Free cash flow remains highly unstable, evidenced by a swing from a 30.7% margin in 2025Q3 to a -22.1% margin in 2024Q2, reflecting the lumpy nature of judicial software contract milestones.
Daily Journal Corporation (DJCO) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Cash from Operations | 17.45M | 13.33M | -89K | 15.08M | -5.26M | 3.29M | 2.34M | 1.61M | -1.88M | -2.65M | 1.22M | 7.75M | 4.51M | 5.67M | 6.96M | 10.32M | 9.32M | 8.36M | 6.56M | 5.01M | 2.75M | 4.2M | 5.54M | 5.04M | 3.68M | 9.05M | 3.79M | 1.7M | 4.3M | 5M | 6.4M |
| Operating CF Margin % | - | 15.2% | -0.13% | 22.28% | -9.74% | 6.58% | 4.68% | 3.32% | -4.62% | -6.41% | 2.94% | 17.63% | 10.38% | 15.05% | 21.83% | 29.89% | 24.81% | 20.68% | 16.16% | 14.27% | 8.5% | 12.22% | 15.92% | 14.72% | 10.81% | 25.68% | 10.02% | 4.61% | 11.91% | 13.74% | 17.78% |
| Operating CF Growth % | 726.75% | 15080.9% | -100.59% | 386.71% | -260.1% | 40.67% | 44.64% | 185.86% | 29.05% | -316.58% | -84.22% | 72.07% | -20.54% | -18.49% | -32.55% | 10.65% | 11.54% | 27.38% | 30.98% | 82.12% | -34.44% | -24.3% | 10.05% | 36.91% | -59.33% | 138.96% | 122.71% | -60.47% | -14% | -21.88% | 100% |
| Net Income | -11.36M | 112.14M | 78.11M | 21.45M | -75.62M | 112.9M | 4.04M | -25.22M | 8.2M | -918K | -1.04M | 810K | 631K | 3.78M | 5.54M | 7.84M | 7.67M | 8.03M | 7.11M | 5.32M | 2.44M | 4.29M | 3.73M | 2.4M | 1.23M | -13.37M | 1.84M | 2.1M | 3.3M | 3M | 2.6M |
| Depreciation & Amortization | 194K | 257K | 267K | 279K | 379K | 480K | 524K | 589K | 3.68M | 5.59M | 5.71M | 5.53M | 5.52M | 2.44M | 503K | 535K | 613K | 797K | 990K | 990K | 899K | 821K | 1.34M | 2.36M | 2.54M | 3.88M | 2.52M | 1.8M | 1.7M | 1.9M | 1.8M |
| Stock-Based Compensation | 152K | 140K | 202K | 0 | 115 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -10.28M | 34.69M | 22.04M | 5.33M | -30.82M | 31.89M | 590K | -6.39M | -19.24M | -4.57M | -1.64M | -1.28M | -2.04M | -493K | -261K | 189K | -423K | -433K | -622K | 778K | 36K | -12K | -232K | -205K | -180K | -2.52M | 2.26M | 100K | 0 | -300K | 200K |
| Other Non-Cash Items | 29.06M | -134.3M | -96.15M | -20.42M | 108.88M | -148.25M | -1.09M | 31.11M | 1.38M | -3K | -3K | -3K | -3K | -2K | 2.85M | 7.84M | -11K | 69K | 19K | -100K | -133K | -185K | -38K | -8K | -20K | 14.36M | -3.19M | -400K | -200K | -100K | 0 |
| Working Capital Changes | 9.68M | 411K | -4.57M | 8.45M | -8.07M | 6.26M | -1.73M | 1.52M | 4.1M | -2.74M | -1.8M | 2.33M | 402K | -1.77M | -1.68M | 1.77M | 1.47M | -100K | -938K | -1.97M | -489K | -715K | 742K | 491K | 109K | 6.7M | 356K | -1.9M | -500K | 500K | 1.8M |
| Change in Receivables | 1.63M | -1.79M | -532K | -1.76M | -7.41M | -2.8M | 309K | -2.23M | 1.19M | -651K | 966K | 2.89M | -2.25M | 1.69M | 886K | 2.61M | 1.01M | -787K | 0 | -1.05B | 0 | -296M | 2.14B | -252M | 2.38B | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 57K | -16K | -13K | -7K | 4K | 6K | -6K | 1K | 7K | 3K | 5K | -13K | 1K | -15K | -10K | 7K | -3K | 23K | 7K | -15K | -16K | -4K | 49K | -6K | -16K | 0 | 0 | 0 | 100K |
| Change in Payables | 1.77M | 1.02M | -594K | 1.58M | 823K | 313K | -594K | 1.7M | -229K | 405K | -1.57M | -132K | 85K | -155K | -235K | -443K | -334K | 385K | 0 | -2.53B | 0 | -300M | -1.7B | 819M | 1.41B | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -159K | -8K | 40.53M | -7.26M | -36.76M | -19.99M | 16.12M | -165K | 7.91M | -5.27M | -7.61M | -7.55M | -435K | -24.81M | -9.03M | -10.87M | -7.13M | -5.11M | -2.63M | -4.36M | -2.43M | -3.8M | -8.19M | -4.58M | -5.7M | -7.93M | -1.94M | -1.2M | -3.8M | -5.3M | -4.4M |
| Capital Expenditures | -159K | -8K | -49K | -86K | -36K | -29K | -184K | -165K | -212K | -253K | -3.78M | -565K | -435K | -280K | -372K | -129K | -245K | -238K | -377K | -394K | -943K | -642K | -2.85M | -3.28M | -1.44M | -1.8M | -2.22M | -5M | -1.1M | -1.2M | -1.8M |
| CapEx % of Revenue | 0.16% | 0.01% | 0.07% | 0.13% | 0.07% | 0.06% | 0.37% | 0.34% | 0.52% | 0.61% | 9.08% | 1.28% | 1% | 0.74% | 1.17% | 0.37% | 0.65% | 0.59% | 0.93% | 1.12% | 2.91% | 1.87% | 8.18% | 9.59% | 4.23% | 5.1% | 5.87% | 13.55% | 3.05% | 3.3% | 5% |
| Acquisitions | 0 | 0 | 0 | 7.17M | 381K | 19.96M | 0 | 0 | 0 | 0 | 0 | -50K | 0 | -25.33M | 0 | 0 | 0 | 0 | 0 | 3.96B | 0 | 0 | 0 | 0 | 0 | 0 | -10K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 4K | -7.17M | 0 | -19.96M | 0 | 0 | 0 | 0 | 0 | -6.93M | 0 | 800K | -8.66M | 0 | 0 | 0 | 0 | -3.96B | 0 | -3.15B | -5.34B | -1.3B | -6.13B | -8.11M | -6.94M | 100K | 0 | 100K | 0 |
| Cash from Financing | -5.17M | -5.66M | -47.66M | -153K | 42.85M | 2.38M | -126K | -121K | -115K | -110K | 2.18M | -3M | -1.97M | 29.49M | 0 | 0 | 0 | -2.82M | -4.01M | -202K | -171K | -218K | 2.44M | -480K | -363K | 1.4M | -1.65M | -700K | -300K | -400K | -1.5M |
| Debt Issued (Net) | -5.17M | -5.66M | -47.66M | -153K | 42.85M | 2.38M | -126K | -121K | -115K | -110K | 2.18M | 0 | 0 | 29.49M | 0 | 0 | 0 | 0 | -4.01M | -196K | -167K | -172K | 2.74M | -75K | -76K | 1.96M | 0 | 0 | 0 | 0 | -1.3M |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.82M | 0 | -6K | -4K | -46K | -297K | -405K | -287K | -556K | -1.65M | -700K | -300K | -400K | -200K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -4.08M | -3M | -1.97M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.82M | 0 | -6K | -4K | -46K | -297K | -405K | -287K | -556K | -1.65M | -700K | -300K | -400K | -200K |
| Other Financing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.08M | 3M | 1.97M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | 11.35M | 7.66M | -5.11M | 7.67M | 829K | -14.32M | 18.33M | 1.33M | 5.92M | -8.03M | -4.21M | 207K | 4.07M | 10.35M | -2.07M | -557K | 2.19M | 431K | -75K | 452K | 146K | 181K | -201K | -22K | -2.39M | 2.52M | 199K | -300K | -300K | -1.1M | -600K |
| Free Cash Flow | 17.29M | 13.32M | -138K | 15M | -5.3M | 3.26M | 2.15M | 1.45M | -2.09M | -2.9M | -2.56M | 7.19M | 4.07M | 5.39M | 6.59M | 10.19M | 9.08M | 8.12M | 6.18M | 4.62M | 1.81M | 3.55M | 2.69M | 1.76M | 2.24M | 7.25M | 1.57M | -3.3M | 3.2M | 3.8M | 4.6M |
| FCF Margin % | 17.71% | 15.19% | -0.2% | 22.15% | -9.81% | 6.52% | 4.31% | 2.98% | -5.14% | -7.02% | -6.14% | 16.35% | 9.38% | 14.31% | 20.67% | 29.52% | 24.16% | 20.09% | 15.23% | 13.15% | 5.59% | 10.35% | 7.73% | 5.13% | 6.59% | 20.59% | 4.15% | -8.94% | 8.86% | 10.44% | 12.78% |
| FCF Growth % | 45.36% | 9755.8% | -100.92% | 383.14% | -262.63% | 51.35% | 48.41% | 169.28% | 27.93% | -13.66% | -135.54% | 76.57% | -24.48% | -18.14% | -35.35% | 12.21% | 11.8% | 31.3% | 33.99% | 155.31% | -49.13% | 31.97% | 53.36% | -21.64% | -69.09% | 362.73% | 147.48% | -203.13% | -15.79% | -17.39% | 557.14% |
| FCF per Share | 12.55 | 9.67 | -0.10 | 10.89 | -3.84 | 2.36 | 1.56 | 1.05 | -1.52 | -2.10 | -1.85 | 5.21 | 2.95 | 3.91 | 4.77 | 7.38 | 6.58 | 5.76 | 4.26 | 3.18 | 1.24 | 2.45 | 1.85 | 1.19 | 1.51 | 4.85 | 1.01 | -2.07 | 1.98 | 2.39 | 2.81 |
| FCF Conversion (FCF/Net Income) | -1.52x | 0.12x | -0.00x | 0.70x | 0.07x | 0.03x | 0.58x | -0.06x | -0.23x | 2.89x | -1.17x | 9.57x | 7.14x | 1.50x | 1.26x | 1.32x | 1.22x | 1.04x | 0.92x | 0.94x | 1.13x | 0.98x | 1.49x | 2.10x | 3.00x | -0.68x | 2.06x | 0.81x | 1.30x | 1.67x | 2.46x |
| Interest Paid | 1.46M | 1.38M | 3.05M | 4.27M | 1.05M | 329K | 0 | 0 | 0 | 0 | 361K | 224K | 0 | 0 | 186K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 2.25M | 5.13M | 806K | 11.14M | 1.95M | 0 | 0 | 0 | 0 | -13K | -959K | 0 | 0 | 3.57M | 4.04M | 5.03M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying DJCO stock.
Daily Journal Corporation (DJCO) generated $13.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Daily Journal Corporation (DJCO) generated $13.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Daily Journal Corporation (DJCO) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Equity portfolio volatility exposure
Metrics are mathematically derived from official filings.
Persistent Disconnect Between Earnings Cash
According to recent financial filings, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios frequently dipping into negative territory, such as the -0.12 observed in 2026Q2, highlighting a significant disconnect between accounting profits and actual cash generation capabilities.
The extreme volatility in the OCF/NI ratio suggests that reported net income is heavily influenced by non-operating investment gains rather than core operational efficiency. Investors should interpret this divergence as a signal that the company's cash-generating engine remains secondary to its equity portfolio performance.
Free Cash Flow Margin Instability
As reported in quarterly statements, free cash flow margins have exhibited extreme volatility, swinging from a high of 30.7% in 2025Q3 to a low of -22.1% in 2024Q2, indicating that the company's ability to retain cash from operations is highly sensitive to lumpy contract milestones.
The lack of a consistent FCF trajectory implies that the software segment's revenue recognition is not yet providing the predictable cash flow profile typical of mature SaaS businesses. This inconsistency warrants further investigation into the timing of government contract payments and the associated working capital requirements.
Working Capital Swings Obscure Liquidity
Based on reported figures, working capital changes have been erratic over the last ten quarters, ranging from a $286,000 inflow in 2025Q4 to a $3.5 million outflow in 2026Q1, which suggests that the timing of collections from judicial clients remains a primary driver of cash flow variability.
These fluctuations appear to reflect the milestone-based nature of the Journal Technologies segment, where large payments are likely tied to specific implementation phases. The inability to maintain a stable working capital cycle suggests that operational cash flow will remain unpredictable until the software business achieves greater scale.
Minimal Capital Intensity Masks Needs
As indicated by the provided data, capital expenditures remain negligible, with CapEx/Revenue ratios consistently near 0.0% to 0.1%, suggesting that the company's current software architecture requires very little ongoing physical investment to maintain its existing judicial client base.
While low capital intensity is typically a positive signal for software firms, it may also indicate that the company is under-investing in the R&D necessary to compete with larger, better-capitalized peers like Tyler Technologies. Analysts should monitor whether this lack of investment eventually leads to technical obsolescence.