Executive Summary
Value Line Inc reported QQ1 2025 revenue of $8.884 million, a year-over-year decline of 8.82% and a quarter-over-quarter decrease of 1.32%. Despite the top-line softness, net income reached $5.888 million, driven by substantial other income totaling $5.95 million that more than offset operating expense growth and supported an EPS of $0.62. Gross margin stood at 60.1%, with operating margin around 20.8% and EBITDA of $2.141 million. The company generated $4.771 million of operating cash flow and $4.767 million of free cash flow, finishing the period with a strong liquidity position and a net cash balance (net debt of approximately -$11.1 million). The balance sheet shows total assets of $138.56 million and total liabilities of $44.70 million, with equity of $93.85 million. Leverage remains modest (debt to equity ~0.048) and liquidity is ample (current ratio ~3.17). The results underscore a durable subscription-driven model complemented by a sizable non-operating income stream; sustainability of that income and growth in core recurring revenue will be key for latent upside. In the near term, investors should monitor revenue trends, the composition and sustainability of other income, and the trajectory of deferred revenue as Value Line expands its digital product suite.
Key Performance Indicators
QoQ: 35.32% | YoY:-11.03%
QoQ: 24.13% | YoY:-32.76%
Key Insights
Revenue: $8.884M; YoY -8.82%; QoQ -1.32% | Gross Profit: $5.341M; YoY -11.03%; QoQ +35.32% | Operating Income: $1.847M; YoY -32.76%; QoQ +24.13% | Net Income: $5.888M; YoY +21.16%; QoQ +23.06% | EPS: $0.62; YoY +19.23%; QoQ +21.57% | Gross Margin: 60.12%; Operating Margin: 20.79%; Net Margin: 66.27% | EBITDA: $2.141M; Free Cash Flow: $4.767M; Net Cash Position: -$11.14M (net cash) | Cash & Short-Term Investments: $71.28M; Total Assets: $138.56M; Total Liabilities: $44.70M; Current Ratio: 3.1...
Financial Highlights
Revenue: $8.884M; YoY -8.82%; QoQ -1.32% | Gross Profit: $5.341M; YoY -11.03%; QoQ +35.32% | Operating Income: $1.847M; YoY -32.76%; QoQ +24.13% | Net Income: $5.888M; YoY +21.16%; QoQ +23.06% | EPS: $0.62; YoY +19.23%; QoQ +21.57% | Gross Margin: 60.12%; Operating Margin: 20.79%; Net Margin: 66.27% | EBITDA: $2.141M; Free Cash Flow: $4.767M; Net Cash Position: -$11.14M (net cash) | Cash & Short-Term Investments: $71.28M; Total Assets: $138.56M; Total Liabilities: $44.70M; Current Ratio: 3.17
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
8.88M |
-8.82% |
-1.32% |
| Gross Profit |
5.34M |
-11.03% |
35.32% |
| Operating Income |
1.85M |
-32.76% |
24.13% |
| Net Income |
5.89M |
21.16% |
23.06% |
| EPS |
0.62 |
19.23% |
21.57% |
Key Financial Ratios
operatingProfitMargin
20.8%
operatingCashFlowPerShare
$0.51
freeCashFlowPerShare
$0.51
Management Commentary
Transcript highlights are not available for QQ1 2025. The earnings transcript section contains no entries in the provided dataset.
Forward Guidance
No formal forward guidance was disclosed in Value Line's QQ1 2025 filing. In the absence of explicit targets, the outlook rests on sustaining recurring subscription revenue, expanding digital offerings (Value Line Research Center, Value Line Analyzer), and optimizing non-operating income drivers. Management commentary likely emphasizes product development and customer retention as key to long-term growth. Key factors to monitor include: trajectory of deferred revenue (current $15.99M; non-current $5.08M), sustainability of other income, renewal rates, price/volume of subscriptions, and potential capital allocation actions (buybacks, minor acquisitions). Given the strong balance sheet and modest leverage, the company has optionality to invest in growth initiatives or return capital if revenue growth accelerates.