ACCESS Newswire (ACCS) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $5.62M, down 7% year-over-year but up 3% sequentially, reflecting a shift from pay-as-you-go to subscription-based business; H1 2025 revenue was $11.1M, down 4% year-over-year.

• Subscription customers grew 12% year-over-year and 2% sequentially to 971, with ARR per customer and per employee both increasing.

• Adjusted EBITDA improved to $836K (15% of revenue), up from $528K (9%) YoY, reflecting operational efficiencies and cost reductions.

• Net loss from continuing operations for Q2 was $239K ($0.06/share), improved from $683K ($0.18/share) YoY; non-GAAP net income for Q2 was $556K ($0.14/share), up from $101K ($0.03/share) YoY.

• Sale of compliance business closed in February 2025, resulting in a $6M–$8.97M gain and $12M in proceeds, used to pay down debt and reclassify results as discontinued operations.

Financial highlights

• Gross margin for Q2 was 76%, down 1% YoY; H1 gross margin improved to 77%.

• Operating loss for Q2 was $249K, improved from $531K YoY; H1 operating loss was $926K, improved from $1.4M.

• Adjusted EBITDA for Q2 was $836K (15% of revenue), up from $528K (9%) YoY; H1 adjusted EBITDA was $1.4M, up from $415K.

• Free cash flow for H1 was $847K, with adjusted free cash flow at $1.2M; Q2 adjusted free cash flow was $250K.

• Cash and cash equivalents were $4.1M as of June 30, 2025; current liabilities exceeded current assets by $2.6M.

Outlook and guidance

• Targeting over 1,500 subscribers and 75% recurring subscription revenue by year-end.

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

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

• Transition to a subscription model is expected to drive long-term sustainable growth and margin improvements.

• Anticipates infrastructure cost savings of $100K–$150K per quarter in the back half of the year.