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ACCESS Newswire Reports First Quarter 2025 Results

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ACCESS Newswire (NYSE:ACCS) reported Q1 2025 results with mixed performance. Revenue decreased 2% to $5.5M compared to Q1 2024, while Adjusted EBITDA significantly improved to $564,000 from $61,000. The company completed the sale of its Compliance business for $12.5M in February 2025, resulting in a net gain of $6M. Key operational metrics showed improvement with subscriptions increasing to 955 from 874 year-over-year, and average ARR per subscription customer rising to $11,139 from $9,300. Gross margins improved to 78% from 75%, though the company reported an operating loss of $677,000. Cash flow from operations strengthened to $809,000 compared to $77,000 in Q1 2024. The company is focusing on its Communications platform subscription business, aiming to have 75% of revenue from subscription customers by end of 2025.
ACCESS Newswire (NYSE:ACCS) ha riportato risultati del primo trimestre 2025 con performance contrastanti. I ricavi sono diminuiti del 2% a 5,5 milioni di dollari rispetto al primo trimestre 2024, mentre l'EBITDA rettificato è migliorato significativamente raggiungendo 564.000 dollari rispetto a 61.000 dollari. A febbraio 2025, la società ha completato la vendita del suo business Compliance per 12,5 milioni di dollari, generando un guadagno netto di 6 milioni di dollari. I principali indicatori operativi hanno mostrato miglioramenti con le sottoscrizioni aumentate a 955 da 874 anno su anno, e il valore medio dell'ARR per cliente in abbonamento salito a 11.139 dollari da 9.300 dollari. I margini lordi sono migliorati al 78% dal 75%, anche se la società ha riportato una perdita operativa di 677.000 dollari. Il flusso di cassa operativo è cresciuto a 809.000 dollari rispetto ai 77.000 dollari del primo trimestre 2024. L'azienda si sta concentrando sulla sua piattaforma di comunicazione in abbonamento, puntando a ottenere il 75% dei ricavi da clienti in abbonamento entro la fine del 2025.
ACCESS Newswire (NYSE:ACCS) reportó resultados del primer trimestre de 2025 con un desempeño mixto. Los ingresos disminuyeron un 2% hasta 5,5 millones de dólares en comparación con el primer trimestre de 2024, mientras que el EBITDA ajustado mejoró significativamente a 564.000 dólares desde 61.000 dólares. La compañía completó en febrero de 2025 la venta de su negocio de Cumplimiento por 12,5 millones de dólares, generando una ganancia neta de 6 millones de dólares. Los principales indicadores operativos mostraron mejoras con las suscripciones aumentando a 955 desde 874 año tras año, y el ARR promedio por cliente suscriptor incrementándose a 11.139 dólares desde 9.300 dólares. Los márgenes brutos mejoraron al 78% desde el 75%, aunque la empresa reportó una pérdida operativa de 677.000 dólares. El flujo de caja operativo se fortaleció a 809.000 dólares en comparación con 77.000 dólares en el primer trimestre de 2024. La compañía se está enfocando en su negocio de plataforma de comunicaciones por suscripción, con el objetivo de que el 75% de sus ingresos provenga de clientes suscriptores para finales de 2025.
ACCESS Newswire (NYSE:ACCS)는 2025년 1분기 실적을 혼조세로 보고했습니다. 수익은 2024년 1분기 대비 2% 감소한 550만 달러였으나, 조정 EBITDA는 61,000달러에서 564,000달러로 크게 개선되었습니다. 회사는 2025년 2월에 컴플라이언스 사업부를 1,250만 달러에 매각하여 600만 달러의 순이익을 실현했습니다. 주요 운영 지표도 개선되어 구독자 수가 전년 동기 대비 874명에서 955명으로 증가했고, 구독 고객당 평균 연간 반복수익(ARR)은 9,300달러에서 11,139달러로 상승했습니다. 총 마진은 75%에서 78%로 개선되었으나, 영업손실은 677,000달러를 기록했습니다. 영업활동으로 인한 현금 흐름은 2024년 1분기 77,000달러에서 809,000달러로 강화되었습니다. 회사는 커뮤니케이션 플랫폼 구독 사업에 집중하며 2025년 말까지 구독 고객으로부터의 매출 비중을 75%로 높이는 것을 목표로 하고 있습니다.
ACCESS Newswire (NYSE:ACCS) a publié des résultats mitigés pour le premier trimestre 2025. Le chiffre d'affaires a diminué de 2% pour s'établir à 5,5 millions de dollars par rapport au premier trimestre 2024, tandis que l'EBITDA ajusté a fortement progressé pour atteindre 564 000 dollars contre 61 000 dollars. En février 2025, la société a finalisé la vente de son activité Conformité pour 12,5 millions de dollars, générant un gain net de 6 millions de dollars. Les principaux indicateurs opérationnels ont montré des améliorations avec une augmentation des abonnements à 955 contre 874 d'une année sur l'autre, et un ARR moyen par client abonné en hausse à 11 139 dollars contre 9 300 dollars. La marge brute s'est améliorée à 78% contre 75%, bien que la société ait enregistré une perte opérationnelle de 677 000 dollars. Les flux de trésorerie opérationnels se sont renforcés à 809 000 dollars contre 77 000 dollars au premier trimestre 2024. L'entreprise se concentre sur son activité d'abonnement à la plateforme de communications, visant à ce que 75% de ses revenus proviennent de clients abonnés d'ici la fin 2025.
ACCESS Newswire (NYSE:ACCS) meldete gemischte Ergebnisse für das erste Quartal 2025. Der Umsatz sank im Vergleich zum ersten Quartal 2024 um 2% auf 5,5 Mio. USD, während das bereinigte EBITDA sich deutlich auf 564.000 USD verbesserte (vorher 61.000 USD). Im Februar 2025 wurde der Verkauf des Compliance-Geschäfts für 12,5 Mio. USD abgeschlossen, was zu einem Nettogewinn von 6 Mio. USD führte. Wichtige operative Kennzahlen zeigten Verbesserungen: Die Abonnentenzahl stieg von 874 auf 955 im Jahresvergleich, und der durchschnittliche ARR pro Abonnent erhöhte sich von 9.300 USD auf 11.139 USD. Die Bruttomargen verbesserten sich von 75% auf 78%, obwohl das Unternehmen einen Betriebsverlust von 677.000 USD meldete. Der operative Cashflow stieg auf 809.000 USD im Vergleich zu 77.000 USD im ersten Quartal 2024. Das Unternehmen konzentriert sich auf sein Abonnementgeschäft mit der Kommunikationsplattform und strebt an, bis Ende 2025 75% des Umsatzes von Abonnementkunden zu erzielen.
Positive
  • Adjusted EBITDA increased significantly to $564,000 from $61,000 year-over-year
  • Sale of Compliance business generated $12.5M with $6M net gain
  • Gross margin improved to 78% from 75%
  • Cash flow from operations increased to $809,000 from $77,000
  • Subscription customer base grew 9% year-over-year
  • Average ARR per subscription customer increased to $11,139 from $9,300
Negative
  • Revenue declined 2% to $5.5M year-over-year
  • Operating loss of $677,000 in Q1 2025
  • Net loss from continuing operations of $765,000
  • 6% sequential revenue decrease from Q4 2024

Insights

ACCESS shows improved profitability despite slight revenue decline following strategic Compliance business divestiture and rebranding efforts.

ACCESS Newswire's Q1 2025 results reveal a company in strategic transition. While revenue decreased 2% to $5.5M compared to Q1 2024, more telling is the significant improvement in profitability metrics. Adjusted EBITDA jumped to $564,000 from just $61,000 year-over-year—a 825% increase. Similarly, operating cash flow surged to $809,000 from $77,000 in the comparable period.

The sale of the Compliance business for $12.5M in February represents a pivotal strategic shift toward becoming a focused communications platform subscription company. This transaction generated a $6M gain net of taxes, significantly boosting net income from discontinued operations to $6.15M.

Operational efficiency improvements are evident in the gross margin expansion to 78% from 75% in Q1 2024, primarily due to optimized staffing costs. The company has also reduced operating expenses by $96,000 through sales force restructuring and lower advertising spend.

On the subscription front, ACCESS showed moderate growth with total subscriptions increasing to 955 from 874 year-over-year, representing a 9% growth rate excluding the divested compliance customers. More importantly, the Average Annual Recurring Revenue (ARR) per subscription customer rose to $11,139 from $9,300, a 19.8% increase that suggests improved monetization of existing customers.

The company's transition toward a subscription-focused model is progressing, with management reiterating their goal of having 75% of revenue from subscription customers by year-end. The adjusted free cash flow of $1.03M compared to negative $126,000 in Q1 2024 provides financial flexibility to invest in this strategic pivot.

While the company still posted an operating loss of $677,000, this represents an improvement from the $862,000 loss in Q1 2024. The non-GAAP results showing positive adjusted EBITDA and non-GAAP net income of $0.05 per share indicate the underlying business is becoming healthier despite the transitional challenges.

  • Revenue decreased 2% to $5.5M compared to $5.6M in Q1 2024

  • Adjusted EBITDA increased $503,000 to $564,000 compared to $61,000 in Q1 2024

  • Cash flow from operations increased to $809,000 from $77,000 in Q1 2024

  • Rebranded to ACCESS Newswire Inc, effective January 27, 2025

  • Compliance business was sold for $12.5M on February 28, 2025

  • Subscriptions increased to 955 from 874 in Q1 2024

RALEIGH, NC / ACCESS Newswire / May 13, 2025 / ACCESS Newswire Inc. (NYSE American:ACCS) (the "Company"), a leading communications company, today reported its operating results for the three months ended March 31, 2025.

"There has been a lot of activity in the first quarter of this year, and we're pleased to report a significant increase in Adjusted EBITDA, gross margins and continued positive cash flow from operations. We believe the sale of our Compliance business, which closed at the end of February, positions us well as a focused, standalone Communications platform subscription company - just as we've outlined in our strategic goals. As we move past the Compliance business transition, we can fully turn our attention to our Communication's business growth, product innovation, and further aligning toward our goal of having 75% of our revenue come from subscription customers by the end of 2025," said Brian R. Balbirnie, ACCESS Newswire's Founder and Chief Executive Officer.

Mr. Balbirnie concluded, "Over the past several months, we've communicated that the shifts in customer counts, revenue, and subscriptions during Q1 would begin to stabilize by quarter's end-and that has proven true. Excluding the impact of compliance subscription customers, we achieved net subscription growth of 9% for the quarter compared to the prior year. While that's not yet where we want to be, we believe it sets the stage for faster growth in the quarters ahead. I also want to recognize the incredible efforts of our teams, who have driven meaningful progress in internal efficiencies and product innovation-we're genuinely excited about the direction our platform is heading."

First Quarter 2025 Highlights:

  • Revenue - Total revenue was $5,476,000, a 2% decrease from $5,572,000 in Q1 2024 and a 6% decrease from $5,826,000 in Q4 2024. The decrease in revenue is due to slight declines across our various product lines, however, revenue from our core press release business increased 1% due to an increase in volume for the quarter as compared to the prior year.

  • Gross Margin - Gross margin for Q1 2025 was $4,273,000, or 78% of revenue, compared to $4,184,000, or 75% of revenue, during Q1 2024 and $4,381,000, also 75% of revenue in Q4 2024. The increase is due to lower staffing costs due to optimization within our operations teams.

  • Operating Loss - Operating loss was $677,000 for Q1 2025, as compared to $862,000 during Q1 2024. Operating expenses decreased $96,000 to $4.95 million. The decrease was primarily due to a reduction in headcount in our sales organization as well as lower advertising costs. These decreases were partially offset by a one-time stock compensation benefit recorded in Q1 2024.

  • Loss from continuing operations - On a GAAP basis, net loss from continuing operations was $765,000, or $0.20 per diluted share, for the three months ended March 31, 2025, compared to $783,000, or $0.21 per diluted share, for the three months ended March 31, 2024.

  • Net income from discontinued operations, net of tax - On a GAAP basis, net income from discontinued operations was $6,152,000, or $1.60 per diluted share during Q1 2025, compared to $644,000, or $0.17 per diluted share during Q1 2024. The increase was primarily due to a gain recorded on the sale of the compliance business of $6.0 million, net of taxes.

  • Operating Cash Flows - Cash flows from operations for Q1 2025 were $809,000 compared to $77,000 in Q1 2024.

  • Non-GAAP Measures - Q1 2025 EBITDA was $(4,000), compared to $245,000, or 4% of revenue, during Q1 2024. Adjusted EBITDA was $564,000, or 10% of revenue, for Q1 2025 compared to $61,000, or 1% of revenue, for Q1 2024. Non-GAAP net income for Q1 2025 was $206,000, or $0.05 per diluted share, compared to a loss of $365,000, or $0.10 per diluted share, during Q1 2024. Adjusted free-cash flow was $1,029,000 for Q1 2025 compared to $(126,000) for Q1 2024.

Key Performance Indicators:

  • As of March 31, 2025, we had 12,020 customers who had an active contract during the past twelve months, compared to 11,903 as of March 31, 2024.

  • Subscription customers increased by 81 to 955.

  • Average ARR for subscriptions per customer at the end of the quarter was $11,139, up from $9,300 as of March 31, 2024.

Non-GAAP Financial Measures

The non-GAAP adjustments referenced herein relate to the exclusion of stock-based compensation, amortization of acquisition-related intangible assets. and other expenses the Company believes to be non-recurring. A reconciliation of GAAP to non-GAAP historical financial measures has been provided in the tables at the end of this press release.

We believe that the use of EBITDA from continuing operations, Adjusted EBITDA from continuing operations, non-GAAP net income (loss) from continuing operations, non-GAAP net income (loss) from continuing operations per share, free cash flow and adjusted free cash flow is helpful to its investors. These measures, which are referred to as non-GAAP financial measures, are not prepared in accordance with generally accepted accounting principles in the United States, or GAAP. Our management uses these non-GAAP financial measures as tools for financial and operational decision making and for evaluating our own operating results over different periods of time.

EBITDA from continuing operations is calculated by excluding depreciation and amortization, interest expense, net, and income taxes from the loss from continuing operations. Adjusted EBITDA also excludes certain other expenses which the Company believes to be non-recurring as well as the gain or loss on the change in fair value of our interest rate swap. Non-GAAP net income (loss) from continuing operations is calculated by excluding stock-based compensation expense and amortization expense for acquisition-related intangible assets from loss from continuing operations and certain other adjustments noted in the tables below. Non-GAAP net income (loss) from continuing operations per share is calculated by dividing non-GAAP net income (loss) from continuing operations by the weighted-average diluted shares outstanding as presented in the calculation of GAAP net income (loss) from continuing operations per share. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company's non-cash expenses, we believe that providing non-GAAP financial measures that exclude stock-based compensation expense allows for more meaningful comparisons between its operating results from period to period. For business combinations, we generally allocate a portion of the purchase price to intangible assets. The amount of the allocation is based on estimates and assumptions made by our management and is subject to amortization. The amount of purchase price allocated to intangible assets and the term of its related amortization can vary significantly and are unique to each acquisition and thus we do not believe they are reflective of ongoing operations.

Free cash flow, a non-GAAP measure, represents cash flow from continuing operating activities less purchase of property and equipment and capitalized software. Adjusted free cash flow also deducts certain cash payments which the Company believe to be non-recurring in nature. We consider free cash flow and adjusted free cash flow to be liquidity measures that provide useful information to investors about the amount of cash generated or used by the business.

Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in the industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on our reported financial results.

The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below and not rely on any single financial measure to evaluate our business.

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
($ in '000's, except per share amounts)
CALCULATION OF EBITDA & ADJUSTED EBITDA

Three Months Ended March 31,

2025

2024

Amount

Amount

Net loss from continuing operations:

$

(765

)

$

(783

)

Adjustments:
Depreciation and amortization

742

728

Interest expense, net

204

284

Income tax expense (benefit)

(185

)

16

EBITDA from continuing operations:

(4

)

245

Acquisition and integration expenses (1)

129

65

Other non-recurring expenses (2)

236

(170

)

Stock-based compensation expense (3)

203

(79

)

Adjusted EBITDA from continuing operations:

$

564

$

61

(1) This adjustment gives effect to one-time corporate projects, including acquisition and integration expenses, incurred during the periods.
(2) For the three months ended March 31, 2025, this adjustment gives effect to the change in fair value of our interest rate swap of $69,000 as well as corporate re-brand costs of $132,000 and non-recurring accounting fees of $35,000. For the three months ended March 31, 2024, this adjustment gives effect to the change in fair value of our interest rate swap of $205,000, partially offset by non-recurring accounting costs of $35,000.
(3) The adjustments represent stock-based compensation expense from continuing operations related to awards of stock options, restricted stock units, or common stock in exchange for services. Although we expect to continue to award stock in exchange for services, the amount of stock-based compensation is excluded as it is subject to change as a result of one-time or non-recurring projects. For the three months ended March 31, 2024, this amount includes a benefit as a result of the resignation of an executive officer.

CALCULATION OF NON-GAAP NET INCOME (LOSS)

Three Months Ended March 31,

2025

2024

Amount

Per diluted
share

Amount

Per diluted
share
Net loss from continuing operations:

$

(765

)

$

(0.20

)

$

(783

)

$

(0.21

)

Adjustments:
Amortization of intangible assets (1)

630

0.16

643

0.17

Stock-based compensation (2)

203

0.05

(79

)

(0.02

)

Other unusual items (3)

365

0.09

(105

)

(0.03

)

Tax impact of adjustments (4)

(252

)

(0.06

)

(96

)

(0.02

)

Discrete items impacting income tax expense(5)

25

0.01

55

0.01

Non-GAAP net income from continuing operations:

$

206

$

0.05

$

(365

)

$

(0.10

)

Weighted average number of common shares outstanding - diluted

3,843

3,821

1) The adjustments represent the amortization of intangible assets related to acquired assets and companies.
2) The adjustments represent stock-based compensation expense from continuing operations related to awards of stock options, restricted stock units, or common stock in exchange for services. Although we expect to continue to award stock in exchange for services, the amount of stock-based compensation is excluded as it is subject to change as a result of one-time or non-recurring projects. For the three months ended March 31, 2024, this amount includes a benefit as a result of the resignation of an executive officer.
3) For the three months ended March 31, 2025, this adjustment reflects the change in fair value of our interest rate swap of $69,000, one-time corporate projects, including acquisition, divestiture and integration costs of $129.000, corporate re-brand costs of $132,000 and non-recurring accounting fees of $35,000. For the three months ended March 31, 2024, this adjustment gives effect to the change in fair value of our interest rate swap of $205,000, partially offset by one-time corporate projects, including acquisition and integration expenses, incurred during the period of $100,000.
4) This adjustment gives effect to the tax impact of all non-GAAP adjustments at the current Federal rate of 21%.
5) This adjustment gives effect to discrete items that impact income tax expense. For the three months ended March 31, 2025 and 2024, this relates to additional expense associated with vesting of stock-based compensation awards.

CALCULATION OF FREE CASH FLOW AND ADJUSTED FREE CASH FLOW

Three Months Ended March 31,

2025

2024

Amount

Amount

Net cash provided by operating activities from continuing operations (GAAP)

$

809

$

77

Payments for purchase of fixed assets and capitalized software

(35

)

(261

)

Free cash flow from continuing operations

774

(184

)

Cash paid for acquisition and integration items(1)

87

23

Cash paid for other unusual items(2)

168

35

Adjusted free cash flow from continuing operations (Non-GAAP)

$

1,029

$

(126

)

1) This adjustment gives effect to one-time corporate projects, including acquisition and integration expenses, paid during the periods.
2) For the three months ended March 31, 2025, this relates to payments related to our corporate re-brand and other non-recurring accounting fees. For the three months ended March 31, 2024, this relates to payments for non-recurring accounting fees during the period.

Conference Call Information

To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.

Date:

May 13, 2025

Time:

9:00 a.m. eastern time

Toll & Toll Free:

973-528-0011 | 888-506-0062

Access Code:

169180

Live Webcast:

https://www.webcaster4.com/Webcast/Page/2667/52259

Conference Call Replay Information

The replay will be available beginning approximately 1 hour after the completion of the live event.

Toll & Toll Free:

919-882-2331 | 877-481-4010

Passcode:

52259

Webcast Replay & Transcript

https://investors.accessnewswire.com/events-presentations

About ACCESS Newswire Inc.

We are ACCESS Newswire, a globally trusted Public Relations (PR) and Investor Relations (IR) solutions provider. With a focus on innovation, customer service, and value-driven offerings, ACCESS Newswire empowers brands to connect with their audiences where it matters most. From startups and scale-ups to multi-billion-dollar global brands, we ensure your most important moments make an impact and resonate with your audiences. To learn more visit www.accessnewswire.com.

Forward-Looking Statements

Certain statements in this press release are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or the Company's future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In particular, statements about the Company's expectations, beliefs, plans, objectives, assumptions, future events or future performance contained in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "commit," "estimate," "predict," "potential," "outlook," "guidance," "target," "goal," "project," "continue to," "confident," or the negative of those terms or other comparable terminology. The forward-looking statements in this press release include, among other things, our belief that the sale of our Compliance business positions us well as a focused standalone Communications platform subscription company, our goal of having 80% of our revenue come from subscription customers by the end of 2025 and our belief that the stage has been set for faster growth in the quarters ahead.

Please see the Company's documents filed or to be filed with the Securities and Exchange Commission at www.sec.gov, including the Company's Annual Reports filed on Form 10-K, including the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and Quarterly Reports on Form 10-Q, and any amendments thereto for a discussion of certain important risk factors that relate to forward-looking statements contained in this report. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company's control. These and other important factors may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statements are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For Further Information:

ACCESS Newswire Inc.
Brian R. Balbirnie
(919)-481-4000
brianb@accessnewswire.com

Hayden IR
Brett Maas
(646)-536-7331
brett@haydenir.com

Hayden IR
James Carbonara
(646)-755-7412
james@haydenir.com

ACCESS NEWSWIRE INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)

March 31,
2025

December 31,
2024

ASSETS

(unaudited)

Current assets:
Cash and cash equivalents

$

4,100

$

4,103

Accounts receivable (net of allowance for credit losses of $1,321 and $1,059 respectively)

3,489

3,351

Other current assets

1,915

1,234

Current assets held for sale

633

1,338

Total current assets

10,137

10,026

Capitalized software (net of accumulated amortization of $3,718 and $3,644, respectively)

884

934

Fixed assets (net of accumulated depreciation of $954 and $914, respectively)

338

365

Right-of-use asset - leases

703

766

Other long-term assets

97

158

Goodwill

19,043

19,043

Intangible assets (net of accumulated amortization of $7,654 and $7,024, respectively)

11,346

11,976

Deferred tax asset

4,735

3,793

Non-current assets held for sale

-

3,577

Total assets

$

47,283

$

50,638

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable

$

1,655

$

1,423

Accrued expenses

2,140

1,699

Income tax payable

3,787

56

Current portion of long-term debt

870

4,000

Deferred revenue

5,021

4,743

Current liabilities held for sale

-

893

Total current liabilities

13,473

12,814

Long-term debt (net of debt discount of $65 and $70, respectively)

2,326

11,930

Lease liabilities - long-term

581

668

Other long-term liabilities

8

-

Total liabilities

16,388

25,412

Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value, 1,000,000 shares authorized, no shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively.

-

-

Common stock $0.001 par value, 20,000,000 shares authorized, 3,847,743 and 3,838,743 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively

4

4

Additional paid-in capital

24,539

24,259

Other accumulated comprehensive loss

(176

)

(178

)

Retained earnings

6,528

1,141

Total stockholders' equity

30,895

25,226

Total liabilities and stockholders' equity

$

47,283

$

50,638

ACCESS NEWSWIRE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except share and per share amounts)

For the Three Months Ended

March 31,

March 31,

2025

2024

Revenues

$

5,476

$

5,572

Cost of revenues

1,203

1,388

Gross profit

4,273

4,184

Operating costs and expenses:
General and administrative

1,953

1,639

Sales and marketing

1,594

2,071

Product development

733

654

Depreciation and amortization

670

682

Total operating costs and expenses

4,950

5,046

Operating loss

(677

)

(862

)

Interest expense, net

(204

)

(284

)

Other income (expense)

(69

)

205

Loss before taxes

(950

)

(941

)

Income tax benefit

(185

)

(158

)

Net loss from continuing operations

(765

)

(783

)

Net income from discontinued operations, net of taxes

6,152

644

Net income (loss)

$

5,387

$

(139

)

Net loss from continuing operations per share - basic

$

(0.20

)

$

(0.21

)

Net loss from continuing operations per share - diluted

$

(0.20

)

$

(0.21

)

Net income from discontinued operations per share - basic

$

1.60

$

0.17

Net income from discontinued operations per share - diluted

$

1.60

$

0.17

Net income per share - basic

$

1.40

$

(0.04

)

Net income per share - fully diluted

$

1.40

$

(0.04

)

Weighted average number of common shares outstanding - basic

3,842

3,816

Weighted average number of common shares outstanding - fully diluted

3,843

3,821

ACCESS NEWSWIRE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)

For the Three Months Ended

March 31,

March 31,

2025

2024

Cash flows from operating activities:
Net income (loss)

$

5,387

$

(139

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Net income from discontinued operations, net of tax

(6,152

)

(644

)

Depreciation and amortization

742

728

Provision for credit losses

277

301

Deferred income taxes

(941

)

(7

)

Stock-based compensation expense

203

(79

)

Non-cash interest expense

4

4

Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable

(389

)

(611

)

Decrease (increase) in other assets

(57

)

(190

)

Increase (decrease) in accounts payable

231

279

Increase (decrease) in income tax payable

908

-

Increase (decrease) in accrued expenses and other liabilities

360

81

Increase (decrease) in deferred revenue

236

354

Net cash provided by operating activities of continuing operations

809

77

Net cash (used in) provided by operating activities of discontinued operations

(62

)

909

Net cash provided by operating activities

747

986

Cash flows from investing activities:
Proceeds from Sale of Compliance Business

12,000

-

Purchase of fixed assets

(12

)

(16

)

Capitalized software

(23

)

(245

)

Net cash provided by (used in) investing activities

11,965

(261

)

Cash flows from financing activities:
Payment of long-term debt

(12,739

)

(1,000

)

Net cash used in financing activities

(12,739

)

(1,000

)

Net change in cash and cash equivalents

(27

)

(275

)

Cash and cash equivalents - beginning

4,103

5,714

Currency translation adjustment

24

(40

)

Cash and cash equivalents - ending

$

4,100

$

5,399

Supplemental disclosures:
Cash paid for interest

$

223

$

304

SOURCE: ACCESS Newswire Inc.



View the original press release on ACCESS Newswire

FAQ

What were ACCESS Newswire's (ACCS) key financial results for Q1 2025?

ACCESS Newswire reported Q1 2025 revenue of $5.5M (down 2% YoY), Adjusted EBITDA of $564,000 (up from $61,000), and operating loss of $677,000. Cash flow from operations was $809,000.

How much did ACCESS Newswire (ACCS) sell its Compliance business for in 2025?

ACCESS Newswire sold its Compliance business for $12.5M on February 28, 2025, resulting in a net gain of $6M after taxes.

What is ACCESS Newswire's (ACCS) subscription growth in Q1 2025?

Subscriptions increased to 955 from 874 in Q1 2024, representing 9% growth excluding compliance subscription customers. Average ARR per subscription customer grew to $11,139.

What is ACCESS Newswire's (ACCS) strategic goal for subscription revenue by end of 2025?

ACCESS Newswire aims to have 75% of its revenue come from subscription customers by the end of 2025.

How did ACCESS Newswire's (ACCS) gross margins perform in Q1 2025?

Gross margins improved to 78% in Q1 2025, up from 75% in Q1 2024, due to lower staffing costs from operations team optimization.
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