ACCESS Newswire (ACCS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $5.5M, down 2% year-over-year, with core press release business up 1% in revenue and 2% in volume.

• Net income reached $5.39M, driven by a $6.15M gain from the sale of the compliance business, with operating loss from continuing operations at $677K.

• Gross margin improved to 78% from 75% year-over-year, reflecting operational optimization and lower headcount.

• Customer subscriptions rose 9% to 955, with average ARR per new subscription up 20% to $11,139.

• Company rebranded to ACCESS Newswire Inc. and completed a major divestiture of its compliance business.

Financial highlights

• Total revenue: $5.5M, down 2% year-over-year; gross margin: 78% ($4.3M), up from 75%.

• Net income: $5.39M, mainly due to $6.15M gain from discontinued operations.

• Adjusted EBITDA: $564K (10% of revenue), up from $61K (1%).

• Adjusted free cash flow: $1.03M, up from negative $126K prior year.

• Cash and equivalents: $4.1M as of March 31, 2025.

Outlook and guidance

• Targeting 1,500 subscriptions by fiscal year-end, with majority of revenue from recurring subscriptions by end of 2025.

• ARR per new subscription guided to $14,000 for 2025, with potential for further increases.

• Expects stabilization in customer counts and subscriptions, with faster growth anticipated post-divestiture.

• Gross margin expected to remain in the 75%-78% range for the remainder of the year.