to an EPS of $0.55 for the quarter. EBITDA stood at $1.564 million, yielding an EBITDA margin of 17.44% and operating income of $1.564 million (operating margin 17.44%). A notable feature of the quarter is the outsized non-operating income component, which contributed to a pre-tax income of $7.136 million and a reported net income margin of 57.6%. While top-line growth was modest YoY (-1.8%) and QoQ (+1.43%), the company generated robust free cash flow of $6.707 million and a strong net cash position (net debt of −$22.926 million). The balance sheet shows substantial liquidity with cash and short-term investments totaling approximately $75.8 million and total assets at $143.6 million, supporting optionality for capital deployment and continued investment in Value Line’s digital and data offerings. The valuation remains modestly supportive relative to peers, with a P/E of ~17.9x and P/S of ~41.3x, reflecting the niche, high-margin subscription model and the cash-rich balance sheet.
The quarter underscores a cash-generative, asset-light business with a potential path to higher recurring revenue through digital expansions and cross-sell of data services. Investors should monitor subscription trends, deferrals of revenue (deferred revenue stood at $16.6m), and the sustainability of non-operating income to assess the durability of earnings going forward.
Key Performance Indicators
QoQ: -10.32% | YoY:-29.93%
QoQ: -9.18% | YoY:-12.27%
QoQ: -8.33% | YoY:-11.29%
Key Insights
Revenue: $8.967m (-1.80% YoY; +1.43% QoQ). Gross Profit: $5.344m; Gross Margin: 59.60%.
Operating Income: $1.564m; Operating Margin: 17.44%.
EBITDA: $1.564m; EBITDA Margin: 17.44%.
Pre-tax Income: $7.136m; Income Tax: $1.973m; Net Income: $5.163m; Net Margin: 57.58%; EPS: $0.55.
Cash Flow: Operating cash flow $6.859m; Free cash flow $6.707m; Capex $0.152m; Dividends paid $2.826m; Net change in cash $15.523m; Cash at end of period $27.121m.
Balance Sheet: Total assets $143.555m; Total liabilities...
Financial Highlights
Revenue: $8.967m (-1.80% YoY; +1.43% QoQ). Gross Profit: $5.344m; Gross Margin: 59.60%.
Operating Income: $1.564m; Operating Margin: 17.44%.
EBITDA: $1.564m; EBITDA Margin: 17.44%.
Pre-tax Income: $7.136m; Income Tax: $1.973m; Net Income: $5.163m; Net Margin: 57.58%; EPS: $0.55.
Cash Flow: Operating cash flow $6.859m; Free cash flow $6.707m; Capex $0.152m; Dividends paid $2.826m; Net change in cash $15.523m; Cash at end of period $27.121m.
Balance Sheet: Total assets $143.555m; Total liabilities $44.605m; Total stockholders’ equity $98.95m. Cash and cash equivalents $26.816m; Short-term investments $48.975m; Long-term investments $61.124m; Deferred revenue $16.634m.
Key Ratios: Current ratio 3.43; ROE 5.22%; ROA 3.60%; P/E ~17.9x; P/S 41.28x; Cash per share $8.05; P/BV 3.74x; Dividend yield 0.76%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
8.97M |
-1.80% |
1.43% |
| Gross Profit |
5.34M |
27.45% |
1.48% |
| Operating Income |
1.56M |
-29.93% |
-10.32% |
| Net Income |
5.16M |
-12.27% |
-9.18% |
| EPS |
0.55 |
-11.29% |
-8.33% |
Key Financial Ratios
operatingProfitMargin
17.4%
operatingCashFlowPerShare
$0.73
freeCashFlowPerShare
$0.71
dividendPayoutRatio
54.7%
Management Commentary
No earnings call transcript data is available in the provided materials for VALU’s QQ3 2025 results. The quantitative results imply a cash-generative model with a strong balance sheet and a significant contribution from non-operating income in the quarter. The absence of management commentary limits our ability to extract definitive guidance or qualitative strategic signals beyond the reported numbers.
Forward Guidance
No formal forward guidance is included in the QQ3 2025 filing. Given VALU’s cash-rich balance sheet and high deferred revenue, the company appears positioned to invest in digital publishing and data services while maintaining a conservative capital structure. Investors should watch: (1) subscription growth, renewal rates, and expansion of digital product offerings; (2) trends in deferred revenue that could signal revenue recognition timing; (3) margin progression as non-operating income normalizes; (4) capital deployment plans, including potential acquisitions or software platform investments that could scale recurring revenue streams.