George Risk Industries Inc (RSKIA) reported QQ2 2025 revenue of $5.61 million with a gross profit of $2.71 million and an EBITDA of $1.97 million. Net income totaled $2.22 million, yielding a net margin of approximately 39.5% and an EPS of $0.45 for the quarter. Revenue declined ~7.3% year over year and ~2.9% quarter over quarter, while gross margin held near 48.3% and operating margin around 26.4%, underscoring a favorable product mix and disciplined cost structure even as top-line demand softened modestly. Notably, net income surged on a year-over-year basis by a reported >4,000% since the prior-year quarter, which the quarterly figures imply may reflect a more favorable mix, one-time or non-operating gains, and strong operating leverage despite the revenue pullback.
The balance sheet shows substantial liquidity with cash and short-term investments totaling about $41.8 million against modest current liabilities of $5.32 million and no long-term debt. Net cash position is approximately $5.45 million, and dividends materially affected cash flow in the period, with $4.45 million paid in dividends during the quarter, contributing to a negative net change in cash of about $3.91 million for the period. Operating cash flow was modest at $0.23 million, while free cash flow was approximately $0.027 million, reflecting ongoing working capital dynamics (notably, sizeable changes in accounts receivable and working capital components) and substantial cash allocation to dividends.
From an on‑going earnings perspective, profitability metrics are strong relative to revenue peers, with gross margin near 48% and net margin near 39.5%. Given the robust liquidity and minimal financial leverage, the company appears well-positioned to fund near-term dividends and selective growth initiatives, though cash outflows from financing activities remain a focal point for liquidity assessment.