Daily Journal Corporation (DJCO): Business Model Canvas [Dec-2025 Updated]

You're trying to make sense of a company that defies easy categorization, and honestly, that's where the real financial opportunity often hides. Mapping out the Business Model Canvas for Daily Journal Corporation (DJCO) shows a fascinating, three-pronged strategy: mission-critical GovTech software modernizing justice systems, legally mandated public notice advertising, and a substantial investment arm. The numbers back this unique mix up: as of June 30, 2025, they were sitting on a marketable securities portfolio worth $443 million, even as their software segment saw revenue climb by $2.4 million over the nine months prior. It's a complex structure, but understanding how these pieces fit together is key to valuing this entity; check out the full canvas below to see the mechanics.

Daily Journal Corporation (DJCO) - Canvas Business Model: Key Partnerships

You're looking at the partners that make the Daily Journal Corporation machine run, especially the software side, which is now the core of the business. It's not just about who they sell to; it's about the critical infrastructure and financial backing that supports the whole operation.

Financial institutions (e.g., Wells Fargo, Bank of America) as core investment holdings

The investment portfolio, which Charlie Munger built, is a massive partner in Daily Journal Corporation's overall financial picture, often dwarfing the operating income. As of the third quarter of 2025, the total reported portfolio value stood at $262,245,445, based on the September 30, 2025, 13F filing. This portfolio is highly concentrated, which you know means its performance heavily influences the stock price, regardless of what the software business does. For the six months ending March 31, 2025, the company reported marketable securities valued at approximately $431.49 million.

Here's the quick math on the top four holdings reported on September 30, 2025:

What this estimate hides is the risk; a sharp drop in any of these positions directly impacts the balance sheet, so you watch those quarterly reports closely.

Government contractors and integrators for large-scale software rollouts

Journal Technologies, the software subsidiary, partners with government entities across the justice system. As of June 2025, this software vertical generated $53.8M in revenue, making up 77% of Daily Journal Corporation's total revenue mix. These contracts are with courts, prosecutor and public defender offices, and other justice agencies. The company has installation projects ongoing in the United States, Canada, and Australia. The US federal IT budget for 2025, which represents the broader market tailwind for these government partnerships, amounts to $75B.

The software segment's operational growth shows this partnership activity:

• License and maintenance fees grew by $1,615,000 for the six months ending March 31, 2025.
• Other public service fees increased by $2,467,000 for the same six-month period.
• Pretax income for the segment rose to $534,000 for the six months ended March 31, 2025, up from $395,000 the prior year.

Third-party cloud and hosting providers for Journal Technologies' software

The shift to modern software delivery means reliance on external infrastructure partners. For the six months ending March 31, 2025, Daily Journal Corporation explicitly noted increased third-party hosting fees which were billed to clients. This indicates active usage and billing arrangements with external cloud or hosting service providers to support the case management software installations and ongoing service delivery. The company is also hiring additional staff to bolster teams working on installation projects, which often involves coordinating closely with client IT departments and their chosen hosting partners.

Legal and judicial bodies for mandated public notice placements

While the software business is dominant, the traditional publishing side still relies on legal and judicial bodies for mandated placements. Public notice advertising revenues constituted about 14% of total operating revenues in fiscal 2024. These notices are required or permitted by law to be published in newspapers of general circulation, meaning the company's relationship with California and Arizona courts and legal entities is a direct partnership for revenue generation, even as legislative changes like California's AB542 are expected to cause further declines in this area.

Finance: draft 13-week cash view by Friday.

Daily Journal Corporation (DJCO) - Canvas Business Model: Key Activities

Active management of the $443 million marketable securities portfolio

You're looking at the core of Daily Journal Corporation (DJCO)'s asset strategy, which is heavily weighted toward investment management. As of a late 2025 analysis, the marketable securities portfolio was valued at approximately $443 million. This portfolio, which historically included concentrated stock holdings, is a major driver of non-operating income. For the six months ended March 31, 2025, the company recorded net unrealized gains on these marketable securities totaling $72,799,000. This activity resulted in non-operating income, net of expenses, of $74,460,000 for that six-month period. The portfolio's value as of March 31, 2025, was reported at $431,490,000, including net pretax unrealized gains of $292,396,000.

Here are the key investment-related financial figures for the six months ended March 31, 2025:

Developing and implementing mission-critical GovTech software for courts

The software segment, Journal Technologies, is the primary operational focus, contributing the majority of operating revenue. As of the nine months ended in fiscal 2025, this vertical generated nearly 77% of total revenues. For the six months ended March 31, 2025, Journal Technologies saw its operating revenues increase by $2,844,000. The segment's pretax income for that period rose by $139,000 to reach $534,000. This growth is supported by the broader market environment, with the United States federal IT budget for 2025 amounting to $75B.

The software revenue streams are detailed below:

• License and maintenance fees increased by $1,615,000 for the six months ended March 31, 2025.
• Other public service fees increased by $2,467,000 for the six months ended March 31, 2025.
• Consulting fees were partially offset by a decrease of $1,238,000.

Publishing and distributing legal and general circulation newspapers

The Traditional Business, which includes publishing, remains a necessary activity, though it is increasingly marginal compared to the software segment. For the six months ended March 31, 2025, advertising revenues and other service fees contributed an increase of $441,000 and $98,000, respectively, to the segment's top line. This resulted in the Traditional Business pretax income increasing by $310,000 to $1,171,000 for the period. In fiscal 2023, gross revenues for The Daily Journals were split, with approximately 56% from subscriptions and 44% from advertising and other revenues. This segment accounted for approximately 11% of the Company's total operating revenues in fiscal 2023.

Securing and executing long-term government software contracts

The execution of long-term contracts is reflected in the recurring revenue streams from Journal Technologies. The company focuses on maintaining structural dependency within courts, which makes migrating records difficult for clients. The growth in license and maintenance fees, which increased by $1,615,000 for the first half of fiscal 2025, directly reflects the successful execution and renewal of these long-term agreements. The overall consolidated revenues for the six months ended March 31, 2025, reached $35,880,000, up from $32,564,000 in the prior year period. This represents a total revenue increase of $3,316,000.

The revenue contribution breakdown for the six months ended March 31, 2025, shows the software segment's dominance:

• Journal Technologies License/Maintenance/Public Service Fees: Increased by $4,082,000 total.
• Traditional Business Advertising/Service Fees: Increased by $539,000 total.

Finance: draft 13-week cash view by Friday.

Daily Journal Corporation (DJCO) - Canvas Business Model: Key Resources

The Key Resources for Daily Journal Corporation (DJCO) are a distinct mix, balancing a significant investment portfolio with a technology-driven service business and a legacy publishing operation. You need to recognize this dual nature when assessing the company's stability and growth potential.

The most liquid and significant asset backing the entire operation is the marketable securities portfolio valued at $443 million as of June 30, 2025. This portfolio acts as a substantial financial buffer and a major component of the company's overall valuation, often overshadowing the operating businesses.

The core operational asset is the proprietary case management software systems, known as Journal Technologies. This GovTech (Government Technology) segment is the primary engine now. As of the nine months ended June 30, 2025, Journal Technologies generated approximately 77% of the consolidated revenue mix, translating to about $53.8M of the total revenue for that period. The sticky nature of this resource comes from its deep integration into government workflows.

The established legal newspaper titles, like the Los Angeles Daily Journal, represent the legacy resource. While mature and facing secular headwinds, this segment still provides a base level of revenue. At September 30, 2024, the Los Angeles Daily Journal had approximately 3,805 paid subscribers, and the San Francisco Daily Journal had about 2,177 paid subscribers. Revenues from The Daily Journals constituted approximately 11% of the Company's total operating revenues in fiscal 2024.

Finally, the long-term, sticky government customer contracts in the US, Canada, and Australia are critical for the Journal Technologies segment. These contracts, primarily with courts and justice agencies, provide the high-margin, recurring revenue base that management focuses on retaining. The success of securing new, large-scale software installation and licensing projects remains subject to unpredictable government competitive bidding procedures.

Here's a quick look at the relative contribution of the two main operating segments based on recent fiscal data:

The geographic and product reach of the software systems further defines this key resource:

• Journal Technologies products are licensed or subscribed to in approximately 32 states in the U.S.
• Operations include a wholly-owned subsidiary in British Columbia, Canada, established in August 2022.
• The company has ongoing software installation projects in Australia.
• The customer base is almost entirely government agencies, including courts, prosecutor offices, and city/county governments.

The recurring revenue stream from software licenses is a particularly valuable part of this resource, with long-term license revenue increasing by 20% to $28,265,000 in fiscal 2024 from the prior year. Finance: draft 13-week cash view by Friday.

Daily Journal Corporation (DJCO) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Daily Journal Corporation (DJCO) right now, which really boils down to two distinct business engines: the GovTech software side and the legacy publishing side, plus the unique capital structure that supports it all.

Modernizing justice systems with enterprise-level case management software

This is the operational core of Daily Journal Corporation now. The Journal Technologies segment sells enterprise solutions for courts and justice agencies, focusing on digitizing case records and enabling e-filing. This segment is the primary growth driver, contributing roughly 77% of the company's total Trailing Twelve Months (TTM) revenue of $79.15 million as of the nine months ended June 30, 2025. For the quarter ended June 30, 2025, this segment's revenues climbed 44% year-over-year to $18.5 million. The value proposition here is sticky; the high cost and operational risk for a government agency to replace a mission-critical case management system locks in the customer.

• Licensing and maintenance fees for the software advanced 11% to $8 million in the June 2025 quarter.
• Consulting fees nearly doubled to $6.5 million in the June 2025 quarter.
• Public service fees surged 63% to $4 million in the June 2025 quarter, partly due to increased e-filing activity.

Providing a legally mandated channel for public and legal notice advertising

The Traditional Business segment still provides a necessary service, though it is increasingly marginal compared to the software side. This segment provides legally mandated public notice advertising, a service that constituted about 14% of the company's total operating revenues in fiscal 2024. For the three months ended December 31, 2024, the Traditional Business saw advertising revenues increase by $192,000. More recently, for the quarter ended June 30, 2025, this segment generated $4.9 million in revenues, with advertising revenues rising 10% to $2.8 million.

Here's a quick look at the revenue mix based on the latest available operational data:

Offering a stable, long-term capital allocation vehicle for shareholders

For shareholders, a key value proposition is the massive, non-operating marketable securities portfolio, which is the primary driver of the balance sheet valuation and net income volatility. As of March 31, 2025, Daily Journal Corporation held marketable securities valued at $431.49 million. By June 30, 2025, this portfolio was valued at $443 million. This investment focus means reported net income can fluctuate significantly based on market performance; for instance, net income for the six months ended March 31, 2025, was $55.57 million (or $40.34 per share), more than doubling the prior year, largely due to unrealized investment gains. However, for the quarter ended June 30, 2025, net income was $14.4 million (or $10.47 per share), a 38% decrease year-over-year, reflecting lower unrealized securities gains compared to the prior year's quarter. The company is also reducing its reliance on debt secured by these assets, with the investment margin loan balance at $25 million as of June 30, 2025.

Delivering specialized legal and business news to a niche professional audience

The legacy publishing arm, The Daily Journals, serves law firms and businesses needing to reach the legal professional community. The gross revenues from The Daily Journals are split, with approximately 54% coming from subscriptions and 46% from advertising and other revenues. The company publishes newspapers covering California, Arizona, Utah, and Australia. For example, as of September 30, 2024, the Los Angeles Daily Journal had about 3,805 paid subscribers, and the San Francisco Daily Journal had about 2,177 paid subscribers.

The market capitalization as of September 12, 2025, was $661 million. Finance: draft 13-week cash view by Friday.

Daily Journal Corporation (DJCO) - Canvas Business Model: Customer Relationships

Daily Journal Corporation (DJCO) engages clients through distinct relationship models tied to its two main operating segments: Journal Technologies (GovTech) and the Traditional Business.

High-touch, consultative relationships for complex software implementation

The implementation of Journal Technologies case management software for courts and justice agencies necessitates a consultative approach. This is evidenced by a decrease in consulting fees of $1,238,000 for the six months ended March 31, 2025, which partially offset revenue increases in other areas of the segment. The company's contracts for Journal Technologies are primarily located in the United States, with additional projects in Canada and Australia. The need for on-site work and product development support suggests a high level of direct engagement during initial deployment phases.

Long-term maintenance and support contracts for GovTech clients

The recurring nature of the GovTech business is anchored by maintenance and support. License and maintenance fees from Journal Technologies grew by $1,615,000 for the six months ended March 31, 2025, year-over-year. For the three months ended December 31, 2024, license and maintenance fees increased by $968,000 compared to the prior year period. This stream is the largest and highest-quality recurring revenue source for the software vertical. Journal Technologies pretax income for the three months ended December 31, 2024, was $456,000, up from $336,000 the prior fiscal year period.

The software vertical, as of June 2025, generated $53.8M in revenue, representing 77% of the total revenue mix. The relationship structure supports this by locking in clients due to generally high switching costs.

Subscription-based model for legal professionals and advertisers

The Traditional Business, which includes legal and advertising services, is described as increasingly marginal. Its revenue from advertising still saw growth, increasing by $441,000 for the six months ended March 31, 2025. For the quarter ending December 31, 2024, advertising revenues increased by $192,000. This segment is supported by a subscription model for legal professionals, though specific subscription revenue amounts are not separately itemized from total Traditional Business revenue.

Low-touch, transactional relationship for public service fee payments

Transactional revenue from public service fees is a component of the Journal Technologies segment. These fees increased by $2,467,000 for the six months ended March 31, 2025, compared to the prior year period. For the three months ended December 31, 2024, other public service fees increased by $1,242,000 year-over-year. The total consolidated revenue for the six months ended March 31, 2025, was $35,880,000.

• The company's trailing 12 months revenue ending June 30, 2025, was $79.16M.
• Consolidated revenues for the three months ended December 31, 2024, totaled $17,704,000.
• The Traditional Business pretax income grew by $0.3 million to $1.2 million for the six months ended March 31, 2025.

Daily Journal Corporation (DJCO) - Canvas Business Model: Channels

For Journal Technologies, the channel for direct sales and professional services involves direct engagement with public-sector organizations across multiple U.S. states for enterprise solutions like case management and e-filing platforms. The operating revenue growth for the nine months ended June 30, 2025, reached $45.9 million, with Journal Technologies accounting for approximately 77% of the total revenue mix as of June 2025. For the six months ended March 31, 2025, Journal Technologies saw its operating revenues increase, with license and maintenance fees rising by $1,615,000.

The print and digital subscription channel for the newspapers, like the San Francisco Daily Journal, is a key part of the Traditional Business segment. As of September 30, 2023, the combined paid subscribers for both the Los Angeles Daily Journal and the San Francisco Daily Journal totaled 5,640. The gross revenues generated directly by The Daily Journals were split, with approximately 56% coming from subscriptions in fiscal 2023. Digital access subscriptions offer full access to thedailyjournal.com, and subscribers can opt out of Premium Editions, which are charged at $6.00 each, as are the Thanksgiving print editions.

Secure public-facing websites are the primary channel for Journal Technologies' citizen engagement portals, used for e-filing cases and processing online payments for fees, fines, and court costs. The segment also generates fees through secure websites for the general public to pay traffic citations. For the six months ended March 31, 2025, other public service fees, which include these website transactions, increased by $2,467,000.

Direct-to-customer advertising sales cover both commercial display/classified advertising and public notice advertising required by law. For the six months ended March 31, 2025, the Traditional Business saw advertising revenues increase by $441,000 and advertising service fees and other increase by $98,000. The channel for legal notices, specifically trustee sales legal advertising, represented about 4% of the Company's total operating revenues in fiscal 2023.

Here is a look at the revenue drivers for the six months ended March 31, 2025, showing the channel impact:

The structure of the publishing channel also involves specific charges related to delivery and access:

• The charge for each Premium Edition is $6.00.
• The Thanksgiving print edition is charged at $6.00.
• A $5.00 paper statement fee is applied unless the subscriber uses EZ Pay.

The overall market valuation reflects the combined business channels, with the stock price at $399.58 and a market cap of $550M as of July 31, 2025. Finance: draft 13-week cash view by Friday.

Daily Journal Corporation (DJCO) - Canvas Business Model: Customer Segments

You're looking at the core groups Daily Journal Corporation (DJCO) serves, which is a mix of government/legal entities and capital markets participants. Honestly, the split between their software business and their publishing legacy is key to understanding these segments right now.

The software side, Journal Technologies, is clearly the operating core, serving government and justice systems. As of the nine months ended in fiscal 2025, this vertical generated 77% of total revenues. For the quarter ending March 31, 2025, the software segment contributed to total revenues of $18.2 million.

The traditional publishing customers, which include legal professionals and those needing mandated notices, are now a smaller piece of the pie. For the six months ended March 31, 2025, the Traditional Business saw advertising revenues increase by $441,000. That segment's pretax income for the same period rose by $310,000 to reach $1,171,000.

Here's a quick look at how the revenue split looked based on the latest figures we have:

The final, and perhaps most unique, customer segment is the investor base seeking exposure to the concentrated, value-oriented investment portfolio, which is managed separately from the operating businesses. As of the September 30, 2025, 13F filing, the total portfolio value was calculated to be $262,245,445 USD. This portfolio is highly concentrated in just four holdings.

You can see the breakdown of that investment segment below:

• US and international government agencies, courts, and justice departments: Primarily served by Journal Technologies, which also accounted for other public service fees of $2,467,000 in the first half of 2025.
• Legal professionals (attorneys, judges, paralegals) requiring legal news: Served by the Traditional Business segment, which includes newspapers and information services for the legal industry in California.
• Public and commercial entities requiring mandated public notice advertising: Served by the Traditional Business, which saw advertising revenues increase by $441,000 for the six months ended March 31, 2025.
• Investors seeking exposure to a concentrated, value-oriented investment portfolio: This segment is defined by the marketable securities portfolio, valued at $431,490,000 as of March 31, 2025.

The composition of the investment portfolio as of September 30, 2025, shows this concentration:

Finance: draft 13-week cash view by Friday.

Daily Journal Corporation (DJCO) - Canvas Business Model: Cost Structure

You're looking at the cost side of Daily Journal Corporation (DJCO) for late 2025, and it's clear the technology push is driving significant operational spending, even as the legacy side faces its own pressures. Here's the quick math on where the money is going, based on the nine months ended June 30, 2025, figures.

High personnel costs for software development and consulting services are a major driver within the Journal Technologies segment. The overall increase in operating expenses for this segment directly reflects investment in human capital and external support for product development and installation projects. For the nine months ended June 30, 2025, the segment saw operating expenses increase by $4,355,000 compared to the prior year period.

The specific cost drivers within Journal Technologies for that nine-month period included:

• Increased personnel costs due to annual salary adjustments.
• Additional contractor services and new staff hiring for product development.
• Bolstering teams working on Company's installation projects.

Third-party hosting and infrastructure fees for the GovTech platform are explicitly named as a component of these rising technology costs. The operating expense increase for Journal Technologies for the nine months ended June 30, 2025, was partially due to these increased third-party hosting fees which were billed to clients.

Traditional publishing costs: printing, distribution, and editorial staff are less explicitly broken out, but we see the impact of personnel-related costs in this segment. For the nine months ended June 30, 2025, the Traditional Business segment's pretax income decreased to $237,000 from $1,601,000. This was primarily due to increased expenses of $2,290,000, largely driven by an increase in the long-term supplemental compensation accrual. This compensation accrual suggests a significant cost burden related to editorial or long-term staff commitments.

Operating expenses for the Journal Technologies segment, which increased by $4.4 million in the nine months ended June 30, 2025, are a key focus area. To give you a broader view of the operating expense trend, for the quarter ended June 30, 2025, operating expenses rose 23% year over year to $20.2 million, driven by salary adjustments, new hires, and increased legal costs.

Here is a breakdown of the key expense-related movements and context for the nine months ended June 30, 2025:

The cost structure is clearly bifurcated between maintaining the traditional publishing base and aggressively funding the growth engine in Journal Technologies. The $4.4 million increase in Journal Technologies operating expenses for the nine months ended June 30, 2025, is the most concrete figure representing the investment in software development and infrastructure.

You can see the impact of these costs on segment profitability:

• Journal Technologies pretax income for the nine months ended June 30, 2025, was $4,692,000.
• Traditional Business pretax income for the nine months ended June 30, 2025, was $237,000.

Finance: draft 13-week cash view by Friday.

Daily Journal Corporation (DJCO) - Canvas Business Model: Revenue Streams

Daily Journal Corporation (DJCO) revenue streams are primarily split between its Journal Technologies segment and the legacy Traditional Business segment, supplemented by non-operating income.

The Journal Technologies segment, focused on judicial software, showed strong growth in recurring revenue streams for the nine months ended June 30, 2025.

Consulting and professional services fees for software installation contributed to the growth, with consulting fees specifically increasing by $1,853,000 for the nine months ended June 30, 2025. This aligns with the requested increase of approximately $2.4 million in license and maintenance fees for the same period.

Non-operating income is a significant component, heavily influenced by the investment portfolio.

• Marketable securities portfolio value as of June 30, 2025: $443 million.
• Net pretax unrealized gains on marketable securities for the nine months ended June 30, 2025: $303.9 million.
• Dividends and interest income for the six months ended March 31, 2025: $2,362,000.

The Traditional Business segment continues to generate revenue from advertising and subscriptions, though its contribution is becoming more marginal relative to the software business.

Advertising and subscription revenue from the Traditional Business segment for the six months ended March 31, 2025, included the following components:

• Advertising revenues: $441,000.
• Advertising service fees and other: $98,000.

The Traditional Business segment's pretax income for the nine months ended June 30, 2025, was $237,000.