Publishing and Software (Dual-segment: Legal Publishing and Government Justice Software)
Strategic Profile
In Q2 fiscal 2026 (March 31, 2026), the company achieved 25% revenue growth to $22.7 million driven primarily by Journal Technologies' 32% revenue increase. Operating income improved to $3.0 million for the quarter, showing better profitability in core businesses. The company is balancing legacy publishing with high-growth software solutions while managing an investment portfolio subject to market volatility.
Cyborg Score Rationale
First-half fiscal 2026 revenue of $42.3 million represents 17.8% growth year-over-year. However, large unrealized losses of $51.2 million on marketable securities led to a net loss of $34.6 million in Q2 despite strong operational performance. The core software business shows momentum, but portfolio volatility masks underlying strength.
Top Insights
Journal Technologies (software) grew revenue 32% in Q2 2026, driven by e-filing, license, maintenance, and consulting fees, becoming the primary growth engine.
Company publishes 10 newspapers across California, Arizona, Utah, and Australia serving legal and business communities, with titles including Los Angeles Daily Journal and San Francisco Daily Journal.
Until April 2026 (recent step-down), the marketable securities investment portfolio was managed by Charlie Munger as chairman for 45 years.
Quarterly results heavily affected by mark-to-market swings in the investment portfolio rather than operational deterioration.
Named Competitors
Tyler Technologies — Court case management and government software solutions
LexisNexis — Legal research and information services
Thomson Reuters — Legal publishing and research platforms
Recent Developments
(May 2026) Q2 FY2026 revenue grew 25% to $22.7M; Journal Technologies up 32%; net loss of $34.6M driven by $51.2M unrealized securities losses
(February 2026) Q1 FY2026 revenue up 10% to $19.5M; net loss of $8M despite operational income growth, impacted by $11.7M unrealized securities losses
(April 2026) Charlie Munger stepped down as Chairman after 45 years managing company's investment portfolio
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