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.