ACCESS Newswire (ACCS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $5.48M–$5.5M, down 2% year-over-year, with core press release business up 1% in revenue and 2% in volume; subscriptions rose 9% to 955 and customer count reached 12,020.

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

• Major brand wins included UPS, BlackBerry, Konica Minolta, and the Chicago White Sox.

• Strategic rebranding to ACCESS Newswire Inc. and sale of the compliance business reduced debt by 78% and shifted focus to subscription-based communications.

• Net income was $5.39M, driven by a $6.15M–$6.2M gain from discontinued operations after the compliance business sale.

Financial highlights

• Total revenue: $5.48M–$5.5M, down 2% year-over-year; gross margin: 78% ($4.3M), up from 75%.

• Operating loss: $677K, improved from $862K in Q1 2024; adjusted EBITDA: $564K (10% margin), up from $61K.

• Net income: $5.39M, mainly from $6.15M–$6.2M gain on compliance business sale.

• Non-GAAP net income: $206K ($0.05/share) vs. non-GAAP net loss of $365K ($0.10/share) prior year.

• Cash from continuing operations: $809K, up from $77K; adjusted free cash flow: $1.03M vs. -$126K prior year.

Outlook and guidance

• Targeting 1,500 subscriptions by fiscal year-end, with recurring subscriptions expected to reach 75% of total revenue by end of 2025.

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

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

• Focus on expanding product offerings, customer base, and newswire distribution in 2025.