- DJCO reported Q1 2025 revenue of $17.704 million, up 10.70% year-over-year, with a gross profit of $3.495 million and a gross margin of 19.74%. Operating income was modest at $0.742 million, yielding an operating margin of 4.19%. EBITDA stood at $15.356 million with an EBITDA margin of 86.7%, reflecting a material non-operating income component in the quarter. Net income was $10.895 million, or 61.54% net margin, driven largely by total other income and expenses of $14.153 million.
- The company maintains a very strong liquidity position and a conservative balance sheet. At quarter-end, cash and cash equivalents were $15.0 million and short-term investments were $372.1 million, bringing total cash and short-term investments to $387.2 million. Total assets were $412.6 million with stockholders’ equity of $289.7 million and limited debt ($28.4 million long-term debt; net debt of $13.5 million). The current ratio was healthy at 12.31x, reflecting substantial liquidity relative to short-term liabilities.
- Operating cash flow was $2.205 million for the quarter, with no capital expenditures disclosed, yielding a free cash flow of $2.205 million. The company generated a material amount of non-operating gains (or other income) that significantly inflated reported net income for the quarter. Investors should focus on core operating performance and cash generation, not solely on the reported net income, given the sizable other income/expenses item.
- The QQ1 2025 results imply a mixed operating backbone with healthy liquidity but a reliance on investment-related income to drive reported profitability. In a market where DJCO trades with multiple valuation metrics (P/E around 17.9x, P/B ~2.7x, P/S ~44.2x), the investment thesis hinges on the sustainability of operating earnings and the visibility of cash-driven returns from its large cash and investment portfolio.