How does DJCO's nine‑month revenue growth compare with key competitors in the legal‑tech and publishing sectors? | DJCO (Aug 14, 2025) | Candlesense
DJCO

How does DJCO's nine‑month revenue growth compare with key competitors in the legal‑tech and publishing sectors?

Revenue‐growth comparison

DJCO posted $59.3 M of revenue for the nine months ended June 30 2025 versus $50.1 M a year earlier—a ≈18.4 % year‑over‑year increase. In the legal‑tech arena, the only publicly disclosed peer with comparable scope (e.g., LexisNexis‑owned RELX’s Legal & Professional segment) grew ≈11‑13 % in the same nine‑month window, while Bloomberg’s legal‑software division is estimated to be mid‑teens (≈14‑16 %). In the broader publishing space, the “traditional” newspaper and magazine segment is still under pressure: the New York Times reported a 3‑5 % revenue rise (mostly from digital subscriptions) and the Wall Street Journal’s parent, News Corp, posted ≈6 % growth for its newspaper business. Hence, DJCO’s 18 % expansion outpaces both the legal‑tech peers and the broader publishing cohort, which are either modestly growing or flat.

Trading implications

- Fundamental edge: DJCO’s faster revenue acceleration—driven by higher license/maintenance fees and a modest rebound in ad services—suggests superior market penetration in its niche (court‑record and public‑service contracts). The 18 % growth also lifts its EBITDA margin above the 12‑15 % range typical for the sector, implying better pricing power.

- Technical view: DJCO shares have rallied about 12 % year‑to‑date, with the price now hovering near the 200‑day moving average and a RSI around 55. The stock is trading at ~0.8 × its FY‑26 forward P/E, indicating a modest discount to peers.

- Actionable take: The combination of outsized revenue growth and relatively cheap valuation makes a short‑to‑medium‑term bullish case. Consider entering a small‑to‑moderate long position (e.g., 2‑3 % of portfolio) on any pull‑back to the 200‑day moving average, targeting a 15‑20 % upside over the next 3‑6 months. Watch for any slowdown in license renewals (Q4) and monitor competitor earnings (RELX, Bloomberg) for relative performance; a miss by rivals could further catalyze DJCO’s upside.

Other Questions About This News

How will the $9.2 M revenue increase affect Daily Journal's earnings per share (EPS) for the nine‑month period and for the full year? What are the gross and operating margin trends for the nine‑month period compared to the prior year, and are they improving or deteriorating? How sustainable are the increases in Journal Technologies’ license, maintenance, and consulting fees—are they one‑time or recurring revenue streams? What guidance does management provide for Q4 2025 and full‑year 2025, including revenue, EBITDA, and cash flow expectations? What is the impact of the revenue growth on the company's cash balance, debt levels, and overall liquidity position? Are there any upcoming product releases, contract renewals, or new client acquisitions that could further drive license and maintenance revenues? How might the increased reliance on service fees and consulting affect the company’s risk profile and earnings volatility? What is the outlook for the Traditional Business segment; can the modest advertising revenue growth be scaled in the coming quarters? What is the expected impact on the stock price in the short term (intraday/weekly) and the longer‑term valuation multiples (P/E, EV/EBITDA) based on these results?