ACCESS Newswire (ACCS) investor relations material

Executive summary

• Revenue for Q2 2025 was $5.6M, down 7% year-over-year but up 3% sequentially; six-month revenue was $11.1M, down 4%, reflecting a shift to a subscription-based model and higher press release volume.

• Subscription customers grew 12% year-over-year and 2% sequentially, reaching 971, with ARR per employee rising to $216,000 and ARR per customer at $11,039.

• Gross margin held strong at 76% for Q2 and 77% for the first half, with ongoing focus on operational efficiencies and automation.

• The company completed the sale of its compliance business, generating a gain of $8.97M–$12M and using proceeds to pay down $12M of term loan principal.

• Net loss from continuing operations narrowed to $239K for Q2, with non-GAAP net income rising to $556K ($0.14/share).

Financial highlights

• Q2 revenue was $5.6M, a decrease of 7% year-over-year; six-month revenue was $11.1M, down 4%.

• Gross margin for Q2 was 76%, down 1% from last year; six-month gross margin improved to 77%.

• Adjusted EBITDA for Q2 was $836K (15% of revenue), up from $528K (9%) last year; first half adjusted EBITDA was $1.4M.

• Operating loss for Q2 was $249K, improved from $531K last year; six-month operating loss was $926K, down from $1.4M.

• Positive cash flow from operations: $135K for Q2, $882K for six months; adjusted free cash flow for the first half was $1.2M.

Outlook and guidance

• Targeting over 1,500 subscribers by year-end, with a goal of 75% recurring subscription revenue.

• Management expects stable demand for platforms and services despite global economic and political uncertainties.

• Expecting incremental margin improvement in the second half of the year as cost reductions and subscription growth take effect.

• ARR per employee and per customer are expected to continue rising, aiming for top SaaS benchmarks.

• Strategic focus remains on expanding products, customer base, newswire distribution, technology investment, and evaluating acquisitions.